(RTTNews) -  Tuesday, biopharmaceutical company AEterna Zentaris Inc. (AEZS: News ) reported a narrower loss for the second quarter of fiscal 2009, driven by lower comparative research and development and other costs.

The company's second-quarter net loss was $13.08 million or $0.24 per share, compared with a net loss of $20.58 million or $0.39 per share in the prior-year quarter.

On average, 3 analysts polled by Thomson Reuters expected a loss of $0.23 per share for the quarter. Analysts' estimate typically excludes special items.

AEterna Zentaris' revenues declined to $8.38 million from $10.46 million a year ago. Three analysts had a consensus revenue estimate of $6.57 million for the quarter.

For the preceding first quarter, the company's net loss was $12.4 million or $0.23 per share on revenues of $6.1 million.

The company attributed the drop in revenue for the quarter under review to lower royalty revenues recognized in the second quarter of 2009 in connection with the company's agreement with Merck Serono where amortization of the proceeds received from Cowen for the three-month period ended June 30, 2009 was lower than the royalty revenues generated and payable directly by Merck Serono during the second quarter of 2008.
Sales and royalties slid to $5.43 million from $8.25 million in the previous year. The comparative decrease in sales and royalties is attributable to Euro - US dollar exchange rate fluctuations, given the comparative strengthening of the US dollar in the second quarter of 2009 vis-a-vis the Euro, and despite the increase in licence fee and other comparative revenues.

License fees and other totaled $2.95 million in the quarter, up from $2.21 million in the same quarter last year.

Consolidated research and development, or R&D, costs, net of tax credits and grants, were $12.1 million for the second quarter, lower than $17.3 million for the same period in 2008. The comparative decrease in net R&D costs is largely attributable to a lower volume of expenses incurred in connection with the continued advancement of the company's Phase 3 program for its lead compound, cetrorelix, in BPH, as well as to Euro - US dollar exchange rate fluctuations, the company stated.

Selling, general and administrative, or SG&A, expenses were $3.1 million, compared to $6.6 million a year ago, driven by comparative Euro - US dollar exchange rate fluctuations, the absence of certain non-recurring corporate expenses in 2009 related to organizational changes, and cost-saving measures that were implemented in the second quarter of 2008.

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