A Message from our CEO

Dear Shareholders:

Our focus has been to create a more stable, financially healthier organization, with an operational focus on the resubmission of the Vitaros NDA.  Since the beginning of the second quarter, we have worked diligently to extend our cash runway, re-establish compliance with NASDAQ and complete the work required to re-submit the Vitaros NDA in the third quarter.

We have improved our financial outlook through a combination of fundraising and expense reduction, resulting in a balance sheet that is expected to fund our current operating plan through the third quarter of 2018.  Importantly, we have completed the final draft of the Vitaros NDA and we expect to re-submit the Vitaros NDA this quarter with an anticipated FDA approval decision in the first quarter of 2018.  For the remainder of 2017, we will focus on working with the FDA regarding the Vitaros NDA, maintaining a productive dialogue with Allergan regarding the commercial potential for Vitaros in the United States, securing a development partner for RayVa and continuing to diligently manage our corporate resources.

Finally, I want to re-iterate our excitement regarding the imminent filing of the Vitaros NDA and to re-affirm our commitment to building shareholder value through the development of, gaining regulatory approval for and the successful commercialization of our pipeline assets.

Warm regards,

Richard W. Pascoe

Chief Executive Officer