Expectations Run High At AEterna Zentaris Inc. (USA) (AEZS) As Two New Drugs Enter Final Testing Phases

By Pablo Erbar

In a recent interview with Small Cap Nation, CEO David Dodd, of AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), and analyst Jeffrey Kraws, of Crystal Research Associates, came together for a discussion regarding the present and future of the biopharmaceutical drug development company. The finalization of testing and subsequent commercialization of the two Phase 3 product candidates currently being developed by AEterna will have a huge impact on the firm’s outlook.

In this sense, Dodd gladly announced that Macrilen, a drug designed to evaluate adults for growth hormone deficiency, is expected to deliver top-line results once the final stages of pivotal clinical testing are completed in early-2017. The other exciting drug in development is Zoptrex, a treatment for advanced endometrial cancer, which has been re-engineered from an established chemotherapeutic agent. The new treatment is not only safer in terms of side-effects, but also provides extended chances for survival for women with advanced endometrial cancer.

AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) expects to announce top-line results for Zoptrex this February, with filing of the new drug application to follow in the third quarter of 2017.

Both these drugs could become real game-changers for AEterna Zentaris Inc. (USA) (NASDAQ:AEZS). With regards to Zoptrex, Jeffrey Kraws believes, “this could be a several hundred million dollar drug easily and for other indications it could go into the billions”. Furthermore, the analyst suggested that the advantage of this treatment compared to its competitor Doxorubicin stems from its lower cardiotoxicity, which makes it safer, as well as the higher rate of survival for patients.

Macrilen, on the other hand, could enjoy a great deal of pricing flexibility thanks to its orphan drug status. Since there is no alternative compound to compete with, AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) could enter a highly profitable market segment. With such potential for success, the optimism displayed by both Dodd and Kraws regarding the biopharmaceutical company’s future comes as little surprise.

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Disclosures: The author, Pablo Erbar, holds no interest in any of the securities or entities mentioned above. He has not received compensation for this article, other than from Small Cap Nation. The statements above do not constitute recommendations. The article has been based on publicly available information, and seeks to be unbiased and non-promotional.