Aeterna Has Net Profit Despite R&D Costs

Extensive investment in R&D, which increased 167% to $2.6 million forthe first six months of 1997, did not prevent Canadian biotechnology company Aeterna from returning a net profit of $57, 000 ($0.002 per share) for the period, the group has announced.

The company said that the increase in R&D was due primarily to US and Canadian clinical trials conducted on Neovastat (a shark cartilage derivative), which is being developed as a palliative treatment in advanced or metastatic cancers that are resistant to available therapies.

Aeterna's net income for the period ended June 30, was $3.1 million. This compares to $2.3 million for the same period last year. Net cash totaled $4.25 million, compared to $34.3 million for 1996.