Aequus Provides General Update & Fiscal 2023 Financial Results
VANCOUVER, April 29, 2024 – Aequus Pharmaceuticals Inc. (TSX-V:AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company focused on bringing healthcare solutions to Canadians through licensing and partnerships, today reports financial results for the year ended December 31, 2023 (“Fiscal 2023”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
Mr. Janzen, CEO. “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 payors 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% from the loss before other income of $2,712,044 in the year ended December 31, 2022 (“Fiscal 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%, in 2023 compared to 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 to $2,226,181 in Fiscal 2022, a change of 27% 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 to $168,714 in Fiscal 2022, an increase of 79% 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 to $1,593,362 in Fiscal 2022, a decrease of 26% 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 Pharmaceuticals Inc. (TSX-V: AQS, 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 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: our ability to continue to grow revenues and add new products; the current loans allowing us to bridge us to higher revenue; the expectation that 2023 and 2024 are transition periods as we look to add to our product offerings; 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; and the regulatory approval of its products. 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; 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 Management Discussion and Analysis, a copy of which is available on Aequus’ profile on the SEDAR website at www.sedarplus.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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
Aequus Investor Relations
Email: investors@aequuspharma.ca
Phone: 604-336-7906