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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
92,263 |
|
81,500 |
|
10,763 |
|
13% |
|
274,440 |
|
254,002 |
|
20,438 |
|
8% |
|
|
Gross margin |
45,017 |
|
40,182 |
|
4,835 |
|
12% |
|
134,053 |
|
118,437 |
|
15,616 |
|
13% |
|
|
Gross margin % |
49% |
|
49% |
|
|
|
|
|
49% |
|
47% |
|
|
|
|
|
|
Selling and marketing |
13,372 |
|
11,924 |
|
(1,448 |
) |
12% |
|
39,285 |
|
35,463 |
|
(3,822 |
) |
11% |
|
|
General and administrative |
12,110 |
|
11,080 |
|
(1,030 |
) |
9% |
|
34,747 |
|
29,305 |
|
(5,442 |
) |
19% |
|
|
Research and development |
5,153 |
|
4,768 |
|
(385 |
) |
8% |
|
15,939 |
|
13,291 |
|
(2,648 |
) |
20% |
|
|
Amortization of intangible assets |
11,179 |
|
11,480 |
|
301 |
|
3% |
|
33,725 |
|
33,925 |
|
200 |
|
1% |
|
|
Operating expenses |
41,814 |
|
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 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
91,430 |
|
81,669 |
|
9,761 |
|
12% |
|
271,346 |
|
254,736 |
|
16,610 |
|
7% |
|
|
Gross margin |
43,196 |
|
42,121 |
|
1,075 |
|
3% |
|
129,173 |
|
123,751 |
|
5,422 |
|
4% |
|
|
Gross margin % |
47% |
|
52% |
|
|
|
|
|
48% |
|
49% |
|
|
|
|
|
|
Selling and marketing |
13,197 |
|
11,937 |
|
1,260 |
|
11% |
|
38,658 |
|
35,635 |
|
3,023 |
|
8% |
|
|
General and administrative |
11,922 |
|
11,009 |
|
913 |
|
8% |
|
33,711 |
|
29,084 |
|
4,627 |
|
16% |
|
|
Research and development |
5,372 |
|
4,651 |
|
721 |
|
1% |
|
15,789 |
|
13,376 |
|
2,413 |
|
18% |
|
|
Amortization of intangible assets |
11,161 |
|
11,475 |
|
(314 |
) |
3% |
|
33,707 |
|
33,789 |
|
(82 |
) |
—% |
|
|
Operating expenses |
41,652 |
|
39,072 |
|
2,580 |
|
7% |
|
121,865 |
|
111,884 |
|
9,981 |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA1 |
13,330 |
|
15,512 |
|
(2,182 |
) |
14% |
|
42,560 |
|
48,018 |
|
(5,458 |
) |
11% |
|
|
Adjusted EBITDA1 |
13,454 |
|
15,512 |
|
(2,058 |
) |
13% |
|
42,787 |
|
48,018 |
|
(5,231 |
) |
11% |
|
|
Adjusted EBITDA per share1 |
0.13 |
|
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 Area |
Q3-24 |
Q3-23 |
$ |
|
% |
|
Oncology/Hematology |
36,821 |
31,336 |
5,485 |
|
18% |
|
Infectious Diseases |
33,827 |
29,195 |
4,632 |
|
16% |
|
Other Specialty |
20,782 |
21,138 |
(356 |
) |
2% |
|
Total |
91,430 |
81,669 |
9,761 |
|
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
marginExcluding 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
EBITDAFor 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 IncomeFor
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,
2024 |
December 31,
2023 |
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
151,500 |
161,825 |
(10,325 |
) |
6 |
% |
|
Trade and other receivables |
142,943 |
141,684 |
1,259 |
|
1 |
% |
|
Inventories |
114,959 |
91,834 |
23,125 |
|
25 |
% |
|
Financial assets |
126,457 |
128,369 |
(1,912 |
) |
1 |
% |
|
Accounts payable and accrued liabilities |
93,795 |
90,617 |
3,178 |
|
4 |
% |
|
Bank loans |
51,651 |
61,866 |
(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,
2024Time: 8:30 a.m. ETTelephone:
Toll Free: 1-800-836-8184 or International
1-289-819-1350Webcast: www.knighttx.com or
WebcastThis 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 Sakhia |
Arvind Utchanah |
|
President & Chief Executive Officer |
Chief Financial Officer |
|
T: 514.484.4483 |
T. +598.2626.2344 |
|
F: 514.481.4116 |
|
|
Email: IR@knighttx.com |
Email: IR@knighttx.com |
|
Website: www.knighttx.com |
Website: 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
92,263 |
|
(833 |
) |
91,430 |
|
274,440 |
|
(3,094 |
) |
271,346 |
|
|
Cost of goods sold |
47,246 |
|
988 |
|
48,234 |
|
140,387 |
|
1,786 |
|
142,173 |
|
|
Gross margin |
45,017 |
|
(1,821 |
) |
43,196 |
|
134,053 |
|
(4,880 |
) |
129,173 |
|
|
Gross margin (%) |
49% |
|
|
|
47% |
|
49% |
|
|
|
48% |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
13,372 |
|
(175 |
) |
13,197 |
|
39,285 |
|
(627 |
) |
38,658 |
|
|
General and administrative |
12,110 |
|
(188 |
) |
11,922 |
|
34,747 |
|
(1,036 |
) |
33,711 |
|
|
Research and development |
5,153 |
|
219 |
|
5,372 |
|
15,939 |
|
(150 |
) |
15,789 |
|
|
Amortization of intangible assets |
11,179 |
|
(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 29Adjustment |
|
Excluding the Impact of IAS 29 |
|
Reported under IFRS |
IAS 29Adjustment |
|
Excluding the Impact of IAS 29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
81,500 |
|
169 |
|
81,669 |
|
254,002 |
734 |
|
254,736 |
|
|
Cost of goods sold |
41,318 |
|
(1,770 |
) |
39,548 |
|
135,565 |
(4,580 |
) |
130,985 |
|
|
Gross margin |
40,182 |
|
1,939 |
|
42,121 |
|
118,437 |
5,314 |
|
123,751 |
|
|
Gross margin (%) |
49% |
|
|
|
52% |
|
47% |
|
|
49% |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
11,924 |
|
13 |
|
11,937 |
|
35,463 |
172 |
|
35,635 |
|
|
General and administrative |
11,080 |
|
(71 |
) |
11,009 |
|
29,305 |
(221 |
) |
29,084 |
|
|
Research and development |
4,768 |
|
(117 |
) |
4,651 |
|
13,291 |
85 |
|
13,376 |
|
|
Amortization of intangible assets |
11,480 |
|
(5 |
) |
11,475 |
|
33,925 |
(136 |
) |
33,789 |
|
|
Operating income |
930 |
|
2,119 |
|
3,049 |
|
6,453 |
5,414 |
|
11,867 |
|
[ii] Revenues
and Financial
results at
constant currencyRevenues 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.
|
|
Q3-23 |
YTD-23 |
|
|
Excluding the impact of IAS 291 |
|
ConstantCurrencyAdjustment |
|
Constant Currency |
|
Excluding the impact of IAS 291 |
Constant Currency Adjustment |
|
Constant Currency |
|
|
Revenues |
81,669 |
|
(4,040 |
) |
77,629 |
|
254,736 |
(448 |
) |
254,288 |
|
|
Cost of goods sold |
39,548 |
|
(2,455 |
) |
37,093 |
|
130,985 |
(1,002 |
) |
129,983 |
|
|
Gross margin |
42,121 |
|
(1,585 |
) |
40,536 |
|
123,751 |
554 |
|
124,305 |
|
|
Gross margin (%) |
52% |
|
|
|
52% |
|
49% |
|
|
49% |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
11,937 |
|
(559 |
) |
11,378 |
|
35,635 |
(354 |
) |
35,281 |
|
|
General and administrative |
11,009 |
|
(249 |
) |
10,760 |
|
29,084 |
252 |
|
29,336 |
|
|
Research and development |
4,651 |
|
(111 |
) |
4,540 |
|
13,376 |
(15 |
) |
13,361 |
|
|
Amortization of intangible assets |
11,475 |
|
129 |
|
11,604 |
|
33,789 |
256 |
|
34,045 |
|
|
Operating income |
3,049 |
|
(795 |
) |
2,254 |
|
11,867 |
415 |
|
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 income |
3,203 |
|
930 |
|
10,357 |
|
6,453 |
|
|
Adjustments to
operating income: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
11,179 |
|
11,480 |
|
33,725 |
|
33,925 |
|
|
Depreciation of property, plant and equipment and ROU assets |
2,210 |
|
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 |
|
|
EBITDA |
13,330 |
|
15,512 |
|
42,560 |
|
48,018 |
|
|
Acquisition and transition costs |
18 |
|
— |
|
121 |
|
— |
|
|
Other non-recurring expenses |
106 |
|
— |
|
106 |
|
— |
|
|
Adjusted EBITDA |
13,454 |
|
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 EBITDA |
13,454 |
|
15,512 |
|
42,787 |
|
48,018 |
|
|
Adjusted EBITDA per common share |
0.13 |
|
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 |
|
|
|
|
ConstantCurrency1 |
|
Change |
|
|
|
ConstantCurrency1 |
|
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 margin |
43,196 |
|
40,536 |
|
2,660 |
|
7% |
|
129,173 |
|
124,305 |
|
4,868 |
|
4% |
|
|
Gross margin % |
47% |
|
52% |
|
|
|
|
|
48% |
|
49% |
|
|
|
|
|
|
Operating expenses |
41,652 |
|
38,282 |
|
(3,370 |
) |
9% |
|
121,865 |
|
112,023 |
|
(9,842 |
) |
9% |
|
|
EBITDA |
13,330 |
|
14,757 |
|
(1,427 |
) |
10% |
|
42,560 |
|
48,672 |
|
(6,112 |
) |
13% |
|
|
Adjusted EBITDA |
13,454 |
|
14,757 |
|
(1,303 |
) |
9% |
|
42,787 |
|
48,672 |
|
(5,885 |
) |
12% |
|
|
Adjusted EBITDA per share |
0.13 |
|
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 |
|
|
|
|
|
|
Innovative |
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
$ |
|
% |
|
|
Oncology/Hematology |
36,821 |
|
30,092 |
|
6,729 |
|
22 |
% |
103,288 |
|
88,979 |
|
14,309 |
|
16 |
% |
|
Infectious Diseases |
33,827 |
|
27,255 |
|
6,572 |
|
24 |
% |
109,714 |
|
104,687 |
|
5,027 |
|
5 |
% |
|
Other Specialty |
20,782 |
|
20,282 |
|
500 |
|
2 |
% |
58,344 |
|
60,622 |
|
(2,278 |
) |
4 |
% |
|
Total |
91,430 |
|
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 at |
September 30,
2024 |
December 31, 2023 |
|
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
73,755 |
58,761 |
|
Marketable securities |
73,965 |
95,657 |
|
Trade receivables |
91,250 |
88,722 |
|
Other receivables |
7,294 |
7,427 |
|
Inventories |
114,959 |
91,834 |
|
Prepaids and deposits |
7,287 |
4,881 |
|
Other current financial assets |
24,598 |
15,753 |
|
Income taxes receivable |
4,458 |
2,080 |
|
Total current
assets |
397,566 |
365,115 |
|
Marketable securities |
3,780 |
7,407 |
|
Prepaids and deposits |
7,682 |
7,767 |
|
Right-of-use assets |
6,352 |
6,190 |
|
Property, plant and equipment |
15,292 |
11,669 |
|
Intangible assets |
279,681 |
289,960 |
|
Goodwill |
84,783 |
79,844 |
|
Other financial assets |
101,859 |
112,616 |
|
Deferred income tax assets |
20,900 |
19,390 |
|
Other long-term receivables |
44,399 |
45,535 |
|
Total non-current
assets |
564,728 |
580,378 |
|
Total assets |
962,294 |
945,493 |
|
INTERIM CONSOLIDATED
BALANCE SHEETS
(continued)[In thousands of Canadian
dollars] [Unaudited] |
|
As at |
September 30,
2024 |
December 31, 2023 |
|
LIABILITIES AND
EQUITY |
|
|
|
Current |
|
|
|
Accounts payable and accrued liabilities |
86,620 |
85,366 |
|
Lease liabilities |
3,015 |
1,728 |
|
Other liabilities |
2,193 |
1,046 |
|
Bank loans |
18,691 |
17,850 |
|
Income taxes payable |
2,493 |
1,182 |
|
Other balances payable |
5,140 |
6,857 |
|
Total current
liabilities |
118,152 |
114,029 |
|
Accounts payable and accrued liabilities |
7,175 |
5,251 |
|
Lease liabilities |
3,551 |
5,497 |
|
Bank loans |
32,960 |
44,016 |
|
Other balances payable |
22,284 |
27,012 |
|
Deferred income tax liabilities |
4,263 |
2,817 |
|
Total liabilities |
188,385 |
198,622 |
|
Shareholders' equity |
|
|
|
Share capital |
539,317 |
540,046 |
|
Warrants |
117 |
117 |
|
Contributed surplus |
26,215 |
25,991 |
|
Accumulated other comprehensive income |
64,077 |
29,829 |
|
Retained earnings |
144,183 |
150,888 |
|
Total shareholders'
equity |
773,909 |
746,871 |
|
Total liabilities
and shareholders'
equity |
962,294 |
945,493 |
|
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 sold |
47,246 |
|
41,318 |
|
140,387 |
|
135,565 |
|
|
Gross margin |
45,017 |
|
40,182 |
|
134,053 |
|
118,437 |
|
|
Expenses |
|
|
|
|
|
Selling and marketing |
13,372 |
|
11,924 |
|
39,285 |
|
35,463 |
|
|
General and administrative |
12,110 |
|
11,080 |
|
34,747 |
|
29,305 |
|
|
Research and development |
5,153 |
|
4,768 |
|
15,939 |
|
13,291 |
|
|
Amortization of intangible assets |
11,179 |
|
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 expense |
1,915 |
|
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 loss |
2,820 |
|
(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
taxes |
608 |
|
8,898 |
|
(5,823 |
) |
4,164 |
|
|
Income tax |
|
|
|
|
|
Current |
1,862 |
|
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
period |
85 |
|
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 |
|
|
|
|
|
Basic |
101,132,799 |
|
106,250,793 |
|
101,211,415 |
|
108,728,924 |
|
|
Diluted |
101,132,799 |
|
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 period |
85 |
|
9,588 |
|
(6,403 |
) |
7,491 |
|
|
Adjustments reconciling net income to operating cash flows: |
|
|
|
|
|
Depreciation and amortization |
13,389 |
|
13,698 |
|
39,139 |
|
38,939 |
|
|
Net loss (gain) on financial instruments |
2,820 |
|
(5,562 |
) |
19,752 |
|
2,346 |
|
|
Unrealized foreign exchange (gain) loss |
98 |
|
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 activities |
5,016 |
|
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 securities |
58,703 |
|
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 activities |
1,284 |
|
7,736 |
|
2,623 |
|
15,441 |
|
|
Cash inflow (outflow) from investing activities |
11,527 |
|
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 loans |
1,638 |
|
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 period |
60,807 |
|
37,844 |
|
58,761 |
|
71,679 |
|
|
Net foreign exchange difference |
332 |
|
(109 |
) |
(545 |
) |
1,805 |
|
|
Cash and cash equivalents, end of the period |
73,755 |
|
77,418 |
|
73,755 |
|
77,418 |
|
|
Cash and cash equivalents |
73,755 |
|
77,418 |
|
73,755 |
|
77,418 |
|
|
Marketable securities |
77,745 |
|
76,397 |
|
77,745 |
|
76,397 |
|
|
Total cash, cash
equivalents and
marketable securities |
151,500 |
|
153,815 |
|
151,500 |
|
153,815 |
|
Knight Therapeutics (TSX:GUD)
Historical Stock Chart
From Dec 2024 to Jan 2025
Knight Therapeutics (TSX:GUD)
Historical Stock Chart
From Jan 2024 to Jan 2025
