Knight Therapeutics Reports Third Quarter 2024


MONTREAL, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a leading pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its third quarter ended September 30, 2024. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q3 2024 Highlights

Financial Results

  • Delivered revenues of $92,263, an increase of $10,763 or 13% or $13,801 or 18% on a constant currency1 basis, over the same period in the prior year. The increase is driven by growth of our key promoted products partly offset by declines of our mature products.
  • Gross margin of $45,017 or 49% of revenues compared to $40,182 or 49% of revenues in the same period in the prior year.
  • Adjusted EBITDA1 was $13,454, a decrease of $2,058 or 13% over the same period in the prior year.
  • Adjusted EBITDA per share1 of $0.13, a decrease of $0.02 or 10% over the same period in the prior year driven by investments on our new launches and pipeline.
  • Net income was $85, compared to $9,588 in the same period in the prior year.
  • Cash inflow from operations was $5,016, compared to $15,166 in the same period in the prior year.

Corporate Developments

  • Purchased 437,500 common shares through Knight's NCIB at an average price of $5.65 for an aggregate cash consideration of $2,474.

Subsequent to quarter-end

  • Obtained regulatory approval for Minjuvi® (tafasitamab) in Mexico.
  • Recorded an unrealized gain of $14,412 recognized in other comprehensive income in Q3-24 on our shares of Synergy driven by its IPO in October 2024.

“I am excited to report that for the nine months ended September 30, 2024, we delivered record revenues of over $271 million and adjusted EBITDA of over $42 million. This strong performance is the result of the growth of our key promoted products and our commercial execution across Canada and Latin America. In addition, we have advanced our pipeline with the regulatory approval of Minjuvi® in Mexico with a launch expected in the first half of 2025. We remain committed to advancing our pipeline products with regulatory submissions and approvals to grow our business in Canada and Latin America." said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

______________________
1 Adjusted EBITDA, Adjusted EBITDA per share and revenues at constant currency are non-GAAP measures. Refer to section Non-GAAP measures for additional details.


SELECTED FINANCIAL RESULTS REPORTED UNDER IFRS
[In thousands of Canadian dollars]

     Change     Change 
 Q3-24 Q3-23 $1 %2 YTD-24 YTD-23 $1 %2 
                 
Revenues92,263 81,500 10,763 13% 274,440 254,002 20,438 8% 
Gross margin45,017 40,182 4,835 12% 134,053 118,437 15,616 13% 
Gross margin %49% 49%     49% 47%     
Selling and marketing13,372 11,924 (1,448)12% 39,285 35,463 (3,822)11% 
General and administrative12,110 11,080 (1,030)9% 34,747 29,305 (5,442)19% 
Research and development5,153 4,768 (385)8% 15,939 13,291 (2,648)20% 
Amortization of intangible assets11,179 11,480 301 3% 33,725 33,925 200 1% 
Operating expenses41,814 39,252 (2,562)7% 123,696 111,984 (11,712)10% 

Operating income
3,203 930 2,273 244% 10,357 6,453 3,904 60% 

Net (loss) income
85 9,588 (9,503)99% (6,403)7,491 (13,894)185% 

1 A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss).
2 Percentage change is presented in absolute values.


SELECTED FINANCIAL RESULTS EXCLUDING IAS 291
[In thousands of Canadian dollars]

     Change     Change 
 Q3-24 Q3-23 $ % YTD-24 YTD-23 $ % 
                 
Revenues91,430 81,669 9,761 12% 271,346 254,736 16,610 7% 
Gross margin43,196 42,121 1,075 3% 129,173 123,751 5,422 4% 
Gross margin %47% 52%     48% 49%     
Selling and marketing13,197 11,937 1,260 11% 38,658 35,635 3,023 8% 
General and administrative11,922 11,009 913 8% 33,711 29,084 4,627 16% 
Research and development5,372 4,651 721 1% 15,789 13,376 2,413 18% 
Amortization of intangible assets11,161 11,475 (314)3% 33,707 33,789 (82)—% 
Operating expenses41,652 39,072 2,580 7% 121,865 111,884 9,981 9% 
                 
EBITDA113,330 15,512 (2,182)14% 42,560 48,018 (5,458)11% 
Adjusted EBITDA113,454 15,512 (2,058)13% 42,787 48,018 (5,231)11% 
Adjusted EBITDA per share10.13 0.15 (0.02)10% 0.42 0.46 (0.04)7% 

1 Financial results excluding the impact of IAS 29, EBITDA, adjusted EBITDA and adjusted EBITDA per share are non-GAAP measures. Refer to section Non- GAAP measures” for additional details.


Revenues

For the quarter ended September 30, 2024, revenues excluding the impact of IAS 29 were $91,430 an increase of $9,761 or 12% mainly driven by a growth of $13,526 or 25% from our key promoted products offset by a decline in our mature products. On a constant currency1 basis, revenues increased by $13,801 or 18% for the three period ended September 30, 2024. The table below provides revenues by therapeutic area.

 Excluding the impact of IAS 291
   Change
Therapeutic AreaQ3-24Q3-23$  %
Oncology/Hematology36,82131,3365,485 18%
Infectious Diseases33,82729,1954,632 16%
Other Specialty20,78221,138(356)2%
Total91,43081,6699,761 12%

1 Revenues excluding the impact of IAS 29 is a non-GAAP measure, refer to section Non-GAAP measures” for additional details.


The increase in revenues is explained by the following:

  • Oncology/Hematology: The oncology/hematology portfolio increased by $5,485 or 18% or $6,729 or 22% on a constant currency1 basis driven by continued growth of key promoted products including Lenvima®, Akynzeo®, Trelstar® and the launch of Minjuvi® in Brazil. Furthermore, in Q3-24, a competitor in Brazil launched both a branded generic and a generic of Lenvima®. Knight and Eisai are collaborating to defend Lenvima®’s market exclusivity in Brazil. While we continue to challenge the generic entrants, the introduction of generics and branded generics will increase competitive pressures and negatively impact future sales and margins of Lenvima® in Brazil.
  • Infectious Diseases: The infectious diseases portfolio increased by $4,632 or 16% or $6,572 or 24% on constant currency1 basis mainly driven by the timing of orders for Ambisome® under the MOH contract and growth of our key promoted products including Cresemba®, partly offset by a decrease in the demand of Impavido®. During Q3-24 the Company delivered $6,700 of Ambisome® to MOH compared to nil in Q3-23.
    MOH Contract: The Company signed a contract with the Ministry of Health of Brazil for Ambisome® in December 2022 ("2022 MOH Contract"). Knight delivered a total of $34,600 under the 2022 MOH Contract as follows: $7,000 in 2022, $25,200 in 2023 ($2,400 in Q1-23, $18,000 in Q2-23 and $4,800 in Q4-23) and $2,400 Q1-24. In December 2023, Knight signed a new contract with the MOH ("2024 MOH Contract") and delivered $6,800 in Q1-24, $8,900 in Q2-24 and $6,700 in Q3-24. The total MOH sales AmBisome® delivered in Q3-24 and YTD-24 was $6,700 and $24,800, respectively.
  • Other Specialty: The specialty portfolio decreased by $356 or 2%. There was no significant variance.

Gross margin
Excluding the impact of IAS 29, gross margin as a percentage of revenues was 47% in Q3-24 compared to 52% in Q3-23. The decrease in the Q3-24 gross margin, as a percentage of revenues, was due to product mix including a higher proportion of Ambisome® sales to MOH.

Selling and marketing ("S&M") expenses: For the quarter ended September 30, 2024, S&M expenses excluding the impact of IAS 29, were $13,197 in Q3-24 compared to $11,937 in Q3-23, an increase of $1,260 or 11%. The increase was mainly driven by the marketing spend for the launches of Minjuvi® in Brazil, Imvexxy® and Bijuva® in Canada as well as pre-launch activities for Jornay PM™.

1 Revenues at constant currency is a non-GAAP measure. Refer to section Non-GAAP measures” for additional details.

General and administrative ("G&A") expenses: For the quarter ended September 30, 2024, G&A expenses excluding the impact of IAS 29, were $11,922 in Q3-24 compared to $11,009 in Q3-23, an increase of $913 or 8%. The increase was mainly driven by structure and compensation expenses along with higher spending on professional and consulting fees.

Research and development ("R&D") expenses: For the quarter ended September 30, 2024, R&D expenses excluding the impact of IAS 29, were $5,372 in Q3-24 compared to 4,651 in Q3-23, an increase of $721 or 16%. The increase was driven by medical initiatives related to key promoted products.

Adjusted EBITDA
For the quarter ended September 30, 2024, adjusted EBITDA decreased by $2,058 or 13%. The decrease was driven by higher marketing spend related to the launches of Minjuvi® in Brazil, Imvexxy® and Bijuva® in Canada as well as pre-launch activities for Jornay PM™, higher general and administrative expenses mainly related to structure and compensation increase along with higher spending on professional and consulting fees, and an increase in research and development expenses mainly driven by medical initiatives related to key promoted products, partly offset by a higher gross margin.

Net Income
For the quarter ended September 30, 2024, the net income was $85 compared to $9,588 for the same period in prior year. The variance mainly resulted from the above-mentioned items and a net loss on the revaluation of $2,820 financial assets measured at fair value through profit or loss of versus a net gain of $5,562 in the same period in prior year and income tax expense of $523 in Q3-24 versus an income tax recovery of $690 in Q3-23 mainly driven by operating income and timing differences related to our financial assets

SELECT BALANCE SHEET ITEMS
[In thousands of Canadian dollars]

   Change
 
 September 30, 2024December 31, 2023$ % 
       
Cash, cash equivalents and marketable securities151,500161,825(10,325)6%
Trade and other receivables142,943141,6841,259 1%
Inventories114,95991,83423,125 25%
Financial assets126,457128,369(1,912)1%
Accounts payable and accrued liabilities93,79590,6173,178 4%
Bank loans51,65161,866(10,215)17%


Cash, cash equivalents and marketable securities: As at September 30, 2024, Knight had $151,500 in cash, cash equivalents and marketable securities, a decrease of $10,325 or 6% as compared to December 31, 2023. The decrease is mainly due to the settlement of upfront and milestone payments in connection with product licensing agreements including QelbreeTM, IPX203, Jornay PMTM and Cresemba®, principal and interest payments on bank loans and repurchase of shares through the NCIB, partly offset by the cash inflows from operations. The cash inflows from operating activities were $34,811 for the nine-month period ended September 30, 2024 driven by the operating results adjusted for noncash items such as depreciation, amortization as well as increase in working capital of $7,416. The increase in working capital was mainly due to an increase in inventory due to the timing of purchases as well as investments on our new product launches.

Financial assets: As at September 30, 2024, financial assets were at $126,457, an decrease of $1,912 or 1% as compared December 31, 2023 mainly driven by unrealized gain on the fair value of our equity investment in Synergy as a result of Synergy's IPO partly offset by unrealized losses on the valuation of certain private investments of our strategic funds.

Bank loans: As at September 30, 2024, bank loans were at $51,651, a decrease of $10,215 or 17% as compared December 31, 2023 mainly due to principal repayments of bank loans as well as the depreciation of the Brazilian Real, Mexican Peso and Colombian Peso.

Product update

Minjuvi®
In Q4-24, Knight obtained regulatory approval by COFEPRIS, the Mexican health regulatory agency, for Minjuvi® (tafasitamab) in combination with lenalidomide followed by Minjuvi® monotherapy for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), who are not eligible for autologous stem cell transplantation (ASCT). The Company expects to launch Minjuvi® in Mexico in the first half of 2025.

Lenvima®
During 2023, two companies received ANVISA’s approval for generic lenvatinib in Brazil. During 2024, both of those companies received the approval for a branded generic lenvatinib. Additionally, in Q3-24, a competitor received the approval of a generic lenvatinib in Chile.

In Q3-24, a competitor in Brazil launched both a branded generic and a generic of Lenvima®. Knight and Eisai are collaborating to defend Lenvima®’s market exclusivity in Brazil. While we continue to continue to challenge the generic entrants, the introduction of generics and branded generics will increase competitive pressures and negatively impact future sales and margins of Lenvima® in Brazil.

Corporate Update

NCIB

On July 15, 2024, the Company commenced an NCIB where Knight may purchase for cancellation up to 5,312,846 common shares of the Company. During the three-month period ended September 30, 2024, the Company purchased 437,500 common shares at an average price of $5.65 for aggregate cash consideration of $2,474 under the NCIB. Subsequent to the quarter-end up to October 31, 2024, the Company purchased an additional 190,000 common shares at an average purchase price of $5.66 for an aggregate cash consideration of $1,076.

Financial Outlook

Knight provides guidance on revenues on a non-GAAP basis. This is due to both the difficulty in predicting Argentinian inflation rates and its IAS 29 impact.

Knight reconfirmed its financial guidance targets for 2024. Knight expects to generate between $355 million to $365 million in revenues and adjusted EBITDA1 to be approximately 16% of revenues. The guidance is based on a number of assumptions, including but not limited to the following:

  • no revenues or expenses for business development transactions not completed as at November 6, 2024
  • no unforeseen termination to our license, distribution & supply agreements
  • no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues
  • no new generic entrants on our key pharmaceutical brands
  • no unforeseen changes to government mandated pricing regulations
  • successful commercial execution on product listing arrangements with HMOs, insurers, key accounts, and public payers
  • successful execution and uptake of newly launched products
  • no material increase in provisions for inventory or trade receivables
  • no significant variations of forecasted foreign currency exchange rates
  • inflation remaining within forecasted ranges

Should any of the assumptions differ, the financial outlook and the actual results may vary materially. Refer to the risks and assumptions referred to in the Forward-Looking Statements section of this news release for further details.

_________________________
1 Revenues excluding the impact of IAS 29 and adjusted EBITDA are a non-GAAP measure. Refer to the definitions in section “Non-GAAP measures” for additional details.


Conference
Call Notice

Knight will host a conference call and audio webcast to discuss its third quarter ended September 30, 2024, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, November 7, 2024
Time: 8:30 a.m. ET
Telephone: Toll Free: 1-800-836-8184 or International 1-289-819-1350
Webcast: www.knighttx.com or Webcast
This is a listen-only audio webcast. Media Player is required to listen to the broadcast.

Replay: An archived replay will be available for 30 days at www.knighttx.com

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing and commercializing pharmaceutical products for Canada and Latin America. Knight's Latin American subsidiaries operate under United Medical, Biotoscana Farma and Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the Company's web site at www.knighttx.com or www.sedarplus.ca.

Forward-Looking Statement

This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2023 as filed on www.sedarplus.ca. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information or future events, except as required by law.

CONTACT INFORMATION:

Investor Contact: 
Knight Therapeutics Inc. 
Samira SakhiaArvind Utchanah
President & Chief Executive OfficerChief Financial Officer
T: 514.484.4483T. +598.2626.2344
F: 514.481.4116 
Email: IR@knighttx.comEmail: IR@knighttx.com
Website: www.knighttx.comWebsite: www.knighttx.com


NON-GAAP MEASURES
[In thousands of Canadian dollars]

The Company discloses non-GAAP measures and ratios that do not have standardized meanings prescribed by IFRS. The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company’s financial performance. Non-GAAP financial measures and adjusted EBITDA per share ratio do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies.

The Company uses the following non-GAAP measures.

[i] Revenues and Financial results excluding the impact of hyperinflation under IAS 29

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiaries used the Argentine Peso as their functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation.

Revenues and financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The impact of hyperinflation under IAS 29 is calculated by applying an appropriate general price index to express the effects of inflation. After applying the effects of translation, the statement of income is converted using the closing foreign exchange rate of the month.

Revenues and financial results excluding the impact of hyperinflation under IAS 29 allow results to be viewed without the impact of IAS 29 thereby facilitating the comparison of results period over period. The presentation of revenues and financial results excluding the impact of hyperinflation under IAS 29 is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following tables are reconciliations of financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.

 Q3-24
 YTD-24 
 Reported 
under IFRS
 IAS 29 
Adjustment
 Excluding the
Impact of 
IAS 29
 Reported 
under IFRS
 IAS 29 
Adjustment
 Excluding the
Impact of 
IAS 29
 
             
Revenues92,263 (833)91,430 274,440 (3,094)271,346 
Cost of goods sold47,246 988 48,234 140,387 1,786 142,173 
Gross margin45,017 (1,821)43,196 134,053 (4,880)129,173 
Gross margin (%)49%   47% 49%   48% 

Expenses
            
Selling and marketing13,372 (175)13,197 39,285 (627)38,658 
General and administrative12,110 (188)11,922 34,747 (1,036)33,711 
Research and development5,153 219 5,372 15,939 (150)15,789 
Amortization of intangible assets11,179 (18)11,161 33,725 (18)33,707 
Operating income (loss)3,203 (1,659)1,544 10,357 (3,049)7,308 

 


 Q3-23 YTD-23 
 Reported
under IFRS
 IAS 29
Adjustment
 Excluding the
Impact of
IAS 29
 Reported
under IFRS
IAS 29
Adjustment
 Excluding the
Impact of
IAS 29
 
            
Revenues81,500 169 81,669 254,002734 254,736 
Cost of goods sold41,318 (1,770)39,548 135,565(4,580)130,985 
Gross margin40,182 1,939 42,121 118,4375,314 123,751 
Gross margin (%)49%   52% 47%  49% 

Expenses
           
Selling and marketing11,924 13 11,937 35,463172 35,635 
General and administrative11,080 (71)11,009 29,305 (221)29,084 
Research and development4,768 (117)4,651 13,29185 13,376 
Amortization of intangible assets11,480 (5)11,475 33,925 (136)33,789 
Operating income930 2,119 3,049 6,4535,414 11,867 


[ii] 
Revenues and Financial results at constant currency
Revenues and financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods.

Revenues and financial results at constant currency allow results to be viewed without the impact of fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of revenues and financial results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.

 Q3-23YTD-23
 Excluding the
impact of
IAS 291
 Constant
Currency
Adjustment
 Constant 
Currency
 Excluding the
impact of
IAS 291
Constant
Currency
Adjustment
 Constant
Currency
 
Revenues81,669 (4,040)77,629 254,736(448)254,288 
Cost of goods sold39,548 (2,455)37,093 130,985(1,002)129,983 
Gross margin42,121 (1,585)40,536 123,751554 124,305 
Gross margin (%)52%   52% 49%  49% 

Expenses
           
Selling and marketing11,937 (559)11,378 35,635(354)35,281 
General and administrative11,009 (249)10,760 29,084252 29,336 
Research and development4,651 (111)4,540 13,376(15)13,361 
Amortization of intangible assets11,475 129 11,604 33,789256 34,045 
Operating income3,049 (795)2,254 11,867415 12,282 

1Refer to Subsection - [i] Revenues and Financial results excluding the impact of hyperinflation under IAS 29 for additional details.


[iii] 
EBITDA

EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases.

EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

[iv] Adjusted EBITDA

Adjusted EBITDA is defined EBITDA adjusted for acquisition costs and non-recurring expenses.

Adjusted EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation), acquisition costs and non-recurring expenses but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA.

 Q3-24 Q3-23 YTD-24 YTD-23 
Operating income3,203 930 10,357 6,453 
Adjustments to operating income:        
Amortization of intangible assets11,179 11,480 33,725 33,925 
Depreciation of property, plant and equipment and ROU assets2,210 2,218 5,414 5,014 
Lease costs (IFRS 16 adjustment)(997)(779)(2,861)(2,146)
Impact of IAS 29(2,265)1,663 (4,075)4,772 
EBITDA13,330 15,512 42,560 48,018 
Acquisition and transition costs18  121  
Other non-recurring expenses106  106  
Adjusted EBITDA13,454 15,512 42,787 48,018 


[v] 
Adjusted EBITDA per share

Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following table calculates adjusted EBITDA per share as follows:

 Q3-24 Q3-23 YTD-24 YTD-23 
Adjusted EBITDA13,454 15,512 42,787 48,018 
Adjusted EBITDA per common share0.13 0.15 0.42 0.46 
Number of common shares outstanding at period end (in thousands)100,976 105,045 100,976 105,045 



SELECTED FINANCIAL RESULTS AT CONSTANT CURRENCY1
[In thousands of Canadian dollars]

 Excluding impact of IAS 29
   Constant
Currency1
 Change   Constant
Currency1
 Change 
 Q3-24  Q3-23 $ % YTD-24  YTD-23 $ % 

Revenues
91,430 77,629 13,801 18% 271,346 254,288 17,058 7% 
Gross margin43,196 40,536 2,660 7% 129,173 124,305 4,868 4% 
Gross margin %47% 52%     48% 49%     
Operating expenses41,652 38,282 (3,370)9% 121,865 112,023 (9,842)9% 
EBITDA13,330 14,757 (1,427)10% 42,560 48,672 (6,112)13% 
Adjusted EBITDA13,454 14,757 (1,303)9% 42,787 48,672 (5,885)12% 
Adjusted EBITDA per share0.13 0.14 (0.01)7% 0.42 0.45 (0.03)7% 

1 Financial results at constant currency is a non-GAAP measure. Refer to section “Non-GAAP measures” for additional details.


Revenues
at Constant Currency1 by Therapeutic Area

 Three months ended September 30,
 Nine months ended September 30, 
 Excluding impact of IAS 29
   Constant
Currency1
       Constant
Currency1
     
Innovative2024  2023 $ % 2024 2023 $ % 
Oncology/Hematology36,821 30,092 6,729 22%103,288 88,979 14,309 16%
Infectious Diseases33,827 27,255 6,572 24%109,714 104,687 5,027 5%
Other Specialty20,782 20,282 500 2%58,344 60,622 (2,278)4%
Total91,430 77,629 13,801 18%271,346 254,288 17,058 7%

1 Revenues at constant currency is a non-GAAP measure. Refer to Section 15 - Non-GAAP measures for additional details.

 


INTERIM CONSOLIDATED BALANCE SHEETS
[In thousands of Canadian dollars]
[Unaudited]

As atSeptember 30, 2024December 31, 2023
ASSETS  
Current  
Cash and cash equivalents73,75558,761
Marketable securities73,96595,657
Trade receivables91,25088,722
Other receivables7,2947,427
Inventories114,95991,834
Prepaids and deposits7,2874,881
Other current financial assets24,59815,753
Income taxes receivable4,4582,080
Total current assets397,566365,115

Marketable securities
3,7807,407
Prepaids and deposits7,6827,767
Right-of-use assets6,3526,190
Property, plant and equipment15,29211,669
Intangible assets279,681289,960
Goodwill84,78379,844
Other financial assets101,859112,616
Deferred income tax assets20,90019,390
Other long-term receivables44,39945,535
Total non-current assets564,728580,378
Total assets962,294945,493



INTERIM CONSOLIDATED BALANCE SHEETS (continued)
[In thousands of Canadian dollars]
[Unaudited]

As atSeptember 30, 2024December 31, 2023

LIABILITIES
AND EQUITY
  
Current  
Accounts payable and accrued liabilities86,62085,366
Lease liabilities3,0151,728
Other liabilities2,1931,046
Bank loans18,69117,850
Income taxes payable2,4931,182
Other balances payable5,1406,857
Total current liabilities118,152114,029

Accounts payable and accrued liabilities
7,1755,251
Lease liabilities3,5515,497
Bank loans32,96044,016
Other balances payable22,28427,012
Deferred income tax liabilities4,2632,817
Total liabilities188,385198,622

Shareholders'
equity
  
Share capital539,317540,046
Warrants117117
Contributed surplus26,21525,991
Accumulated other comprehensive income64,07729,829
Retained earnings144,183150,888
Total shareholders' equity773,909746,871
Total liabilities and shareholders' equity962,294945,493



INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)
[In thousands of Canadian dollars, except for share and per share amounts]
[Unaudited]

 Three months ended September 30,  Nine months ended September 30, 
 2024 2023 2024 2023 

Revenues
92,263 81,500 274,440 254,002 
Cost of goods sold47,246 41,318 140,387 135,565 
Gross margin45,017 40,182 134,053 118,437 

Expenses
    
Selling and marketing13,372 11,924 39,285 35,463 
General and administrative12,110 11,080 34,747 29,305 
Research and development5,153 4,768 15,939 13,291 
Amortization of intangible assets11,179 11,480 33,725 33,925 
Operating income (loss)3,203 930 10,357 6,453 

Interest income on financial instruments measured at amortized cost
(2,458)(2,024)(6,554)(6,218)
Other interest income(65)(1,031)(1,194)(3,276)
Interest expense1,915 2,603 6,776 8,398 
Other expense(795)(1,907)(1,006)(2,123)
Net loss (gain) on financial instruments measured at fair value through profit or loss2,820 (5,562)19,752 2,346 
Foreign exchange loss (gain)2,326 1,317 5,934 6,162 
Gain on hyperinflation(1,148)(1,364)(7,528)(3,000)
(Loss) income before income taxes608 8,898 (5,823)4,164 

Income
tax
    
Current1,862 1,112 4,776 3,251 
Deferred(1,339)(1,802)(4,196)(6,578)
Income tax expense (recovery)523 (690)580 (3,327)
Net income (loss) for the period85 9,588 (6,403)7,491 

Basic and diluted net income (loss) per share
 0.09 (0.06)0.07 
Weighted average number of common shares outstanding    
Basic101,132,799 106,250,793 101,211,415 108,728,924 
Diluted101,132,799 106,511,761 101,211,415 108,958,045 



INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
[In thousands of Canadian dollars]
[Unaudited]

 Three months ended
September
30,
 Nine months ended
September
30,
 
 2024 2023 2024 2023 
OPERATING ACTIVITIES    
Net (loss) income for the period85 9,588 (6,403)7,491 
Adjustments reconciling net income to operating cash flows:    
Depreciation and amortization13,389 13,698 39,139 38,939 
Net loss (gain) on financial instruments2,820 (5,562)19,752 2,346 
Unrealized foreign exchange (gain) loss98 3,619 (6,231)1,557 
Other operating activities(384)1,058 (4,030)966 
 16,008 22,401 42,227 51,299 
Changes in non-cash working capital and other items(10,992)(7,235)(7,416)(33,303)
Cash inflow (outflow) from operating activities5,016 15,166 34,811 17,996 

INVESTING ACTIVITIES
    
Purchase of marketable securities(45,417)(52,118)(123,339)(237,668)
Proceeds on maturity of marketable securities58,703 81,204 150,693 262,372 
Investment in funds(1,372)(1,006)(2,575)(1,176)
Purchase of intangible assets(1,671)(60)(28,488)(7,727)
Other investing activities1,284 7,736 2,623 15,441 
Cash inflow (outflow) from investing activities11,527 35,756 (1,086)31,242 

FINANCING ACTIVITIES
    
Repurchase of common shares through Normal Course Issuer Bid(2,474)(9,833)(3,716)(34,396)
Principal repayment of bank loans(2,039)(2,571)(10,698)(8,580)
Proceeds from bank loans1,638 2,706 2,930 4,796 
Other financing activities(1,052)(1,541)(6,702)(7,124)
Cash outflow from financing activities(3,927)(11,239)(18,186)(45,304)

Increase (decrease) in cash and cash equivalents during the period

12,616
 
39,683
 
15,539
 
3,934
 
Cash and cash equivalents, beginning of the period60,807 37,844 58,761 71,679 
Net foreign exchange difference332 (109)(545)1,805 
Cash and cash equivalents, end of the period73,755 77,418 73,755 77,418 

Cash and cash equivalents

73,755
 
77,418
 
73,755
 
77,418
 
Marketable securities77,745 76,397 77,745 76,397 
Total cash, cash equivalents and marketable securities151,500 153,815 151,500 153,815 

Company ProfileKnight TherapeuticsIndustry: Drug RetailersWebsite: