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Aequus Provides General Update and Fiscal 2022 Financial Results, Total Revenue Down Sharply, Net Loss Rises
Wednesday, May 31, 2023Company Profile | Follow Company
Vancouver, BC, May 31, 2023--(T-Net)--Aequus Pharmaceuticals Inc. (TSX-V: AQS), a specialty pharmaceutical company focused on bringing healthcare solutions to Canadians through licensing and partnerships, reported financial results for the year ended December 31, 2022 ("Fiscal 2022") and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
Doug Janzen, Chairman and CEO, Aequus Pharmaceuticals
"We are excited to have begun a new chapter in our business built around ZIMED®. We hold a strong vision of how we want to grow into the future. The end of Fiscal 2022 concludes our promotional agreement with Sandoz and makes 2023 a pivotal year for Aequus as we focus on our own prescription product with a team that has extensive expertise in Ophthalmology. Years ago, we listened to the unmet need from Canadian Ophthalmologists and patients, and now we are thrilled to be providing an exceptional product to the community we serve," commented Mr. Janzen, CEO. "I continue to believe in the potential of Aequus and look forward to launching ZIMED® in the next 3 months."
Mr. Larsen, Chief Commercial Officer of the Company, added that he "is grateful for Mr. Janzen's support and faith in the team. His recent loan of $500,000 has brought his total loans in the last year to $2.5 million. Aequus has used the past several months of reduced sales activity to retool our sales team, and enhance our marketing capabilities. Reformatting CRM databases, digital sales training, validating HCP and KOL outreach capabilities are just some of the resource upgrades and prelaunch activities that Aequus has invested in and executed since Q4 2022. We are near ready for the ZIMED® launch and expect to begin commercial sales in June."
Financial Highlights
The Company reported an operating loss before other income and expenses of $2,712,044 for Fiscal 2022, an increase of 49% from the loss before other income of $1,822,294 in Fiscal 2021.
The higher loss was primarily due lower revenue in Fiscal 2022 relative to Fiscal 2021. The loss was offset by reduction in general, administration and development expense. The Company also impaired its $566,756 investment in reVision, which impacted the net loss after other income and expense resulting in a net loss of $3,210,044 in Fiscal 2022 compared to a $1,809,592 in Fiscal 2021.
Aequus experienced an increase in revenue related to Evolve sales of $138,860, but a decrease in overall revenue of $1,334,926, or 49%, in revenue in 2022 compared to 2021, which was driven by changes in contractual terms with Sandoz Canada Inc., which is now completed.
Sales and marketing costs in Fiscal 2022 were $2,226,181 when compared to $2,173,592 in Fiscal 2021, a change of 2% or $52,589. The majority of the increase related to an increase in travel and staffing expenses within the sales team.
Research and development included product development expenses in Fiscal 2022 of $168,714 compared to $296,848 in Fiscal 2021, a decrease of 43% or $128,134. The majority of the decrease was attributable to an expected recovery of $150,000 from Medicom Healthcare Ltd. for costs associated with the successful drug submission application to Health Canada for preservative-free bimatoprost 0.03% eye drops termed "ZIMED® PF" in December 2022.
General and administration expenses in Fiscal 2022 were $,1,593,362 compared to $2,023,773 in Fiscal 2021, a decrease of 21% or $430,411. During the year ended December 31, 2022, the Company's debt related costs were reduced with more favorable loan terms being achieved.
Fiscal 2022 $ |
Fiscal 2021 $ |
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Total revenue | 1,379,772 | 2,714,698 | ||
Net loss for the fiscal year | (3,210,044 | ) | (1,809,592 | ) |
Loss per share, basic and fully diluted | (0.02 | ) | (0.01 | ) |
Total assets | 1,691,466 | 4,348,115 | ||
Total current liabilities | (2,377,726 | ) | (2,457,068 | ) |
Total non-current liabilities | (693,778 | ) | (101,982 | ) |
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.
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. [ MORE ] |
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