AQS Aequus Pharmaceuticals Inc

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 reports financial results for the quarter ended June 30, 2023 (“Second Quarter 2023”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

Doug Janzen shares that “we are very optimistic with the launch of our newest product ZIMED® PF this month as we move into a new chapter for Aequus. The financial results from the first half of 2023 are during a transitional period that we anticipated to be lower, mainly driven by the conclusion of the Sandoz contract last year and a reduction in the prescription portion of our business. The anticipated launch of ZIMED® PF will fill an unmet need with clinicians and their patients as well as generate a significant revenue stream for the company starting in Q4 2023.”

Subsequent to June 30, 2023, Aequus has paused sales in Canada for Evolve branded eyedrops. The Health Canada initiated pause was required due to the manufacturer, Medicom Healthcare (UK), changing their MDSAP provider. We believe that all related expenses to the “sales pause” are covered by the manufacturer. Sales are not expected to resume in 2023.

Financial Report Highlights

Aequus reported $98,409 in revenue during Second Quarter 2023 compared to revenue of $346,494 generated during the same period in 2022. During the six months ended June 30, 2023 (“YTD 2023”) Aequus achieved $190,660 in revenues compared to $648,774 generated during the six months ended June 30, 2022 (“YTD 2022”) – a decrease of $458,114, or 71%.

Net losses decreased by 9.22 % in Second Quarter 2023 compared to the same period last year, with the Second Quarter 2023 net loss of $700,875 versus a $772,100 loss in the three months ended June 30, 2022 (“Second Quarter 2022”). The loss for YTD 2023 was $1,445,198 which is 14.43% lower than the $1,688,995 loss YTD 2022 primarily due to a decrease of $789,365, or 34% in expenses offset by the reduction of $521,146 in gross income due to the end of the promotional services agreement with Sandoz at the end of 2022. General administration costs were 23% lower in Second Quarter 2023 and 36% lower in YTD 2023 when compared to the same periods last year.

Highlights from the quarter are as follows:

• Sales and marketing costs for Second Quarter 2023 were $372,844 compared to $663,082 in Second Quarter 2022, a decrease of $290,238 or 44%. This reduction was mainly driven by a decrease in sales forces activities and lower products that require marketing initiatives.

• The Company incurred research and development (“R&D”) expenses of $25,824 in Second Quarter 2023 compared to $7,945 in Second Quarter 2022. The Company incurred R&D expenses of $227,185 in YTD 2023 compared to $254,052 in YTD 2022. The $26,867 decrease in YTD 2023 was mainly to lower expenses related to the approval process for preservative-free bimatoprost 0.03% eye drops termed “ZIMED® PF”.

• General and administration (“G&A”) expenses were $353,584 in Second Quarter 2023 compared to $457,177 in Second Quarter 2022, a decrease of $103,593. G&A expenses were $598,826 in YTD 2023 compared to $933,005 in YTD 2022, a decrease of $334,179. The decrease was mainly driven by general cost-cutting measures and lower loan-related expenses.

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.

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 May 1, 2023, 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.

On behalf of the Board of Directors,

“Douglas Janzen”Director & CEO

CONTACT INFORMATION Aequus Investor Relations Email: investors@aequuspharma.ca Phone: 604-336-7906

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