Mr. Doug Janzen reports

AEQUUS PROVIDES GENERAL UPDATE AND FISCAL 2023 FINANCIAL RESULTS

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

Doug Janzen, chief executive officer, said: "I continue to believe in the potential of Zimed PF and the value that it will bring to Canadian ophthalmologists and their patients. With the successful launch last year, we are pleased to see the rapid formulary listings by private payers and strong uptake so far this year. We will now focus on expanding distribution and meeting the additional demand of Zimed PF."

Financial highlights

The company reported an operating loss before other income and expenses of $2,965,468 for fiscal 2023, an increase of 9 per cent from the loss before other income of $2,712,044 in the year ended Dec. 31, 2022. The higher loss was primarily due to lower revenue in fiscal 2023 relative to fiscal 2022. The lower revenue was offset by a reduction in expenses.

Aequus launched Zimed PF in August, 2023, and recognized $65,377 of revenue from its sales. The company experienced a decrease in revenue related to Evolve sales of $53,213. Overall revenue decreased $1,124,876, or 82 per cent, in 2023 compared with 2022, which was driven by the ending of contractual terms with Sandoz Canada Inc. in December, 2022.

Sales and marketing costs in fiscal 2023 were $1,628,790 when compared with $2,226,181 in fiscal 2022, a change of 27 per cent or $597,391. The majority of the decrease was related to a decrease in travel and staffing expenses within the sales team.

Research and development included product development expenses in fiscal 2023 of $301,280 compared with $168,714 in fiscal 2022, an increase of 79 per cent or $132,566. The majority of the expenses related to the Health Canada approval of Zimed PF.

General and administration expenses in fiscal 2023 were $1,179,060 compared with $1,593,362 in fiscal 2022, a decrease of 26 per cent or $414,303. The change in expenses 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 specialty pharmaceutical company focused on developing and commercializing high-quality, differentiated products in ophthalmology. 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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