Knight Reports First Quarter 2016 Results
/EINPresswire.com/ -- MONTREAL, CANADA -- (Marketwired) -- 05/10/16 -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or the "Company"), a leading Canadian specialty pharmaceutical company, today reported financial results for its first quarter ended March 31, 2016. In thousands of Canadian dollars except for share and per share amounts.
First Quarter 2016 Highlights
-- On January 4, 2016, Knight issued to 60 Degrees Pharmaceuticals LLC
("60P") US$1.5 million as a second tranche of a secured loan of up to
US$4 million. Knight entered into the secured loan agreement with 60P
and issued the first tranche of US$0.5 million on December 10, 2015. The
loan bears interest at 15.0% per annum and will mature on December 31,
2020.
-- On January 22, 2016, Knight extended secured loans in the aggregate
amount of $9 million to INTEGA Skin
Sciences Inc. ("INTEGA") to support its acquisition of Valeant Groupe
Cosmederme Inc. In conjunction with the financing transaction, Knight
entered into an exclusive distribution, license and supply agreement to
commercialize all INTEGA's current and future products, to the extent
that INTEGA possesses the right to commercialize such products, in
Israel, Romania, Russia, Sub-Saharan Africa and the Caribbean. Subject
to conditions, Knight may also receive rights to certain future products
in Canada.
-- On February 1, 2016, Knight entered into an exclusive licensing
agreement with Braeburn Pharmaceuticals, Inc. to commercialize
PROBUPHINE® in Canada. PROBUPHINEris an investigational subdermal
implant designed to deliver buprenorphine continuously for six months
following a single treatment, promoting patient compliance and retention
as well as helping to prevent accidental paediatric exposure.
-- On February 17, 2016, Knight announced that it had agreed to issue a
secured loan of up to US$20 million to
Medimetriks Pharmaceuticals, Inc. ("Medimetriks") to support its
acquisition of the exclusive U.S. development and commercialization
rights for OPA-15406 from Otsuka Pharmaceutical Co., Ltd. In addition to
the secured loan, Knight and Medimetriks have entered into a license and
distribution agreement whereby Knight will be Medimetriks' exclusive
distribution partner in Canada, Israel, Romania, Russia, Sub-Saharan
Africa and the Caribbean for future Medimetriks products. Medimetriks
currently does not have rights to any products in these territories.
-- On March 15, 2016, Knight announced that it had terminated its agreement
with Paladin Labs (Barbados) Inc., (an affiliate of Endo International
plc) related to the distribution and sale of Impavido® in all
countries other than the U.S.
-- On March 22, 2016, Knight, through one of its wholly-owned subsidiaries,
announced that its U.S. commercialization partner, Profounda Inc.
("Profounda"), has launched Impavido® (miltefosine) in the United
States. Knight entered into an exclusive distribution agreement with
Profounda in September 2015 to commercialize Impavido®, an oral
treatment for visceral, mucosal and cutaneous leishmaniasis in the U.S.
-- On March 23, 2016, Knight, through one of its wholly-owned subsidiaries,
announced the receipt of a ILS 7.1 million ($2.4 million) dividend from
Medison Biotech (1995) Ltd.
Subsequent to the Quarter Ended March 31, 2016 Highlights
-- On April 25, 2016, Knight, through one of its wholly-owned subsidiaries
announced that it had entered into an exclusive distribution agreement
with EMPA Healthcare LLC ("EMPA") to commercialize Neuragen®, in the
United Arab Emirates and Kuwait.
-- On April 25, 2016, Knight, announced that it had received a Notice of
Deficiency for its ATryn® New Drug Submission. In its notice, Health
Canada requested additional technical information on ATryn® in order
to complete its assessment of the product.
Financial Results Reported in Thousands of Canadian Dollars
For the quarter ended March 31, 2016, the Company reported revenue of $1,068 and net income of $477. As at March 31, 2016, the Company had $426,235 in cash, cash equivalents and marketable securities and 103,478,063 common shares outstanding.
"We are off to a GUD start in 2016 having signed long-term partnerships with Braeburn, EMPA, INTEGA and Medimetriks," said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc. "Rest assured that the Knight team is working diligently toward deploying capital in low risk, fair return opportunities."
Conference Call Notice
Knight will host a conference call to discuss its first quarter results today at 8:30 am ET. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).
A taped replay of the conference call will be available from today at 11:30 a.m. ET until Friday, June 10, 2016 at 11:59 p.m. ET. To access the replay, please call 1-800-585-8367 or 416-621-4642 and use access code 77734316.
Notice of Second Quarter 2016 Results
Knight expects to release its second quarter 2016 financial results on the morning of Thursday, August 11, 2016. Knight expects to hold a conference call at 8:30 am ET on the morning of the release. All interested parties are cordially invited to attend. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll- Free) or 647-788-4922 (local or international).
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.comor www.sedar.com.
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, 2015. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward - looking statements whether as a result of new information or future events, except as required by law.
INTERIM CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
As at
(Unaudited)
March 31, December 31,
2016 2015
$ $
------------------------------
ASSETS
Current
Cash and cash equivalents 204,785 237,481
Marketable securities 221,450 233,726
Accounts receivable 2,983 2,994
Inventory 1,339 1,460
Other current financial assets 31,222 23,588
Income taxes receivable 197 231
------------------------------
Total current assets 461,976 499,480
Property and equipment 10 18
Intangible assets 6,079 3,320
Other financial assets 88,492 62,616
Investment in associate 79,458 81,027
Deferred income tax assets 2,321 2,527
------------------------------
Total assets 638,336 648,988
------------------------------
------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 1,294 2,416
Income taxes payable 4,218 4,031
Deferred revenue 151 293
------------------------------
Total current liabilities 5,663 6,740
Deferred income tax liabilities - 186
------------------------------
Total liabilities 5,663 6,926
------------------------------
Shareholders' equity
Share capital 439,176 439,148
Warrants 161 161
Contributed surplus 7,845 6,772
Accumulated other comprehensive income 24,988 35,955
Retained earnings 160,503 160,026
------------------------------
Total shareholders' equity 632,673 642,062
------------------------------
Total liabilities and shareholders' equity 638,336 648,988
------------------------------
------------------------------
INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In thousands of Canadian dollars, except for share and per share amounts)
For the period ended March 31
(Unaudited)
2016 2015
$ $
------------------------------
Revenue 1,068 247
Cost of goods sold 246 86
------------------------------
Gross margin 822 161
Expenses
General and administrative 2,193 2,677
Research and development 283 334
------------------------------
(1,654) (2,850)
Depreciation of property and equipment 8 8
Amortization of intangible assets 41 21
Interest income (4,816) (3,966)
Other income (1,099) (441)
Net gain on financial assets (1,729) (7,529)
Purchase gain on acquisition - (550)
Share of net income of associate (854) -
Foreign exchange loss (gain) 3,770 (4,410)
------------------------------
Income before income taxes 3,025 14,017
Income tax expense 2,541 -
Deferred income tax expense 7 201
------------------------------
Net income for the period 477 13,816
------------------------------
------------------------------
Attributable to shareholders of the Company
Basic earnings per share $0.005 $0.15
Fully diluted earnings per share $0.005 $0.15
Weighted average number of common shares
outstanding
Basic 103,475,043 92,539,843
Diluted 103,688,167 92,820,153
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of Canadian dollars)
For the period ended March 31
(Unaudited)
2016 2015
$ $
------------------------------
Net income for the period 477 13,816
Realized gain reclassified to statement of
income (net of tax of $64 and $440 as at
March 31, 2015) (410) (2,844)
Other comprehensive income to be reclassified
to income in subsequent periods:
Change in fair value of available-for-sale
financial instruments (net of tax of $72 and
$332 as at March 31, 2015) 421 2,102
Unrealized (loss) gain on translating
financial statements of foreign operations (10,978) 12,917
------------------------------
Other comprehensive (loss) income for the
period (10,967) 12,175
Comprehensive (loss) income for the period (10,490) 25,991
------------------------------
------------------------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(In thousands of Canadian dollars)
(Unaudited)
Share Contributed
capital Warrants surplus
$ $ $
----------------------------------------
Balance on January 1, 2015 341,065 - 2,100
Net income for the period - - -
Realized gain reclassified to
statement of income, net of tax of
$440 - - -
Change in fair value of available-
for-sale financial instruments, net
of tax of $332 - - -
Unrealized gain on translating
financial statements of foreign
operations - - -
----------------------------------------
Comprehensive Income - - -
Share-based compensation expense - - 1,314
Issuance of shares upon financing,
net of costs and deferred tax of
$93 12,510 - -
Exercise of compensation warrants 930 - (295)
Issuance of shares under share
purchase plan 10 - -
----------------------------------------
Balance as at March 31, 2015 354,515 - 3,119
----------------------------------------
----------------------------------------
(Unaudited)
Accumulated
other Total
comprehensive Retained shareholders'
income earnings equity
$ $ $
----------------------------------------
Balance on January 1, 2015 9,967 125,859 478,991
Net income for the period - 13,816 13,816
Realized gain reclassified to
statement of income, net of tax of
$440 (2,844) - (2,844)
Change in fair value of available-
for-sale financial instruments, net
of tax of $332 2,102 - 2,102
Unrealized gain on translating
financial statements of foreign
operations 12,917 - 12,917
----------------------------------------
Comprehensive Income 22,142 139,675 504,982
Share-based compensation expense - - 1,314
Issuance of shares upon financing,
net of costs and deferred tax of
$93 - - 12,510
Exercise of compensation warrants - - 635
Issuance of shares under share
purchase plan - - 10
----------------------------------------
Balance as at March 31, 2015 22,142 139,675 519,451
----------------------------------------
----------------------------------------
Share Contributed
capital Warrants surplus
$ $ $
----------------------------------------
Balance on January 1, 2016 439,148 161 6,772
Net income for the period - - -
Realized gain reclassified to
statement of income, net of tax of
$64 - - -
Change in fair value of available-
for-sale financial instruments, net
of tax of $72 - - -
Change in unrealized loss on
translating financial statements of
foreign operations - - -
----------------------------------------
Comprehensive Income - - -
Share-based compensation expense - - 1,073
Issuance of shares under share
purchase plan 28 - -
----------------------------------------
Balance as at March 31, 2016 439,176 161 7,845
----------------------------------------
----------------------------------------
Accumulated
other Total
comprehensive Retained shareholders'
income earnings equity
$ $ $
----------------------------------------
Balance on January 1, 2016 35,955 160,026 642,062
Net income for the period - 477 477
Realized gain reclassified to
statement of income, net of tax of
$64 (410) - (410)
Change in fair value of available-
for-sale financial instruments, net
of tax of $72 421 - 421
Change in unrealized loss on
translating financial statements of
foreign operations (10,978) - (10,978)
----------------------------------------
Comprehensive Income 24,988 160,503 631,572
Share-based compensation expense - - 1,073
Issuance of shares under share
purchase plan - - 28
----------------------------------------
Balance as at March 31, 2016 24,988 160,503 632,673
----------------------------------------
----------------------------------------
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands of Canadian dollars)
For the period ended March 31
(Unaudited)
2016 2015
$ $
------------------------
OPERATING ACTIVITIES
Net income 477 13,816
Adjustments reconciling net income to operating cash
flows:
Deferred tax 7 201
Share-based compensation 1,073 1,313
Depreciation of property and equipment 8 8
Amortization of intangible assets 41 21
Accretion of interest (1,105) (1,318)
Gain on sale of other financial assets (656) (7,551)
Unrealized (gain) loss on derivatives (1,073) 23
Unrealized foreign exchange gain (loss) 3,760 (4,399)
Purchase gain on business combination - (550)
Share of net income from associate (854) -
Changes in non-cash working capital related to
operations (969) (1,990)
Deferred revenue (142) (463)
------------------------
Cash inflow (outflow) from operating activities 567 (889)
------------------------
INVESTING ACTIVITIES
Purchase of marketable securities (147,399) (273,933)
Purchase of financial assets (3,633) (356)
Purchase of intangible assets, net (2,924) -
Investment in funds (5,833) (312)
Issuance of loans receivable (34,851) (8,525)
Proceeds from repayments of loans receivable 1,018 9,971
Proceeds from disposal of financial assets 3,410 12,227
Proceeds from sale of marketable securities 152,226 267,505
Dividend income from associate 2,423 -
Consideration paid on business combination - (1,750)
------------------------
Cash (outflow) inflow from investing activities (35,563) 4,827
------------------------
FINANCING ACTIVITIES
Cost related to prior period share issuance - (207)
Proceeds from exercise of compensation warrants - 635
Proceeds from exercise of an over-allotment option - 12,424
Share purchase plan 28 10
------------------------
Cash inflow from financing activities 28 12,862
------------------------
Increase (decrease) in cash during the period (34,968) 16,800
Cash, beginning of period 237,481 283,445
Net foreign exchange difference 2,272 1,048
------------------------
Cash, end of period 204,785 301,293
------------------------
------------------------
The following amounts are classified within
operating activities:
Interest received 3,773 2,587
Income taxes paid 2,334 -
Contacts:
Knight Therapeutics Inc.
Jeffrey Kadanoff, P.Eng., MBA
Chief Financial Officer
514-484-GUD1 (4831)
514-481-4116 (FAX) (FAX)
info@gud-knight.com
www.gud-knight.com
