Aequus Provides Second Quarter 2017 Operational Highlights
VANCOUVER, BC--(Marketwired - August 29, 2017) - Aequus Pharmaceuticals Inc. (TSX VENTURE: 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 three months ended June 30, 2017 and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
Key Highlights
Entered into a commercial collaboration with Santen Pharmaceutical Co., Ltd. (Santen) to become its exclusive promotional and marketing partner for an ophthalmology product in Canada which is currently under review by Health Canada;
Initiated a proof of concept clinical study for its long acting transdermal anti-nausea program, with results expected by the end of the current quarter;
Advanced its once-weekly transdermal aripiprazole program through the completion of a successful second proof of concept clinical studies and positive regulatory meeting with the US Food and Drug Association (FDA);
58% growth in revenue and net loss decrease of 9% compared to same quarter last year;
Cannabinoid franchise advanced through collaborations with the Centre for Drug Research and Development (CDRD), and a strategic supply agreement with Scientus;
Renewed the previous Shelf prospectus which has been in effect since 2015. The new Shelf prospectus will be in effect until September 2019.
Commercial Activities
The Company recorded revenues of $186,586 in the three month period ending June 30, 2017, representing 58% of growth as compared to the same period in 2016. On a year-to-date basis, the Company recorded $479,588 in revenues in the six month period ending June 30, 2017, a 105% growth compared to the same period in 2016. Revenues were attributable to its promotional activities for its third party products, Tacrolimus IR and PRVistitan™.
Since the initiation of Aequus' promotional efforts in December 2015, the generic version of the most commonly used dose of tacrolimus IR (1mg) has experienced growth of 103% to date and continues to gain market share from branded tacrolimus alternatives. Since the launch of Vistitan™ in April 2016, and with the support of Aequus' promotional efforts, Vistitan™ has been successfully listed among 90% of private payor groups as well as a benefit under key provincial formularies, including the Ontario Drug Benefit Plan, Alberta Health and Manitoba Health.
The Company expects revenues from the promotional activities of these two products to continue to grow in the current year as they continue to penetrate market share held by the branded equivalent and similar medications within the class.
In Q2 2017, the Company added to its commercial pipeline as it entered into a promotional agreement with Santen, a market leader in Japan for prescription ophthalmology therapies, where Aequus will build on its existing sales infrastructure to promote and support the launch of an undisclosed ophthalmology product which is currently under review by Health Canada.
"The agreement with Santen that we entered into this quarter reinforces our commitment to provide patients with high-quality therapeutics, and adds to the commercial ophthalmology franchise we have been building at Aequus since the launch of Vistitan in 2016," said Doug Janzen, CEO and Chairman of Aequus. "We look forward to seeing continued growth on the revenue side of our business as we look to add additional products in the near term."
Development Program Activities
The Company incurred research and development ("R&D") expenses of $581,670 in Q2 2017 as compared to $291,748 in Q2 2016. The increase was attributable to the Company completing the follow-on Proof of Concept clinical study for AQS 1301 (a once-weekly transdermal formulation of aripiprazole), the preparation for and attendance of the AQS1301 Pre-IND Meeting, the development of clinical trial materials and the initiation of the Proof of Concept study for AQS1303 (a long-acting transdermal anti-nausea patch).
The Company recently completed its Proof of Concept study for AQS1303 and expects results to be announced within the current quarter.
The Company continued to progress its cannabinoid development program since licensing the rights to a cannabinoid transdermal patch in the first quarter of 2017. The Company entered into a research collaboration for cannabinoid-based therapeutics with the Centre for Drug Research and Development in the quarter to establish pre-clinical safety and efficacy of select cannabinoid-based therapeutics targeting neurological movement disorders. The Company further validated the need for improved delivery methods, quality controlled ingredients, and clinical data to support safety and efficacy in key therapeutic areas through a market research survey involving 410 physicians in both Canada and the United States in the quarter. These activities have allowed The Company to calibrate its approach to the burgeoning sector to ensure value is brought to both patient and physician in this unique therapeutic space.
Since the end of Q2 2017, the Company announced a strategic supply agreement with Scientus, a biopharmaceutical company focused on R&D and product commercialization for extracts and formulations related to medical cannabinoids; and a collaboration around clinical trial management with Ehave, a healthcare bioinformatics company whose platform efficiently captures, integrates, and delivers high-quality clinical data and treatment tools. Aequus looks to continue to build on this momentum in the coming quarters.
FINANCIAL STATEMENTS AND MD&A
Investors are encouraged to review Aequus' complete Financial Statements and Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2017, which are available on the Company's website at www.aequuspharma.ca and on SEDAR at www.sedar.com.
