(TheNewswire)
Vancouver, BC - TheNewswire - November 29, 2023 - Aequus Pharmaceuticals Inc. (TSX-V:AQS ) ( OTC:AQSZF) (“ Aequus ” or the“ Company ”), a specialty pharmaceutical company with a focus ondeveloping, advancing, and promoting differentiated products, todayreports financial results for the quarter ended September 30, 2023(“Third Quarter 2023”) and associated Company developments. Unlessotherwise noted, all figures are in Canadian currency.
On August 24, 2023, the Company announced the launch ofZIMED® PF (“ZIMED”), the first preservative-free multi-doseBimatoprost for glaucoma patients in Canada. “ The positive reception of ZIMED among physicians,pharmacists, and patients is a testament to the products uniqueability to address healthcare challenges in this category. Ouroptimism surrounding this launch with our investments in digitalresources, retail and managerial expertise, set a promising tone for2024 ,” says Grant Larsen, Chief CommercialOfficer for Aequus Pharmaceuticals Inc. Canada.
Subsequent to September 30, 2023, the Company enteredinto a demand loan agreement with the chairman and chief executiveofficer of the Company, for an additional unsecured demand loan of$1,000,000. The demand loan bears interest at an annual rate of 5%,to be accrued monthly, and is repayable on demand.
Financial Report Highlights
Aequus reported $13,359 in revenue during Third Quarter2023 compared to revenue of $347,923 generated during the same periodin 2022. During the nine months ended September 30, 2023 (“YTD2023”) Aequus achieved $204,019 in revenues compared to $996,697generated during the nine months ended September 30, 2022 (“YTD2022”) – a decrease of $792,678, or 80%.
Net losses increased by 61% in Third Quarter 2023compared to the same period last year, with the Third Quarter 2023 netloss of $803,653 versus a $500,471 loss in the three months endedSeptember 30, 2022 (“Third Quarter 2022”). The loss for YTD 2023was $2,248,852 which is 2.7% higher than the $2,189,466 loss YTD 2022primarily due to a decrease of $844,598, or 26%in expenses offset by the reduction of $792,678in gross income due to the end of the promotional services agreementwith Sandoz at the end of 2022, and the pause ofsales in Canada for Evolve branded eyedrops in summer 2023. General administration costs were 21% lower inThird Quarter 2023 and 32% lower in YTD 2023 when compared to the sameperiods last year.
Highlights from the quarter are asfollows:
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Sales and marketing costs for Third Quarter 2023 were$458,101 compared to $506,230 in Third Quarter 2022, a decrease of$48,129 or 10%. This reduction was mainly driven by a decrease insales forces activities and lower products that require marketinginitiatives. Sales and marketing expenses are expected to increasewith activities transitioning from “Awareness” building of newproduct ZIMED to “share and revenue” acquisition.
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The Company incurred research and development (“R”)expenses of $74,095 in Third Quarter 2023 compared to $6,041 in ThirdQuarter 2022. The Company incurred RD expenses of $301,280 in YTD 2023compared to $260,093 in YTD 2022. The $41,187 increase in YTD 2023 wasmainly to higher expenses related to the launch process for preservative-free bimatoprost 0.03% eye drops termed“ZIMED® PF”.
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General and administration (“G”) expenses were$278,412 in Third Quarter 2023 compared to $353,571 in Third Quarter2022, a decrease of $75,159. GA expenses were $877,238 in YTD 2023compared to $1,286,576 in YTD 2022, a decrease of $409,338. Thedecrease was mainly driven by general cost-cutting measures and lowerloan-related expenses.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V: AQS , OTCQB: AQSZF ) is a growing specialty pharmaceutical company focused on developingand commercializing high quality, differentiated products. Aequus hasgrown its sales and marketing efforts to include several commercialproducts in ophthalmology and transplant. Aequus plans to build on itsCanadian commercial platform through the launch of additional productsthat are either created internally or brought in through anacquisition or license, remaining focused on highly specializedtherapeutic areas. For further information, please visit www.aequuspharma.ca .
FORWARD-LOOKINGSTATEMENT DISCLAIMER
This release may containforward-looking statements or forward-looking information underapplicable Canadian securities legislation that may not be based onhistorical fact, including, without limitation, statements containingthe words “believe”, “may”, “plan”, “will”,“estimate”, “continue”, “anticipate”, “intend”,“expect”, “potential” and similar expressions. Forward-looking statements are necessarily based on estimates and assumptionsmade by us in light of our experience and perception of historicaltrends, current conditions and expected future developments, as wellas the factors we believe are appropriate. Forward-looking statementsinclude but are not limited to statements relating to: theimplementation of our business model and strategic plans; revenuegrowth trends into the future; expected timing for product launches;the Company’s expected revenues; the regulatory approval of itsproducts; the Company’s ability to attract international partners;and ongoing discussions with and the Company’s ability to secure potential partners to furthergrow our product portfolio. Such statements reflect our current viewswith respect to future events and are subject to risks anduncertainties and are necessarily based upon a number of estimates andassumptions that, while considered reasonable by Aequus, areinherently subject to significant business, economic, competitive,political and social uncertainties and contingencies. Many factorscould cause our actual results, performance or achievements to bematerially different from any future results, performance, orachievements that may be expressed or implied by such forward-lookingstatements. In making the forward looking statements included in thisrelease, the Company has made various material assumptions, including,but not limited to: obtaining regulatory approvals; general businessand economic conditions; the Company’s ability to successfully outlicense or sell its current products and in-license and develop newproducts; the assumption that the Company’s current goodrelationships with third parties will be maintained; the availabilityof financing on reasonable terms; the Company’s ability to attractand retain skilled staff; market competition; the products andtechnology offered by the Company’s competitors; the impact of thecoronavirus (COVID-19) on the Company’s operations; and theCompany’s ability to protect patents and proprietary rights. Inevaluating forward looking statements, current and prospectiveshareholders should specifically consider various factors set outherein and under the heading “Risk Factors” in the Company’sAnnual Information Form dated May 1, 2023, a copy of which isavailable on Aequus’ profile on the SEDAR website at www.sedar.com,and as otherwise disclosed from time to time on Aequus’ SEDARprofile. Should one or more of these risks or uncertainties, or a riskthat is not currently known to us materialize, or should assumptionsunderlying those forward-looking statements prove incorrect, actualresults may vary materially from those described herein. Theseforward-looking statements are made as of the date of this release andwe do not intend, and do not assume any obligation, to update theseforward-looking statements, except as required by applicablesecurities laws. Investors are cautioned that forward-lookingstatements are not guarantees of future performance and are inherentlyuncertain. Accordingly, investors are cautioned not to put unduereliance on forward looking statements.
On behalf of the Board of Directors,
“Douglas Janzen”
Director & CEO
CONTACT INFORMATION
Aequus Investor Relations
Email: investors@aequuspharma.ca
Phone: 604-336-7906
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX-V) accepts responsibility for the adequacy oraccuracy of this news release.
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