Aequus Reports Third Quarter 2023 Financial Highlights and General Update

VANCOUVER, BC — Aequus Pharmaceuticals Inc. (TSX-V:AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a focus on developing, advancing, and promoting differentiated products, reports financial results for the quarter ended September 30, 2023 (“Third Quarter 2023”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

On August 24, 2023, the Company announced the launch of ZIMED® PF (“ZIMED”), the first preservative-free multi-dose Bimatoprost for glaucoma patients in Canada. “The positive reception of ZIMED among physicians, pharmacists, and patients is a testament to the products unique ability to address healthcare challenges in this category. Our optimism surrounding this launch with our investments in digital resources, retail and managerial expertise, set a promising tone for 2024,” says Grant Larsen, Chief Commercial Officer for Aequus Pharmaceuticals Inc. Canada.

Subsequent to September 30, 2023, the Company entered into a demand loan agreement with the chairman and chief executive officer 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 Quarter 2023 compared to revenue of $347,923 generated during the same period in 2022. During the nine months ended September 30, 2023 (“YTD 2023”) Aequus achieved $204,019 in revenues compared to $996,697 generated during the nine months ended September 30, 2022 (“YTD2022”) – a decrease of $792,678, or 80%.

Net losses increased by 61% in Third Quarter 2023 compared to the same period last year, with the Third Quarter 2023 net loss of $803,653 versus a $500,471 loss in the three months ended September 30, 2022 (“Third Quarter 2022”). The loss for YTD 2023 was $2,248,852 which is 2.7% higher than the $2,189,466 loss YTD 2022 primarily due to a decrease of $844,598, or 26% in expenses offset by the reduction of $792,678 in gross income due to the end of the promotional services agreement with Sandoz at the end of 2022, and the pause of sales in Canada for Evolve branded eyedrops in summer 2023. General administration costs were 21% lower in Third Quarter 2023 and 32% lower in YTD 2023 when compared to the same periods last year.

Highlights from the quarter are as follows:

§  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 in sales forces activities and lower products that require marketing initiatives. Sales and marketing expenses are expected to increase with activities transitioning from “Awareness” building of new product ZIMED to “share and revenue” acquisition.

§  The Company incurred research and development (“R&D”) expenses of $74,095 in Third Quarter 2023 compared to $6,041 in Third Quarter 2022. The Company incurred R&D expenses of $301,280 in YTD 2023 compared to $260,093 in YTD 2022. The $41,187 increase in YTD 2023 was mainly to higher expenses related to the launch process for preservative-free bimatoprost 0.03% eye drops termed “ZIMED® PF”.

§  General and administration (“G&A”) expenses were $278,412 in Third Quarter 2023 compared to $353,571 in Third Quarter 2022, a decrease of $75,159. G&A expenses were $877,238 in YTD 2023 compared to $1,286,576 in YTD 2022, a decrease of $409,338. The decrease was mainly driven by general cost-cutting measures and lower loan-related expenses.

ABOUT AEQUUS PHARMACEUTICALS INC.

Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown 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 license, remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.

Original source here.