From GlobeNewswire: 2025-05-08 07:30:00

Knight Therapeutics Inc. reported Q1-25 financial results, with revenues of $88,076, up 2% from the same period last year. Gross margin was $34,866, operating loss was $5,537, net income was $2,185, and earnings per share were $0.02. Adjusted revenues were $87,979, up 3% from last year.

The company purchased Paladin’s business for $100,000, with potential additional payments based on sales milestones. They also bought back 605,400 common shares through the NCIB. In-licensed Onicit® IV for multiple countries, submitted Tavalisse® for approval, and obtained regulatory approval for Pemazyre®.

CEO Samira Sakhia expressed satisfaction with Q1 results, highlighting a 3% growth in adjusted revenues and over $12 million in adjusted EBITDA. The company expanded its partnership, launched new products, and acquired Paladin. Shareholders re-elected seven members to the Board of Directors.

Revenues increased by 2% in Q1-25, with growth in key promoted products. Oncology/Hematology revenues rose by 1%, Infectious Diseases fell by 5%, and Other Specialty increased by 17%. Excluding the Hyperinflation Impact in Argentina, revenues grew by 3% and 8% on a constant currency basis. In Q1-25, revenues increased due to growth in oncology/hematology portfolio by $430 or 1%, excluding IAS 29, revenues increased by $833 or 3%. Infectious diseases portfolio decreased by $1,805 or 5%. Gross margin was 40% compared to 48% in Q1-24, mainly due to the Hyperinflation Impact. Selling and marketing expenses increased by $1,275 or 10%. General and administrative expenses increased by $1,681 or 16%. Research and development expenses decreased by $194 or 4%. Net income was $2,185 compared to net loss $4,546 in the prior year. Cash, cash equivalents, and marketable securities were $141,505 as of March 31, 2025, a decrease of $826 or 1% from December 31, 2024. Knight announced a decrease in cash and cash equivalents due to financing and investing activities, offset by cash inflows from operations and foreign exchange gains. Trade and other receivables increased by 7%, while inventory rose by 36%. Financial assets decreased by 5%, and accounts payable and accrued liabilities increased by 48%. Bank loans increased by 8%.

In terms of product updates, Knight submitted Tavalisse for ANMAT approval in Argentina and obtained regulatory approval in Mexico for Pemazyre. Knight also expanded its distribution rights for Onicit in select LATAM countries. In corporate news, Knight entered into an agreement to acquire Paladin. Additionally, Knight secured a working capital line of credit with Citibank, N.A.

Looking ahead, Knight reconfirmed its financial guidance targets for 2025, expecting revenues between $390 million to $405 million and adjusted EBITDA to be approximately 13% of revenues. The company’s outlook is based on various assumptions, including successful execution of product listings and commercial activities. Knight will host a conference call to discuss its first quarter and year-end results on May 8, 2025, at 8:30 am ET. Knight Therapeutics Inc., based in Montreal, focuses on acquiring and commercializing pharmaceutical products in Canada and Latin America. The company’s Latin American subsidiaries include United Medical and Biotoscana Farma. Shares trade on the TSX under the symbol GUD.

The Company applies IAS 29 for its Argentine subsidiary, adjusting financial statements for hyperinflation. Revenues and expenses in ARS are restated using the inflation index for the reporting period. In Q1-25, hyperinflation adjustment had a minimal impact, unlike Q1-24 when higher inflation resulted in decreased reported revenues and operating expenses in CAD.

Financial results excluding the impact of hyperinflation under IAS 29 are disclosed by Knight Therapeutics Inc. This adjustment allows investors to view results without the impact of hyperinflation, facilitating period-over-period comparisons. Non-GAAP measures, including adjusted EBITDA per share ratio, provide additional insight into the company’s financial performance. Financial results excluding hyperinflation under IAS 29 are non-GAAP and not comparable to GAAP. Q1-25 revenues were $87,979, up 3% from Q1-24 at $85,795. Operating income was $1,230, down from $2,304. Adjusted EBITDA was $12,113, down by $1,476 or 11%.

Adjusted Revenues by Therapeutic Area show growth in Oncology/Hematology, Infectious Diseases decline, and Other Specialty increase. Financial results at constant currency eliminate exchange rate effects. Adjusted Gross Margin is non-GAAP, showing revenues minus cost of goods sold excluding hyperinflation impact under IAS 29.

EBITDA, a measure of profitability, is adjusted for amortization, depreciation, and lease costs. Adjusted EBITDA adds IAS 29 impact, acquisition costs, and non-recurring expenses. For Q1-25, Adjusted EBITDA decreased by $1,476 or 11% from Q1-24. These measures help assess liquidity and profitability without hyperinflation effects. The company reported a decrease in operating income due to higher operating expenses. Adjustments from EBITDA to Adjusted EBITDA include impact of hyperinflation accounting, acquisition costs, and transaction costs. Adjusted EBITDA per share is calculated as $0.12 for Q1-25 and $0.13 for Q1-24. The interim consolidated balance sheets show total assets of $1,003,042 in 2025 and $963,797 in 2024. The interim consolidated statements of income (loss) reveal a net loss of $399 for Q1-25, with a basic and diluted net income (loss) per share of $0.02. Operating activities resulted in a cash inflow of $3,670, while investing activities saw a cash inflow of $32,126 and financing activities had a cash outflow of $4,699. Total cash, cash equivalents, and marketable securities amounted to $141,505.



Read more at GlobeNewswire:: Knight Therapeutics Reports First Quarter 2025 Results