By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, November 30, 2016

Canada constitutes one of the ten biggest pharmaceuticals markets in the world, thus offering a good scope for pharma companies. The country’s public health system also provides a secure market for the healthcare companies offering eligible products and services. Aequus Pharmaceuticals is one such company hoping to benefit from now having two drugs commercialized, two in-licensed drugs moving towards approval and other experimental drugs working through the clinical pathway.

Aequus Pharmaceuticals Inc. (TSX-Venture:AQS) (OTCQB: AQSZF) stock has declined more than 50% this year so far. The stock price hasn’t reversed, but the company did post improving numbers for the third quarter of the year on Wednesday. Revenue for the Vancouver-based specialty pharma stood at C$300,549 during Q3, an increase of 155% over Q2 2016. Its loss for the quarter totaled C$1.12 million, down 19% from the loss it had reported for the second quarter of the year.

The smaller loss came even as Aequus increased spending on marketing activities for its two commercialized products, tacrolimus IR and Vistitan. Tacrolimus IR is approved for preventing organ rejection in certain patients following a kidney transplant. Vistitan is a prostaglandin approved as a treatment for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension.

Aequus was able to offset some the increase in cap ex due to earned revenues and a Scientific Research and Experimental Development (SR&ED) tax credit. The marketing efforts have resulted in Aequus achieving more than 90 percent private coverage for Vistitan and formulary coverage from the Ontario Drug Benefit Program, all within six months of product launch. Other major provincial formularies are expected to be on board in the near term.

As for the pipeline, earlier this year the company announced positive Proof of Concept clinical data for its once a week, transdermal aripiprazole (an atypical antipsychotic) program for CNS disorders. Aequus Pharmaceuticals expects to start the follow-on, multi-dose exposure study by the end of the year with results early in 2017. The program has received patent in the US, Russia, Mexico, Japan, Canada and Australia.

The company is also going ahead with its long-acting transdermal doxylamine/pyridoxine combination patch product designed for the treatment of nausea and vomiting of pregnancy (NVP), often called “morning sickness” even though about 80 percent of women suffering from NVP say they feel sick all day. Manufacturing partner Corium International is preparing the clinical trial materials under the pretense that clinical studies will commence early in 2017.

Ian Ball, Chief Commercial Officer of Aequus, said, “We have started to see solid growth in our Canadian commercial operations, with current quarter over preceding quarter revenues increasing by 155% as a direct result of our promotional activities for tacrolimus IR and Vistitan™.” Ball recognized that the growth pattern may remain unpredictable in the future. However, the current improvements bode well for the stock price in near future.

Toronto-listed shares of Aequus moving lower by 1.5 cents (5.45%) following the quarterly update, closing Wednesday at 26 cents on 59,500 in volume.

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