Improving Life Transforming Value. May 2015

Improving Life… Transforming Value

Forward Looking Statement

This presentation 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 that 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 and clinical trials, the successful and timely completion of clinical studies, the risk that safety and efficacy data from any of our Phase 3 trials may not coincide with the data analyses from previously reported Phase 1 and/or Phase 2 clinical trials, the ability of the Company to efficiently commercialize one or more of its products or product candidates, the ability of the Company to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process, the ability to protect our intellectual property, the potential of liability arising from shareholder lawsuits 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 forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update these forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, unless required to do so by a governmental authority or by applicable law.

Highlights



Commercial-stage promotion

–

EstroGel

_{: Leading non-patch transdermal estrogen therapy product commercialized by}

Ascend Therapeutics in the US

–

Saizen

_{: Growth hormone replacement therapy in children and adults with growth}

hormone deficiency (GHD) commercialized by EMD Serono in the United States



Clinical-stage development

–

Zoptarelin doxorubicin: potential therapy for endometrial cancer

• ZoptEC Phase 3 trial (under SPA with FDA); wholly-owned, product candidate

• Potential additional indications (ex: ovarian, prostate, breast cancer therapies)

–

Macrilen™: potential drug for evaluating Adult GHD

• Confirmatory Phase 3 efficacy trial to be initiated before year-end



Growth

–

Actively pursuing other in-licensing, acquisition & promotion/co-promotion opportunities

–

Innovative technology platform supporting long-term growth (“cytotoxic peptide

conjugates” and “cell signaling”)



Leadership

–

Proven leadership with expertise in delivering revenue and earnings growth

At a Glance



Transitioning to a specialty biopharmaceutical company



Heavily focused on establishing revenues, cash and

profitability



Resource optimization / burn reduction is a priority



NASDAQ: AEZS, TSX: AEZ



Cash on hand as of March 31, 2015: $53.2 million with no

debt

Focused On Value Transformation

1993

2002

2003

2012

2013

2014

2015

Leadership with Significant Industry Success and Expertise

Executive

Title

Prior Affiliation(s)

Years of

Experience

David Dodd

Chairman, CEO

Abbott, BMS, Wyeth, Solvay,

Serologicals and others

30+

Jude Dinges

Senior VP and CCO

Merck, Novartis, Amgen

25+

Richard Sachse

Senior VP, CMO and CSO

Boehringer Ingelheim, Bayer,

Schwarz Pharma and UCB

20+

Phil Theodore

Senior VP, CAO, General

Counsel, Corporate Secretary

King & Spalding, Serologicals,

BioReliance, John H. Harland

and Zep

28+

Dennis Turpin

Senior VP and CFO

Coopers & Lybrand (now PwC)

25+

Strategic Growth Plan



Achieve successful commercial presence and growth

–

Successful licensing/acquisition/promotional opportunities

•

Field selling & development of EstroGel

_{, Saizen}

_{& additional}

products

•

Leverage sales force

•

Utilize collaborations to exploit portfolio value & growth



Pursue successful development and commercialization of our

internal product portfolio

–

Zoptarelin doxorubicin in oncology

–

Macrilen™ in endocrinology



Become a growth oriented specialty

biopharmaceutical company

Pipeline – Supporting Long-Term Growth

Product Candidate Discovery Preclinical Phase 1 Phase 2 Phase 3

LHRH - Disorazol Z Oncology

Erk inhibitors Oncology

AEZS-120 Prostate Cancer(4)

Zoptarelin doxorubicin Endometrial Cancer

Compound Library – MUSC(5)

Zoptarelin doxorubicin Ovarian(1)_{and Prostate}(2) _Cancer

(1) _{Phase 2 in ovarian cancer completed.} (2) _{Investigator-driven and sponsored.}

(3)_{Confirmatory Phase 3 efficacy trial to be initiated before year-end.} (4)_{Potential oral prostate cancer vaccine available for out-licensing.}

(5)_{Compound library transferred to MUSC, Aeterna Zentaris to access future candidates.}

Macrilen(macimorelin) AGHD(3)

Aeterna Zentaris

Women’s Health – EstroGel





Non-patch transdermal estrogen

therapy product commercialized by

Ascend Therapeutics in the US



Co-promotion agreement with

Ascend in the US



Promotion by Aeterna Zentaris

sales force in the US on a sales

commissions basis

10 Please see full Prescribing Information and boxed warning, or visit

35 years of worldwide patient use

Approved in over 70 countries

#1 prescribed estrogen product in Europe

#1 prescribed transdermal estrogen product

in Canada

EstroGel

®

is Established Worldwide



$3.6 billion annual US sales (2013)

–

Comprised of oral, transdermal, vaginal, IM products



Non-patch transdermal products

–

$100 million annual sales & fastest growing segment

–

Promotionally responsive market

Estrogen Replacement Market

12

Aeterna Zentaris EstroGel

®

Goals & Strategy



Be #1 in every territory we occupy



Sales and promotional campaigns to sustain Ascend’s

share of voice in the marketplace



Expand, defend and further define/differentiate

EstroGel

®

in the US marketplace

Aeterna Zentaris

Æterna Zentaris

Growth Hormone Market Overview



Growth hormones (GH) are used to treat growth hormone deficiency

(GHD) in both adult and pediatric

patients

–

Annually, approximately 40,000 pediatric patients or 0.2% of the child

population are treated with Growth Hormone



$1.6 billion market that is growing 10% annually



Six companies are actively promoting a GH brand



No true generic competition in the market



All products utilize the same molecule,

somatropin

–

Products are differentiated by mode of delivery, reimbursement, and

patient support programs

Æterna Zentaris

Saizen

®

Overview



EMD Serono owns the worldwide rights to the Saizen

®

_brand



Saizen

®

_{is indicated for the treatment of GHD in children and}

adults



Patients and providers can choose from 1 of 4 delivery options



Saizen

®

is currently the only product available that offers a

needle-free delivery system



Patients receive 24/7 nursing support for device training, and a

dedicated case manager to help resolve access &

reimbursement issues



Saizen

®

is currently supported by an internal commercial team

and promoted by only 8 Key Account Managers

Æterna Zentaris

AEZS and Ascend Promotional Partnership



Under a five year co-promotion agreement AEZS and Ascend

Therapeutics will allocate time from 53 sales representatives to

promote Saizen

®



Collectively AEZS and Ascend will significantly increase the

field selling of Saizen

®

_{with EMD Serono maintaining their}

existing selling



AEZS/Ascend will be compensated for New Patient Starts,

above an agreed-upon baseline



AEZS/Ascend selling is scheduled to launch Q2 2015

Aeterna Zentaris

Zoptarelin Doxorubicin –

Targeted Cytotoxic Therapy

Ref.: Westphalen et al. Int J Oncol. 2000

Binding

Internalization

Nucleus

Migration

Apoptosis induction

Bypassing the

MDR-1 system

Zoptarelin Doxorubicin

– A Potential Breakthrough in Cancer Therapy

Product



New Chemical Entity (NCE) composed of a targeted synthetic peptide

carrier linked to doxorubicin



Value proposition:

Improved, targeted delivery of doxorubicin with improved

benefit-risk profile

Status



ZoptEC Phase 3 trial in endometrial cancer currently enrolling in

North America, Europe and Israel

–

FDA Special Protocol Assessment (SPA)

–

CRO Ergomed to assume 30% up to $10 million of clinical and reg. costs

–

DSMB recommendation to continue ZoptEC trial following interim

analysis, April 2015

Zoptarelin Doxorubicin

–

Multiple Potential Applications

21

Source: Cancer Facts & Figures 2015, ACS; literature estimates

Tumor Site Estimated New US Cases 2015

Clinical Evaluation

Endometrium 54,870

Locally advanced, recurrent or metastatic, failure after platinum-taxane

9,000 Phase 3; ZoptEC trial; NCT01767155 (n=500), zoptarelin dox vs doxorubicin

Ovary 21,290

Platinum refractory or resistant 14,180 Phase 2; NCT00569257 (n=42)

Prostate 220,800

Castration and taxane resistant 33,000 Phase 1/2; NCT01240629 (n=55)

Breast 234,190

Chemotherapy refractory triple negative breast cancer

39,800 Phase 2; NCT01698281 Terminated (n=8)

Bladder 74,000

Locally advanced unresectable or metastatic

Zoptarelin Doxorubicin

–

Compelling Phase 2 Results

22

AGO-GYN5:

Stratum B : Advanced or recurrent endometrial cancer expressing LHRH receptors Stratum A : Platinum resistant ovarian cancer expressing LHRH receptors

Tumor Site/Study

Zoptarelin Doxorubicin

Doxorubicin

Overall Survival

Cardiotoxicity

Overall Survival

(Literature data)

Cardiotoxicity

(Literature data)

Endometrium

(AGO-GYN5)

15.0 months

0/44 reports

Endometrium

9.2 months

Endometrium

7.0 months

Ovary



Potentially the first FDA approved medical therapy for

treating advanced, recurrent endometrial cancer



Providing a medical option for significant unmet

medical needs



Resulting in rapid adoption as a core therapy for patient

treatment & management

Addressing Significant Unmet Medical Needs

ZoptEC Phase 3 Study Under SPA

Randomize

Median OS

Zopt dox 267 mg/m2 Day 1 of each cycle

Median OS

Doxorubicin 60 mg/m2 Day 1 of each cycle

Evaluation of response (every 3 cycles)

~ 384 events* (Death)

Primary Endpoint Overall Survival (OS)

~ 250 patients

~ 250 patients

Each cycle = 21 days

* Pre-planned interim analysis at ~ 128 events & ~ 192 events



Target Medical Oncologists

–

Universe includes 12,500 total

–

2,000 gynecological oncologists



Vertical Oncology Specialty Sales Force

–

Segmented strategy focused on high value targets and key

commercial insurers

–

Zoptarelin doxorubicin alone, 30-50 sales representatives

–

Zoptarelin doxorubicin + in-license brand, 70-100 sales

representatives

AEZS Commercial Plans in the US

Significant Market Opportunity Potential

Endometrial Cancer

$300 million – $400 million

Other Cancers

(Ovarian; Prostate; etc.)

> $500 million

26

Estimated US Annual Market Potential



Clinical development

–

Full recruitment of patients (n



500) in H1-2015

–

Second interim analysis in H2-2015 (~192 events)



Commercial plan

–

Prepare commercial launch in the US and other territories

–

Establish partnerships in strategic territories (ROW)

•

Out-licensing agreement with Sinopharm A-Think

for China, including Hong Kong and Macau

•

Other potential out-licensing agreements to come

Zoptarelin Doxorubicin… Next Steps



Strengthen patent protection

–

Process patent filed

–

Reduction of manufacturing costs >50%



Following successful development in endometrial

cancer therapy…

–

Ovarian cancer therapy (phase 2 successfully completed)

–

Prostate cancer therapy (phase 2 ongoing)

–

Additional indications with clinical data (bladder, breast

cancer)

–

LHRH-Disorazol Z (new patent protected optimized

follow-up molecule)

Zoptarelin Doxorubicin

… Life Cycle Management

Aeterna Zentaris

Aeterna Zentaris

Macrilen

TM

(Macimorelin)

Product



Novel orally-active ghrelin agonist that induces a fasting

patient’s GH secretion

Status



FDA issued a Complete Response Letter related to the

submitted NDA (November 6, 2014)



Following successful discussions with the FDA, Aeterna

Zentaris announced commitment to rapid clinical development

(April 13, 2015)

Aeterna Zentaris

Macrilen

TM

… Strong Value Proposition in AGHD



Novel

: the

only FDA approved

product for AGHD

(once approved)



Accurate

: comparable to current standard procedures



Safe

: well tolerated



Convenient

vs ITT

− Oral vs IV/IM injections

− Simple: single blood draw possible

− Shorter follow-up

− Less medical supervision

Aeterna Zentaris

Macrilen

TM

… Next Steps



Submit final protocol to FDA and initiate

confirmatory Phase 3 efficacy and QT trials



Commercial plan for product launch in the US

–

Core sales force of



20 reps

–

30 centers for GH evaluation in adults

–

2,500 specialists to target

Aeterna Zentaris

Milestones for 2015

STATUS

Commercial Development



EstroGel

_{revenue growth at 2x segment growth rate}



Launch Saizen

_selling

o

o

Expanding Commercial Portfolio



In-licensing, acquisition and/or promotion of additional registered

products for commercialization by Aeterna Zentaris

o

Resource & Organizational Improvement



Complete implementation of global optimization program to streamline

R&D activities, increase commercial activities and overall workforce

flexibility

Focused on Delivering on our Milestones

34

Milestones for 2015

STATUS

Zoptarelin doxorubicin



Achieve first interim analysis for ZoptEC trial



Complete patient recruitment for ZoptEC trial



Achieve second interim analysis for ZoptEC trial

o

o

o

Macrilen™



Resolve Go/No Go decision related to clinical development program

through FDA interactions



Initiate confirmatory Phase 3 efficacy trial

o

o

Erk Inhibitor Development Program



Selection of an optimized molecule for development

o

Focused on Delivering on our Milestones

35



Vision

Transform Aeterna Zentaris from R&D stage to a

commercially operating specialty biopharmaceutical

company through:



Working towards successful development and

commercialization of our pipeline



Pursuing successful in-/out-licensing opportunities

Improving Life… Transforming Value