AEterna Zentaris Announces Outcome of Management's Strategic Review

    QUEBEC CITY, QC, Oct. 2 /CNW Telbec/ - AEterna Zentaris Inc. (TSX: AEZ;
Nasdaq:   AEZS), a global biopharmaceutical company focused on endocrine therapy
and oncology, will announce today at 11: 00 a.m. Eastern Time, during a live
webcast presentation and conference call hosted by President and Chief
Executive Officer, David J. Mazzo, Ph.D., the outcome of management's review
of the Company's pipeline and business operations along with key elements of
the new strategic plan implemented to achieve short-term and long-term
    David J. Mazzo, President and Chief Executive Officer of AEterna Zentaris
stated, "Over the past four months, our Executive Team has been tasked with
completing a thorough review of our extensive pipeline and business operations
with the goal of creating a strategy optimized for success. As a result of
this extensive exercise, we established a harmonized global vision and
elucidated our strategic imperatives. Based on a rigorous assessment of the
value of our assets, our abilities and resources, the probability of success
and return on investment potential of each of our product candidates and our
objective to maximize shareholder value, we additionally established a set of
priorities and plans to achieve our vision."
    During the live webcast, the company will discuss in detail the following
fundamentals of their strategic plan.

    - AEterna Zentaris is now a multinational company with a clear vision to
      eventually become a fully integrated biopharmaceutical company (without
      commercial manufacturing). The necessary resources have been identified
      and allocated to achieve business success.

    - AEterna Zentaris has prioritized its pipeline, developed a partnering
      strategy and determined the value of its most immediate assets:


        Cetrorelix, currently in a Phase 3 program for benign prostatic
        hyperplasia (BPH), is clearly the Company's highest priority, being
        the asset with the largest combination of probability of success,
        proximity to launch and potential medical and commercial value. The
        Company has decided to seek a commercialization partner for
        cetrorelix, which, in this indication, has potential for base case
        peak annual sales of over $500 million in the United States market
        alone. After defining the critical path to registration, the Company
        expects to launch cetrorelix in the BPH indication in 2011.

        Furthermore, after optimization of formulation and trial design, the
        company plans to move into Phase 2b in the endometriosis indication
        and will announce timelines relative to this program in the near
        future. As was announced in May 2007, the rights to cetrorelix in the
        endometriosis indication were regained from Solvay. The decision to
        proceed with development was made based on:

          a) the proven safety and efficacy of Cetrotide(R)
          b) the overall database from preclinical and clinical studies in
          c) the large unmet medical needs and commercial opportunity in the
             area of endometriosis.

        Additionally, as with the BPH indication, AEterna Zentaris will
        eventually seek a commercialization partner as cetrorelix has the
        potential for base case peak annual sales of approximately
        $200 million in the U.S. market alone in the endometriosis


        AEterna Zentaris has established its cytotoxic conjugate, AEZS-108,
        as its highest earlier-stage priority, and will therefore initiate a
        Phase 2 trial with this compound in a both endometrial and ovarian
        cancers before year end. The Company feels AEZS-108 has large market
        opportunities that could compare to those for doxorubicin.

    - The Company provided clarity regarding its partnered development
      programs. The Company will minimize internal spend on partnered
      programs while continuing to respect its contractual obligations to
      support its partners for the development of ozarelix, perifosine,
      AEZS-127 and AEZS-130. AEterna Zentaris will employ a "piggy back"
      registration strategy to bring these products to market in the
      territories where is retains rights as commercial opportunity size

    - The Company prioritized the advancement of preclinical and very
      early-stage development programs based on risk-adjusted maximum market

    - The Company established a clear global partnering strategy moving

      - All commercially viable projects will be ideally developed internally
        through proof-of-concept in man
      - Asia (especially Japan) remains a market of interest for AEZS

    - The Company also identified non-core assets and will actively seek to
      monetize/divest these assets as a potential source of non-dilutive

    - The Company provided updated guidance for the 2007 total expected burn
      in a range of $25-$27 million. Additionally, in an effort to ensure
      financial flexibility, the Company recently filed a shelf prospectus.

    "It has been our guiding principle to communicate the complete picture of
AEterna Zentaris as it is and as it is planned to be with updated timelines,
priorities, key issues and expectations. After a rigorous review of the
projects, risks, plans and commercial opportunities, we are more bullish than
ever about the unrealized intrinsic value of AEZS and our ability to unlock it
to the benefit of patients and shareholders," concluded Dr. Mazzo.

    Conference call and Webcast

    Participants may access the live webcast via the Company's website at in the "Investors" section, or by telephone using the
following numbers: 416-644-3414, 514-807-8791 or 800-733-7571.
    A replay of the webcast will also be available on the Company's website
for a period of 30 days.

    About AEterna Zentaris Inc.

    AEterna Zentaris Inc. is global biopharmaceutical company focused on
endocrine therapy and oncology with proven expertise in drug discovery,
development and commercialization.
    News releases and additional information are available at

    Forward-Looking Statements

    This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the U.S. Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties, which could cause the Company's actual results to differ
materially from those in the forward-looking statements. Such risks and
uncertainties include, among others, the availability of funds and resources
to pursue R&D projects, the successful and timely completion of clinical
studies, the ability of the Company to take advantage of business
opportunities in the pharmaceutical industry, uncertainties related to the
regulatory process and general changes in economic conditions. Investors
should consult the Company's quarterly and annual filings with the Canadian
and U.S. securities commissions for additional information on risks and
uncertainties relating to the forward-looking statements. Investors are
cautioned not to rely on these forward-looking statements. The Company does
not undertake to update these forward-looking statements.

For further information:

For further information: Jenene Thomas, Senior Director, Investor
Relations & Corporate Communications, (908) 938-1475,; Paul Burroughs, Media Relations, (418)
652-8525 ext. 406,

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Aeterna Zentaris Inc.

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