Sadif Issues Summary Due Diligence Report on AEterna Zentaris Inc. (USA)(NASDAQ:AEZS)

On September 29 Sadif Newsletter  & Investment Management Portal Issued a Summary Due Diligence Report on AEterna Zentaris Inc. (USA)(NASDAQ:AEZS) titled ”Will AEterna Zentaris Inc. Bounce Back?”

The report states that ”AEterna Zentaris Inc. is an average quality company with a positive outlook. AEterna Zentaris Inc. has weak business growth and is run by mediocre management. The trend in AEterna Zentaris Inc. fair value exchange rate against its closest rated-competitor, Cardiome Pharma Corp, has been appreciating over the past 2 weeks. When compared to its closest peer, GeneNews Ltd, AEterna Zentaris Inc. shows less undervaluation and is equally likely to outperform the market.

AEterna Zentaris Inc. (USA)(NASDAQ:AEZS) bills itself as a specialty biopharmaceutical company engaged in developing and commercializing novel treatments in oncology, endocrinology and women’s health.

Zoptarelin doxorubicin represents a new targeting concept in oncology using a hybrid molecule composed of a synthetic peptide carrier and a well-known chemotherapy agent, doxorubicin. Zoptarelin doxorubicin is the first intravenous drug in advanced clinical development that directs the chemotherapy agent specifically to LHRH-receptor expressing tumors, which could result in a more targeted treatment with less damage to healthy tissue.

The Company is currently conducting a fully-enrolled ZoptEC (Zoptarelin doxorubicin in Endometrial Cancer) Phase 3 trial in women with advanced, recurrent or metastatic endometrial cancer; results from a second interim analysis of this trial are expected in October 2015. Zoptarelin doxorubicin is also in an investigator‘initiated Phase 2 trial in prostate cancer. Aeterna Zentaris owns the worldwide rights to this compound except in China (including Hong Kong and Macau) where rights have been out-licensed to Sinopharm A-Think Pharmaceuticals, a subsidiary of Sinopharm, the largest medical and healthcare group in China and on Fortune’s Global 500 list.

According to the report ”The company’s share price has declined significantly over the past year, but we believe underlying fundamentals to be the primary determinant of long-term performance.

A StockMarks analysis of AEterna Zentaris Inc. reveals a company with an average quality and weak long-term business growth. The likelihood of AEterna Zentaris Inc. stock to outperform the market ??as measured by the

Outperformance StockMark (SMO) is well above average with a rating of 86 / 100. The market risk associated with holding the shares ??as measured by the Volatility StockMark (SMV) ??is well below average with a rating of 88 /100. Overall, we believe AEterna Zentaris Inc. to be a good long-term investment.”

On September 28 AEZS announced ”its lead oncology compound, zoptarelin doxorubicin (formerly AEZS‘108), met the primary end-point of the investigator-driven and sponsored Phase 2 clinical trial in Castration and taxane Resistant Prostate Cancer (CRPC) and demonstrated good tolerability. The primary endpoint was Clinical Benefit (CB) defined as remaining progression-free by RECIST and Prostate Specific Antigen (PSA) after treatment for 12+ weeks.

Results were presented this morning by lead investigator, Jacek Pinski, MD, PhD, of the USC Norris Comprehensive Cancer Center, during a poster session at the 18th ECCO – 40th ESMO European Cancer Congress in Vienna, Austria.

CEO David A. Dodd said “We are encouraged with the Phase 2 results for zoptarelin doxorubicin in prostate cancer. Because luteinizing hormone-releasing hormone receptors are expressed in a great number of cancers including prostate cancer, we believe that zoptarelin doxorubicin, which specifically targets those receptors, may represent a novel targeted treatment for men with this disease. These Phase 2 results in prostate cancer, as well as prior positive Phase 2 results in endometrial and ovarian cancer, are further demonstration of the potential of this innovative compound in a variety of cancer indications for both men and women.”


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