Advertisement 2AdvertisementThis advertisement has not loaded yet, but your article continues below. Article content“I am pleased to announce that for the three months ended March 31, 2025, we reported adjusted revenues1 of $88 million, a growth of 3% over the same period in prior year, with our promoted brands growing at 9% and an adjusted EBITDA1 over $12 million. In addition, we have expanded an existing partnership with the addition of Onicit® and have advanced our pipeline with the submission of Tavalisse® in Argentina and the regulatory approval of Pemazyre® in Mexico. We continued our progress on the commercial font with the launch of Minjuvi® in Mexico and re-launch of Onicit® in Mexico and Brazil. In addition, we have announced the acquisition of Paladin. This transaction will add a profitable portfolio, critical mass and significantly increases the size of our business in Canada while bringing a stable source of cash flow that will help fund our growth in Canada and Latin American,” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.Article content_______________________________1 Adjusted revenues and adjusted EBITDA are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section – Financial Results under Non-GAAP measures for additional details.Article contentArticle content SELECT FINANCIAL RESULTS REPORTED UNDER IFRS[In thousands of Canadian dollars] Change Q1-25Q1-24$1%2 Revenues88,076 86,604 1,472 2%Gross margin34,866 41,699 (6,833)16%Gross margin %40%48% Selling and marketing13,924 12,649 (1,275)10%General and administrative12,219 10,538 (1,681)16%Research and development4,786 4,980 194 4%Amortization of intangible assets9,474 10,872 1,398 13%Operating expenses40,403 39,039 (1,364)3% Operating income (loss)(5,537)2,660 (8,197)308% Net income (loss)2,185 (4,546)6,731 148%Article content1 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.Article contentRevenues: For the quarter ended March 31, 2025, revenues increased by $1,472 or 2% compared to the same period in prior year, which included an offset of $712 due the Hyperinflation Impact1. Excluding IAS 29, the increase was $2,184 or 3% and $6,631 or 8% on a constant currency2 basis. The increase in revenues was driven by the growth of our key promoted products on a constant currency2 basis by $9,468 or 16%, partly offset by declines in our mature products and the depreciation of select LATAM currencies.Article contentArticle contentOur revenues by therapeutic area is as follows:Article content ChangeTherapeutic AreaQ1-25Q1-24$%Oncology/Hematology31,71931,289430 1%Infectious Diseases36,48138,286(1,805)5%Other Specialty19,87617,0292,847 17%Total88,07686,6041,472 2%Article content_______________________________1 The Hyperinflation Impact is due to the application of IAS 29 in Argentina. Refer to section – Hyperinflation for additional details.2 Revenues at constant currency is 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. Refer to section – Financial Results under Non-GAAP measures for additional details.Article contentThe increase in revenues is explained by the following:Article contentOncology/Hematology: For the quarter ended March 31, 2025, the oncology/hematology portfolio increased by $430 or 1%, which included an offset of $403 due to the Hyperinflation Impact1. Excluding IAS 29, the oncology/hematology portfolio increased by $833 or 3%. Revenues from our key promoted products increased by $3,935 or 13% on a constant currency2 basis driven by the growth of Lenvima®, Akynzeo®, Trelstar®, the launch of Minjuvi® and the assumption of commercial activities of Onicit® in Brazil and Mexico. This growth was partially offset by a decline in our mature and branded generics products due to their lifecycle as well as the market entrance of new competitor, the termination of a non-strategic distribution agreement in Colombia in December 2024 and the depreciation of select LATAM currencies. Article contentInfectious Diseases: For the quarter ended March 31, 2025, the infectious diseases portfolio decreased by $1,805 or 5%, of which $184 is due to the Hyperinflation Impact1. Excluding IAS 29, the infectious diseases portfolio decreased by $1,621 or 4% and increased by $1,100 or 3% on constant currency2 basis. The increase was due to purchasing patterns of certain customers including Ambisome® deliveries to the Ministry of Health in Brazil (“MOH”).Article contentThe Company signed the following contracts with the MOH for Ambisome®, with the following deliveries:Article contentContract DeliveredYearTotal Q1-25 2024 2023 2022Total 2022$34,600 —$2,400$25,200$7,000$34,6002024$22,400 —$22,400 — —$22,4002025$22,4001 $12,700 — — —$12,700Total$79,400 $12,700$24,800$25,200$7,000$69,7001Amount expected to be delivered to the MOH in 2025. Q1-25 vs Q1-24ContractYearQ1-25 Q1-24 2022 — $2,400 2024 — $6,800 2025$12,700 — Total$12,700 $9,200 Article contentOther Specialty: For the quarter ended March 31, 2025, the other specialty portfolio increased by $2,847 or 17%, which included an offset of $125 due to the Hyperinflation Impact1. Excluding IAS 29, the other specialty portfolio increased by $2,972 or 18% and $3,695 or 23% on constant currency2 basis mainly driven by the launch of Imvexxy® and Bijuva® in Canada and purchasing patterns of certain customers.Article contentArticle content_______________________________1 The Hyperinflation Impact is due to the application of IAS 29 in Argentina. Refer to section – Hyperinflation for additional details.2 Revenues at constant currency is 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. Refer to section – Financial Results under Non-GAAP measures for additional details.Article contentGross margin: For the quarter ended March 31, 2025, gross margin, as a percentage of revenues, was 40% compared to 48% in Q1-24. The decrease in the gross margin % is mainly explained by the Gross Margin Hyperinflation Impact1. Excluding IAS 29, the Adjusted gross margin %2 was 47% compared to 47% in Q1-24. There was no significant variance.Article contentSelling and marketing (“S&M”) expenses: For the quarter ended March 31, 2025, selling and marketing increased by $1,275 or 10%, which included an offset of $72 due to the Hyperinflation Impact1. The remaining variance is mainly driven by an expansion in our sales and commercial structure behind the launches of Minjuvi® in Mexico and Jornay PM® in Canada as well as an increase in marketing activities on our key promoted products.Article contentArticle contentGeneral and administrative (“G&A”) expenses: For the quarter ended March 31, 2025, general and administrative increased by $1,681 or 16%, of which $309 is explained by the Hyperinflation Impact1. The remaining variance is driven by transaction fees related to the acquisition of the Paladin business.Article contentResearch and development (“R&D”) expenses: For the quarter ended March 31, 2025, research and development expenses decreased by $194 or 4%, of which $162 is explained by the Hyperinflation Impact1. The remaining variance was not significant.Article contentNet income (loss)For the quarter ended March 31, 2025, the net income was $2,185 compared to net loss $4,546 for the same period in prior year. The variance mainly resulted from the above-mentioned items and (1) a net loss $945 on the revaluation of financial assets measured at fair value through profit or loss versus a net loss of $16,267 in the same period in prior year, and (2) a foreign exchange gain of $5,551 in Q1-25 mainly driven by the revaluation of intercompany balances due to the appreciation of the BRL and COP vs USD, compared to a foreign exchange gain of $1,934 in Q1-24 mainly driven by the unrealized gains due to the revaluation of our financial assets including our cash and marketable securities, and (3) gain on hyperinflation of $574 in Q1-25 compared to a gain on hyperinflation of $4,296 in Q1-24._______________________________1 The Hyperinflation Impact and the Gross Margin Hyperinflation impact are due to the application of IAS 29 in Argentina. Refer to section – Hyperinflation for additional details.2 Adjusted gross margin % is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section – Financial Results under Non-GAAP measures for additional details. Article content SELECT BALANCE SHEET ITEMS[In thousands of Canadian dollars] Change March 31, 2025December 31, 2024$% Cash, cash equivalents and marketable securities141,505142,331(826)1%Trade and other receivables165,559154,51811,041 7%Inventories140,161102,69837,463 36%Financial assets126,866133,932(7,066)5%Accounts payable and accrued liabilities122,83283,17339,659 48%Bank loans46,98943,3853,604 8%Article contentCash, cash equivalents and marketable securities: As at March 31, 2025, Knight had $141,505 in cash, cash equivalents and marketable securities, a decrease of $826 or 1% as compared to December 31, 2024. The decrease is due to financing and investing activities of $5,355 driven by the NCIB, offset by cash inflows from operations of $3,670 and foreign exchange gains of $859.Article contentTrade and other receivables: As at March 31, 2025, Trade and other receivables were $165,559, an increase of $11,041 or 7%, as compared to December 31, 2024, mainly due to the timing of collections from certain customers.Article contentInventories: As at March 31, 2025, Inventory were $140,161, an increase of $37,463 or 36%, as compared to December 31, 2024, mainly due to timing of purchases as well as investments on our new product launches.Article contentArticle contentFinancial assets: As at March 31, 2025, financial assets were $126,866, a decrease of $7,066 or 5%, as compared to December 31, 2024, mainly driven by a net decrease in the value of our financial assets.Article contentAccounts payable and accrued liabilities: As at March 31, 2025, accounts payable and accrued liabilities were $122,832, an increase of $39,659 or 48%, as compared to December 31, 2024, mainly driven by the purchase of inventory for our key promoted products.Article contentBank Loans: As at March 31, 2025, bank loans were $46,989, an increase of $3,604 or 8%, as compared December 31, 2024, mainly due to the appreciation of the BRL, COP, CLP and MXN.Article contentProduct UpdatesArticle contentTavalisse® (fostamatinib)In Q1-25, Knight submitted Tavalisse® for ANMAT approval in Argentina for the treatment of thrombocytopenia in adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment.Article contentPemazyre® (pemigatinib)In Q1-25, Knight obtained the regulatory approval in Mexico for Pemazyre®, 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.Article contentArticle contentOnicit® (palonosetron)Knight expanded its relationship with Helsinn with the in-licensing of the exclusive rights to distribute, and commercialize Onicit® in Mexico, Brazil and select LATAM countries, where it is approved and marketed for the prevention of acute nausea and vomiting associated with the initial and repeated cycles of moderately and highly emetogenic chemotherapy for cancer, and for the prevention of delayed nausea and vomiting associated with the initial and repeated cycles of moderately emetogenic chemotherapy for cancer. Additionally, Onicit® is indicated for the prevention of postoperative nausea and vomiting (PONV), for up to 24 hours after surgery. Knight assumed commercial activities for Onicit® in Mexico and Brazil in Q1-25. Onicit® is marketed under the trademark Aloxi® in Canada.Article contentCorporate UpdatesArticle contentPaladin AcquisitionArticle contentOn March 10, 2025, Knight entered into a definitive Asset Purchase Agreement with Endo Operations Limited and Paladin Pharma Inc. (“sellers”), to acquire the assets used by the sellers to conduct their international business which is mainly in Canada (“Paladin”). Upon closing, Knight will make a payment of $100,000 for the business and an additional $20,000 for inventory. In addition, Knight may pay future contingent payments of up to US$15,000 upon achieving certain sales milestones. The closing of the transaction is subject to the satisfaction of customary regulatory approvals including anti-trust clearance in Canada and is expected to occur in the middle of 2025. The acquisition of Paladin adds critical mass and expand the size of the Company´s business in Canada while adding a portfolio of cash flow generating products that will help fund Knights’ growth in Canada and Latin America. Article contentWorking capital line of creditArticle contentSubsequent to the quarter, Knight closed an uncommitted working capital line of credit with Citibank, N.A. for a total amount of USD 40,000 [$57,504], of which USD 35,000 [$50,316] was withdrawn. The working capital loan is at an interest rate of SOFR+2.30% and matures on September 30, 2025.Article contentFinancial Outlook1Article contentKnight reconfirmed its financial guidance targets for 2025. Knight expects to generate between $390 million to $405 million in revenues and adjusted EBITDA2 to be approximately 13% of revenues. The guidance is based on a number of assumptions, including but not limited to the following:Article contentclosing of the Paladin transaction in the middle of 2025no material impact on revenues due to the application of hyperinflation accounting for Argentinano revenues for business development transactions not completed as at May 7, 2025no unforeseen termination to our license, distribution & supply agreementsno interruptions in supply whether due to global supply chain disruptions or general manufacturing issuesno new generic entrants on our key pharmaceutical brandsno unforeseen changes to government mandated pricing regulationssuccessful commercial execution on product listing arrangements with HMOs, insurers, key accounts, and public payerssuccessful execution and uptake of newly launched productsno material increase in provisions for inventory or trade receivablesno significant variations of forecasted foreign currency exchange ratesinflation remaining within forecasted rangesArticle contentArticle contentShould 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.Article content_______________________________1 This forward looking information is based on assumptions specific to the nature of the Company’s activities with regard to annual revenue growth considering industry information, expected market share, pricing assumptions, actions of competitors, sales erosion rates after the end of patent or other intellectual property rights protection, the timing of the entry of generic competition, the expected results of tenders, among other variables.2 Adjusted EBITDA is 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. Refer to section Financial Results under Non-GAAP measures for additional details.Article contentConference Call Notice Article contentKnight will host a conference call and audio webcast to discuss its first quarter and year ended March 31, 2025, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.Article contentArticle contentDate: Thursday, May 8, 2025Time: 8:30 a.m. ETTelephone: Toll Free: 1-888-699-1199 or International 1-416-945-7677Webcast: www.knighttx.com or WebcastThis is a listen-only audio webcast. Media Player is required to listen to the broadcast.Article contentReplay: An archived replay will be available for 30 days at www.knighttx.comArticle contentAbout Knight Therapeutics Inc. Article contentKnight 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.Article contentForward-Looking StatementArticle contentThis 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, 2024 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. Article contentCONTACT INFORMATION:Article contentInvestor Contact: Knight Therapeutics Inc. Samira Sakhia Arvind UtchanahPresident & Chief Executive Officer Chief Financial OfficerT: 514.484.4483 T. +598.2626.2344F: 514.481.4116 Email: IR@knighttx.com Email: IR@knighttx.comWebsite: www.knighttx.com Website: www.knighttx.com Article contentHYPERINFLATIONArticle contentThe Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company’s Argentine subsidiary uses the Argentine Peso as it´s 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. After applying for the effects of hyperinflation, the statement of income (loss) is converted using the closing foreign exchange rate of the month.Article contentRevenues & operating expenses in the local currency, i.e. ARS, are restated from the month of the sales or the month in which the expense was incurred to the end of the reporting period using the inflation index during that period. The restatement calculation is performed on a year to date basis based on IAS29 (“Inflation Adjusted Figures”). For the three-month period ended March 31, 2025 and 2024, the Company applied the following inflation index for the restatement of each respective month.Article contentArticle content JanuaryFebruaryMarch20251.061.041.0020241.261.111.00Article contentUnder IAS 29, the translation from the local currency, to the reporting currency is performed on the Inflation Adjusted Figures using the end of period rate at the reporting date. The Inflation Adjusted Figures were converted to CAD using the following quarter-end closing rates for each of the respective periods.Article content Q1-25Q1-24ARS746633Article content Q1-25Q1-24ARS Variation %1(4)%(4)%Article content1 Depreciation of ARS vs CAD during each period, calculated as follows: (End of period rate – Beginning of period rate) / Beginning of period rate.Article contentIn Q1-25 the inflation rate used for the hyperinflation adjustment on revenues and operating expenses of the Company’s subsidiary in Argentina was similar to the ARS depreciation in the same period. Therefore, the impact of the hyperinflation adjustment on revenues and operating expenses was not significant in Q1-25. Conversely, in Q1-24 the inflation rate was higher than the ARS depreciation, resulting in higher revenues and operating expenses reported under IAS 29 in CAD. Therefore the hyperinflation accounting under IAS 29 resulted in a decrease in the reported revenues and operating expenses of the Company’s subsidiary in Argentina in CAD in Q1-25 when compared to the same prior year period (“Hyperinflation Impact”).Article contentArticle contentUnder hyperinflation accounting, the cost of goods sold in the local currency, i.e. ARS, are restated using the inflation index from the purchase or manufacturing date to the end of the reporting period, and are converted to CAD using the respective quarter-end closing rates. In Q1-25, the cumulative inflation index applied on the inventory sold was higher than the prior year period, leading to higher cost of goods sold reported under IAS 29 in CAD and consequently a lower gross margin in Q1-25 compared to Q1-24 (“Gross Margin Hyperinflation Impact”).Article contentFINANCIAL RESULTS UNDER NON-GAAP MEASURES[In thousands of Canadian dollars]Article contentThe 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. Article content[i] Financial results excluding the impact of hyperinflation under IAS 29Article contentThe 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.Article contentFinancial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The impact of hyperinflation under IAS 29 is calculated by applying an appropriate general price index to express the effects of inflation. After applying the effects of translation, the statement of income is converted using the closing foreign exchange rate of the month.Article contentThe Company believes that financial results excluding the impact of hyperinflation under IAS 29 represents a useful measure to investors as allow results to be viewed without the impact of IAS 29, thereby facilitating the comparison of results period over period. The presentation of financial results excluding the impact of hyperinflation under IAS 29 is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.Article contentArticle contentThe following tables reconcile the financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.Article content Q1-25 Reportedunder IFRSIAS 29AdjustmentExcluding theImpact of IAS 29 Revenues88,076 (97)87,979 Cost of goods sold53,210 (6,165)47,045 Gross margin34,866 6,068 40,934 Gross margin (%)40% 47% Expenses Selling and marketing13,924 (84)13,840 General and administrative12,219 (635)11,584 Research and development4,786 22 4,808 Amortization of intangible assets9,474 (2)9,472 Operating income (loss)(5,537)6,767 1,230 Article content Q1-24 Reportedunder IFRSIAS 29AdjustmentExcluding theImpact ofIAS 29 Revenues86,604 (809)85,795 Cost of goods sold44,905 195 45,100 Gross margin41,699 (1,004)40,695 Gross margin (%)48% 47% Expenses Selling and marketing12,649 (156)12,493 General and administrative10,538 (326)10,212 Research and development4,980 (140)4,840 Amortization of intangible assets10,872 (26)10,846 Operating income (loss)2,660 (356)2,304 Article contentSelect financial results excluding the impact of hyperinflation under IAS 291Article contentArticle content Change Q1-25Q1-24$% Adjusted Revenues87,979 85,795 2,184 3%Cost of goods sold47,045 45,100 (1,945)4%Adjusted Gross margin40,934 40,695 239 1%Adjusted Gross margin (%)47%47% Expenses Selling and marketing13,840 12,493 (1,347)11%General and administrative11,584 10,212 (1,372)13%Research and development4,808 4,840 32 1%Amortization of intangible assets9,472 10,846 1,374 13%Operating income (loss)1,230 2,304 (1,074)47% Adjusted EBITDA112,113 13,589 (1,476)11%Adjusted EBITDA1 (%)14%16% Adjusted EBITDA per share10.12 0.13 (0.01)8%Article content1 Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Article contentAdjusted Revenues1 by Therapeutic AreaArticle content ChangeTherapeutic AreaQ1-25Q1-24$%Oncology/Hematology31,67630,843833 3%Infectious Diseases36,44138,062(1,621)4%Other Specialty19,86216,8902,972 18%Total87,97985,7952,184 3% Article content1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is 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.Article content[ii] Financial results at constant currencyArticle contentFinancial 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.Article contentThe Company believes that financial results at constant currency represents a useful measure to investors because it eliminates the effect that foreign currency exchange rate fluctuations may have on period-to-period comparability given the volatility in foreign currency exchange markets and therefore, provides greater transparency to the underlying performance of our consolidated financial results. 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.Article contentArticle contentThe following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.Article content Q1-24 Excluding theimpact of IAS291ConstantCurrencyAdjustmentConstantCurrencyAdjusted Revenues85,795 (4,447)81,348 Cost of goods sold45,100 (2,640)42,460 Adjusted Gross margin40,695 (1,807)38,888 Adjusted Gross margin (%)47% 48% Expenses Selling and marketing12,493 (462)12,031 General and administrative10,212 (59)10,153 Research and development4,840 (113)4,727 Amortization of intangible assets10,846 488 11,334 Operating income (loss)2,304 (1,661)643 Article content1Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details.Article contentSelect financial results at Constant Currency1Article content Three-month period ended March 31, Excluding impact of IAS 29 Constant Currency1Change20252024$%Adjusted Revenues87,979 81,348 6,631 8%Cost of goods sold47,045 42,460 (4,585)11%Adjusted Gross margin40,934 38,888 2,046 5%Adjusted Gross margin (%)47%48% Expenses Selling and marketing13,840 12,031 (1,809)15%General and administrative11,584 10,153 (1,431)14%Research and development4,808 4,727 (81)2%Amortization of intangible assets9,472 11,334 1,862 16%Operating income (loss)1,230 643 587 91% Adjusted EBITDA112,113 12,417 (304)2%Adjusted EBITDA1 (%)14%15% Adjusted EBITDA per share10.12 0.12 — —%Article contentArticle content1 Adjusted EBITDA and financial results at constant currency are a non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.Article contentAdjusted Revenues at Constant Currency1 by Therapeutic AreaArticle content Three-month period ended March 31, Excluding impact of IAS 29 ConstantCurrency1 Innovative20252024$%Oncology/Hematology31,67629,8401,8366%Infectious Diseases36,44135,3411,1003%Other Specialty19,86216,1673,69523%Total87,97981,3486,6318%Article content1 Revenues at constant currency is 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.Article content[iii] Adjusted Gross MarginAdjusted Gross Margin is defined as revenues less cost of goods sold, excluding the impact of hyperinflation under IAS 29.Article contentThe Company believes that Adjusted Gross Margin represents a useful measure to investors as allow Gross Margin to be viewed without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of Adjusted Gross Margin 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. Article content[iv] EBITDAArticle contentEBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of non-current assets, depreciation, but to include costs related to leases.Article contentThe Company believes that EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.Article content[v] Adjusted EBITDAArticle contentAdjusted EBITDA is defined as EBITDA adjusted for the impact of IAS 29 (accounting under hyperinflation), acquisition and transaction costs and non-recurring expenses. The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities.Article contentThe Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities, without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.Article contentArticle contentThe following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:Article content Change Q1-25Q1-24$%Operating income (loss)(5,537)2,660 (8,197)308%Adjustments to operating income (loss): Amortization of intangible assets9,474 10,872 (1,398)13%Depreciation of property, plant and equipment and ROU assets2,110 1,709 401 23%Lease payments(1,122)(882)(240)27%EBITDA4,925 14,359 (9,434)66%Impact of IAS 296,146 (770)6,916 898%Acquisition and transaction costs1,042 — 1,042 — Adjusted EBITDA12,113 13,589 (1,476)11%Adjusted EBITDA per share0.12 0.13 (0.01)8%Article contentFor the quarter ended March 31, 2025, adjusted EBITDA decreased by $1,476 or 11%. The decrease was driven by higher operating expenses.Article contentExplanation of adjustments from EBITDA to Adjusted EBITDAArticle contentImpact of IAS 29Impact of hyperinflation accounting under IAS 29 over the operating income (loss).Acquisition and transaction costsAcquisition and transaction costs relate to costs incurred on legal, consulting and advisory fees for the acquisitions.Article content[vi] Adjusted EBITDA per shareArticle contentAdjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period.Article contentThe Company believes that Adjusted EBITDA per share represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities on a per common share basis, without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.Article contentThe Company calculated adjusted EBITDA per share as follows:Article content Q1-25Q1-24Adjusted EBITDA12,11313,589Adjusted EBITDA per share0.120.13Number of common shares outstanding at period end (in thousands)99,448101,170Article contentINTERIM CONSOLIDATED BALANCE SHEETS[In thousands of Canadian dollars][Unaudited] As at20252024ASSETS Current Cash and cash equivalents112,15580,106Marketable securities29,35062,225Trade receivables116,384105,196Other receivables4,1924,339Inventories140,161102,698Prepaids and deposits7,4627,744Other current financial assets39,35230,506Income taxes receivable4,9503,999Total current assets454,006396,813 Prepaids and deposits7,8757,217Right-of-use assets6,7885,912Property, plant and equipment14,17914,110Intangible assets273,047283,612Goodwill90,02786,477Other financial assets87,514103,426Deferred tax assets24,62321,247Other long-term receivables44,98344,983Total non-current assets549,036566,984Total assets1,003,042963,797Article contentINTERIM CONSOLIDATED BALANCE SHEETS (continued)[In thousands of Canadian dollars][Unaudited] As at20252024 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Accounts payable and accrued liabilities117,74878,345Lease liabilities3,5562,640Other liabilities2,5511,876Bank loans20,65617,486Income taxes payable235213Other balances payable7,86610,688Total current liabilities152,612111,248 Accounts payable and accrued liabilities5,0844,828Lease liabilities3,3743,434Bank loans26,33325,899Other balances payable16,76319,443Deferred tax liabilities3,4393,840Total liabilities207,605168,692 Shareholders’ equity Share capital531,160534,266Warrants117117Contributed surplus26,72025,708Accumulated other comprehensive income80,63480,220Retained earnings156,806154,794Total shareholders’ equity795,437795,105Total liabilities and shareholders’ equity1,003,042963,797Article contentINTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)[In thousands of Canadian dollars, except for share and per share amounts][Unaudited] Three months ended March 31, 2025 2024 Revenues88,076 86,604 Cost of goods sold53,210 44,905 Gross margin34,866 41,699 Gross margin %40%48% Expenses Selling and marketing13,924 12,649 General and administrative12,219 10,538 Research and development4,786 4,980 Amortization of intangible assets9,474 10,872 Operating income (loss)(5,537)2,660 Interest income on financial instruments measured at amortized cost(1,838)(2,136)Other interest income(16)(505)Interest expense1,756 2,577 Other expense (income)140 (169)Net loss on financial assets measured at fair value through profit or loss945 16,267 Foreign exchange gain(5,551)(1,934)Gain on hyperinflation(574)(4,296)Loss before income taxes(399)(7,144) Income taxes Current535 1,669 Deferred(3,119)(4,267)Income tax recovery(2,584)(2,598)Net income (loss) for the period2,185 (4,546) Basic and diluted net income (loss) per share0.02 (0.04)Weighted average number of common shares outstanding Basic99,641,300 101,173,461 Diluted100,078,623 101,173,461 Article contentINTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS[In thousands of Canadian dollars][Unaudited] Three months ended March 31, 2025 2024 OPERATING ACTIVITIES Net income (loss) for the period2,185 (4,546)Adjustments reconciling net income to operating cash flows: Depreciation and amortization11,584 12,581 Net loss on financial instruments945 16,267 Unrealized foreign exchange (gain) loss1,330 (2,205)Other operating activities(847)(6,724) 15,197 15,373 Changes in non-cash working capital and other items(11,527)15,508 Cash inflow from operating activities3,670 30,881 INVESTING ACTIVITIES Purchase of marketable securities(6,857)(36,297)Proceeds on maturity of marketable securities39,637 22,316 Investment in funds(107)(131)Purchase of intangible assets(3,328)(10,082)Other investing activities2,781 (172)Cash inflow (outflow) from investing activities32,126 (24,366) FINANCING ACTIVITIES Repurchase of common shares through Normal Course Issuer Bid(3,345)— Principal repayment of bank loans(1,586)(1,729)Proceeds from bank loans1,809 545 Other financing activities(1,577)(1,713)Cash outflow from financing activities(4,699)(2,897) Increase in cash and cash equivalents during the period31,097 3,618 Cash and cash equivalents, beginning of the period80,106 58,761 Net foreign exchange difference952 456 Cash and cash equivalents, end of the period112,155 62,835 Cash and cash equivalents112,155 80,106 Marketable securities29,350 62,225 Total cash, cash equivalents and marketable securities141,505 142,331 Article contentArticle contentArticle contentArticle contentArticle contentArticle contentArticle content Featured Local Savings