Mr. Douglas Janzen reports

AEQUUS REPORTS SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS AND GENERAL UPDATE

Aequus Pharmaceuticals Inc. has released financial results for the quarter ended June 30, 2023, and associated company developments.

Doug Janzen shared: "We are very optimistic with the launch of our newest product Zimed PF this month as we move into a new chapter for Aequus. The financial results from the first half of 2023 are during a transitional period that we anticipated to be lower, mainly driven by the conclusion of the Sandoz contract last year and a reduction in the prescription portion of our business. The anticipated launch of Zimed PF will fill an unmet need with clinicians and their patients, as well as generate a significant revenue stream for the company starting in [fourth quarter] 2023."

Subsequent to June 30, 2023, Aequus has paused sales in Canada for Evolve-branded eyedrops. The Health Canada-initiated pause was required due to the manufacturer, Medicom Healthcare (United Kingdom), changing its MDSAP provider. It believes that all related expenses to the sales pause are covered by the manufacturer. Sales are not expected to resume in 2023.

Financial report highlights

Aequus reported $98,409 in revenue during second quarter 2023 compared with revenue of $346,494 generated during the same period in 2022. During the six months ended June 30, 2023, Aequus achieved $190,660 in revenues compared with $648,774 generated during the six months ended June 30, 2022, a decrease of $458,114, or 71 per cent.

Net losses decreased by 9.22 per cent in second quarter 2023 compared with the same period last year, with the second quarter 2023 net loss of $700,875 versus a $772,100 loss in the three months ended June 30, 2022. The loss for year-to-date 2023 was $1,445,198, which is 14.43 per cent lower than the $1,688,995 loss YTD 2022, primarily due to a decrease of $789,365, or 34 per cent in expenses, offset by the reduction of $521,146 in gross income due to the end of the promotional service agreement with Sandoz at the end of 2022. General administration costs were 23 per cent lower in second quarter 2023 and 36 per cent lower in YTD 2023 when compared with the same periods last year.

Highlights from the quarter are as follows:

• Sales and marketing costs for second quarter 2023 were $372,844 compared with $663,082 in second quarter 2022, a decrease of $290,238 or 44 per cent. This reduction was mainly driven by a decrease in sales forces activities and lower products that require marketing initiatives.
• The company incurred research and development expenses of $25,824 in second quarter 2023 compared with $7,945 in second quarter 2022. The company incurred R&D expenses of $227,185 in YTD 2023 compared with $254,052 in YTD 2022. The $26,867 decrease in YTD 2023 was mainly to lower expenses related to the approval process for preservative-free bimatoprost 0.03 per cent eyedrops termed Zimed PF.
• General and administration expenses were $353,584 in second quarter 2023 compared with $457,177 in second quarter 2022, a decrease of $103,593. G&A expenses were $598,826 in YTD 2023 compared with $933,005 in YTD 2022, a decrease of $334,179. The decrease was mainly driven by general cost-cutting measures and lower loan-related expenses.

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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