Aeterna Zentaris turns to profit on finance income

Tue Aug 14, 2012 5:19pm EDT
 
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(Reuters) - Canadian drugmaker Aeterna Zentaris Inc AEZ.TO reported a quarterly profit on Tuesday, as finance income jumped.

Net income was $4.5 million, or 4 cents a share, compared with a loss of $10.6 million, or 12 cents a share, a year earlier. Revenue rose to $7.5 million, from $6.5 million.

The company posted a $7.6 million loss from operations for the second quarter ended June 30, compared with an $8.0 million loss in the same quarter last year.

But finance income rose to $12.1 million, from $265,000 last year. The company said the rise was thanks to a change in the fair value of its warrant liability and other gains related to foreign exchange rates, especially the weak euro.

Disappointing trial results for experimental cancer drug perifosine have weighed on Aeterna's stock, down more than 70 percent this year.

In May, the company agreed to cancel a licensing deal for perifosine with New York-based Keryx Biopharmaceuticals Inc KERX.O, but said it would continue a late-stage trial on its own.

(Reporting by Allison Martell; Editing by Frank McGurty)