The most substantial value-driving catalyst for Aeterna Zentaris, however, will come in the first quarter of next year. Interim data from the company’s lead product perifosine, for the treatment of Multiple Myeloma, will be announced early in 2013. Perifosine failed an earlier Phase III trial for metastatic colorectal cancer in March, but it is not uncommon for oncology products to perform well against one cancer, and not another. Data from earlier Phase I/II studies in the Multiple Myeloma indication were promising. Following the failure, a licensing agreement with Keryx Biopharmaceuticals (NASDAQ:KERX) was cancelled, further pressuring shares but restoring full perifosine marketing rights to AEZS. The upcoming events provide a series of value-driving catalysts for AEZS with limited downside risk after major losses in March. Aside from perifosine, the market is discounting AEZS’ pipeline and the company appears undervalued following the declines earlier this year.
In connection with AEZS, PropThink has taken a long position and stands to realize significant gains if the price of AEZS appreciates. You should be aware that a shareholder of PropThink is a consultant to Aeterna Zentaris and receives a monthly retainer as compensation, none of which is shared with PropThink. Neither the opinion expressed herein, nor PropThink`s position, is influenced by this relationship. PropThink was not compensated to publish this article. Our full disclaimer is available at http://www.propthink.com/disclaimer.