Aequus Reports Second Quarter 2022 Financial Highlights and General Update
VANCOUVER, British Columbia, Aug. 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, has hired Rabin Ramanjooloo as Director of Operations and today reported financial results for the quarter ended June 30, 2022 (“Second Quarter 2022”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
“We are excited to welcome Rabin Ramanjooloo to executive team,” says Grant Larsen, Chief Commercial Officer for Aequus. “Mr. Ramanjooloo has an MBA from Athabasca University, international experience in sales, marketing and training in pharmaceuticals, and more recently, specialty eyecare in Canada. His proven sales and launch experience with Canadian Eye Care Professionals will be important to the Company‘s success as we prepare for new product launches in the coming months and early 2023. His diverse background and operational capabilities in sales and marketing bring expanded opportunities to Aequus as we look to attract corporate partners in other specialty areas.
Financial Report Highlights
Aequus reported $346,494 in promotional services and product sales revenue during Second Quarter 2022 compared to revenue of $651,516 generated during the same period in 2021. During the six months ended June 30, 2022 (“YTD 2022”) Aequus achieved $648,774 in revenues compared to $1,143,337 generated during the six months ended June 30, 2021 (“YTD 2021”) – a decrease of $494,563, or 43%. “The lower revenues in Q2 are the result of Sandoz paying a lower profit share rate on Tacrolimus sales”, said Doug Janzen. “As we look to the second half of the year, we expect start launches of two SCOPE products, obtain Health Canada approval of Zimed and work to expand on the collaboration with Sandoz to result in meaningful revenue growth.”
“Our investments in people, training and new products will most certainly deliver added revenue in 2023 and the years to come. We are optimistic the preparations, pending contract renewals and organizational changes we’ve made in recent months, will bring value to our partners and renewed growth to the organization for years to come”, adds Grant Larsen, Chief Commercial Officer.
Net losses increased by 61% in Second Quarter 2022 compared to the same period last year, with the Second Quarter 2022 net loss of $772,110 versus a $479,041 loss in the three months ended June 30, 2021 (“Second Quarter 2021”). The loss for YTD 2022 was $1,688,996 which is 53% higher than the $1,100,700 loss YTD 2021 primarily due to investments in R&D related to Zimed and increased sales and marketing activities. General administration costs were 8% lower in Second Quarter 2022 and 11% lower in YTD 2022 when compared to the same periods last year.
Highlights from the quarter are as follows:
- Sales and marketing costs for Second Quarter 2022 were $663,082 compared to $523,929 in Second Quarter 2021, an increase of $139,153 or 27%. This surge was mainly driven by an increase in sales forces activities and new product marketing initiatives.
- The Company incurred research and development (“R&D”) expenses of $7,945 in Second Quarter 2022 compared to $106,395 in Second Quarter 2021. The Company incurred R&D expenses of $254,052 in YTD 2022 compared to $194,293 in YTD 2021. The $59,759 increase in YTD 2022 was mainly attributable authorization submissions to Health Canada related to the Zimed product.
- General and administration (“G&A”) expenses were $457,177 in Second Quarter 2022 compared to $497,393 in Second Quarter 2021, a decrease of $40,216. G&A expenses were $933,005 in YTD 2022 compared to $1,044,509 in YTD 2021, a decrease of $111,504. The decrease was mainly driven by lower costs related to accretion and interest expenses related to the Company’s loans.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V:
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 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.
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