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 March 31, 2023 (“First Quarter 2023”) and associated Company developments. Unless otherwise noted, all figures are in Canadian currency.

“With the upcoming launch of ZIMED® PF expected in August of 2023, Q1 and Q2 2023 has seen a focus on building our distribution commercial infrastructure with a focus on training, pre-launch communication and HCP education activities,” said Doug Janzen, Chairman and CEO. “As anticipated, revenues for the quarter were reduced due to the completion of the Sandoz contract at the end of last year. However, we are pleased to see the excellent momentum with our Dry Eye e-commerce platform as Q1 sales of the Evolve line more than doubled compared the same quarter last year. This performance is a testament to our commercial model and the breadth of our team’s footprint and commitment in eyecare.”

Commercial Update - ZIMED PF Pre-Launch

The Company continues to work toward building its pipeline of products in ophthalmology and optometry with the December 2022 regulatory approval of ZIMED® PF. The promotional services contracts for both Tacrolimus and Vistitan expired at year-end 2022, creating a gap in revenue till the launch of Zimed PF, scheduled for August 2023. Aequus has taken the appropriate steps to minimize non-essential spending, reduce overhead, while executing pre-launch activities for Zimed and pursuing partnership relationships to complement our portfolio of products and utilize our team’s expertise. Improved CRM and KOL programs, advanced digital marketing capabilities, prelaunch educational programs for HCP’s and additional business development resources, will all add to our sale acceleration and portfolio expansion in the later half of 2023.

Financial Update

Aequus recorded a net loss of $744,323 for the three months ended March 31, 2023, which is 19% lower than the loss of $916,886 for the period ending March 31, 2022. The decrease in net loss was mainly due to a decrease of $413,413, or 34% in expenses offset by the reduction of $239,239 in gross income due to the end of the promotional services agreement with Sandoz.

During the three months ended March 31, 2023, the Company continued development activities related to bringing ZIMED® PF through regulatory approval, and as a result, the related expenses in research and development (or “R&D”) was $201,361 (March 31, 2022- $246,107).

The Company realized a 132% increase in Evolve product sales during the three months ended March 31, 2023, relative to the prior year. The Company recognized $92,251 from 3 months of Evolve product sales during 2023 compared to $39,760 for 3 months of Evolve product sales during the three months ended March 31, 2022.

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 sell its current products and in-license 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.

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

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