Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a
leading pan-American (ex-US) specialty pharmaceutical company,
today reported financial results for its fourth quarter and year
ended December 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% over prior year.
- Revenues
excluding IAS 29 were $343,138, an increase of $51,368 or 18% over
prior year.
- Gross margin was
$152,652 or 47% compared to $138,061 or 47% in prior year.
- Adjusted
EBITDA1 was $60,075, an increase of $6,043 or 11% over prior
year.
- Adjusted
EBITDA per share1 was $0.59, an increase of $0.11 or 23% 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 to $29,892 in prior year.
- Cash inflow from
operations was $35,939, a decrease of $9,061 or 20% over prior
year.
Corporate developments
- Launched a
NCIB 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 VP
Marketing and Global VP Medical and Clinical, respectively.
ProductsQ1-23
- 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.
Q2-23
- 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.
Q3-23
- 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.
Q4-23
- In-licensed QelbreeTM (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 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
ten 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%, and adjusted EBITDA of over $60 million,
a growth of 11%. 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,
QelbreeTM 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 US) 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 Inc.
1 Adjusted EBITDA and Adjusted EBITDA per share are
non-GAAP measures. Refer to the definitions in section "Non-GAAP
Measures" for additional details.
SELECT FINANCIAL RESULTS REPORTED UNDER IFRS[In
thousands of Canadian dollars] |
|
|
|
|
Change |
|
|
Change |
|
Q4-23 |
Q4-22 |
$1 |
%2 |
YTD-23 |
YTD-22 |
$1 |
%2 |
|
|
|
|
|
|
|
|
|
|
Revenues |
74,197 |
|
81,655 |
|
(7,458 |
) |
9 |
% |
328,199 |
|
293,563 |
|
34,636 |
|
12 |
% |
Gross margin |
34,215 |
|
36,888 |
|
(2,673 |
) |
7 |
% |
152,652 |
|
138,061 |
|
14,591 |
|
11 |
% |
Gross margin % |
46 |
% |
45 |
% |
|
|
47 |
% |
47 |
% |
|
|
|
Operating expenses4 |
43,558 |
|
67,938 |
|
24,380 |
|
36 |
% |
155,542 |
|
179,105 |
|
23,563 |
|
13 |
% |
Net loss |
(24,326 |
) |
(15,188 |
) |
(9,138 |
) |
60 |
% |
(16,835 |
) |
(29,892 |
) |
13,057 |
|
44 |
% |
EBITDA3 |
12,001 |
|
13,330 |
|
(1,329 |
) |
10 |
% |
60,019 |
|
53,541 |
|
6,478 |
|
12 |
% |
Adjusted EBITDA3 |
12,057 |
|
13,821 |
|
(1,764 |
) |
13 |
% |
60,075 |
|
54,032 |
|
6,043 |
|
11 |
% |
Adjusted EBITDA per share3 |
0.12 |
|
0.12 |
|
— |
|
— |
|
0.59 |
|
0.48 |
|
0.11 |
|
23 |
% |
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.3 EBITDA, adjusted EBITDA and adjusted EBITDA per share are
non-GAAP measures. Refer to section “Non-GAAP measures” for
additional details.4 Operating expenses include selling and
marketing expenses, general and administrative expenses, research
and development expenses, amortization of intangible assets and
impairment of non-current assets.
SELECT FINANCIAL RESULTS AT CONSTANT CURRENCY |
|
|
Q4-23 |
Q4-22 |
Variance |
YTD-23 |
YTD-22 |
Variance |
Excluding impact of IAS 291 |
|
ConstantCurrency1 |
$2 |
%3 |
|
ConstantCurrency1 |
$2 |
%3 |
|
|
|
|
|
|
|
|
|
Revenues |
88,402 |
|
89,038 |
|
(636 |
) |
1 |
% |
343,138 |
|
305,499 |
|
37,639 |
|
12 |
% |
Gross margin |
42,439 |
|
43,920 |
|
(1,481 |
) |
3 |
% |
166,190 |
|
157,265 |
|
8,925 |
|
6 |
% |
Gross margin % |
48 |
% |
49 |
% |
|
|
48 |
% |
51 |
% |
|
|
Operating expenses4 |
50,903 |
|
47,230 |
|
(3,673 |
) |
8 |
% |
162,787 |
|
155,277 |
|
(7,510 |
) |
5 |
% |
EBITDA1 |
12,001 |
|
14,129 |
|
(2,128 |
) |
15 |
% |
60,019 |
|
57,326 |
|
2,693 |
|
5 |
% |
Adjusted EBITDA1 |
12,057 |
|
14,636 |
|
(2,579 |
) |
18 |
% |
60,075 |
|
57,833 |
|
2,242 |
|
4 |
% |
Adjusted EBITDA per share1 |
0.12 |
|
0.13 |
|
(0.01 |
) |
7 |
% |
0.59 |
|
0.51 |
|
0.09 |
|
17 |
% |
1 Financial results at constant currency, excluding the
impact of hyperinflation, EBITDA, adjusted EBITDA and adjusted
EBITDA per share are non-GAAP measures. Refer to section “Non-GAAP
measures” for additional details.2 A positive variance
represents a positive impact to net income (loss) and a negative
variance represents a negative impact to net income
(loss).3 Percentage change is presented in absolute
values.4 Operating expenses include selling and marketing
expenses, general and administrative expenses, research and
development expenses, amortization of intangible assets and
impairment of non-current assets.
SELECT BALANCE SHEET ITEMS[In thousands of Canadian
dollars] |
|
|
|
|
|
|
Change |
|
12-31-23 |
|
12-31-22 |
|
$ |
%1 |
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
161,825 |
|
172,674 |
|
(10,849 |
) |
6 |
% |
Trade and other receivables |
141,684 |
|
151,118 |
|
(9,434 |
) |
6 |
% |
Inventory |
91,834 |
|
92,489 |
|
(655 |
) |
1 |
% |
Financial assets |
128,369 |
|
176,563 |
|
(48,194 |
) |
27 |
% |
Accounts payable and accrued liabilities |
90,617 |
|
108,730 |
|
(18,113 |
) |
17 |
% |
Bank loans |
61,866 |
|
70,072 |
|
(8,206 |
) |
12 |
% |
1 Percentage change is presented in absolute values.
Revenues: For the quarter ended
December 31, 2023, excluding the impact of hyperinflation,
revenues increased by $4,596 or 5% compared to the same period in
prior year. The appreciation of select LATAM currencies led to an
increase in revenues of $5,232 in Q4-23 compared to Q4-22. The
revenues by therapeutic areas are as follows:
|
Excluding impact of IAS 293 |
|
|
|
|
|
Change |
Therapeutic Area |
Q4-23 |
|
Q4-22 |
|
$1 |
%2 |
Oncology/Hematology |
34,373 |
|
29,343 |
|
5,030 |
|
17 |
% |
Infectious Diseases |
35,012 |
|
32,744 |
|
2,268 |
|
7 |
% |
Other Specialty |
19,017 |
|
21,719 |
|
(2,702 |
) |
12 |
% |
Total |
88,402 |
|
83,806 |
|
4,596 |
|
5 |
% |
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.3 Revenues excluding the impact of IAS 29 is a
non-GAAP measure, refer to section “Non-GAAP measures” for
additional details.
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 Q1-23, 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 our mature and
branded generics products due to their lifecycle 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 Q4-23 and $7,000 in
Q4-22 under the AmBisome® MOH Contract. However, there was no
significant variance in the total revenues of AmBisome® between
Q4-23 and Q4-22.
- Other Specialty:
The decrease in the other specialty portfolio was primarily driven
by the purchasing patterns of certain customers.
For the year ended December 31, 2023, excluding
the impact of hyperinflation, revenues increased by $51,368 or 18%
compared to the same period in prior year. The appreciation of
select LATAM currencies led to an increase in revenues of $13,729
in 2023 compared to 2022.
|
Excluding impact of IAS 293 |
|
YTD-23 |
|
YTD-22 |
|
Change |
Therapeutic Area |
$ |
|
$ |
|
$1 |
|
%2 |
Oncology/Hematology |
122,736 |
|
105,464 |
|
17,272 |
|
16 |
% |
Infectious Diseases |
140,671 |
|
116,530 |
|
24,141 |
|
21 |
% |
Other Specialty |
79,731 |
|
69,776 |
|
9,955 |
|
14 |
% |
Total |
343,138 |
|
291,770 |
|
51,368 |
|
18 |
% |
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.3
Revenues excluding the impact of IAS 29 is a non-GAAP measure.
Refer to the definitions in the section "Non-GAAP Measures" for
additional details.
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 Q1-23, 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 our mature and
branded generics products due to their lifecycle 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
HIV and HCV products. The increase was driven by the growth of our
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 ("MOH Contract"). Knight delivered a total of $34,600
under the 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
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 December 31, 2023, gross margin, as a percentage of
revenues, was 46% compared to 45% in Q4-22. Excluding the impact of
IAS 29, gross margin, as a percentage of revenues, was 48% in Q4-23
and 50% in Q4-22. The decrease was driven by the change in product
mix.
For the year ended December 31, 2023 and 2022,
gross margin, as a percentage of revenues, was 47%. Excluding the
impact of IAS 29, gross margin, as a percentage of revenues, was
48% in 2023 and 52% in 2022. Exelon® was recorded as a net profit
transfer from Novartis for Brazil and Colombia in H1-22. 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% and 50%, 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 December 31, 2023,
S&M expenses were $10,816, a decrease of $3,586 or 25%,
compared to the same period in prior year. Excluding the impact of
IAS 29, the decrease was $702 or 5%. There was no significant
variance in S&M expenses.
For the year ended December 31, 2023, S&M
expenses decreased by $2,195 or 5%. Excluding the impact of IAS 29,
S&M expenses increased by $1,923 or 4%. 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
Q3-22 and Canada in Q4-22.
General and administrative (“G&A”)
expenses: For the quarter ended
December 31, 2023, G&A expenses were $8,109, a decrease of
$2,227 or 22%, compared to the same period in prior year. Excluding
the impact of IAS 29, G&A expenses decreased by $535 or 5%. For
the year ended December 31, 2023, G&A expenses were $37,414, a
decrease of $$2,736 or 7%. Excluding the impact of IAS 29, G&A
expenses increased by $1,181 or 3%. There were no significant
variances in G&A expenses.
Research and
development (“R&D”)
expenses: For the quarter ended
December 31, 2023, R&D expenses were $4,258, an increase
of $118 or 3%, compared to the same period in prior year. Excluding
the impact of IAS 29, the increase was $2,518 or 62%. The increase
was driven by an expansion in our product development activities
for pipeline products. Knight invested $1,947 in Q4-23, an increase
of $1,838 versus Q4-22 on its pipeline.
For the year ended December 31, 2023, R&D
expenses increased by $2,794 or 19%. Excluding the impact of IAS
29, R&D expenses increased by $6,204 or 45%. The increase was
driven by an expansion on product development activities in
connection with our pipeline products and medical initiatives
related to key promoted products, including Akynzeo® which was
relaunched in Brazil in Q3-22 and in Canada in Q4-22. 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 December 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
December 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 US dollars
and revalued from US dollars to Canadian dollars at the end of
every reporting period. The appreciation of the USD versus the CAD
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 CAD and a resulting impairment loss.
For the year ended December 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 CAD 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 CAD, the value of the non-monetary assets increases
when converted to CAD. 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
write-down 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 write-down of the
upfront and certain milestones payments made under certain product
license 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 December 31, 2023,
interest income decreased by $1,182 or 28% compared to 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 December 31, 2023,
interest income increased by $1,943 or 18%, compared to prior year.
The increase was driven by higher interest rates on cash and
marketable securities.
Interest expense: For the
quarter and year ended December 31, 2023, interest expense
increased by $1,797 or 78% and $5,888 or 89%, respectively,
compared to the same periods in prior year. The increase was driven
by the higher average loan balance resulting from the International
Finance Corporation ("IFC") loan which closed in December 2022 and
higher variable interest rates, partially offset by principal
repayments of Itaú Unibanco Brasil, Bancolombia and IFC bank
loans.
Adjusted EBITDA: For the
three-month period ended December 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 our product
development activities behind our 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 December 31, 2023, adjusted
EBITDA increased by $6,043 or 11%. 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 our S&M, G&A and
R&D expenses.
Net loss: For
the quarter ended December 31, 2023, the net loss was $24,326
compared to 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 Q4-23 mainly
driven by the unrealized losses due to the impact of the
devaluation of the ARS on USD denominated payables held by Knight’s
affiliate in Argentina, compared to a foreign exchange loss of
$1,663 in Q4-22 mainly driven by the appreciation of the CAD versus
the US dollar, and (3) income tax recovery of $1,826 in Q4-23 and
$7,947 in Q4-22 mainly driven by the recognition of certain
deferred tax assets due to tax losses generated in certain
jurisdictions and timing differences related to our financial
assets.
For the year ended December 31, 2023, the
net loss was $16,835 compared to 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 to 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 ARS
on USD 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 US 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 our financial assets.
Cash, cash equivalents and
marketable securities: As at
December 31, 2023, Knight had $161,825 in cash, cash
equivalents and marketable securities, a decrease of $10,849 or 6%
as compared to December 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
December 31, 2023, financial assets were at $128,369, a
decrease of $48,194 or 27%, as compared to December 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 our 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 December 31, 2023, accounts
payable and accrued liabilities were at $90,617, a decrease of
$18,113 or 17%, as compared to December 31, 2022, mainly driven by
payments for purchase of inventory.
Bank Loans: As
at December 31, 2023, bank loans were at $61,866, a decrease
of $8,206 or 12%, as compared to December 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 Q1-23.
"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
Inc.
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.
FostamatinibKnight 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 (HR)positive, human
epidermal growth factor receptor 2 (HER2)-negative locally advanced
or metastatic breast cancer in combination with: an aromatase
inhibitor as initial endocrine-based therapy in post-menopausal
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 dollars in 2023 and grew at a CAGR of 9% 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 QelbreeTM
(viloxazine) for Canada. QelbreeTM is an extended-release
formulation of viloxazine, a multimodal serotonergic and
norepinephrine modulating agent, a nonstimulant medication for the
treatment of Attention-Deficit Hyperactivity Disorder ("ADHD").
QelbreeTM is commercially available in the United States as a
prescription medicine to treat ADHD in patients 6 years of age and
older. Based on the results of 4 pivotal trials,1-4 QelbreeTM was
approved by the US Food and Drug Administration in 2021 for the
treatment of children 6-17 years of age and in 2022 for the
treatment of adults. QelbreeTM is also currently being studied in
several phase 4 clinical trials5, the first of which is in
combination with psychostimulants for the treatment of children and
adolescents with ADHD (positive topline results reported in
September 20236). A second phase 4 clinical trial7 in preschool age
children with ADHD is planned to commence in January 2024. A third
phase 4 clinical trial8 is studying the impact of QelbreeTM on
co-morbid mood symptoms prevalent in patients with ADHD. QelbreeTM
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. QelbreeTM is expected to
compete in the non-stimulant market for ADHD valued at over
$80,000, according to IQVIA. Knight expects to submit QelbreeTM 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 endpoints 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 hours; 95% CI, 0.09-0.97). In that study, IPX203 was
dosed an average of three times per day versus 5 times per day for
immediate-release carbidopa-levodopa9. 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 Inc. “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 a
NCIB (“2023 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% 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 December 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 revenues10 on a
non-GAAP basis. This is due to both the difficulty in predicting
Argentinian inflation rates and its IAS 29 impact.
For fiscal 2024, Knight expects to generate
between $335 million to $350 million in revenues and adjusted
EBITDA to be approximately 17% 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 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
- foreign currency
exchange rates with the exception of Argentina remaining similar to
2023
- 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.
Conference Call
Notice
Knight will host a conference call and audio
webcast to discuss its fourth quarter and year ended
December 31, 2023, today at 8:30 am ET. Knight cordially
invites all interested parties to participate in this call.
Date: Thursday, March 21,
2024Time: 8:30 a.m. ETTelephone:
Toll Free: 1-888-664-6383 or International
1-416-764-8650Webcast: www.knighttx.com or
WebcastThis is a listen-only audio webcast. Media Player is
required to listen to the broadcast.
Replay: An archived replay will be
available for 30 days at www.knighttx.com
About Knight Therapeutics
Inc.
Knight Therapeutics Inc., headquartered in
Montreal, Canada, is a specialty pharmaceutical company focused on
acquiring or in-licensing and commercializing pharmaceutical
products for Canada and Latin America. Knight's Latin American
subsidiaries operate under United Medical, Biotoscana Farma and
Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX
under the symbol GUD. For more information about Knight
Therapeutics Inc., please visit the company's web site at
www.knighttx.com or www.sedarplus.ca.
Forward-Looking Statement
This document contains forward-looking
statements for Knight Therapeutics Inc. and its subsidiaries. These
forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking
statements. Knight Therapeutics Inc. considers the assumptions on
which these forward-looking statements are based to be reasonable
at the time they were prepared but cautions the reader that these
assumptions regarding future events, many of which are beyond the
control of Knight Therapeutics Inc. and its subsidiaries, may
ultimately prove to be incorrect. Factors and risks, which could
cause actual results to differ materially from current expectations
are discussed in Knight Therapeutics Inc.'s Annual Report and in
Knight Therapeutics Inc.'s Annual Information Form for the year
ended December 31, 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:
Investor Contact: |
|
|
Knight Therapeutics Inc. |
|
|
Samira Sakhia |
|
Arvind Utchanah |
President & Chief Executive Officer |
|
Chief Financial Officer |
T: 514.484.4483 |
|
T. +598.2626.2344 |
F: 514.481.4116 |
|
|
Email: IR@knighttx.com |
|
Email: IR@knighttx.com |
Website: www.knighttx.com |
|
Website: www.knighttx.com |
References:
- Nasser A et al. (2020). A Phase
III, Randomized, Placebo-controlled Trial to Assess the Efficacy
and Safety of Once-daily SPN-812 (Viloxazine Extended-release) in
the Treatment of Attention-deficit/Hyperactivity Disorder in
School-age Children. Clinical Therapeutics, 42(8), 1452-1466. DOI:
https://doi.org/10.1016/j.clinthera.2020.05.021
- Nasser A et al. (2021). Once-Daily
SPN-812 200 and 400 mg in the treatment of ADHD in School-aged
Children: A Phase III Randomized, Controlled Trial. Clinical
Therapeutics, 43(4), 684-700. DOI:
https://doi.org/10.1016/j.clinthera.2021.01.027
- Nasser A et al. (2021). A Phase 3,
Placebo-Controlled Trial of Once-Daily Viloxazine Extended-Release
Capsules in Adolescents With Attention-Deficit/Hyperactivity
Disorder. Journal of Clinical Psychopharmacology, 41(4), 370-380.
DOI: 10.1097/JCP.0000000000001404
- Nasser A et al. (2022). A Phase
III, Randomized, Double‑Blind, Placebo‑Controlled Trial Assessing
the Efficacy and Safety of Viloxazine Extended‑Release Capsules in
Adults with Attention‑Deficit/Hyperactivity Disorder. CNS Drugs,
36(8), 897-915. DOI:
https://doi.org/10.1007/s40263-022-00938-w
- US National Library of Medicine.
(2021, March 8 - ). Open-label study of SPN-812 administered with
psychostimulants in children and adolescents with ADHD (ADHD).
Identifier NCT04786990.
https://clinicaltrials.gov/study/NCT04786990
- Supernus Announces New Qelbree®
Data Showing Improvement in ADHD Symptoms. (2023, September 10).
Retrieved from https://ir.supernus.com/node/13856/pdf
- US National Library of Medicine.
(2021, March 4 - ). Evaluation of SPN-812 (viloxazine
extended-release capsule) in preschool-age children with ADHD.
Identifier NCT04781140.
https://clinicaltrials.gov/study/NCT04781140
- Presented during Supernus
Pharmaceuticals R&D Day; October 18, 2023
- Hauser RA et al. JAMA Neurol. 2023
Oct 1;80(10):1062-1069.
- Revenues excluding the impact of
IAS 29 is a non-GAAP measure. Refer to the definitions in section
“Non-GAAP measures” for additional details.
IMPACT OF HYPERINFLATION[In
thousands of Canadian dollars]
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. If the Company did not apply IAS 29, the
effect on the Company's operating income would be as follows:
|
Q4-23 |
YTD-23 |
|
Reportedunder IFRS |
Excludingimpact ofIAS 291 |
Variance |
Reportedunder IFRS |
Excludingimpact ofIAS 291 |
Variance |
|
$2 |
%3 |
$2 |
%3 |
|
|
|
|
|
|
|
|
|
Revenues |
74,197 |
|
88,402 |
|
(14,205 |
) |
16 |
% |
328,199 |
|
343,138 |
|
(14,939 |
) |
4 |
% |
Cost of goods sold |
39,982 |
|
45,963 |
|
5,981 |
|
13 |
% |
175,547 |
|
176,948 |
|
1,401 |
|
1 |
% |
Gross margin |
34,215 |
|
42,439 |
|
(8,224 |
) |
19 |
% |
152,652 |
|
166,190 |
|
(13,538 |
) |
8 |
% |
Gross margin (%) |
46 |
% |
48 |
% |
|
|
47 |
% |
48 |
% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Selling and marketing |
10,816 |
|
14,371 |
|
3,555 |
|
25 |
% |
46,279 |
|
50,006 |
|
3,727 |
|
7 |
% |
General and administrative |
8,109 |
|
9,548 |
|
1,439 |
|
15 |
% |
37,414 |
|
38,632 |
|
1,218 |
|
3 |
% |
Research and development |
4,258 |
|
6,561 |
|
2,303 |
|
35 |
% |
17,549 |
|
19,937 |
|
2,388 |
|
12 |
% |
Amortization of intangible assets |
11,115 |
|
11,163 |
|
48 |
|
— |
|
45,040 |
|
44,952 |
|
(88 |
) |
— |
|
Impairment of intangible assets |
9,260 |
|
9,260 |
|
— |
|
— |
|
9,260 |
|
9,260 |
|
— |
|
— |
|
Operating income (loss) |
(9,343 |
) |
(8,464 |
) |
(879 |
) |
10 |
% |
(2,890 |
) |
3,403 |
|
(6,293 |
) |
185 |
% |
1 Financial results excluding the impact of hyperinflation is a
non-GAAP measure. Refer to section “Non-GAAP measures” for
additional details.2 A positive variance represents a positive
impact on net income (loss) due to the application of IAS 29 and a
negative variance represents a negative impact on net income (loss)
due to the application of IAS 29.3 Percentage change is presented
in absolute values.
|
Q4-22 |
YTD-22 |
|
Reportedunder IFRS |
Excludingimpact ofIAS 291 |
Variance |
Reportedunder IFRS |
Excludingimpact ofIAS 291 |
Variance |
|
|
$2 |
%3 |
$2 |
%3 |
|
|
|
|
|
|
|
|
|
Revenues |
81,655 |
|
83,806 |
|
(2,151 |
) |
3 |
% |
293,563 |
|
291,770 |
|
1,793 |
|
1 |
% |
Cost of goods sold |
44,767 |
|
41,875 |
|
(2,892 |
) |
7 |
% |
155,502 |
|
141,411 |
|
(14,091 |
) |
10 |
% |
Gross margin |
36,888 |
|
41,931 |
|
(5,043 |
) |
12 |
% |
138,061 |
|
150,359 |
|
(12,298 |
) |
8 |
% |
Gross margin (%) |
45 |
% |
50 |
% |
|
|
47 |
% |
52 |
% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Selling and marketing |
14,402 |
|
15,073 |
|
671 |
|
4 |
% |
48,474 |
|
48,083 |
|
(391 |
) |
1 |
% |
General and administrative |
10,336 |
|
10,083 |
|
(253 |
) |
3 |
% |
40,150 |
|
37,451 |
|
(2,699 |
) |
7 |
% |
Research and development |
4,140 |
|
4,043 |
|
(97 |
) |
2 |
% |
14,755 |
|
13,733 |
|
(1,022 |
) |
7 |
% |
Amortization of intangible assets |
17,156 |
|
16,724 |
|
(432 |
) |
3 |
% |
51,742 |
|
49,561 |
|
(2,181 |
) |
4 |
% |
Impairment of non-current assets |
21,904 |
|
250 |
|
(21,654 |
) |
8662 |
% |
23,984 |
|
2,330 |
|
(21,654 |
) |
929 |
% |
Operating loss |
(31,050 |
) |
(4,242 |
) |
(26,808 |
) |
632 |
% |
(41,044 |
) |
(799 |
) |
(40,245 |
) |
5037 |
% |
1 Financial results excluding the impact of hyperinflation is a
non-GAAP measure. Refer to section “Non-GAAP measures” for
additional details.2 A positive variance represents a positive
impact on net income (loss) due to the application of IAS 29 and a
negative variance represents a negative impact on net income (loss)
due to the application of IAS 29.3 Percentage change is presented
in absolute values.
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:
Revenues and Financial results excluding
the impact of hyperinflation under IAS 29: 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 loss is converted using the closing
foreign exchange rate of the month.
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 the 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.
Adjusted Gross Margin: Adjusted
gross margin excludes the impact of IAS 29 and is adjusted to
consider revenues and related cost of sales for Exelon® separately,
rather than presenting as net profit transfer.
EBITDA: Operating income or
loss adjusted to exclude amortization and impairment of non-current
assets, depreciation, purchase price allocation accounting
adjustments, and the impact of IAS 29 (accounting under
hyperinflation) but to include costs related to leases.
Adjusted EBITDA: EBITDA
adjusted for acquisition costs and non-recurring expenses.
Adjusted EBITDA per share:
Adjusted EBITDA over number of common shares outstanding at the end
of the respective period.
Adjustments include the following:
- With the adoption of IFRS 16, the lease payments of Knight are
not reflected in operating expenses. The IFRS 16 adjustment
approximates the cash outflow related to leases of Knight.
- Acquisition costs relate to costs incurred on legal, consulting
and advisory fees for the acquisitions.
- Other non-recurring expenses relate to expenses incurred by
Knight that are not due to, and are not expected to occur in, the
ordinary course of business.
Reconciliation to EBITDA, adjusted
EBITDA and adjusted EBITDA per share
For the three-month period and year ended December
31, 2023, the Company calculated EBITDA and adjusted EBITDA as
follows:
|
|
|
Change |
|
|
Change |
|
Q4-23 |
Q4-22 |
$1 |
%2 |
YTD-23 |
YTD-22 |
$1 |
%2 |
Operating income (loss) |
(9,343 |
) |
(31,050 |
) |
21,707 |
|
70 |
% |
(2,890 |
) |
(41,044 |
) |
38,154 |
|
93 |
% |
Adjustments to operating income (loss): |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
11,115 |
|
17,156 |
|
(6,041 |
) |
35 |
% |
45,040 |
|
51,742 |
|
(6,702 |
) |
13 |
% |
Impairment of non-current assets |
9,260 |
|
21,904 |
|
(12,644 |
) |
58 |
% |
9,260 |
|
23,984 |
|
(14,724 |
) |
61 |
% |
Depreciation of property, plant and equipment and ROU assets |
343 |
|
3,037 |
|
(2,694 |
) |
89 |
% |
5,357 |
|
10,879 |
|
(5,522 |
) |
51 |
% |
Lease costs (IFRS 16 adjustment) |
(705 |
) |
(836 |
) |
131 |
|
16 |
% |
(2,851 |
) |
(2,750 |
) |
(101 |
) |
4 |
% |
Impact of IAS 29 |
1,331 |
|
3,119 |
|
(1,788 |
) |
57 |
% |
6,103 |
|
10,730 |
|
(4,627 |
) |
43 |
% |
EBITDA |
12,001 |
|
13,330 |
|
(1,329 |
) |
10 |
% |
60,019 |
|
53,541 |
|
6,478 |
|
12 |
% |
Adjusted EBITDA |
12,057 |
|
13,821 |
|
(1,764 |
) |
13 |
% |
60,075 |
|
54,032 |
|
6,043 |
|
11 |
% |
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.
The Company calculated adjusted EBITDA per share as
follows:
|
Q4-23 |
|
Q4-22 |
|
YTD-23 |
|
YTD-22 |
|
Adjusted EBITDA |
12,057 |
|
13,821 |
|
60,075 |
|
54,032 |
|
Adjusted EBITDA per share |
0.12 |
|
0.12 |
|
0.59 |
|
0.48 |
|
Number of common shares outstanding at period end (in
thousands) |
101,170 |
|
112,206 |
|
101,170 |
|
112,206 |
|
Explanation of adjustments
Acquisition and transaction costs |
|
Acquisition and transaction costs relate to costs incurred on
legal, consulting and advisory feesfor the acquisitions. |
Other non-recurring expenses |
|
Other non-recurring expenses relate to expenses incurred by the
Company that are not due to, and are not expected to occur in, the
ordinary course of business. |
CONSOLIDATED BALANCE SHEETS[In thousands of Canadian
dollars] |
|
As at |
12-31-2023 |
|
12-31-2022 |
|
ASSETS |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
58,761 |
|
71,679 |
|
Marketable securities |
95,657 |
|
85,826 |
|
Trade receivables |
88,722 |
|
94,890 |
|
Other receivables |
7,427 |
|
11,290 |
|
Inventories |
91,834 |
|
92,489 |
|
Prepaids and deposits |
4,881 |
|
3,344 |
|
Other current financial assets |
15,753 |
|
33,716 |
|
Income taxes receivable |
2,080 |
|
2,385 |
|
Total current assets |
365,115 |
|
395,619 |
|
|
|
|
|
|
Marketable securities |
7,407 |
|
15,169 |
|
Prepaids and deposits |
7,767 |
|
3,266 |
|
Right-of-use assets |
6,190 |
|
5,827 |
|
Property, plant and equipment |
11,669 |
|
16,806 |
|
Intangible assets |
289,960 |
|
338,780 |
|
Goodwill |
79,844 |
|
82,274 |
|
Other financial assets |
112,616 |
|
142,847 |
|
Deferred tax assets |
19,390 |
|
9,310 |
|
Other long-term receivables |
45,535 |
|
44,938 |
|
|
580,378 |
|
659,217 |
|
Total assets |
945,493 |
|
1,054,836 |
|
CONSOLIDATED BALANCE SHEETS (continued)[In thousands of
Canadian dollars] |
|
As at |
12-31-2023 |
|
12-31-2022 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current |
|
|
|
|
Accounts payable and accrued liabilities |
85,366 |
|
106,061 |
|
Lease liabilities |
1,728 |
|
2,578 |
|
Other liabilities |
1,046 |
|
5,793 |
|
Bank loans |
17,850 |
|
17,674 |
|
Income taxes payable |
1,182 |
|
2,274 |
|
Other balances payable |
6,857 |
|
6,941 |
|
Total current liabilities |
114,029 |
|
141,321 |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
5,251 |
|
2,669 |
|
Lease liabilities |
5,497 |
|
5,050 |
|
Bank loans |
44,016 |
|
52,398 |
|
Other balances payable |
27,012 |
|
23,176 |
|
Deferred tax liabilities |
2,817 |
|
4,365 |
|
Total liabilities |
198,622 |
|
228,979 |
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
Share capital |
540,046 |
|
599,055 |
|
Warrants |
117 |
|
117 |
|
Contributed surplus |
25,991 |
|
23,664 |
|
Accumulated other comprehensive income |
29,829 |
|
41,266 |
|
Retained earnings |
150,888 |
|
161,755 |
|
Total shareholders’ equity |
746,871 |
|
825,857 |
|
Total liabilities and shareholders’ equity |
945,493 |
|
1,054,836 |
|
CONSOLIDATED STATEMENTS OF LOSS[In thousands of Canadian
dollars, except for share and per share amounts] |
|
|
Three months ended December 31, |
Year ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
Revenues |
74,197 |
|
81,655 |
|
328,199 |
|
293,563 |
|
Cost of goods sold |
39,982 |
|
44,767 |
|
175,547 |
|
155,502 |
|
Gross margin |
34,215 |
|
36,888 |
|
152,652 |
|
138,061 |
|
Gross margin % |
46 |
% |
45 |
% |
47 |
% |
47 |
% |
|
|
|
|
|
Expenses |
|
|
|
|
Selling and marketing |
10,816 |
|
14,402 |
|
46,279 |
|
48,474 |
|
General and administrative |
8,109 |
|
10,336 |
|
37,414 |
|
40,150 |
|
Research and development |
4,258 |
|
4,140 |
|
17,549 |
|
14,755 |
|
Amortization of intangible assets |
11,115 |
|
17,156 |
|
45,040 |
|
51,742 |
|
Impairment of non-current assets |
9,260 |
|
21,904 |
|
9,260 |
|
23,984 |
|
Operating loss |
(9,343 |
) |
(31,050 |
) |
(2,890 |
) |
(41,044 |
) |
|
|
|
|
|
Interest income on financial instruments measured at amortized
cost |
(2,449 |
) |
(1,922 |
) |
(8,667 |
) |
(4,072 |
) |
Other interest income |
(632 |
) |
(2,341 |
) |
(3,908 |
) |
(6,560 |
) |
Interest expense |
4,090 |
|
2,293 |
|
12,488 |
|
6,600 |
|
Other income |
(782 |
) |
1,964 |
|
(2,905 |
) |
(4,025 |
) |
Net loss on financial assets measured at fair value through profit
or loss |
7,878 |
|
(8,824 |
) |
10,224 |
|
20,677 |
|
Foreign exchange (gain) loss |
9,007 |
|
1,663 |
|
15,169 |
|
(7,442 |
) |
Gain on hyperinflation |
(303 |
) |
(748 |
) |
(3,303 |
) |
(2,262 |
) |
Loss before income taxes |
(26,152 |
) |
(23,135 |
) |
(21,988 |
) |
(43,960 |
) |
|
|
|
|
|
Income taxes |
|
|
|
|
Current |
722 |
|
882 |
|
3,973 |
|
3,057 |
|
Deferred |
(2,548 |
) |
(8,829 |
) |
(9,126 |
) |
(17,125 |
) |
Income tax recovery |
(1,826 |
) |
(7,947 |
) |
(5,153 |
) |
(14,068 |
) |
Net loss |
(24,326 |
) |
(15,188 |
) |
(16,835 |
) |
(29,892 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
(0.23 |
) |
(0.13 |
) |
(0.16 |
) |
(0.26 |
) |
Basic and diluted weighted average number of common shares
outstanding |
|
|
|
|
Basic |
103,718,322 |
|
112,865,984 |
|
107,465,978 |
|
114,890,252 |
|
Diluted |
103,718,322 |
|
112,865,984 |
|
107,465,978 |
|
114,890,252 |
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS[In thousands of Canadian
dollars] |
|
|
Three months ended December 31, |
Year ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net income (loss) for the period |
(24,326 |
) |
(15,188 |
) |
(16,835 |
) |
(29,892 |
) |
Adjustments reconciling net income to operating cash flows: |
|
|
|
|
Depreciation and amortization |
11,458 |
|
20,194 |
|
50,397 |
|
62,621 |
|
Impairment of non-current assets |
9,260 |
|
23,984 |
|
9,260 |
|
23,984 |
|
Net loss (gain) on financial instruments |
7,878 |
|
(8,824 |
) |
10,224 |
|
20,677 |
|
Unrealized foreign exchange (gain) loss |
5,848 |
|
(1,044 |
) |
7,405 |
|
(8,479 |
) |
Other operating activities |
2,535 |
|
(15,463 |
) |
3,501 |
|
(18,441 |
) |
|
12,653 |
|
3,659 |
|
63,952 |
|
50,470 |
|
Changes in non-cash working capital and other items |
5,290 |
|
2,979 |
|
(28,013 |
) |
(5,470 |
) |
Cash inflow from operating activities |
17,943 |
|
6,638 |
|
35,939 |
|
45,000 |
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
Purchase of marketable securities |
(94,241 |
) |
(100,995 |
) |
(331,909 |
) |
(181,642 |
) |
Proceeds on maturity of marketable securities |
66,242 |
|
43,577 |
|
328,614 |
|
144,817 |
|
Investment in funds |
(1,078 |
) |
(531 |
) |
(2,254 |
) |
(3,831 |
) |
Purchase of intangible assets |
(1,281 |
) |
(4,407 |
) |
(9,008 |
) |
(22,931 |
) |
Other investing activities |
28,457 |
|
(2,668 |
) |
43,898 |
|
508 |
|
Cash inflow (outflow) from investing activities |
(1,901 |
) |
(65,024 |
) |
29,341 |
|
(63,079 |
) |
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
Repurchase of common shares through Normal Course Issuer Bid |
(19,083 |
) |
(8,684 |
) |
(53,479 |
) |
(30,069 |
) |
Principal repayment of bank loans |
(11,389 |
) |
(12,095 |
) |
(19,969 |
) |
(17,542 |
) |
Proceeds from bank loans |
— |
|
51,361 |
|
4,796 |
|
51,783 |
|
Other financing activities |
(5,226 |
) |
(2,610 |
) |
(12,350 |
) |
(6,929 |
) |
Cash outflow from financing activities |
(35,698 |
) |
27,972 |
|
(81,002 |
) |
(2,757 |
) |
|
|
|
|
|
Increase (decrease) in cash and cash equivalents during the
period |
(19,656 |
) |
(30,414 |
) |
(15,722 |
) |
(20,836 |
) |
Cash and cash equivalents, beginning of the period |
77,418 |
|
101,822 |
|
71,679 |
|
85,963 |
|
Net foreign exchange difference |
999 |
|
271 |
|
2,804 |
|
6,552 |
|
Cash and cash equivalents, end of the period |
58,761 |
|
71,679 |
|
58,761 |
|
71,679 |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
58,761 |
|
71,679 |
|
Marketable securities |
|
|
103,064 |
|
100,995 |
|
Total cash, cash equivalents and marketable
securities |
|
|
161,825 |
|
172,674 |
|
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