On March 19, 2026 Knight Therapeutics Inc. (TSX: GUD) ("Knight" or "the Company"), a pan-American (ex-US) specialty pharmaceutical company, 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.
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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 Transaction
In 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 Transaction
In 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 partnerships
Knight 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 rights
In 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.
(Press release, Knight Therapeutics, MAR 19, 2026, View Source [SID1234663759])