MONTREAL, March 19, 2026 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX:GUD) ("Knight" or "the Company"), a pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its fourth quarter and year ended December 31, 2025. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.
2025 Highlights
Financial results
Revenues were $450,088, an increase of $78,784 or 21% over the prior year. The increase was primarily driven by the incremental revenues from the Paladin and Sumitomo Transactions and the growth of our key promoted products, partly offset by declines in our mature and branded generic products, the termination of a non-strategic agreement in Colombia and the impact of hyperinflation2.
Gross margin was 44% of revenues compared to 47% in prior year. The decrease was due to the impact of hyperinflation2 and the fair value adjustment on the inventory acquired in the Paladin transaction.
Operating loss was $2,350 compared to an operating income of $7,397 in prior year.
Net loss was $5,374, compared to a net income of $4,332 in prior year.
Loss per share was $0.05, compared to an earnings per share of $0.04 in prior year.
Cash inflow from operations was $68,957, an increase of $32,677 or 90% over prior year.
Non-GAAP measures
Adjusted Revenues1 were $452,351, an increase of $86,939 or 24% or an increase of $87,855 or 24% on a constant currency1 basis, primarily driven by the incremental revenues from the Paladin and Sumitomo Transactions and the growth of our key promoted products, partly offset by declines in our mature and branded generic products and the termination of a non-strategic agreement in Colombia.
Excluding the Paladin and Sumitomo acquisitions, the key promoted portfolio delivered a growth of 12% on a constant currency1 basis and a three-year CAGR exceeding 20%.
The growth products3 acquired in the Paladin and Sumitomo transactions grew by 68% in the second half compared to the first half of 2025, according to IQVIA Canada.
Adjusted Gross margin1 was 48% of Adjusted Revenues1 compared to 47% in prior year. The increase was mainly due to the contribution from the Paladin and Sumitomo portfolios as well as the growth of our key promoted products.
Adjusted EBITDA1 was $73,056, an increase of $15,273 or 26% over prior year.
Adjusted EBITDA per share1 was $0.74, an increase of $0.16 or 28% over prior year.
Corporate developments
Launched a NCIB in August 2025 to purchase up to 3,000,000 common shares of the Company over the next 12 months. In 2025, 1,130,600 common shares were purchased at an average price of $5.69 for aggregate cash consideration of $6,431.
Closed a secured syndicated revolving credit facility with four lenders for US$100 million with an accordion feature for an additional US$100 million.
Closed a working capital line of credit agreement with Citibank, N.A.
Settled the Synergy loan agreement and collected $13,758 [US$10,000] in cash and received warrants with a fair value of $1,116 [US$811].
Collected a strategic loan receivable with a life sciences company for $3,840 [US$2,771].
Products
Added profitable and growth assets and expanded our portfolio with over fifty products including eight pipeline and early launch stage assets.
Executed an asset purchase agreement with Paladin Pharma Inc., to acquire the Paladin business. Knight paid $90,002, an additional $23,008 for inventory and expects to pay $8,457 for the final and full settlement of the holdback from the purchase price. Furthermore, Knight may have to pay up to an additional US$15,000 upon achieving certain sales milestones.
Entered into exclusive license and supply agreements with Sumitomo to commercialize Myfembree® (relugolix/estradiol/norethindrone acetate), Orgovyx® (relugolix), Gemtesa® (vibegron), and an asset purchase agreement to acquire certain mature products in Canada for $25,400. Knight may pay up to an additional $15,750 if certain sales milestones are met.
Expanded existing partnership with Helsinn and in-licensed Onicit® IV (palonosetron) for Mexico, Brazil, and select LATAM countries.
Expanded existing partnership with Incyte and amended the Supply and Distribution Agreement to add the exclusive rights to distribute Zynyz® (retifanlimab) and Niktimvo® (axatilimab) in Latin America.
In-licensed one branded generic product for Brazil.
Submitted multiple products for regulatory approval across our territories:
Tavalisse® (fostamatinib) in Argentina.
Crexont® (carbidopa and levodopa) in Canada, Mexico, Chile, Argentina and Peru.
Supplemental indication of Minjuvi® (tafasitamab) for follicular lymphoma (FL) in Brazil.
Obtained regulatory approval for multiple products across our territories:
Wynzora® (calcipotriene and betamethasone dipropionate) in Canada.
Pemazyre® (pemigatinib) in Argentina and Mexico.
Minjuvi® (tafasitamab) for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) in Argentina.
Received Notice of Non-Compliance from Health Canada requesting additional information for its New Drug Submission for Qelbree® (viloxazine) and expect to submit the response in 2026.
Received rejection from ANVISA regarding the marketing authorization application for Tavalisse® in Brazil and submitted an appeal which was accepted by ANVISA.
Executed on 10 commercial launches across our territories
Onicit® IV in Brazil and Mexico.
Pemazyre® in Brazil and Mexico.
Minjuvi® for the treatment of adult patients with relapsed or refractory diffuse DLBCL in Argentina and Mexico.
Xcopri®, Myfembree® and Orgovyx® in Canada.
Jornay PM® (methylphenidate HCI extended-release capsules) in Canada.
Subsequent to year-end
Submitted Niktimvo® for regulatory approval in Brazil.
Submitted supplemental indication of Minjuvi® for FL for regulatory approval in Argentina and Mexico.
Obtained regulatory approval of supplemental indication of Minjuvi® for the treatment of adult patients with relapsed or refractory FL in Brazil.
Obtained regulatory approval and launched Bapocil® (palbociclib) in Colombia.
Executed certain agreements with two partners to return the Canadian commercial rights of six non‑core products in exchange for $21,500 and, in accordance with the Asset Purchase Agreement, will settle the holdback to Paladin for $8,457.
Repaid principal of $10,000 on the revolving credit facility.
Executed an asset purchase agreement to acquire a manufacturing facility in Argentina.
Up to March 12, 2026, the Company purchased additional 1,183,300 common shares at an average purchase price of $6.17 for an aggregate cash consideration of $7,296.
"I am pleased to announce that we delivered another year of record‑high adjusted revenues1 and adjusted EBITDA1 and cash flow from operations since Knight's inception. While delivering record results, we strengthened our Canadian infrastructure and portfolio with multiple mature cashflow generating products as well as several early launch and pipeline products which positions Canada to be one of Knight's largest contributors to revenue and profitability within the next 2 to 3 years. We also expanded our partnerships with Helsinn adding Onicit®, and with Incyte adding Niktimvo® and Zynyz®, for Latin America. Over the past year we have licensed, submitted, obtained regulatory approval and launched multiple innovative products in Canada and Latin America. This is the result of the execution of our strategy which will continue into 2026 as we look to deliver nearly $500 million revenues representing a twofold increase in our business within five years," said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.
SELECT FINANCIAL RESULTS REPORTED UNDER IFRS[In thousands of Canadian dollars]
Change
Change
Q4-25
Q4-24
$1
%2
2025
2024
$1
%2
Revenues
133,106
96,864
36,242
37
%
450,088
371,304
78,784
21
%
Gross margin
64,723
40,352
24,371
60
%
200,230
174,405
25,825
15
%
Gross margin %
49
%
42
%
44
%
47
%
Selling and marketing
20,421
14,576
(5,845
)
40
%
67,927
53,861
(14,066
)
26
%
General and administrative
15,033
10,741
(4,292
)
40
%
56,182
45,488
(10,694
)
24
%
Research and development
9,223
7,365
(1,858
)
25
%
28,984
23,304
(5,680
)
24
%
Amortization of intangible assets
13,836
10,630
(3,206
)
30
%
49,487
44,355
(5,132
)
12
%
Operating expenses
58,513
43,312
(15,201
)
35
%
202,580
167,008
(35,572
)
21
%
Operating income (loss)
6,210
(2,960
)
9,170
310
%
(2,350
)
7,397
(9,747
)
132
%
Net income (loss)
8,854
10,735
(1,881
)
18
%
(5,374
)
4,332
(9,706
)
224
%
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.
Revenues: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $29,134 of incremental revenues. The remaining variance was mainly due to the growth of our key promoted products, the purchasing patterns of certain products partly offset by declines in our branded generic products and the termination of a non-strategic agreement in Colombia.
For the year ended December 31, 2025, the increase in revenues excluding the Hyperinflation Impact2 was $87,855 or 24% on a constant currency1 basis. The Paladin and Sumitomo portfolios contributed $56,532 of incremental revenues. The remaining variance was mainly driven by the growth of our key promoted products which grew by $32,488 or 12% on a constant currency1 basis and the purchasing patterns of certain products, partly offset by declines in our branded generic products and the termination of a non-strategic agreement in Colombia.
The table below provides revenues by therapeutic areas.
Change
Change
Therapeutic Area
Q4-25
Q4-241
$
%
2025
20241
$
%
Oncology/Hematology
41,988
35,823
6,165
17
%
146,373
140,837
5,536
4
%
Infectious Diseases
42,252
40,417
1,835
5
%
160,381
150,986
9,395
6
%
Neurology
26,989
12,480
14,509
116
%
85,460
53,229
32,231
61
%
Other Specialty
21,877
8,144
13,733
169
%
57,874
26,252
31,622
120
%
Total
133,106
96,864
36,242
37
%
450,088
371,304
78,784
21
%
1Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues.
The increase in revenues is explained by the following:
Oncology/Hematology: For the quarter ended December 31, 2025, the increase in revenues was mainly due to the addition of Orgovyx® and Onicit®, the growth of Minjuvi®, the launch of Pemazyre® as well as the purchasing patterns of certain customers.For the year ended December 31, 2025, the revenues from our key promoted Oncology/Hematology products increased by $14,531 or 20% on a constant currency1 basis mainly driven by the addition of Orgovyx® and Onicit®, the growth of Minjuvi® and Akynzeo® as well as the launch of Pemazyre®. This growth was partly offset by declines in our mature and branded generics due to their lifecycle and the termination of a non-strategic agreement in Colombia.
Infectious Diseases: For the quarter ended December 31, 2025, there was no material change in revenues of the portfolio.For the year ended December 31, 2025, the increase in the revenues was primarily due to the growth of Cresemba® and Ambisome®, partly offset by the purchasing patterns of certain products.
Neurology: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $14,810 of incremental revenues.For the year ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $28,184 of incremental revenues. The remaining variance was due to purchasing patterns of certain customers and the launch of Jornay PM®.
Other Specialty: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $12,132 of incremental revenues. The rest of the variance was driven by growth of Imvexxy® and Bijuva® partly offset by the purchasing patterns of certain customers.For the year ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $24,267 of incremental revenues. The rest of the variance was driven by growth of Imvexxy® and Bijuva® as well as purchasing patterns of certain customers.
Gross margin: The Adjusted Gross Margin1 as a % of Adjusted Revenues1, was 51% in Q4-25 compared to 47% in Q4-24. The increase was driven by the higher contribution of the Canadian business in Q4-25 compared to Q4-24 as well as our product mix, which generates a higher adjusted gross margin as a % of Adjusted Revenues1.
For the year ended December 31, 2025, the Adjusted Gross Margin1 as a % of Adjusted Revenues1 was 48% in 2025 compared to 47% in prior year. The increase was primarily driven by the higher contribution of the Canadian business in 2025 compared to 2024, which generates a higher adjusted gross margin as a % of Adjusted Revenues1, partly offset by product mix .
Selling and marketing ("S&M") expenses: For the quarter and year ended December 31, 2025, the increase in S&M expenses was mainly driven by an expansion in our sales and commercial structure behind the Paladin portfolio, the new launches in the Sumitomo portfolio as well as the launch of Minjuvi® in Mexico and Jornay PM® in Canada. In addition to structure, the increase also included our promotion and marketing expenses for the newly launched brands acquired in the Paladin and Sumitomo Transactions including Orgovyx®, Myfembree®, Xcopri® and Envarsus® PA as well as on our recently launched brands including Jornay PM® in Canada, Minjuvi® in Mexico and Argentina, Pemazyre® in Mexico and Brazil, Onicit® and pre-launch activities including Tavalisse® in Mexico.
General and administrative ("G&A") expenses: For the quarter ended December 31, 2025, the increase in G&A expenses was mainly due to an incremental $2,903 in share-based compensation mainly as a result of periodic reassessment of achieving vesting targets. The remaining variance was driven by an increase in our structure due to the Paladin and Sumitomo Transactions and higher spending on professional and consulting fees.
For the year ended December 31, 2025, the increase in G&A expenses was primarily driven by acquisition and transaction costs of $4,567 related to the Paladin Transaction, as well as an additional $5,063 in share-based compensation as a result of periodic reassessment of achieving vesting targets. The remaining variance was driven by an increase in our structure due to the Paladin and Sumitomo transactions and higher spending on professional and consulting fees.
Research and development ("R&D") expenses: For the quarter and year ended December 31, 2025, the increase in R&D expenses was mainly due to the expansion of our scientific affairs structure including field-based medical science liaison personnel related to the Paladin and Sumitomo portfolios. In addition to structure, the increase included incremental medical, regulatory and pharmacovigilance spend on the Paladin and Sumitomo portfolios as well as development, regulatory, pre-launch and launch expenses on our pipeline and new launches including Niktimvo®, Minjuvi®, Jornay PM® and Pemazyre®.
Net income (loss)
For the quarter ended December 31, 2025, the net income was $8,854 compared to $10,735 for the same period in prior year. For the year ended December 31, 2025, the net loss was $5,374 compared to a net income of $4,332 in prior year. These variances were mainly driven by the above-mentioned items, as well as changes in amortization of intangible assets, net gains and losses on financial instruments measured at fair value through profit or loss, foreign exchange effects, hyperinflation gains, interest income, and income tax expense or recovery.
SELECT BALANCE SHEET ITEMS[In thousands of Canadian dollars]
Change
December 31, 2025
December 31, 2024
$
%
Cash, cash equivalents and marketable securities
95,283
142,331
(47,048
)
33
%
Trade and other receivables
178,598
154,518
24,080
16
%
Inventories
135,866
102,698
33,168
32
%
Financial assets
98,430
133,932
(35,502
)
27
%
Intangible assets
379,510
283,612
95,898
34
%
Accounts payable and accrued liabilities
125,755
83,173
42,582
51
%
Bank loans
67,895
43,385
24,510
56
%
"Over the past year, we have further strengthened and diversified our pharmaceutical business through strategic transactions in both Canada and Latin America. Our disciplined financial management approach and focus on sustainable growth have delivered results. We improved our cash position from net debt of $1 million at the end of Q3-2025 to net cash of $27 million at the end of 2025. In fact, as of today, we have already repaid half of the principal of the revolving credit facility that was withdrawn to finance the Paladin Transaction. Our Debt to Adjusted EBITDA leverage ratio significantly improved from over 1.5x in Q3-25 to under 1x in Q4-25. Our business continues to deliver both record financial results and record free cash flow. Looking forward, we remain committed to our disciplined capital allocation strategy to deliver long term shareholder value," said Arvind Utchanah, Chief Financial Officer of Knight Therapeutics Inc.
Cash, cash equivalents and marketable securities: As at December 31, 2025, Knight had $95,283 in cash, cash equivalents and marketable securities, a decrease of $47,048 or 33% as compared to December 31, 2024. The decrease is mainly driven by the payment of $141,867 related to the Paladin and Sumitomo Transactions and certain intangibles, the repurchase of common shares through the NCIB for $6,352, interest on bank loans and lease liabilities of $11,945, partly offset by cash inflows from operations of $68,957, as well as collection from strategic loan repayments and distribution from funds of $25,250. In addition, during the year, Knight drewdown $60,000 on the revolving credit facility and used free cash flows generated for the principal repayments of $35,134. Subsequent to the end of the year, Knight repaid another $10,000 of principal on the revolving credit facility.
Trade and other receivables: As at December 31, 2025, trade and other receivables were $178,598, an increase of $24,080 or 16% as compared to December 31, 2024, mainly due to the trade receivables generated by the revenues from the Paladin and Sumitomo portfolios and the growth across the remainder of the portfolio.
Inventories: As at December 31, 2025, inventories were $135,866, an increase of $33,168 or 32% of which approximately $26,000 related to inventory balance of the Paladin and Sumitomo portfolios as at December 31, 2025. The remaining variance was due to the timing of purchases as well as investments on our new product launches, partly offset by the Balance Sheet Hyperinflation Impact2 on inventory held in Argentina as well as foreign exchange revaluation.
Financial assets: As at December 31, 2025, financial assets were $98,430, a decrease of $35,502 or 27%, as compared to December 31, 2024, mainly driven by strategic loan repayments of $21,116 and a decrease in fund investments of $12,540, which included a return of capital of $7,626 and a decrease in fair value of $4,914.
Intangible assets: As at December 31, 2025, intangible assets were $379,510, an increase of $95,898 or 34%, mainly due to the recognition of the intangible assets acquired in the Paladin Transaction for $102,761 and the Sumitomo Transaction for $29,718, partly offset by amortization, foreign exchange revaluation and the de-recognition of certain milestones not expected to be met.
Accounts payable and accrued liabilities: As at December 31, 2025, accounts payable and accrued liabilities were at $125,755, an increase of $42,582 or 51%. The increase was driven by a higher level of payables in our Canadian operations due to the increase in the portfolio as a result of the Paladin and Sumitomo Transactions, as well as the purchase of inventory for our key promoted products.
Bank Loans: As at December 31, 2025, bank loans were at $67,895, an increase of $24,510 or 56% as compared to December 31, 2024, mainly driven by the drawdown of $60,000 from the revolving credit facility on June 17, 2025, partly offset by loan repayments of $34,771, including repayments of $20,000 on the revolving credit facility and $12,690 to IFC. Subsequent to year end, Knight repaid principal of $10,000 on the revolving credit facility.
Transactions in 2025
Paladin TransactionIn June 2025, Knight closed a definitive Asset Purchase Agreement to acquire the international business of Endo Operations Limited which was mainly its Canadian business operating as Paladin Pharma Inc. ("Paladin Transaction"). Knight paid $90,002 and an additional $23,008 for inventory and upon receipt of the Partner Payment expects to pay $8,457 for the final and full settlement of the holdback from the purchase price. Furthermore, Knight may pay future contingent payments of up to US$15,000 upon achieving certain sales milestones.
Sumitomo TransactionIn June 2025, Knight entered into exclusive license and supply agreements with Sumitomo Pharma America Inc. ("Sumitomo") and its affiliates to commercialize Myfembree®, Orgovyx® and Gemtesa® in Canada, as well as an asset purchase agreement under which Knight acquired certain mature products ("Sumitomo Transaction"). Under the terms of the agreements, Knight acquired the exclusive rights to distribute, promote, market and sell the in-licensed and acquired products in Canada. Knight paid $25,400 and may pay certain future contingent sales milestones up to $15,750.
Expansion of the existing partnershipsKnight expanded its relationship with Helsinn Healthcare SA ("Helsinn") and added exclusive rights to distribute, and commercialize Onicit® in Mexico, Brazil and select LATAM countries. Knight assumed commercial activities for Onicit® in Mexico and Brazil in Q1 2025.
Knight expanded its relationship with Incyte Biosciences International Sàrl ("Incyte") and added the exclusive rights to distribute Zynyz® (retifanlimab) and Niktimvo® (axatilimab) for Latin America.
Return of commercial rightsIn March 2026, Knight executed certain agreements with two partners to return the Canadian commercial rights of six non-core products in exchange for a payment of $21,500 ("Partner Payment"). These products generated revenues of $7,527 4 in 2025.
In accordance with the Asset Purchase Agreement of the Paladin Transaction, as a final and full settlement, Knight will release $8,457 of the Settlement Agreement Holdback to Paladin.
Acquisition of a manufacturing facility in Argentina
In March 2026, Knight executed an asset purchase agreement to acquire a pharmaceutical development and manufacturing facility (including land, building and certain equipment) in an industrial zone outside of Buenos Aires in Argentina ("Facility"). Knight expects to move portions of its branded generic manufacturing activities to this Facility over the next three years.
Q4-25 Product Updates
Oncology/Hematology
Minjuvi® (tafasitamab)Knight obtained regulatory approval for Minjuvi® in combination with lenalidomide followed by Minjuvi® monotherapy for the treatment of adult patients with relapsed or refractory DLBCL, who are not eligible for ASCT in Argentina in Q4-25. Knight launched Minjuvi® in Argentina in Q4-25.
Knight submitted supplemental applications seeking regulatory approvals for an additional indication of Minjuvi® in combination with rituximab and lenalidomide for the treatment of adult patients with previously treated follicular lymphoma (FL) in Argentina and Mexico in Q1-26. Furthermore, Knight received the approval of Minjuvi® in combination with rituximab and lenalidomide for the treatment of adult patients with relapsed or refractory FL in Brazil in Q1-26.
Niktimvo® (axatilimab)Knight submitted Niktimvo® (axatilimab) for regulatory approval in Brazil in Q1-26, for the treatment of chronic graft-versus-host disease (GVHD) after failure of at least two prior lines of systemic therapy in adult and pediatric patients 6 years and older.
Tavalisse® (fostamatinib)Knight received a rejection from ANVISA regarding its marketing authorization applicable for Tavalisse® in Brazil and filed an appeal with ANVISA.
Pemazyre® (pemigatinib)Knight launched Pemazyre® in Brazil and Mexico in Q4-25 and expects to launch in Argentina in the first half of 2026, as a monotherapy for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that have progressed after at least one prior line of systemic therapy.
Bapocil® (palbociclib)Bapocil® was approved and launched in Colombia. Bapocil® in combination with endocrine therapy is indicated for the treatment of patients with metastatic or advanced breast cancer that is hormone receptor positive and human epidermal growth factor receptor 2 (HER2) negative, in combination with: an aromatase inhibitor as initial endocrine-based therapy in post-menopausal women; or with fulvestrant in patients with disease progression after endocrine therapy.
Neurology
Crexont® (carbidopa and levodopa)Knight submitted Crexont® for approval in Chile, Argentina and Peru in Q4-25. Crexont® is a novel, oral formulation of carbidopa ("CD")/levodopa ("LD") extended-release capsules designed for the treatment of Parkinson's disease.
Qelbree® (viloxazine)Knight received a Notice of Non-Compliance (NON) from Health Canada for its New Drug Submission for Qelbree®, for the treatment of Attention-Deficit Hyperactivity Disorder ("ADHD"). Knight will submit its response to Health Canada in 2026.
Jornay PM® (methylphenidate HCI extended-release capsules)Knight launched Jornay PM® in Canada in Q4 2025. Jornay PM® is the first and only evening-dosed methylphenidate product commercially available in Canada to treat ADHD in children from 6 to 12 years of age.
Other Specialty
Wynzora® (calcipotriol and betamethasone dipropionate)Knight received Health Canada's approval of Wynzora® for the topical treatment of psoriasis vulgaris in adults and adolescents aged 12-17 years for up to 8 weeks. Knight expects to launch Wynzora® in 2026.
Financial Outlook5
For fiscal 2026, Knight expects to generate between $490 million to $510 million in revenues and adjusted EBITDA1 to be approximately 15% of revenues. The guidance is based on a number of assumptions, including but not limited to the following:
no material impact on revenues due to the application of hyperinflation accounting for Argentina
no revenues for business development transactions not completed as at March 18, 2026
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 material impact from changes in tariffs, trade barriers, or customs duties
no material adverse impact from wars, armed conflicts, or geopolitical hostilities
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 Adjusted Revenues, revenues at constant currency, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details.2 Refers to the impact of hyperinflation due to the application of IAS 29 in Argentina. Refer to Section - Hyperinflation for additional details.3 Includes Xcopri®, Orgovyx®, Myfembree® and Envarsus®PA.4 For certain products, revenues include $3,247 generated by Paladin Pharma Inc. between January 1 and June 17, 2025.5 This forward looking information is based on assumptions specific to the nature of the Company's activities with regard to annual revenue growth considering industry information, expected market share, pricing assumptions, actions of competitors, sales erosion rates after the end of patent or other intellectual property rights protection, the timing of the entry of generic competition, the expected results of tenders, among other variables.
Conference Call Notice
Knight will host a conference call and audio webcast to discuss its fourth quarter and year ended December 31, 2025, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.
Date: Thursday, March 19, 2026Time: 8:30 a.m. ETTelephone: Toll Free: 1-888-699-1199 or International 1-416-945-7677Webcast: 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, 2025 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: [email protected]
Email: [email protected]
Website: www.knighttx.com
Website: www.knighttx.com
HYPERINFLATION
The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiary use 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. After applying for the effects of hyperinflation, the statement of income (loss) is converted using the closing foreign exchange rate of the reporting period.
Revenues and operating expenses in the local currency, i.e. ARS, are restated from the month of the sales or the month in which the expense was incurred to the end of the reporting period using the inflation index during that period. The restatement calculation is performed on a year to date basis based on IAS29 ("Inflation Adjusted Figures"). For the years ended December 31, 2025 and 2024, the Company applied the following inflation index for the restatement of each respective month.
January
February
March
April
May
June
July
August
September
October
November
December
2025
1.29
1.26
1.21
1.18
1.16
1.14
1.12
1.10
1.08
1.05
1.03
1.00
2024
1.81
1.59
1.44
1.32
1.27
1.21
1.16
1.12
1.08
1.05
1.03
1.00
Under IAS 29, the translation from the local currency, to the reporting currency is performed on the Inflation Adjusted Figures using the end of period rate at the reporting date. The Inflation Adjusted Figures were converted to the CAD using the following quarter-end closing rates for each of the respective periods.
Q4-25
Q4-24
ARS
1,059
717
Q4-25
Q4-24
2025
2024
ARS Variation %1
(7.9)%
(0.1)%
(48)%
(17)%
1 Depreciation of ARS vs CAD during each period, calculated as follows: (End of period rate - Beginning of period rate) / Beginning of period rate.
In 2025 the inflation rate used for the hyperinflation adjustments on revenues and operating expenses of the Company's subsidiary in Argentina was lower than the ARS depreciation in the same period. For example, the revenues generated and operating expenses incurred in January 2025 were restated by applying an inflation index of 29% while the ARS to CAD depreciated by 48% in 2025. Consequently, this resulted in lower revenues and operating expenses reported under IAS 29 in CAD. Conversely, in 2024 the inflation index was higher than the ARS depreciation which resulted in higher revenues and operating expenses reported under IAS 29 in CAD. Therefore, the hyperinflation accounting under IAS 29 resulted in a decrease in the reported revenues and operating expenses of the Company's subsidiary in Argentina in CAD in both Q4-25 and 2025 when compared to the same periods in prior year ("Hyperinflation Impact").
Under hyperinflation accounting, the cost of goods sold in the local currency, i.e. ARS, is restated using the inflation index from the purchase or manufacturing date to the end of the reporting period, and is converted to CAD using the respective quarter-end closing rates. In Q4-25 and 2025, the cumulative inflation index applied on the inventory sold was higher than the prior year periods, leading to higher cost of goods sold reported under IAS 29 in CAD and consequently a lower gross margin both in Q4-25 and 2025 compared to the same periods in prior year ("Gross Margin Hyperinflation Impact").
FINANCIAL RESULTS UNDER 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] 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 subsidiary uses 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.
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.
The Company believes that financial results excluding the impact of hyperinflation under IAS 29 represents a useful measure to investors as allow results to be viewed without the impact of IAS 29, thereby facilitating the comparison of results period over period. The presentation of 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.
Q4-25
2025
Reportedunder IFRS
IAS 29Adjustment
Excluding theImpact ofIAS 29
Reportedunder IFRS
IAS 29Adjustment
Excluding theImpact ofIAS 29
Revenues
133,106
97
133,203
450,088
2,263
452,351
Cost of goods sold
68,383
(1,983
)
66,400
249,858
(12,502
)
237,356
Gross margin
64,723
2,080
66,803
200,230
14,765
214,995
Gross margin (%)
49
%
50
%
44
%
48
%
Expenses
Selling and marketing
20,421
26
20,447
67,927
521
68,448
General and administrative
15,033
132
15,165
56,182
(839
)
55,343
Research and development
9,223
53
9,276
28,984
434
29,418
Amortization of intangible assets
13,836
—
13,836
49,487
—
49,487
Operating income (loss)
6,210
1,869
8,079
(2,350
)
14,649
12,299
Q4-24
2024
Reportedunder IFRS
IAS 29Adjustment
Excluding theImpact ofIAS 29
Reportedunder IFRS
IAS 29Adjustment
Excluding theImpact ofIAS 29
Revenues
96,864
(2,798
)
94,066
371,304
(5,892
)
365,412
Cost of goods sold
56,512
(6,769
)
49,743
196,899
(4,983
)
191,916
Gross margin
40,352
3,971
44,323
174,405
(909
)
173,496
Gross margin (%)
42
%
47
%
47
%
47
%
Expenses
Selling and marketing
14,576
(626
)
13,950
53,861
(1,253
)
52,608
General and administrative
10,741
(370
)
10,371
45,488
(1,406
)
44,082
Research and development
7,365
(502
)
6,863
23,304
(652
)
22,652
Amortization of intangible assets
10,630
