Please ensure Javascript is enabled for purposes of website accessibility

Aeterna Zentaris Casts a Lifeline

By Dave Williamson - Updated Apr 7, 2017 at 12:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Aeterna Zentaris (AEZS -0.05%) dropped over 10% after executing a six-for-one reverse stock split to boost its share price and regain compliance with Nasdaq rules, in order to stay listed.

The company has had a rough go of it ever since perifosine, its etastatic colorectal cancer drug, failed to meet its endpoint in late-stage clinical trials. AEZS has almost $40MM in cash, but it's burned through $34MM over the past 12 months as it advances drugs through four mid-stage trials, and two late-stage trials, including perifosine in other cancer indications. Fool.com analyst Dave Williamson is glad that Aeterna Zentaris will remain listed, but he advises investors to hold off until the company is able to show more trial results. For Dave's full take on the story, be sure to check out the video below.

 

While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report, "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aeterna Zentaris Inc. Stock Quote
Aeterna Zentaris Inc.
AEZS
$0.21 (-0.05%) $0.00
Keryx Biopharmaceuticals, Inc. Stock Quote
Keryx Biopharmaceuticals, Inc.
KERX

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.