Saturday, May 23, 2015

Calling all Aeterna Zentaris AEZS stockholders!!! Retail Activist Campaign Begins!

Aeterna Zentaris has done a fantastic job of destroying shareholder value over the past year with a decline of -77%.  Even while having a cash position DOUBLE it's current market capitalization and TWO Phase 3 assets.  I'm tired of us retail investors taking it on the chin by companies that lack the leadership, execution, and the fiduciary responsibility to do what's best for it's shareholders.

I'm going to launch what may be the first Retail Activity Campaign to pressure the company to do what they should already be doing - listening to it's shareholders!  

I've attached a letter than I plan to send to the CEO and Board of Directors demanding that the company explore a sale.  But I need your help!  If you hold shares in AEZS and your want to join this campaign, please email me your name and number of shares owned.  I won't reference your name but I will reference your number of shares in the letter.  



David Dodd
Chairman and Chief Executive Officer
Aeterna Zentaris, Inc. 
315 Sigma Drive, Suite 302D
Summerville, SC 29483

Cc: Board of Directors

Mr. Dodd,

On November 6, 2014, Aeterna Zentaris received a complete responses letter from the FDA for Macrilen, though the trial was done under an SPA, and the market has since lost confidence in the direction of the company which is reflected in its stock performance. 

We beneficially own a significant number of the outstanding shares of AESZ and are long-term shareholder of the company.  Recent events and underperformance necessitate intervention.  As of Friday’s close, Aeterna Zentaris stock has declined -72% over the past year, -84% over the past two years, and -99% over the past ten years.  The Nasdaq Biotechnology Index has appreciated approximately +56%, +187%, and 444% over the comparable periods.

The shares are trading at a market capitalization of $27 million, half of the cash reported at March 31st, 2015.  Combine this with two late stage Phase 3 assets, Zoptarelin Doxorubican and Macrilen, and it’s easy for anybody to see that the company is severely undervalued. 

Building a sales infrastructure for the assumed launch of Macrilen is within the normal course of business but maintaining a sales team to sell Estrogel alone isn’t prudent and reflective in the mediocre sales results of $73,000 in the first quarter.  This strategy should be abandoned immediately without having a relevant product to sell. 

We request immediate disclosure of formal and informal expressions of interest and/or non-binding offers to acquire the Company.

We request that the Board of Directors immediately engage a top-tier investment bank and initiate a formal process to sell the company and/or it’s two leading assets and distribute proceeds and existing cash to shareholders. 

In parallel, we request that you step down as CEO or adjust your compensation to better align with the interests of shareholders.  We also request that the company undergo additional restructuring to preserve cash during the sales process including closing offices outside of the headquarters in South Carolina, eliminate your Chief Commercial Officer and the sales infrastructure built for the anticipated Macrilen launch, and evaluate other positions throughout the organization including the need for both a CFO and VP of Finance.

We welcome further discussion with you and the Board. 


Shane Skinner
Representing Significant Retail Ownership of AEZS

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