Ms. Samira Sakhia reports

KNIGHT THERAPEUTICS REPORTS FOURTH QUARTER AND YEAR-END 2023 RESULTS

Knight Therapeutics Inc. has released financial results for its fourth quarter and year ended Dec. 31, 2023. All currency amounts are in thousands except for share and per-share amounts. All currencies are Canadian unless otherwise specified.

2023 highlights

Financial results:

• Revenues were $328,199, an increase of $34,636 or 12 per cent over prior year.
• Revenues excluding IAS 29 were $343,138, an increase of $51,368 or 18 per cent over prior year.
• Gross margin was $152,652 or 47 per cent compared with $138,061 or 47 per cent in prior year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $60,075, an increase of $6,043 or 11 per cent over prior year.
• Adjusted EBITDA per share was 59 cents, an increase of 11 cents or 23 per cent over prior year.
• Net loss on financial assets measured at fair value through profit or loss was $10,224.
• Net loss was $16,835, compared with $29,892 in prior year.
• Cash inflow from operations was $35,939, a decrease of $9,061 or 20 per cent over prior year.

Corporate developments:

• Launched a normal curse issuer bid in July, 2023, to purchase up to 5,999,524 common shares of the company over the next 12 months.
• Purchased 11,125,288 common shares through Knight's NCIB at an average price of $4.82 for aggregate cash consideration of $53,479.
• In January, 2024, Henrique Dias and Melanie Groleau were promoted to global vice-president, marketing, and global vice-president, medical and clinical, respectively.

Products

Q1 2023:

• Submitted marketing authorization for Minjuvi (tafasitamab) in combination with lenalidomide in Argentina;
• Launched Palbocil (palbociclib) in Argentina;
• Obtained regulatory approval for Bapocil (palbociclib) in Chile.

Q2 2023:

• Submitted Pemazyre (pemigatinib) for regulatory approval in Argentina and Mexico;
• Submitted Minjuvi (tafasitamab) for regulatory approval in Mexico;
• Submitted Rembre (dasatinib) and Karfib (carfilzomib) for regulatory approval in Chile;
• Obtained regulatory approval for Xetrane (pomalidomide) in Chile.

Q3 2023:

• Submitted marketing authorization for Tavalisse (fostamatinib) in Colombia and Mexico;
• Obtained regulatory approval for Minjuvi (tafasitamab) in Brazil;
• In-licensed a branded generic molecule in oncology/hematology for Brazil.

Q4 2023:

• In-licensed Qelbree (viloxazine) for Canada;
• Obtained price approval from CMED for Minjuvi (tafasitamab) in Brazil;
• Submitted marketing authorization for Pemazyre (pemigatinib) in Brazil.

Subsequent to year-end:

• In-licensed IPX203 (carbidopa and levodopa extended-release capsules) for Canada and Latin America;
• Submitted fostamatinib for Anvisa (Brazilian Health Regulatory Agency) approval in Brazil;
• Obtained regulatory approval for Karfib (carfilzomib) in Colombia;
• Launched Minjuvi (tafasitamab) in Brazil;
• Launched Bijuva (estradiol and progesterone) and Imvexxy (estradiol vaginal inserts) in Canada.

"I am excited to announce that we have delivered 10 consecutive years of record revenues and have delivered record EBITDA since 2019. For 2023, we reported revenues of over $343-million, a growth of 18 per cent, and adjusted EBITDA of over $60-million, a growth of 11 per cent. While delivering on record results, we made significant progress in advancing and expanding our product pipeline. We submitted five products, Minjuvi, Pemazyre, Tavalisse, Rembre and Karfib, for regulatory approval across multiple territories and received the regulatory approval of Minjuvi in Brazil, Palbocil and Xetrane in Chile, and Karfib in Colombia. In addition, we are launching four products, Imvexxy and Bijuva in Canada, Minjuvi in Brazil, and Palbocil in Argentina. Further to advancing our product pipeline, we expanded our portfolio with the in-licensing of three additional products, a branded generic molecule in oncology/hematology for Brazil, Qelbree for Canada, and IPX203 for Canada and Latin America.

"Looking ahead we will remain focused on our strategy of building a profitable pan-American (ex U.S.) company commercializing both innovative and branded generic pharmaceuticals products. With our strong foundation and unique platform, we are poised to be the partner of choice for Canada and Latin America," said Samira Sakhia, president and chief executive officer of Knight Therapeutics.

Revenues: For the quarter ended Dec. 31, 2023, excluding the impact of hyperinflation, revenues increased by $4,596 or 5 per cent compared with the same period in prior year. The appreciation of select Latin American (LATAM) currencies led to an increase in revenues of $5,232 in Q4 2023 compared with Q4 2022.

The increase in revenues excluding the impact of hyperinflation is explained by the following:

• Oncology/hematology: The oncology/hematology portfolio grew by approximately $7,114 primarily due to continued growth of key promoted products including Lenvima, Trelstar, Palbocil launched in Argentina in Q1 2023, as well as the growth and assumption of commercial activities of Akynzeo in Brazil, Argentina and Canada in 2022. The increase was offset by a reduction of approximately $2,084 in revenues for the company's mature and branded generics products due to their life cycle including the entrance of new competitors.
• Infectious diseases: The increase in the infectious disease portfolio was driven by the appreciation of select LATAM currencies and the growth of Cresemba. Knight delivered $4,800 in Q4 2023 and $7,000 in Q4 2022 under the AmBisome MOH (Ministry of Health) contract. However, there was no significant variance in the total revenues of AmBisome between Q4 2023 and Q4 2022.
• Other specialty: The decrease in the other specialty portfolio was primarily driven by the purchasing patterns of certain customers.

For the year ended Dec. 31, 2023, excluding the impact of hyperinflation, revenues increased by $51,368 or 18 per cent compared with the same period in prior year. The appreciation of select LATAM currencies led to an increase in revenues of $13,729 in 2023 compared with 2022.

The growth in revenues excluding the impact of hyperinflation is explained by the following:

• Oncology/hematology: The oncology/hematology portfolio grew by approximately $27,380 primarily due to continued growth of key promoted products including Lenvima, Trelstar, Palbocil launched in Argentina in Q1 2023, as well as the growth and assumption of commercial activities of Akynzeo in Brazil, Argentina and Canada in 2022. The increase was offset by a reduction of approximately $ 10,108 in revenues of Knight's mature and branded generics products due to their life cycle including the entrance of new competitors.
• Infectious diseases: The infectious disease portfolio grew by approximately $31,897 excluding the impact of the planned transition and termination agreement with Gilead for a portfolio of human immunodeficiency virus and hepatitis C virus products. The increase was driven by the growth of Knight's key promoted products including AmBisome and Cresemba as well as higher demand for Impavido. The increase included $18,200 of incremental revenues related to the contract with MOH for AmBisome.
• MOH contract: The company signed a contract with the Ministry of Health of Brazil for AmBisome in December, 2022. Knight delivered a total of $34,600 under the MOH contract as follows: $7,000 in 2022, $25,200 in 2023 ($2,400 inQ1 2023, $18,000 in Q2 2023 and $4,800 in Q4 2023) and $2,400 in Q1-24. In December, 2023, Knight signed a new contract with the MOH and it is expected that $16,500 will be delivered in 2024 starting in March, 2024, which would bring total expected sales of $18,900 to MOH in 2024.
• Other specialty: The increase in the other specialty portfolio was primarily driven by the transition of commercial activities for Exelon from Novartis to Knight resulting in the change in accounting treatment from net profit transfer to revenues with related cost of sales.

Gross margin: For the quarter ended Dec. 31, 2023, gross margin, as a percentage of revenues, was 46 per cent compared with 45 per cent in Q4 2022. Excluding the impact of IAS 29, gross margin, as a percentage of revenues, was 48 per cent in Q4 2023 and 50 per cent in Q4 2022. The decrease was driven by the change in product mix.

For the year ended Dec. 31, 2023, and 2022, gross margin, as a percentage of revenues, was 47 per cent. Excluding the impact of IAS 29, gross margin, as a percentage of revenues, was 48 per cent in 2023 and 52 per cent in 2022. Exelon was recorded as a net profit transfer from Novartis for Brazil and Colombia in H1 2022. If Knight had reported revenues and related cost of sales for Exelon instead of a net profit transfer, the adjusted gross margin in both 2023 and 2022 would have been 48 per cent and 50 per cent, respectively. The decrease in the adjusted gross margin was due to the change in product mix.

Selling and marketing (S&M) expenses: For the quarter ended Dec. 31, 2023, S&M expenses were $10,816, a decrease of $3,586 or 25 per cent, compared with the same period in prior year. Excluding the impact of IAS 29, the decrease was $702 or 5 per cent. There was no significant variance in S&M expenses.

For the year ended Dec. 31, 2023, S&M expenses decreased by $2,195 or 5 per cent. Excluding the impact of IAS 29, S&M expenses increased by $1,923 or 4 per cent. The increase was driven by compensation expenses, certain variable costs such as logistics fees which increased as a function of higher revenues, as well as increased selling and marketing activities related to key promoted products, including Akynzeo which was relaunched in Brazil in Q3 2022 and Canada in Q4 2022.

General and administrative (G&A) expenses: For the quarter ended Dec. 31, 2023, G&A expenses were $8,109, a decrease of $2,227 or 22 per cent, compared with the same period in prior year. Excluding the impact of IAS 29, G&A expenses decreased by $535 or 5 per cent. For the year ended Dec. 31, 2023, G&A expenses were $37,414, a decrease of $$2,736 or 7 per cent. Excluding the impact of IAS 29, G&A expenses increased by $1,181 or 3 per cent. There were no significant variances in G&A expenses.

Research and development (R&D) expenses: For the quarter ended Dec. 31, 2023, R&D expenses were $4,258, an increase of $118 or 3 per cent, compared with the same period in prior year. Excluding the impact of IAS 29, the increase was $2,518 or 62 per cent. The increase was driven by an expansion in Knight's product development activities for pipeline products. Knight invested $1,947 in Q4 2023, an increase of $1,838 versus Q4 2022 on its pipeline.

For the year ended Dec. 31, 2023, R&D expenses increased by $2,794 or 19 per cent. Excluding the impact of IAS 29, R&D expenses increased by $6,204 or 45 per cent. The increase was driven by an expansion on product development activities in connection with Knight's pipeline products and medical initiatives related to key promoted products, including Akynzeo which was relaunched in Brazil in Q3 2022 and in Canada in Q4 2022. Knight invested $2,492 in 2023, an increase of $2,236 versus the prior year on its pipeline products. All costs related to development activities have been expensed which typically include regulatory submissions, analytical method transfers, stability studies and bio-equivalence studies.

Amortization of intangible assets: For the quarter and year ended Dec. 31, 2023, amortization of intangible assets decreased by $6,041 and $6,702, respectively. Excluding the impact of IAS 29, the decrease in amortization was $5,407 and $5,534, respectively. The decrease was driven by a reduction of the net book value of the intangible assets including the impairment recorded in 2022.

Impairment of non-current assets: For the quarter and year ended Dec. 31, 2023, the company recorded an impairment charge of $9,260. The impairment was mainly driven by Exelon. The book value of the intangible asset of Exelon is accounted in U.S. dollars and revalued from U.S. dollars to Canadian dollars at the end of every reporting period. The appreciation of the U.S. dollar versus the Canadian dollar from the acquisition date of Exelon to the closing foreign exchange of 2023, has led to an increase in the value of the asset in Canadian dollar and a resulting impairment loss.

For the year ended Dec. 31, 2022, the company recorded an impairment charge of $21,654. Under hyperinflation accounting, non-monetary assets including property plant and equipment, right-of-use assets, and intangible assets are adjusted by the inflation index and converted back to Canadian dollars at the closing rate of the reporting period. During a period where the inflation index is higher than devaluation of the Argentine peso relative to the Canadian dollar, the value of the non-monetary assets increases when converted to Canadian dollars. During 2022, the increase in the value of non-monetary assets in Argentina due to hyperinflation accounting, resulted in an impairment of $21,654. The loss represents a writedown of certain right-of-use assets, property, plant and equipment in Argentina, and intangible assets related to branded generics intellectual property to its recoverable amount. In addition, during 2022, the company recorded an additional impairment loss of $2,330 representing the writedown of the upfront and certain milestones payments made under certain product licence agreements as a result of changes in commercial expectations.

Interest income: Interest income is the sum of interest income on financial instruments measured at amortized cost and other interest income.

For the quarter ended Dec. 31, 2023, interest income decreased by $1,182 or 28 per cent compared with the same period in prior year mainly driven by a reduction in the outstanding balance of strategic loans offset by the increase in the interest rates on cash and marketable securities.

For the year ended Dec. 31, 2023, interest income increased by $1,943 or 18 per cent, compared with prior year. The increase was driven by higher interest rates on cash and marketable securities.

Interest expense: For the quarter and year ended Dec. 31, 2023, interest expense increased by $1,797 or 78 per cent and $5,888 or 89 per cent, respectively, compared with the same periods in prior year. The increase was driven by the higher average loan balance resulting from the International Finance Corp. (IFC) loan which closed in December, 2022, and higher variable interest rates, partially offset by principal repayments of Itau Unibanco Brasil, Bancolombia and IFC bank loans.

Adjusted EBITDA: For the three-month period ended Dec. 31, 2023, adjusted EBITDA decreased by $1,764. The decrease in adjusted EBITDA was driven by an increase in operating expenses mainly due to higher research and development expenses driven by an expansion in Knight's product development activities behind its pipeline and medical initiatives related to key promoted products, offset by an increase in gross margin (excluding impact of IAS 29) of $508.

For the year ended Dec. 31, 2023, adjusted EBITDA increased by $6,043 or 11 per cent. The growth in adjusted EBITDA was driven by an increase in gross margin (excluding impact of IAS 29) of $15,831, offset by an increase in Knight's S&M, G&A, and R&D expenses.

Net loss: For the quarter ended Dec. 31, 2023, the net loss was $24,326 compared with a net loss of $15,188 for the same period in prior year. The variance mainly resulted from the above-mentioned items and (1) a net loss on the revaluation of financial assets measured at fair value through profit or loss of $7,878 versus a net gain of $8,824 in the same period in prior year mainly driven by realized and unrealized gains and losses in the fair value of financial assets; (2) a foreign exchange loss of $9,007 in Q4 2023 mainly driven by the unrealized losses due to the impact of the devaluation of the Argentine peso on U.S.-dollar-denominated payables held by Knight's affiliate in Argentina, compared with a foreign exchange loss of $1,663 in Q4 2022 mainly driven by the appreciation of the Canadian dollar versus the U.S. dollar; and (3) income tax recovery of $1,826 in Q4 2023 and $7,947 in Q4 2022 mainly driven by the recognition of certain deferred tax assets due to tax losses generated in certain jurisdictions and timing differences related to Knight's financial assets.

For the year ended Dec. 31, 2023, the net loss was $16,835 compared with a net loss of $29,892 in the prior year. The variance mainly resulted from the above-mentioned items and (1) a net loss on the revaluation of financial assets measured at fair value through profit or loss of $10,224 compared with a net loss of $20,677 in the prior year mainly driven by realized and unrealized gains and losses in the fair value of financial assets; (2) a foreign exchange loss of $15,169 in 2023 mainly driven by the unrealized losses due to the impact of the devaluation of the Argentine peso on U.S.-dollar-denominated payables held by Knight's affiliate in Argentina, versus a foreign exchange gain of $7,442 in 2022 mainly driven by the appreciation of the U.S. dollar; offset by (3) income tax recovery of $5,153 in 2023 and $14,068 in 2022 mainly driven by the recognition of certain deferred tax assets due to tax losses generated in certain jurisdictions and timing differences related to Knight's financial assets.

Cash, cash equivalents and marketable securities: As at Dec. 31, 2023, Knight had $161,825 in cash, cash equivalents and marketable securities, a decrease of $10,849 or 6 per cent as compared with Dec. 31, 2022. The variance is mainly due to the repurchase of common shares through the NCIB, principal repayments on bank loans, and the settlement of other balances payable mainly due to sales and regulatory milestones on certain products including Akynzeo and Aloxi, partially offset by cash inflows from operating activities and proceeds from repayments of strategic loans and disposal of certain investments including Moksha8 and Medimetriks.

Financial assets: As at Dec. 31, 2023, financial assets were at $128,369, a decrease of $48,194 or 27 per cent, as compared with Dec. 31, 2022, driven by a decrease of funds of $23,455 mainly due to the decline in share prices of publicly-traded equities held by Knight's strategic fund investments, a decrease in loan and other receivables of $22,386 mainly from Moksha8 loan payments, and decrease of equity investments and derivatives of $2,352 mainly due to the disposal of certain warrants and equities including Moksha8 and Medimetriks. Given the nature of the fund investments there could be significant fluctuations in the fair value of the underlying assets.

Accounts payable and accrued liabilities: As at Dec. 31, 2023, accounts payable and accrued liabilities were at $90,617, a decrease of $18,113 or 17 per cent, as compared with Dec. 31, 2022, mainly driven by payments for purchase of inventory.

Bank loans: As at Dec. 31, 2023, bank loans were at $61,866, a decrease of $8,206 or 12 per cent, as compared with Dec. 31, 2022, due to repayments partially offset by accrued interest, appreciation of select LATAM currencies, as well as the final tranche of the IFC loan received in Q1 2023.

"I am extremely proud of our accomplishments over the last decade that led not only to record results but also a robust balance sheet. We built a profitable business that generates a healthy level of cash flow from operations. We ended the year with over $161-million in cash and marketable securities and over $128-million in financial assets and a conservative debt level under $62-million. In addition, since inception of our NCIB program, we have returned to shareholders over $239-million at an average price $5.70 per share.

"The strong platform and balance sheet will allow us to confidently pursue our strategy, invest in our product pipeline and deliver long-term value to our shareholders," said Arvind Utchanah, chief financial officer of Knight Therapeutics.

Product updates

Regulatory submissions, approvals and product launches

Minjuvi (tafasitamab)

Knight submitted the marketing authorization applications for Minjuvi in Mexico and Argentina, 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). Knight received the regulatory approval for Minjuvi in Brazil which was launched commercially in 2024.

Pemazyre (pemigatinib)

Knight submitted the marketing authorization applications for Pemazyre in Argentina, Mexico and Brazil 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.

Fostamatinib

Knight submitted marketing authorization applications for fostamatinib in Brazil, Mexico and Colombia, for the treatment of thrombocytopenia in adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment, for regulatory approval.

Karfib (carfilzomib)

Knight submitted the marketing authorization application for Karfib in Chile for the treatment of patients with relapsed or refractory multiple myeloma who have received one or more previous lines of therapy. Subsequent to year-end, Knight obtained the regulatory approval for Karfib in Colombia, and is expected to be launched in H2 2024.

Rembre (dasatinib)

Knight submitted the marketing authorization application for Rembre in Chile, for the treatment of chronic myeloid leukemia with positive Philadelphia chromosome (Ph+).

Palbocil and Bapocil (palbociclib)

Knight launched Palbocil in Argentina and obtained the regulatory approval for Bapocil in Chile. The drug is indicated for the treatment of patients with hormone receptor-positive, human epidermal growth factor receptor 2-negative locally advanced or metastatic breast cancer in combination with: an aromatase inhibitor as initial endocrine-based therapy in postmenopausal women; or fulvestrant in patients with disease progression after prior endocrine therapy.

Xetrane (polalidomide)

Knight obtained the regulatory approval for Xetrane in Chile, for the treatment of adult patients with multiple myeloma (MM) who have received at least two prior therapies including lenalidomide and a proteasome inhibitor and have demonstrated disease progression on or within 60 days of completion of the last therapy, in combination with dexamethasone.

Bijuva (estradiol and progesterone) and Imvexxy (estradiol vaginal inserts)

Subsequent to year-end, Knight launched Bijuva and Imvexxy in Canada. Bijuva is indicated for the treatment of moderate-to-severe vasomotor symptoms due to menopause. Imvexxy is indicated for the treatment of moderate-to-severe dyspareunia (vaginal pain associated with sexual activity), a symptom of vulvar and vaginal atrophy (VVA), due to menopause. Imvexxy is competing in the VVA market which was over $90-million in 2023 and grew at a compound annual growth rate of 9 per cent since 2020, according to IQVIA.

Expansion of pipeline

Knight expanded its pipeline with the in-licensing of one branded generic and two innovative drugs. In Q3 2023, Knight in-licensed a branded generic molecule in oncology/hematology for Brazil. Currently no branded generic has launched against the innovative drug which is estimated to have generated over $170,000 in revenues in 2023, according to IQVIA.

In Q4 2023, Knight in-licensed Qelbree (viloxazine) for Canada. Qelbree is an extended-release formulation of viloxazine, a multimodal serotonergic and norepinephrine modulating agent, a non-stimulant medication for the treatment of attention-deficit hyperactivity disorder (ADHD). Qelbree is commercially available in the United States as a prescription medicine to treat ADHD in patients six years of age and older. Based on the results of four pivotal trials, Qelbree was approved by the U.S. Food and Drug Administration in 2021 for the treatment of children six to 17 years of age and in 2022 for the treatment of adults. Qelbree is also currently being studied in several phase 4 clinical trials, the first of which is in combination with psychostimulants for the treatment of children and adolescents with ADHD (positive top-line results reported in September, 2023). A second phase 4 clinical trial in preschool-age children with ADHD is planned to commence in January, 2024. A third phase 4 clinical trial is studying the impact of Qelbree on co-morbid mood symptoms prevalent in patients with ADHD. Qelbree is the first new non-stimulant to enter the market in over 10 years and will represent a new option in this segment that continues to have a significant unmet medical need. Qelbree is expected to compete in the non-stimulant market for ADHD valued at over $80,000, according to IQVIA. Knight expects to submit Qelbree for regulatory approval in H2 2024.

Subsequent to year-end, Knight in-licensed IPX203 for Canada and Latin America. IPX203 is a novel, oral formulation of carbidopa/levodopa (CD/LD) extended-release capsules designed for the treatment of Parkinson's disease. IPX203 contains immediate-release (IR) granules and extended-release (ER) coated beads. The IR granules consist of CD and LD, with a disintegrant polymer to allow for rapid dissolution. The ER beads consist of LD, coated with a sustained release polymer to allow for slow release of the drug, a mucoadhesive polymer to keep the granules adhered to the area of absorption longer, and an enteric coating to prevent the granules from disintegrating prematurely in the stomach. IPX203 was studied in the RISE-PD clinical study which was a 20-week, randomized, double-blind, double-dummy, active-controlled, phase 3 clinical trial with 630 patients. The RISE-PD study met its primary and secondary end points and showed that treatment with IPX203 demonstrated statistically significant improvement in daily good-on time with fewer doses of IPX203 compared with immediate-release carbidopa-levodopa (least squares mean, 0.53 hour; 95 per cent CI, 0.09 to 0.97). In that study, IPX203 was dosed an average of three times per day versus five times per day for immediate-release carbidopa-levodopa. IPX203 is expected to compete in a market valued at over $50,000 in Canada and over $120,000 in Brazil, according to IQVIA.

"These recent deals illustrate our focused approach to building on the strong platform and capabilities that we have, specifically, in oncology and CNS, as well as our strategy to build a balanced portfolio that includes innovative products as well as branded generics and therapies for acute conditions as well as chronic diseases," said Amal Khouri, chief business officer of Knight Therapeutics. "In the four years since the acquisition of Grupo Biotoscana, our team has added 13 new products to our portfolio and will continue to build on that momentum to further rejuvenate our portfolio and accelerate the growth of our business."

Corporate updates

Normal course issuer bid

On July 12, 2023, the company announced that the Toronto Stock Exchange approved its notice of intention to launch an NCIB. Under the terms of the 2023 NCIB, Knight may purchase for cancellation up to 5,999,524 common shares of the company which represented 10 per cent of its public float as at June 30, 2023. The 2023 NCIB commenced on July 14, 2023, and will end on the earlier of July 13, 2024, or when the company completes its maximum purchases under the NCIB. Furthermore, Knight entered into an agreement with a broker to facilitate purchases of its common shares under the NCIB. During the year ended Dec. 31, 2023, the company purchased 11,125,288 (2022: 5,649,189) common shares at an average price of $4.82 (2022: $5.34) for aggregate cash consideration of $53,479 (2022: $30,069).

Financial outlook

Knight provides guidance on revenues on a non-GAAP (generally accepted accounting principles) basis. This is due to both the difficulty in predicting Argentine inflation rates and its IAS 29 impact.

For fiscal 2024, Knight expects to generate between $335-million and $350-million in revenues and adjusted EBITDA to be approximately 17 per cent of revenues. The guidance is based on a number of assumptions, including but not limited to the following:

• No revenues for business development transactions not completed as at March 20, 2024;
• No unforeseen termination to Knight's licence, distribution and supply agreements no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues;
• No new generic entrants on key pharmaceutical brands;
• No unforeseen changes to government mandated pricing regulations;
• Successful commercial execution on product listing arrangements with health maintenance organizations, insurers, key accounts and public payers;
• Successful execution and uptake of newly launched products;
• No material increase in provisions for inventory or trade receivables;
• Foreign currency exchange rates with the exception of Argentina remaining similar to 2023;
• Inflation remaining within forecasted ranges.

Conference call notice

Knight will host a conference call and audio webcast to discuss its fourth quarter and year ended Dec. 31, 2023, today at 8:30 a.m. ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, March 21, 2024

Time: 8:30 a.m. ET

Telephone: T

Toll-free: 1-888-664-6383 or international 1-416-764-8650

Webcast: Knight website

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 on Knight's website.

About Knight Therapeutics Inc.

Knight Therapeutics, 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' shares trade on TSX under the symbol GUD.

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