Company

Bank

Analyst

Coverage

Opinion

Wk chg

6/18 cls

Aeterna Zentaris Inc. (TSX:AEZ; NASDAQ:AEZS)

Bloom Burton

Philippa Flint

Upgrade

Hold (from sell)

-13%

$1.18

Dundee

David Martin

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Buy (from neutral)

Flint upgraded after Aeterna raised $12.1M in a registered direct offering. She estimates the company now has sufficient cash through early 4Q11, before anticipated Phase III data for perifosine to treat colorectal cancer and multiple myeloma (MM) in November and December, respectively. Flint thinks the stock may increase as Phase III data approaches, so there is a "reasonable chance" that warrants from the offering will be exercised, with no further need for an additional offering ahead of the data. Perifosine, partnered with Keryx Biopharmaceuticals Inc. (NASDAQ:KERX), is an alkylphosphocholine modulator of the phosphoinositide 3-kinase (PI3K)/protein kinase B (PKB; Akt) and other signal transduction pathways.