1

Investor Presentation

March 2010

2Forward-Looking Statements

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, which could cause the Æterna Zentaris’ 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 the 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 and disclaims 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, except if we are required by a governmental authority or applicable law.

3Æterna Zentaris

Late-Stage Drug Development Company Specialized in Oncology

and Endocrinology

4Æterna Zentaris

Management team

Juergen ErnstExecutive Chairman 30+ years experience: Solvay

Juergen Engel, Ph.D.President and CEO 30+ years experience: ASTA Medica

Paul Blake, M.D.Senior VP and CMO 25+ years experience: Cephalon, SmithKline Beecham

(now GSK), ICI Pharmaceuticals (now Astra Zeneca)

Nicholas J. Pelliccione, Ph.D.Senior VP, Regulatory Affairs and QA 20+ years experience: Chugai Pharma USA , Schering-

Plough

Matthias Seeber, M.B.A.Senior VP, Administration and Legal Affairs 15+ years experience: Altana AG, Deka Investment

Management, Dresdner Bank AG

Dennis Turpin, CASenior VP and CFO 20+ years experience: Coopers & Lybrand (now PWC)

5Late-Stage Oncology & Endocrinology Pipeline

Compound Indication Preclinical Phase 1 Phase 2 Phase 3 Commercial

Perifosine

Multiple Myeloma

Metastatic Colon Cancer

Kidney Cancer and Others

AEZS-108

Endometrial Cancer

Ovarian Cancer

Other Cancers

AEZS-112 Solid Tumor

AEZS-120 Tumor Vaccine

Prostate Cancer

AEZS-129/131 PI3K/Erk Inhibitor

Oncology

Cetrotide® In Vitro Fertilization

AEZS-130 (SolorelTM)

Diagnostic – Adult Growth Hormone Deficiency

AEZS-130 (macimorelin)

Therapeutic – Endocrinology

AEZS-123 Ghrelin Antagonist

Endocrinology

Partners: Merck Serono, Nippon Kayaku / Shionogi (Japan)

Partners: Keryx (North America) & Handok (Korea)

Partners: Keryx (North America) & Handok (Korea)

Partners: Keryx (N. America) & Handok (Korea)

6Vision & Business Strategy of Æterna Zentaris

Our vision: to become a fully-integrated specialty biopharmaceutical company

Our Business Development Strategy

− To retain co-marketing and/or co-promotion rights for our products

− To retain rights for certain territories for our products

− To have access to the development data of Licensee at no cost outside their territory

• Example: Perifosine (Keryx for North America and Handok for Korea)

7Perifosine: Abnormalities in the PI3K/Akt Signaling Pathway in Cancer

Brain

Breast

Pancreas

Colon

Liver

Prostate

Skin

Ovary

Blood (MM)Lung

Thyroid

Sarcoma

Kidney

Oral Akt inhibitor: Induction of apoptosis (cell death) &Inhibition of cellular proliferation and survival

8

0

20

40

60

80

100

120

0 5 7.5

Bortezomib (nM)%

con

trol

24hPerifosine (μM)

0

2.5

5

Reference: Hideshima et al. Blood 2006

Perifosine in Multiple Myeloma (MM):Synergistic Effect to Velcade®

Velcade® (bortezomib)

caspase ↑ Akt ↑

anti-apoptosis

Perifosine blocksVelcade®-activated Akt

apoptosis

20 nM

Perifosine (-) Perifosine (+) 5 μM

p-ERK

p-Akt

0 5 10 20 0 5 10

Akt

ERK2

Velcade®(bortezomib)

9Perifosine in MM: Phase 1 and 2 results

Perifosine + Velcade® +/- Dexamethasone in patients with relapsed / refractory MM

ASH 2009. Poster #1869

Nb of patients

ORR Median TTP

Perifosine + Velcade® +/- Dex

73 41% 6.4 months

Velcade® refractory 53 32% 5.7 months

Velcade® relapsed 20 65% 8.8 months

Perifosine + Velcade® + Dex well tolerated and active in heavily pre-treated and relapsed/refractory MM including Velcade® resistant patients

Durable responses with an extended PFS

10

Phase 3 multi-center randomized registration trial comparing Perifosine + Velcade® + Dex vs. Velcade® + Dex in previously treated Velcade® patients, has been granted SPA and Fast-Track Review

Patient enrollment initiated in December 2009 (n=400)

Inclusion Criteria Prior Velcade®-based treatment (relapsed) Prior Revlimid® and/or thalidomide treatment (relapsed or

refractory) 1 – 4 prior lines of treatment (i.e. Dex, stem cell

transplant, and other approved/non-approved MM treatment)

Perifosine in MM: Phase 3 Special Protocol Assessment (SPA) with FDA

11

Randomize

Progression

Off Study

Velcade® 1.3 mg/m2 x 4dDex 20 mg x 8d

Placebo 50 mg daily(n=200 patients)

Progression

Off Study

Velcade® 1.3 mg/m2 x 4d

Dex 20 mg x 8dPerifosine 50 mg daily

(n=200 patients)

Evaluate after 6 wks

If SD or > remain on tx

~ 265 events (PD/death)

Primary EndpointProgression Free Survival

Each cycle = 21 days

Perifosine in MM: Phase 3 Special Protocol Assessment (SPA) with FDA

12Perifosine in MM: Large Market Opportunity

MM is the 2nd most prevalent blood cancer affecting 200,000 people worldwide and nearly 60,000 deaths/year

Prevalence for

− U.S.: 15,000− EU – G5: 16,000− Japan: 3,500

MM U.S. market: Over $3 billion in revenue in the coming years

MM Current therapies

− Velcade® (bortezomib – Millenium/Takeda): 2008 sales > $1 billion− Revlimid® (lenalidomide – Celgene): 2009 sales > $1.7 billion

Source: Globocan 2002 & Frost and Sullivan

13

NF-B

5-FU sensitiveColon Cancer

Apoptosis

+ Xeloda® (capecitabine)

5-FU resistantColon Cancer

+ Xeloda® (capecitabine)

NF-B↑

AKT

Perifosine

IKK

Leleu et al., Blood, 2008.

Synergy 5-FU treatment and Akt inhibition described in Kodach et al., Carcinogenesis, 2006

NF-B↓

Perifosine in Metastatic Colon Cancer (MCC):Synergistic Effect to Xeloda®

14Perifosine in MCC: Phase 2 Results

Group nCR

n (%)

PR

n (%)

SD > 12 wks

n (%)CBR*

PD < 12 wks

n (%)

Xeloda® + Perifosine

20 1 (5%) 3 (15%) 11 (55%) 15 (75%) 5 (25%)

Xeloda® + Placebo

15 0 1 (7%) 5 (33%) 6 (40%) 9 (60%)

* CBR: Clinical Benefit Rate defined as patients on treatment > 12 weeks achieving stable disease (SD) or better; p=0.036

Duration of response: Xeloda® + perifosine: CR – 34 months (ongoing); PR – 21, 19, 11 months Xeloda® + placebo: PR – 7 months

Reference: ASCO-GI Symposium 2010

38 patients were enrolled, of whom 35 were evaluable

Average number of prior therapies: 2

Xeloda® 825mg/m2 BID d1-14 and perifosine 50 mg daily

15Perifosine in MCC: Phase 2 Results

Group n Median TTP OS

Xeloda® + Perifosine 20 28 weeks[95% CI (12.0, 48.0)]

18 months[95% CI (10.8,25.7]

Xeloda® + Placebo 15 11 weeks[95% CI (9.0, 15.9)]

11 months[95% CI (5.3,16.9)]

p = 0.0012 p = 0.0136

Reference: ASCO-GI Symposium 2010

Median Time to Progression (TTP) and Median Overall Survival (OS) for all patients

16Perifosine in MCC: Phase 2 ResultsSubgroup of 5-FU Refractory Patients

Group nPR

n (%)

SD > 12 wks

n (%)CBR*

PD < 12 wks

n (%)

Xeloda® + Perifosine

14 1 (7%) 8 (57%) 9 (64%) 5 (36%)

Xeloda® + Placebo

11 0 3 (27%) 3 (27%) 8 (73%)

* CBR: Clinical Benefit Rate defined as patients on treatment > 12 weeks achieving stable disease (SD) or better; p=0.066

Duration of response for PR: 19 months

Reference: ASCO-GI Symposium 2010

A subgroup of 25 patients was evaluable for response

17Perifosine in MCC: Phase 2 ResultsMedian TTP – 5-FU Refractory Patients

A = 11 patients [95% CI (6.6, 11.0)]

B = 14 patients [95% CI (12.0,36.0]

Reference: Bendell J. ASCO-GI Symposium 2010

p=0.0004

10 wks 18 wks

A B

18Perifosine in MCC: Phase 2 Results Median OS – 5-FU Refractory Patients

Reference: Bendell J. ASCO-GI Symposium 2010

A = 11 patients [95% CI (4.8,11.7)]

B = 14 patients [95% CI (8.4,26.0]

p=0.0088

A B

6.8 months 15.3 months

19Perifosine in MCC: Phase 3 Special Protocol Assessment (SPA) with FDA

SPA granted by FDA in February 2010 for Phase 3 X-PECT (Xeloda® + Perifosine Evaluation in Colorectal cancer Treament) trial

Study will be a randomized (1:1), double-blind trial comparing the efficacy and safety of Xeloda® + perifosine vs. Xeloda® + placebo

Approximately 40-50 U.S. sites will participate in the study

Study is expect to begin in Q2-2010 and enrollment is expected to be completed in H2-2011

Primary endpoint is overall survival and secondary endpoints include ORR, PFS and safety

20Perifosine in MCC: Market Opportunity

The fourth most commonly diagnosed cancer and second leading cause of cancer-related deaths in the U.S.

− Prevalence of colon cancer for:

• U.S.: 146,000• EU – G5: 110,000• Japan: 85,000

About one third of patients already have metastatic disease at diagnosis

No new FDA approved drugs since 2006 – need for new agents

Current therapies for 1st and 2nd line of treatment [Xeloda®; Avastin® ; Erbitux®] have overall sales of 4 billion US$

Source: Globocan 2002

21Perifosine in Advanced Metastatic Renal Cell Carcinoma (RCC): Rationale

December 2009, The Journal of Urology, Camillo Porta and Robert A. Figlin:

“Cumulative evidence links PI3K/Akt alterations with RCC and represents an ideal target for therapeutic intervention”

“Only perifosine has already proven to be clinically active”

Reference: J. Urol 2009;182:2569-2577

22

Patients with advanced metastatic RCCProgressing after either one prior therapy with a VEGF receptor inhibitor - Sutent® or

a VEGF receptor inhibitor and an mTOR inhibitor - Torisel®

Perifosine in Advanced Metastatic RCC:Phase 2 Study Design

Single agent - Perifosine 100 mg daily

Each cycle = 21 days

Primary Endpoint

Progression Free Survival

Evaluate each 12 weeks

CR, PR,Stable Disease

ContinueOn Study

Progression

Off Study

23Perifosine in Advanced Metastatic RCC: Phase 2 Results - Monotherapy

nPR

n (%)

SD > 12wks

n (%)

Median PFS

(all patients)

Median PFS

(patients SD or >)

Overall

survival

All patients (VEGF-R inhibitor)

Not reached (14/16 alive at 22+ months)

46 5 (11%) 16 (35%)12.5 weeks

[95% CI (11.9, 19)]33 weeks

[95% CI (24,60)]

Refractory patients (VEGF-R inhibitor + mTOR inhibitor)

16 1 (6%) 7 (44%)16 weeks

[95% CI (11.7, 33.6)]33.6 weeks

[95% CI (24, NR)]

Reference: ASCO 2009 and 8th International Kidney Cancer Symposium, Sept 2009

50 patients were enrolled of whom 46 were evaluable − 16 patients were refractory to both VEGF-R and mTOR

inhibitors

24Perifosine Summary

> 1,800 patients studied in Phase 1 and 2

− Single agent and combination− No major haematological toxicity

Phase 3 study in MM with SPA, Fast-Track review and Orphan Drug status granted by FDA and EMA – Patient enrollment initiated in Dec 2009 by our partner Keryx

Phase 3 study in metastatic colon cancer with SPA granted by the FDA – Patient enrollment will be initiated in Q2-2010 by our partner Keryx

Phase 2 studies ongoing in several other tumor types including renal cell cancer, glioma, Waldenstrom’s macroglobulinemia, and AML

25AEZS-108: Magic Bullet Doxorubicin Targeted Conjugate

Binding

Internalization

Nucleus Migration

DOXpayload

LHRH targeting agent

AEZS-108conjugate

26AEZS-108: Gynaecological Cancers Phase 1 Study

Duration- Re-dosing at 3-week intervals (= 1 cycle)- * equivalent doxorubicin dose - ** treatment cycles (TX) completed

Response- CR = complete response- PR = partial response- SD = stable disease

Dose Level 1 2 3 4 5 6

Dose [mg/m2] 10 20 40 80 160 (46*) 267 (76.8*)

Patients treated 1 1 1 1 6 7

Duration (Tx cycles) 2 2 2 22, 3, 5

6, 6, 6

1, 3, 4, 5

6, 6, 6

Response

1 CR (6)**

2 SD

1 CR (6)**

1 PR (6)**

2 SD

27AEZS-108: Phase 2 Study in Endometrial and Ovarian Cancer

Design− Conventional “Simon Design”− Open-label study in patients with advanced or recurrent

endometrial and platinum-resistant ovarian cancer− Two-stage design with up to 82 patients, 41 patients for each

indication− Opening of stage 2 requires tumor remission in at least 2 of 21

evaluable patients in each indication

Status− Response criteria for opening stage 2 were met for both indications− Enrollment for second stage completed for both indications− Preliminary evaluation revealed that primary endpoint of 5 or

more responders was met for both indications− Study ongoing for PFS and OS

28AEZS-112: Oral Tubulin and Topoisomerase II Inhibitor

Novel small molecule with oral capsule formulation

Multiple modes of action:− Inhibition of tubulin polymerization− Inhibition of topoisomerase II− Antiangiogenic properties− Cell cycle arrest

Strong in vivo activity and efficacy in multi-drug resistant (mdr) tumor cell lines

Phase 1 study (Dr Von Hoff, PI): 42 patients treated 12 patients with stable disease and time to failure of 5 – 14+ months Signs of activity in various indications including melanoma and cancers of

colon/rectum, lung, pancreas, prostate.

Safety profile makes AEZS-112 an excellent candidate for drug combinations

29AEZS-120 (Prostate cancer vaccine)

Oral live prostate cancer vaccine Basic feature: recombinant Salmonella strain with proprietary

secretion system of tumor antigen fused to immunostimulatory factor

Bacterial carrier acts as “intrinsic adjuvant” and has the potential to activate components of the innate and adaptive immune system

Based on approved oral typhoid live vaccine Salmonella typhi Ty21a, which has already been safely applied in > 250 Mio. doses

Proof-of-Principle in animal model Off the shelf product, low cost of goods allows flexible pricing

Platform technology

30AEZS-130 (SolorelTM; macimorelin (INN))A Growth Hormone (GH) Secretagogue Oral Ghrelin Mimetic

Oral administration Excellent binding to human ghrelin receptor (agonist

mode) 5 Phase 1 clinical trials completed to date with a total of

100 subjects treated Status: Phase 3 diagnostic of adult GH deficiency Orphan drug status for use as diagnostic test granted by

FDA Potential for Therapeutic indications given AEZS-130’s

GHS Activity and Ghrelin mimetic activity

31GH Concentration Following Oral Administration of AEZS-130 in Healthy Volunteers

0 60 120 180 240

-20

0

20

40

60

80

100

120

GH

con

cent

ratio

n (n

g/m

l)

time (min)

0.005 mg/kg AEZS-130 0.05 mg/kg AEZS-130 0.125 mg/kg AEZS-130 0.25 mg/kgAEZS-130 0.5 mg/kg AEZS-130 Placebo

32AEZS-130 (SolorelTM): Diagnostic Test for Adult GH Deficiency Preliminary Results

Better discrimination between adult GH deficiency patients and normal controls with SolorelTM, oral solution, compared to the currently used test with GHRH-Arginine, i.v. administration

Reference: 2009 ENDO meeting. G. Merriam et al. Poster P2-749

PEAK GH RESPONSES TO GHRH-ARGININE, SOLORELTM, AND ITT

SolorelTM

33Potential Therapeutic Indications for a GHS Ghrelin Mimetic Drug

GHS activity

− Hypo-pituitary deficiency in adults

− Idiopathic short stature, Turner’s syndrome, chronic renal failure in children

− Lipodystrophy associated with HIV treatment

Ghrelin mimetic activity

− Cachexia associated with cancer, COPD and AIDS

• U.S. prevalence for cachexia:

Cancer: 420 000 COPD: 3 200 000 AIDS: 315 000

− Post-operative ileus, diabetic gastroparesis

Ref.: JE Morley et al. Am J clin Nutr 2006;83:735-743

34

Financials

35Selected Annual Financial Results

(in millions of US dollars) For the years ended

December 31, 2009 December 31, 2008Revenues

License fees 42.2 8.5

Sales and royalties 21.0 29.5

Other - 0.5

63.2 38.5

Operating Expenses

Cost of sales, excluding D&A 16.5 19.3

R&D costs, net 43.8 57.1

SG&A expenses 16.0 17.3

D&A 10.8 7.1

87.1 100.8

Loss from operations (23.9) (62.3)

Other income (expenses) (0.8) 3.7

Loss before income taxes (24.7) (58.6)

Income tax expense - (1.2)

Net loss (24.7) (59.8)

36Cash Flows (Non-GAAP)

(in millions of US dollars) For the year ended

December 31,

For the year ended

December 31,

(unaudited) 2009 2008

Cash, cash equivalents & s.-t. investments* – beginning of the period 49.7 41.4

Net cash used in operating activities (24.1) (1.3)

Net cash provided by (used in) financing activities 14.2 (1.2)

Net cash provided by (used in) investing activities (0.2) 13.6

Exchange rate fluctuation impact and other (1.5) (2.8)

(11.6) (8.3)

Cash, cash equivalents & s.-t. investments – end of the period 38.1 49.7

* Excluding restricted cash (2009 only); no short-term investments as at December 31, 2009.

37

Goals for 2010

382010 Goals

Perifosine: Oral Akt inhibitor Our partner, Keryx, to progress patient enrollment for the

randomized Phase 3 placebo-controlled registration study in multiple myeloma (MM) according to the SPA agreed protocol with FDA

Keryx to initiate a Phase 3 trial in Metastatic Colon Cancer in Q2-2010 according to the SPA protocol with the FDA

Report results for ongoing Phase 2 studies in MM, Metastatic Colon Cancer, Pediatric Solid Tumors and other cancers

AEZS to update development and registration strategy for ex-North American territories, including Europe and Asia

392010 Goals

AEZS-108: Doxorubicin-targeted conjugate Report final results from Phase 2 study in advanced

ovarian and advanced endometrial cancer

Initiation of additional clinical studies in advanced ovarian or advanced endometrial cancer

Initiation of one or more Phase 1/2 trials in other LHRH expressing cancer types

402010 Goals

AEZS-130 (SolorelTM): Oral ghrelin agonist Completion of Phase 3 study for diagnostic test for adult

growth hormone deficiency (GHD)

Filing of an NDA in U.S. as diagnostic test for adult GHD pending successful completion of Phase 3 study

Initiation of clinical program in pediatric GHD

Update development and registration strategy

− “Rest of world” as diagnostic test in adult and pediatric GHD

Explore potential for therapeutic use