Dr. Don McAfee reports

AEQUUS ANNOUNCES POSITIVE SKIN IRRITATION RESULTS FOR ONCE-WEEKLY TRANSDERMAL ARIPIPRAZOLE

Aequus Pharmaceuticals Inc. has received positive skin irritation results in animal studies for its lead program, AQS-1301, a once-weekly transdermal formulation of aripiprazole. The formulation will be advanced into a comprehensive animal pharmacokinetic study in June, which is expected to confirm that the transdermal patch is delivering target levels of drug. The results from these studies will then inform the proof-of-concept clinical trial in humans, which is expected in the second half of 2015.

"We are very encouraged by the progress being made on AQS-1301," said Dr. Don McAfee, chief scientific officer of Aequus. "These skin irritation studies give us confidence that we are on the right track to manufacture a skin patch that will safely deliver sufficient amount of drug to treat patients with psychiatric disorders."

The oral, once-daily formulation of aripiprazole is currently marketed under the trade name Abilify, which is an atypical antipsychotic, used for the treatment of bipolar I disorder, schizophrenia, irritability associated with autistic disorder and major depressive disorder. Abilify is a market leader in the United States, and Aequus believes it has limitations due to its daily dosing regimen, which is associated with frequent missed doses and subsequent risk of relapse. Aequus's proposed transdermal, once-weekly aripiprazole patch is designed to deliver aripiprazole consistently over a seven-day period at levels equivalent to currently marketed once-daily formulations. By delivering aripiprazole over seven days in a comfortable, convenient, easy-to-monitor and easy-to-use weekly patch, AQS-1301 is intended to promote enhanced medication adherence.

We seek Safe Harbor.