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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.

______________________
1Adjusted 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%  

1A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss).
2Percentage 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%  

1Financial 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%

1Revenues 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™.

1Revenues 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, 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.

_________________________
1Revenues 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:

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 29
Adjustment
  Excluding the
Impact of
IAS 29
  Reported
under IFRS
IAS 29
Adjustment
  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 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.

  Q3-23 YTD-23
  Excluding the
impact of
IAS 291
  Constant
Currency
Adjustment
  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
      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 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 Currency1by 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 %

1Revenues 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  


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