July 26, 2011

Aeterna Zentaris Completes Phase 3 Study on AEZS-130 as First Oral Diagnostic Test for Adult Growth Hormone Deficiency

Company expects to file New Drug Application

QUÓ°BEC CITY, July 26, 2011 /PRNewswire/ - Aeterna Zentaris Inc. (NASDAQ:
AEZS) (TSX: AEZ) (the "Company") today announced completion of its
Phase 3 study with AEZS-130 as the first oral diagnostic test for Adult
Growth Hormone Deficiency (AGHD). The Company is currently proceeding
with detailed analyses of the data and preparing for a pre-New Drug
Application (NDA) meeting with the U.S. Food and Drug Administration
(FDA) in the upcoming months, which would be followed by the filing of
a NDA for the registration of AEZS-130 in the United States.

"We wish to thank all those involved in this project for their utmost
dedication. Preliminary results are encouraging and we therefore expect
to submit a NDA to the FDA. We believe that AEZS-130 could become the
first approved oral test for the diagnosis of AGHD, providing patients
with a potentially safer, accurate and more convenient alternative to
the current injectable tests", stated Juergen Engel, Ph.D., President
and CEO at Aeterna Zentaris.

Study History

The study titled, "A Multi-Center Study Investigating a New, Oral Growth Hormone
Secretagogue (AEZS-130, formerly ARD-07) as a Growth Hormone (GH)
Stimulation Test in Terms of Safety and Efficacy"
, was originally initiated to compare the performance of AEZS-130 against
the then-available diagnostic growth hormone-releasing hormone (GHRH)
Geref Diagnostic(® )+ Arginine (ARG) standard test. Geref Diagnostic(®) was subsequently withdrawn from the market, worldwide, in 2008; the
trial's sponsor, Ardana Biosciences (Ardana), discontinued the study
for financial reasons before it was completed. In 2009, Aeterna
Zentaris entered into an agreement with administrators of Ardana and
regained the rights to AEZS-130, and with the FDA, established the best
way forward to complete this Phase 3 study and continue to utilize the
data already obtained, in light of the loss of the original comparator.
A Special Protocol Assessment (SPA) granted by the FDA, resulted in a
modification of the original study, without altering the basic study
design so that the completed portion of the study and the new part of
the study would provide one, complete, Phase 3 study.

Study Design

The first part of the study conducted by Ardana was a two-way crossover
study involving 42 patients with confirmed AGHD or multiple pituitary
hormone deficiencies and a low insulin-like growth factor-I. A control
group of 10 subjects without AGHD were matched to patients for age,
gender, body mass index and (for females) estrogen status.

Each patient received two dosing regimens in random order, while
fasting, at least 1 week apart. One regimen consisted of a 1 µg/kg
(max. 100 µg) dose of GHRH (Geref Diagnostic(®), Serono) with 30 g of ARG (Ar-Gine(®), Pfizer) administered intravenously over 30 minutes; the other regimen
was a dose of 0.5 mg/kg body weight of AEZS-130 given in an oral
solution of 0.5 mg/ml.

As a result of the SPA reached with the FDA in order to complete the
trial, the second part of the study contained the following
revisions/additions to the first protocol:

        --  An additional 30 normal control subjects were enrolled to match
            the AGHD patients from the original cohort;
        --  Further, an additional 20 subjects were enrolled - 10 AGHD
            patients and 10 matched normal control subjects;
        --  The above brought the database to 100 subjects;
        --  All subjects received a dose of 0.5 mg/kg body weight of
        --  As a secondary endpoint, the protocol required that at least 8
            of the 10 newly enrolled AGHD patients be correctly classified
            by a pre-specified peak GH threshold level.

About AEZS-130

AEZS-130, a ghrelin agonist, is a novel orally active small molecule
that stimulates the secretion of growth hormone. The Company has
completed a Phase 3 trial for use as a simple oral diagnostic test for
adult growth hormone deficiency (AGHD). AEZS-130 works by stimulating a
patient's growth hormone secretion after which a healthcare provider
will measure how well the body responds to that stimulation based on
the patient's growth hormone levels over a period of time. Low growth
hormone levels, despite giving an effective stimulating agent, confirm
a diagnosis of AGHD. AEZS-130 has been granted orphan-drug designation
by the FDA for use as a diagnostic test for growth hormone deficiency.
Aeterna Zentaris owns the worldwide rights to AEZS-130 which, if
approved, would become the first orally administered diagnostic test
for AGHD.

About AGHD

AGHD affects 35,000 adult Americans, with 6,000 new adult patients
diagnosed each year. Growth hormone not only plays an important role in
growth from childhood to adulthood, but helps promote good health
throughout life. AGHD is usually characterized by low energy levels,
decreased strength and exercise tolerance, increased weight or
difficulty losing weight, emotional changes, anxiety and impaired
sleep. Available diagnostic tests for AGHD are complex and can produce
significant side effects.

About Aeterna Zentaris Inc.

Aeterna Zentaris is a late-stage oncology drug development company
currently investigating potential treatments for various cancers
including colorectal, multiple myeloma, endometrial, ovarian, prostate
and bladder cancer. The Company's innovative approach of "personalized
medicine" means tailoring treatments to a patient's specific condition
and to unmet medical needs. Aeterna Zentaris' deep pipeline is drawn
from its proprietary discovery unit providing the Company with constant
and long-term access to state-of-the-art therapeutic options. For more
information please visit www.aezsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements made pursuant to
the safe harbour 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, 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
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. 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.