Aequus Pharmaceuticals (AQS) AI Stock Analysis

• Market Cap: C$663.17K
• Dividend Yield: N/A
• Average Volume (3M): 10.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -3.60
• Revenue Growth: 122.30%
• EPS Growth: 75.74%
• Country: CA
• Employees: 12
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 132,634,430
• 10 Day Avg. Volume: 10,000
• 30 Day Avg. Volume: 10,000
• PEG Ratio: 0.02
• Price to Book (P/B): -0.21
• Price to Sales (P/S): 2.27
• P/FCF Ratio: -0.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: <C$0.01 ▼(-10.00% Downside)

The score is driven primarily by weak financial fundamentals: ongoing large losses, continued cash burn, and a highly strained balance sheet with negative equity and debt exceeding assets. Technical signals provide limited support and valuation is constrained by a negative P/E and lack of dividend data.

Positive Factors

Revenue Growth

The launch of ZIMED® PF has contributed to revenue growth, indicating successful product development and market acceptance, which can enhance long-term revenue streams.

Cost Management

Effective cost management through reduced general and administrative expenses can improve profitability and operational efficiency, supporting long-term financial health.

Product Pipeline

A robust product pipeline in niche markets like ophthalmology and transplant therapy positions Aequus for sustained growth by addressing unmet medical needs.

Negative Factors

Financial Instability

Persistent financial instability with declining revenues and negative net income can hinder the company's ability to invest in growth and sustain operations long-term.

High Leverage

High leverage and negative equity pose risks to financial sustainability, limiting flexibility in financing growth initiatives and increasing vulnerability to economic downturns.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and affect long-term planning, potentially impacting the company's ability to execute its business strategy effectively.

Aequus Pharmaceuticals Business Overview & Revenue Model

Company Description

Aequus Pharmaceuticals Inc., a specialty pharmaceutical company, develops and commercializes drugs in Canada. It focuses on various therapeutic areas, including neurology, ophthalmology, and transplantation. The company markets Vistitan, an ophthalmology product to reduce elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; Tacrolimus IR, an immunosuppressant for the treatment and prevention of acute rejection following organ transplantation; Evolve dry eye products for various symptoms involved with dry eye disease and blepharitis, including discomfort, stinging, burning, and dryness; and preservative free ophthalmic product. Its development stage product includes Topiramate XR and Oxcarbazepine XR extended-release oral tablets for the treatment of epilepsy; AQS1303, a transdermal pyridoxine/doxylamine for the treatment of nausea and vomiting of pregnancy; and AQS1304, a cannabinoid based therapeutics for neurological disorders. The company has collaboration agreements with Sandoz Canada, Inc. for the promotion of Vistitan; Supernus Pharmaceuticals, Inc. for marketing of extended-release anti-epileptic drugs; and Medicom Healthcare Ltd. to focus on preservative free therapies in ophthalmology. Aequus Pharmaceuticals Inc. was incorporated in 2013 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Aequus Pharmaceuticals generates revenue primarily through the sale of its developed and commercialized pharmaceutical products, particularly in the fields of ophthalmology and transplant therapy. Key revenue streams include direct sales of branded and partnered products, as well as potential royalty and milestone payments from collaboration agreements with other pharmaceutical companies. These partnerships often involve licensing agreements that allow Aequus to expand its market reach and leverage additional resources for product development and distribution. The company’s focus on improving existing therapies and targeting niche markets helps in maintaining a steady revenue flow while addressing critical healthcare needs.

Aequus Pharmaceuticals Financial Statement Overview

Summary

Aequus Pharmaceuticals is currently facing significant financial challenges, with declining revenues, persistent losses, and high leverage. The company's cash flow situation is strained, which could impact its operational capabilities and long-term viability. Strategic changes may be necessary to address these financial difficulties.

Income Statement

Aequus Pharmaceuticals has experienced declining revenues from 2021 to the TTM period with severe negative net income and EBIT margins. The company shows a negative revenue growth rate, indicating financial instability. The gross profit margin is also significantly low, reflecting challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a worrying financial structure with negative stockholders' equity and a high debt-to-equity ratio. This indicates a leveraged position, which could pose risks in terms of financial sustainability. The equity ratio is negative, further highlighting financial distress.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating cash flow difficulties. However, the company managed some positive financing cash flow, showing a reliance on external financing. The free cash flow to net income ratio is negative, reflecting weak cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	815.03K	584.24K	254.90K	1.38M	2.71M	2.59M
Gross Profit	433.33K	199.97K	143.66K	1.15M	2.69M	2.59M
EBITDA	-1.22M	-1.79M	-2.68M	-2.87M	-1.23M	-314.80K
Net Income	-1.64M	-2.18M	-2.96M	-3.21M	-1.81M	-1.05M
Balance Sheet
Total Assets	236.02K	800.28K	1.09M	1.69M	4.35M	3.13M
Cash, Cash Equivalents and Short-Term Investments	35.08K	50.24K	170.20K	294.67K	2.39M	1.72M
Total Debt	6.64M	6.61M	5.06M	782.92K	2.18M	2.32M
Total Liabilities	7.51M	7.26M	5.38M	3.07M	2.56M	2.56M
Stockholders Equity	-7.27M	-6.45M	-4.29M	-1.38M	1.79M	573.95K
Cash Flow
Free Cash Flow	-443.32K	-1.66M	-2.29M	-1.95M	-1.18M	-817.23K
Operating Cash Flow	-443.32K	-1.66M	-2.29M	-1.95M	-1.17M	-804.91K
Investing Cash Flow	44.85K	44.85K	0.00	0.00	-507.96K	-12.32K
Financing Cash Flow	389.47K	1.49M	2.21M	-189.19K	2.40M	2.05M

Aequus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDP	58 Neutral	C$97.26M	138.89	0.87%	―	2.14%	-83.06%
MPH	54 Neutral	C$13.05M	-3.80	-18.39%	―	24.30%	-68.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TGIF	50 Neutral	C$7.44M	13.64	―	―	-2.30%	―
MVMD	46 Neutral	C$5.29M	-0.71	-148.48%	―	-46.59%	8.26%
PHRX	45 Neutral	C$1.62M	-6.52	―	―	―	98.93%
AQS	38 Underperform	C$663.17K	-2.04	―	―	122.30%	75.74%

Aequus Pharmaceuticals Corporate Events

Aequus Pharmaceuticals Clarifies Shareholder Meeting Details Amid Regulatory Disclosures

Aequus Pharmaceuticals has provided additional information regarding its upcoming annual general and special meeting of shareholders, scheduled for November 21, 2025. The company clarified details about a potential share consolidation, stating it will not proceed if certain conditions affecting the market price of shares arise. Additionally, Aequus addressed a cease trade order involving director nominee Marc Lustig due to a failure to file insider reports, and a separate cease trade order related to PharmaCielo Ltd., where Lustig was CEO, which has since been resolved. These disclosures aim to ensure transparency and compliance with regulatory requirements.

Aequus Pharmaceuticals Updates Shareholders on Key Meeting Details

Aequus Pharmaceuticals has provided additional information regarding its upcoming annual general and special meeting of shareholders, as requested by the Ontario Securities Commission. The company clarified details about a potential share consolidation, stating it will not proceed if certain conditions affecting share value occur. Additionally, the company addressed a cease trade order involving a director nominee and a previous failure to file order related to PharmaCielo Ltd., where the nominee was CEO.