Management’s Discussion and Analysis
of Financial Condition and Results of Operations
The following analysis provides a review of the Company’s results of operations, financial condition
and cash flows for the three-month period and full year ended December 31, 2007. In this
Management’s Discussion and Analysis (MD&A), the “Company”, “we”, “us”, and “our” mean
Æterna Zentaris Inc. and its subsidiaries. This discussion should be read in conjunction with the
information contained in Æterna Zentaris Inc.’s annual consolidated financial statements and related
notes for the years ended on December 31, 2007, 2006 and 2005. Our consolidated financial
statements are reported in United States dollars and have been prepared in accordance with generally
accepted accounting principles in Canada, or Canadian Generally Accepted Accounting Principles
(Canadian GAAP). All amounts are in US dollars unless otherwise indicated.
Æterna Zentaris Inc. (TSX: AEZ, NASDAQ: AEZS) is a global biopharmaceutical company focused on
endocrine therapy and oncology.
Our pipeline encompasses compounds at all stages of development, from drug discovery through marketed
products. The two highest priority clinical programs are our lead value driver, cetrorelix for benign prostatic
hyperplasia (BPH) and our lead oncology program, AEZS-108 for endometrial and ovarian cancers.
Key Developments for the Year Ended December 31, 2007
In January 2007, we completed the spin-off of Atrium Biotechnologies Inc., now known as Atrium Innovations
(Atrium) by distributing to our shareholders our remaining interest in Atrium.
In March 2007, the board of directors appointed David J. Mazzo, Ph.D. as new President and CEO of the
Between May and August 2007, the Company appointed three key members to the executive management team:
· Ellen McDonald, M.B.A. SVP and Chief Business Officer
Annual MD&A – 2007