Mr. Doug Janzen reports

AEQUUS PROVIDES GENERAL UPDATE AND FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS

Aequus Pharmaceuticals Inc. has released financial results for the quarter ended March 31, 2023, and associated company developments.

"With the upcoming launch of Zimed PF expected in August of 2023, [first quarter] and [second quarter] 2023 has seen a focus on building our distribution commercial infrastructure with a focus on training, prelaunch communication and HCP education activities," said Doug Janzen, chairman and chief executive officer. "As anticipated, revenues for the quarter were reduced due to the completion of the Sandoz contract at the end of last year. However, we are pleased to see the excellent momentum with our dry eye e-commerce platform as Q1 sales of the Evolve line more than doubled compared to the same quarter last year. This performance is a testament to our commercial model and the breadth of our team's footprint and commitment in eye care."

Commercial update -- Zimed PF prelaunch

The company continues to work toward building its pipeline of products in ophthalmology and optometry with the December, 2022, regulatory approval of Zimed PF. The promotional service contracts for both Tacrolimus and Vistitan expired at year-end 2022, creating a gap in revenue till the launch of Zimed PF, scheduled for August, 2023. Aequus has taken the appropriate steps to minimize non-essential spending and reduce overhead, while executing prelaunch activities for Zimed and pursuing partnership relationships to complement its portfolio of products and utilize its team's expertise. Improved CRM and KOL programs, advanced digital marketing capabilities, prelaunch educational programs for HCPs, and additional business development resources will all add to its sale acceleration and portfolio expansion in the later half of 2023.

Financial update

Aequus recorded a net loss of $744,323 for the three months ended March 31, 2023, which is 19 per cent lower than the loss of $916,886 for the period ended March 31, 2022. The decrease in net loss was mainly due to a decrease of $413,413, or 34 per cent in expenses offset by the reduction of $239,239 in gross income due to the end of the promotional service agreement with Sandoz.

During the three months ended March 31, 2023, the company continued development activities related to bringing Zimed PF through regulatory approval, and as a result, the related expenses in research and development were $201,361 (March 31, 2022: $246,107).

The company realized a 132-per-cent increase in Evolve product sales during the three months ended March 31, 2023, relative to the prior year. The company recognized $92,251 from three months of Evolve product sales during 2023 compared with $39,760 for three months of Evolve product sales during the three months ended March 31, 2022.

About Aequus Pharmaceuticals Inc.

Aequus (TSX Venture Exchange: AQS and OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high-quality differentiated products. Aequus has expanded its sales and marketing efforts to include several commercial products in ophthalmology and transplant. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or licence, remaining focused on highly specialized therapeutic areas.

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