Aequus Reports Second Quarter 2023 Financial Highlights and General Update
August 29 2023 - 9:53PM
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, today
reports financial results for the quarter ended June 30, 2023
(“Second Quarter 2023”) and associated Company developments. Unless
otherwise noted, all figures are in Canadian currency.
Doug Janzen shares that “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
Q4 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 (UK), changing their MDSAP provider. We believe 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 to revenue of $346,494 generated during the
same period in 2022. During the six months ended June 30, 2023
(“YTD 2023”) Aequus achieved $190,660 in revenues compared to
$648,774 generated during the six months ended June 30, 2022 (“YTD
2022”) – a decrease of $458,114, or 71%.
Net losses decreased by 9.22 % in Second Quarter
2023 compared to 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 (“Second Quarter 2022”). The loss for
YTD 2023 was $1,445,198 which is 14.43% lower than the $1,688,995
loss YTD 2022 primarily due to a decrease of $789,365, or 34% in
expenses offset by the reduction of $521,146 in gross income due to
the end of the promotional services agreement with Sandoz at the
end of 2022. General administration costs were 23% lower in Second
Quarter 2023 and 36% lower in YTD 2023 when compared to the same
periods last year.
Highlights from the quarter are as follows:
- Sales and marketing costs for
Second Quarter 2023 were $372,844 compared to $663,082 in Second
Quarter 2022, a decrease of $290,238 or 44%. 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 (“R&D”) expenses of $25,824 in Second Quarter 2023
compared to $7,945 in Second Quarter 2022. The Company incurred
R&D expenses of $227,185 in YTD 2023 compared to $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% eye drops termed “ZIMED® PF”.
- General and administration
(“G&A”) expenses were $353,584 in Second Quarter 2023 compared
to $457,177 in Second Quarter 2022, a decrease of $103,593. G&A
expenses were $598,826 in YTD 2023 compared to $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 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.
FORWARD-LOOKING STATEMENT DISCLAIMER
This release may contain forward-looking
statements or forward-looking information under applicable Canadian
securities legislation that may not be based on historical fact,
including, without limitation, statements containing the words
“believe”, “may”, “plan”, “will”, “estimate”, “continue”,
“anticipate”, “intend”, “expect”, “potential” and similar
expressions. Forward- looking statements are necessarily based on
estimates and assumptions made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as the factors we believe are
appropriate. Forward-looking statements include but are not limited
to statements relating to: the implementation of our business model
and strategic plans; revenue growth trends into the future;
expected timing for product launches; the Company’s expected
revenues; the regulatory approval of its products; the Company’s
ability to attract international partners; and ongoing discussions
with and the Company’s ability to secure potential partners to
further grow our product portfolio. Such statements reflect our
current views with respect to future events and are subject to
risks and uncertainties and are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Aequus, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies.
Many factors could cause our actual results, performance or
achievements to be materially different from any future results,
performance, or achievements that may be expressed or implied by
such forward-looking statements. In making the forward looking
statements included in this release, the Company has made various
material assumptions, including, but not limited to: obtaining
regulatory approvals; general business and economic conditions; the
Company’s ability to successfully out license or sell its current
products and in-license and develop new products; the assumption
that the Company’s current good relationships with third parties
will be maintained; the availability of financing on reasonable
terms; the Company’s ability to attract and retain skilled staff;
market competition; the products and technology offered by the
Company’s competitors; the impact of the coronavirus (COVID-19) on
the Company’s operations; and the Company’s ability to protect
patents and proprietary rights. In evaluating forward looking
statements, current and prospective shareholders should
specifically consider various factors set out herein and under the
heading “Risk Factors” in the Company’s Annual Information Form
dated May 1, 2023, a copy of which is available on Aequus’ profile
on the SEDAR website at www.sedar.com, and as otherwise disclosed
from time to time on Aequus’ SEDAR profile. Should one or more of
these risks or uncertainties, or a risk that is not currently known
to us materialize, or should assumptions underlying those
forward-looking statements prove incorrect, actual results may vary
materially from those described herein. These forward-looking
statements are made as of the date of this release and we do not
intend, and do not assume any obligation, to update these
forward-looking statements, except as required by applicable
securities laws. Investors are cautioned that forward-looking
statements are not guarantees of future performance and are
inherently uncertain. Accordingly, investors are cautioned not to
put undue reliance 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 nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX-V) accepts responsibility for the adequacy or
accuracy of this news release.
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