Petros Pharmaceuticals Reports Third Quarter 2022 Financial Results and Corporate Update New York

Petros Pharmaceuticals Reports Third Quarter 2022 Financial Results

and Corporate Update

New York - November 15, 2022 - Petros

Pharmaceuticals, Inc. ("Petros" or "the Company") (Nasdaq: PTPI), a leading provider of therapeutics for men's

health, today announced financial results for the third quarter ended September 30, 2022.

Fady Boctor, Petros's President and Chief

Commercial Officer stated, "We believe that there is tremendous opportunity in the market to create a men's health-oriented

company that addresses many of the unique medical needs of men. Our commercialization of STENDRA and our pipeline in other men's

health categories are representative of that dedication. However, the larger challenge is not addressing the need itself, but providing

the type of access that allow men to obtain the care they need and want in a manner that fits their approach to accessing care. We have

long heard that men do not adequately care for themselves because they do not wish to visit doctors. While the online pharmacy model has

provided some solutions, we believe studies have demonstrated it is potentially the doctor's visit that has been a primary issue.

"As a result, we have, since entering the

public markets, dedicated ourselves to expanding access. During the last quarter we achieved expanding access to STENDRA for men who have

undergone radical prostatectomy. For us, the next big opportunity is the expansion of access to STENDRA as an over-the-counter product.

As a result, while we will continue with marketing activities and sales efforts around the product, our strategy will be primarily focused

on the achievement of this goal.

"The model of a development-stage company

is a familiar one to most investors, and we are in the unique position of having sales which will support our newly concentrated efforts

toward revolutionizing access in the men's health category. Our third quarter sales of STENDRA were negatively impacted by excessive

returns, driven by removing expired product from our distributers. By early next year we expect to have completely replaced our older

STENDRA inventory with recently manufactured product, which has a longer shelf life thus reducing the impact of returns in the future.

"While STENDRA sales continue to be an important

part of our overall strategy, our primary objective will be achieving OTC access for this drug, significantly expanding the market and

providing access to the general population of men suffering from erectile dysfunction. We currently believe that this could be achieved

with laser focus and resource efficiency. While we focus on this ultimate objective, we are rationalizing costs to optimize the efficiency

of our operations and will manage cash prudently to achieve that goal," concluded Mr. Boctor.

Q3 2022 Financial Results

sales for the third quarter ended September 30, 2022, were negative $1.4 million, comprised of negative $2.1 million of net sales from

Prescription Medicines and $0.7 million of net sales from Medical Devices. This compares to net sales for the quarter ended September

30, 2021, which were $2.1 million. Net sales for the third quarter of 2021 were comprised of $1.4 million of net sales from Prescription

Medicines and $0.7 million of net sales from Medical Devices. Prescription Medicines consists primarily of STENDRA , which

is indicated for male erectile dysfunction and Medical Devices, which includes vacuum erection devices ("VEDs") and associated

accessories and products. Prescription Medicines segment sales for the third quarter of negative $2.1 million were the result of excessive

returns as a large batch of product had expired. We expect lower returns over the next two quarters, then a significant drop off as the

product will be completely refreshed. The shelf-life of the new STENDRA product has increased to four years, up from three years

in its prior batch, which is expected to reduce the Company's return rate in future periods.

Total gross profit for the third quarter of 2022

was negative $1.7 million versus $1.8 million for the year-ago quarter. Gross profit for the third quarter of 2022 was comprised of negative

$2.2 million from Prescription Medicines and $0.4 million from Medical Devices. Gross profit for the third quarter of 2021 was $1.3 million

from Prescription Medicines and $0.5 million from Medical Devices.

Selling, general and administrative (SG&A)

expenses for the third quarter of 2022 were $2.2 million, down from $3.4 million for the year-ago period and $3.2 million for the second

quarter of 2022. The decline in SG&A resulted from the Company's cost-cutting efforts in order to optimize the efficiency of

Research and development expenses for the third

quarter of 2022 were $0.7 million versus approximately $0.3 million for the prior-year period.

Net loss for the third quarter of 2022 was $13.8

million versus a loss of $1.7 million for the year-ago period.

Cash totaled $11.2 million as of September 30,

2022, compared to $13.3 million in the prior quarter.

Use of Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP financial measure.

Our management believes that the presentation of Adjusted EBITDA is useful to investors as a supplemental way to evaluate the ongoing

operations of our business as Adjusted EBITDA may enhance investors' ability to compare historical periods as it adjusts for the

impact of financing methods, tax law and strategy changes, and depreciation and amortization and to evaluate the Company's ability

to service debt. In addition, Adjusted EBITDA is a financial measurement that our management and Board of Directors use in their financial

and operational decision-making and in the determination of certain compensation programs. Non-GAAP financial measures are meant to supplement,

and to be viewed in conjunction with, GAAP financial results. The presentation of these non-GAAP financial measures should not be considered

in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company's

financial statements prepared in accordance with GAAP. Reconciliations of the Company's non-GAAP measures are included below.

The following table presents a reconciliation of net income (loss)

to Adjusted EBITDA for the three and nine months ended September 30, 2022, and 2021:

STENDRA (avanafil), originally

launched by Auxilium Pharmaceuticals prior to that company's sale to Endo Pharmaceuticals, is an oral phosphodiesterase 5 (PDE5) inhibitor

for the treatment of erectile dysfunction. STENDRA is not for use in women or children. It is not known if STENDRA

is safe and effective in women or children under 18 years of age. 100-mg and 200-mg tablets can be taken as early as ~15 minutes

before sexual activity. STENDRA works only with sexual stimulation and should not be taken more than once a day. STENDRA

can be taken with or without food; do not drink too much alcohol when taking STENDRA (for example, more than 3

glasses of wine or 3 shots of whiskey) as it can increase chances of side effects. Of people enrolled in clinical trials, 1.4%, 2.0%,

and 2.0%, stopped taking STENDRA (50 mg, 100 mg, or 200 mg, respectively) due to side effects compared to 1.7% on placebo.

STENDRA was designed and developed expressly for erectile dysfunction. Currently, STENDRA is

covered for ~75% of commercially insured lives, with a co-pay as low as $0. For more information visit: https://STENDRA.com/.

Important Risk Information

can cause your blood pressure to drop suddenly to an unsafe level if it is taken with certain other medicines. A sudden

drop in blood pressure can cause you to feel dizzy, faint, or have a heart attack or stroke.

Do not take STENDRA if you:

Stop sexual activity and get medical help right away if you have symptoms such as chest pain, dizziness, or nausea during sex. Sexual

activity can put an extra strain on your heart, especially if your heart is already weak from a heart attack or heart disease. Discuss

your health with your healthcare provider to ensure you are healthy enough for sex.

can cause serious side effects.

Uncommonly reported side effects include:

you take STENDRA , tell your healthcare provider if you:

your healthcare provider about all of the medicines you take, including prescription and nonprescription medicines, vitamins,

and herbal supplements. STENDRA may affect the way other medicines work, and other medicines may affect the way STENDRA works,

which may cause side effects. Especially tell your healthcare provider if you take any of the following:

not drink too much alcohol (for example, more than 3 glasses of wine or 3 shots of whiskey) when taking STENDRA , as

this can lead to increased chances of headache, dizziness, increased heart rate, or lowered blood pressure.

STENDRA does not protect against

sexually transmitted diseases, including HIV.

most common side effects of STENDRA are headache, flushing, stuffy or runny nose, sore throat,

Tell your healthcare provider if you have any

side effect that bothers you or does not go away. These are not all of the possible side effects of STENDRA . For more

information, ask your healthcare provider or pharmacist. Call your healthcare provider for medical advice about side effects.

Please see full Prescribing Information and Patient

About Petros Pharmaceuticals

Petros Pharmaceuticals is committed to the goal of becoming a world-leading

specialized men's health company by identifying, developing, acquiring, and commercializing innovative therapeutics for men's health issues,

including, but not limited to, erectile dysfunction, endothelial dysfunction, psychosexual and psychosocial ailments, Peyronie's disease,

hormone health, and substance use disorders.