We have a runner >>>>> Aequus Reports Largest Quarterly Revenue in Company History and Provides Management Update
VANCOUVER, British Columbia, Nov. 29, 2018 (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 three and nine months ended September 30, 2018 and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.
Q3 2018 Key Highlights
Largest quarterly revenue in company history with $420,158 in reported revenues for Q3 2018, an increase of 44% compared to the three months ended September 31, 2017 (“Q3 2017”);
Year to date revenue for the nine months ended September 30, 2018 of $1,173,013, a 52% increase over the same period in 2017.
Decrease in net losses of 31% over the same quarter last year, and an overall 34% decrease in losses for nine months ended September 30 when compared to the same time period in 2017.
The Company successfully closed two financings with total gross proceeds of $1,575,000.
Subsequent to the end of the quarter, The Company formed a Strategic Advisory Board in Ophthalmology comprised of clinical, commercial, and regulatory expertise.
“Our strong promotional efforts across Canada continue to yield positive results with our largest quarterly revenue in company history,” said Ian Ball, CCO of Aequus. “Our position within Canada continues to strengthen, with our commercial team consistently building relationships with key contacts in the industry. These relationships, along with the formation of our Strategic Advisory Board in Ophthalmology will be paramount as we continue to expand our product portfolio moving forward.”
The Company’s commercial activity generated revenues of $420,158 in Q3 2018, representing 44% growth as compared to the same period in 2017. On a year-to-date basis, the Company recorded $1,173,013 in revenues in the nine-month period ending September 30, 2018, an increase of 52% compared to the same period in 2017. The increase in revenues were primarily attributable to increased promotional activities being focused in markets with positive market access and reimbursement listings.
Subsequent to the end of the quarter, Aequus has formed a Strategic Advisory Board in Ophthalmology to assist in assessing and rationalizing the many ophthalmology pipeline opportunities, both in therapeutics and medical devices, available to the Company. The Advisory Board will help Aequus in determining whether a product can improve patient outcomes, integrate into a clinician’s workflow, and navigate the Canadian reimbursement and commercial landscape.
Development Program Activities
Aequus announced an expanded market opportunity for its reformulated anti-nausea transdermal patch, AQS1303, into the European market with the approval of Diclectin®, the oral reference product for AQS1303 for the treatment of nausea and vomiting of pregnancy, having recently received marketing authorization in the United Kingdom under the brand name Xonvea®. Aequus plans to launch AQS1303 in countries where an original oral form has been approved and an accelerated path to approval may exist for reformulated products.
Sales and marketing expenses for Q3 2018 were $449,932 and $310,163 in the same period last year. The 45% increase was primarily the result of higher marketing costs related to Zepto and staff vacancies in Q3 2017 that were no longer vacant in Q3 2018. The expenses include non-cash expenses of $54,720 related to amortization and share based payments expenses. Depreciation and amortization, and share-based payments for Q3 2018 were $44,555 and $10,165, respectively, compared to $45,918 and $15,053, respectively, in Q3 2017. The amortization costs were primarily related to the acquisition costs of TeOra. As the sales and marketing infrastructure is now established, new products, like Zepto, can be marketed to the same customer base without material impact to overall sales related costs.
The Company incurred research and development expenses of $76,275 in Q3 2018 as compared to $415,173 in Q3 2017. The decrease was primarily attributable to lower subcontractor research costs and reduced regulatory consulting for AQS1301 and AQS1303 pre-IND related work, which completed in Q3 2017. The main development work in Q3 2018 was the advancement and optimization of AQS1303 in preparation for clinical studies. The costs of which are being realized by its partner, Corium, in exchange for exclusive manufacturing of the product. This resulted in a $328,383 decrease in Q3 2018 cost relative to Q3 2017.
General administration expenses were consistent with prior quarters at $546,827 during Q3 2018 as compared to $532,085 in Q3 2017.
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 nine months ended September 30, 2018, which are available on the Company’s website at www.aequuspharma.ca and on SEDAR at www.sedar.com.