Track topics on Twitter Track topics that are important to you
MONTREAL, QUEBEC -- (Marketwired) -- 11/09/17 -- Knight Therapeutics Inc. (TSX: GUD) ("Knight"), a leading Canadian specialty pharmaceutical company, today reported financial results for its third quarter ended September 30, 2017. All dollar amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.
Q3 2017 Highlights
"This past quarter our team was focused on advancing our product pipeline and evaluating opportunities to build our portfolio of innovative pharmaceuticals," said Jonathan Ross Goodman, CEO of Knight. "In the quarters ahead, we will look to capitalize on GUD opportunities for growth."
As at September 30, 2017, Knight had over $760,000 in cash, cash equivalents and marketable securities and 142,772,805 common shares outstanding. From this strong cash position, Knight will continue to pursue business and corporate development opportunities.
Revenue: Revenue in Q3 2017 was in line with the same period last year, while the increase for the nine-month period is due to the addition of Movantik® and an increase of Impavido® sales.
Operating expenses: Increase in Q3 2017 is explained by commercial activities including sales force promotion of Movantik®, and an increase in the number of employees as Knight expands commercialization and prepares to launch new products in Canada.
Interest income: Decrease in Q3 2017 is driven by a lower average loan balance outstanding, offset by higher interest income earned on cash, cash equivalents and marketable securities.
Share of net income of associate: Decrease in Q3 2017 is due to Medison's lower net income mainly attributable to increases in marketing and selling expenses linked to new product launches as well as to an increase in the amortization of fair value adjustments recorded by Knight.
According to IMS data, Movantik® sales in Canada were $255 and $634 for the three and nine-month periods ended September 30, 2017. In December 2016, Knight entered into an agreement with AstraZeneca for the rights to Movantik® in Canada and Israel under which Knight is responsible for all commercial, regulatory and certain supply chain activities. Movantik® is the first once-daily oral peripherally-acting mu-opioid receptor antagonist for the treatment of opioid-induced constipation in adult patients with non-cancer pain who have had an inadequate response to laxative(s).
Strategic Lending Updates
On August 9, 2017, Knight issued an additional three-year secured loan of US$10,000 with an annual interest rate of 10.5% to Synergy. The loan will be used for acquisitions and general working capital purposes. Additionally, Knight agreed to provide an ongoing credit facility for an aggregate of up to US$20,000 to be granted at Knight's sole discretion. As part of the transaction, the Knight will receive a success fee payable at maturity of the loan.
On August 14, 2017, Knight amended its loan with Crescita. The amendment resulted in an early repayment of $2,488 reducing the principal balance to $4,100. Additionally, Knight agreed to amend the collateral on the loan with the release of a letter of credit in exchange for a general security interest over Crescita's assets. The interest rate of 9% per annum and maturity date of January 22, 2022 remain unchanged. In addition, Knight surrendered its 293,163 warrants of Crescita exercisable at $2.44 per share and was issued 216,000 warrants exercisable at a price of $0.75 per share and 180,000 warrants exercisable at a price of $1.00 per share, in each case for a term of six years.
During Q3 2017, Knight issued an additional loan of US$2,504 to 60P. Knight has issued a total of US$6,700 to 60P at an interest rate of 15% per annum and a maturity date of December 31, 2020. In addition, pursuant to its loan agreements with Medimetriks Pharmaceuticals Inc. ("Medimetriks"), Knight received 286,955 common shares of Medimetriks increasing its ownership of to 10% on a fully diluted basis.
Conference Call Notice
Knight will host a conference call and audio webcast to discuss its third quarter results today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.
Date: Thursday, November 9, 2017
Time: 8:30 a.m. EST
Telephone: 1-877-223-4471 or 647-788-4922
Webcast: http://www.gudknight.com/ or http://bit.ly/2iG5Zgk
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 http://www.gudknight.com/
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. 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.gudknight.com or www.sedar.com.
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, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.
INTERIM CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In thousands of Canadian dollars, except for share and per share amounts)
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands of Canadian dollars)
(Unaudited)Contacts: Knight Therapeutics Inc. Samira Sakhia President and Chief Financial Officer 514-678-8930 514-481-4116 (FAX) NEXT ARTICLE
The Top 100 Pharmaceutical Companies
Top 10 biotech and pharmaceutical companies worldwide based on market value in 2015 2015 ranking of the global top 10 biotech and pharmaceutical companies based on revenue (in billion U.S. dollars) Johnson & Johnson, U.S. 74...
Collaborations in biotechnology
Commercial and academic collaborations are used throughout the biotechnology and pharmaceutical sector to enhance research and product development. Collaborations can take the form of research and evaluation agreements, licensing, partnerships etc. ...
Alliances Astrazeneca Bioethics Boehringer Clinical Research Organization Collaborations GSK Johnson & Johnson Lilly Merck Mergers and Acquisitions Nexium Novartis Pfizer Roche Sanofi ...