VANCOUVER, British Columbia, Nov. 29, 2022 (GLOBE NEWSWIRE) -- 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 reported financial results for the quarter ended September 30, 2022 (“Third Quarter 2022”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
Financial Report Highlights
Aequus reported $268,970 in promotional services and product sales revenue during Third Quarter 2022 compared to revenue of $669,000 generated during the three months ended September 30, 2021 (“Third Quarter 2021”). During the nine months ended September 30, 2022 (“YTD 2022”) Aequus achieved $826,944 in revenues compared to $1,783,363 generated during the nine months ended September 30, 2021 (“YTD 2021”). "The lower revenues in Q3 are the result of Sandoz paying a lower profit share rate on Tacrolimus sales since January 2022,” said Doug Janzen. “As we look to next year, we now expect to launch SCOPE products and Zimed® PF mid-2023 to work toward meaningful revenue growth.”
Net losses increased by 31% in Third Quarter 2022 compared to the same period last year, with the Third Quarter 2022 net loss of $500,471 versus a $381,536 loss in Third Quarter 2021. The loss for YTD 2022 was $2,189,466 which is 48% higher than the $1,482,235 loss YTD 2021 primarily due to lower revenue. General administration costs were 27% lower in Third Quarter 2022 and 16% lower in YTD 2022 when compared to the same periods last year.
Highlights from the quarter are as follows:
Sales and marketing costs for Third Quarter 2022 were $506,230 compared to $551,966 in Third Quarter 2021, a decrease of $45,736 or 8%. The decrease related lower use of consultants and two staff positions that remained vacant for part of the Third Quarter.
The Company incurred research and development (“R&D”) expenses of $6,041 in Third Quarter 2022 compared to $49,122 in Third Quarter 2021. The Company incurred R&D expenses of $260,093 in YTD 2022 compared to $243,415 in YTD 2021. The $16,678 increase in YTD 2022 was attributable work related to the new Zimed® PF product submissions to Health Canada.
General and administration (“G&A”) expenses were $353,573 in Third Quarter 2022 compared to $488,039 in Third Quarter 2021, a decrease of $134,466. G&A expenses were $1,286,576 in YTD 2022 compared to $1,532,548 in YTD 2021, a decrease of $245,972. The decrease was mainly driven by cost cutting measures as well as lower costs related to accretion and interest expenses related to the Company’s loans.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a 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. 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 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 June 30, 2022, 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.
Aequus Investor Relations