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 reported financial results for the quarter ended September 30, 2021 (“Third Quarter 2021”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

“We are pleased to report another quarter with positive overall revenue growth, including a 131% increase in direct-to-clinic sales over the last quarter. Aequus’ overall gross revenue grew 9% in the Third Quarter compared to Q2, and grew 15% compared to the same quarter last year. I am proud of the consistent performance and dedication of our Sales and Corporate Teams,” said Doug Janzen, Chairman and CEO. “We are also pleased to report progress towards a definitive agreement with reVision Therapeutics, and ongoing progress with reVision in building the REV-0100 development plan.”

Grant Larsen, the Chief Commercial Officer added that “customer feedback for Evolve dry eye drops has been very positive and we are pleased with the impact of launch initiatives on sales. I am also optimistic at the progress made in preparation for the full Zimed™ PF filing with Health Canada, with the final requested materials to be filed in the coming weeks. Timing of a potential launch is dependent on Health Canada’s review timelines but commercial planning has already begun. Tacrolimus, an immunosuppressant drug for transplant patients, has performed extremely well despite significant reductions in organ donors due to Covid restrictions and lockdowns nationally. We expect revenue growth to accelerate as market conditions improve and transplants return to pre-pandemic levels."

"While our losses compared to the same period last year look larger than normal by comparison, we want to remind investors that Q3 and Q2 of 2020 coincided with the onset of COVID-19 and were the only atypical quarters last year.”

Financial Report Highlights

Aequus reported its second highest revenue quarter to date, with $712,036 in revenue during Third Quarter 2021 compared to revenue of $618,984 generated during the same period in 2020. During the nine months ended September 30, 2021 (“YTD 2021”). Aequus achieved $1,855,373 in revenues compared to $1,741,426 generated during the nine months ended September 30, 2020 (“YTD 2020”) – an increase of $113,947, or 6%. Product sales of Evolve began just over six months ago.

Net losses increased by 51% in Third Quarter 2021 compared to the same period last year, with the Third Quarter 2021 net loss of $381,536 versus a $251,921 loss in the three months ended September 30, 2020 (“Third Quarter 2020”). The loss for YTD 2021 was $1,482,235 which is 68% higher than the $879,984 loss YTD 2020 primarily due to investments in R&D related to Zimed PF and increased sales and marketing activities which included the launch of the Evolve products. We remind investors that Covid-related restrictions and response in Third Quarter 2020 have skewed the comparable period loss reporting. When comparing to previous non-Covid impacted quarters, our current operating expenses are comparable to historical levels.

Highlights from the quarter are as follows:

• Sales and marketing expenses for Third Quarter 2021 were $551,966 compared to $292,343 in Third Quarter 2020, an increase of $259,623. This difference was mainly driven by an expansion to the sales and marketing team, as well as the lifting of operational restrictions related to COVID-19. Relative to the same time last year, during the Third Quarter 2021 the Company expanded its marketing team to include specialists and consultants to focus on refining the Company’s sales, marketing and operational strategies.

• The Company incurred research and development (“R&D”) expenses of $49,122 in Third Quarter 2021 compared to $12,997 in Third Quarter 2020. The Company incurred R&D expenses of $243,415 in YTD 2021 compared to $41,054 in YTD 2020. The majority of the increase was mainly attributable to strategic consulting services on quality assurance support, work related to market access, and preparation for authorization submissions to Health Canada.

• General administration (“G&A”) expenses were $488,039 in Third Quarter 2021 compared to $582,525 in Third Quarter 2020, a decrease of $94,486. G&A expenses were $1,532,548 in YTD 2021 compared to $1,586,826 in YTD 2020, a decrease of $54,278. The decrease was mainly driven by lower accretion expense related to the convertible debt.

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 April 30, 2021, 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.

Vistitan™: Trademark owned or used under license by Sandoz Canada Inc.

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