/EINPresswire.com/ -- MONTREAL, QUEBEC--(Marketwired - Mar 16, 2017) - Knight Therapeutics Inc. (TSX:GUD) ("Knight" or the "Company"), a leading Canadian specialty pharmaceutical company, today reported financial results for its fourth quarter and year-ended December 31, 2016. All dollar amounts are in thousands except for per share amounts. All currencies are Canadian unless otherwise specified.

"In 2016, we continued to make substantial progress towards building Canada's leading speciality pharmaceutical company by strengthening our team, our product pipeline and our balance sheet," said Jonathan Ross Goodman, CEO of Knight Therapeutics Inc. "In the year ahead, we look forward to advancing our product pipeline, commercializing Movantik® in Canada and making a difference to the health of patients."

Financial Results

For the quarter ended December 31, 2016, Knight reported revenues of $1,845, an increase of $1,502 over the same period last year, and net income of $7,939, an increase of $2,385 over the same period last year.

For the year ended December 31, 2016, Knight reported revenues of $5,940, an increase of $4,903 over the same period last year, and net income of $18,560, a decrease of $15,607 over the same period last year.

As at December 31, 2016, the Company had $736,050 in cash, cash equivalents and marketable securities and 142,713,489 common shares outstanding.

2016 Highlights

• Signed license agreements for Netildex™ and Probuphine™ for Canada, and Movantik® for Canada and Israel.
  
  
• Terminated the agreement with Paladin Labs Inc. related to the distribution and sale of Impavido® in all countries other than the U.S.
  
  
• Launched Impavido® in U.S. through commercialization partner Profounda, Inc.
  
  
• Issued secured loans of US$23,000 to Medimetriks Pharmaceuticals Inc. and $6,841 to Crescita Therapeutics Inc. as part of secured lending strategy.
  
  
• Appointed Samira Sakhia, former CFO of Paladin Labs Inc., as President of Knight.
  
  
• Completed two bought deals at $8 and $10 per common share for gross proceeds of $230,000 and $100,050, respectively, including over-allotment exercise.
  
  

Key Subsequent Events

• Submitted Iluvien® for regulatory approval by Health Canada.
  
  
• Announced the commercial relaunch of Movantik® in Canada.
  
  
• Received a Notice of Deficiency Withdrawal from Heath Canada with respect to its ATryn® regulatory submission.
  
  

Conference Call Notice

Knight will host a conference call to discuss its fourth quarter and year end 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 Sunday, April 16, 2017 at 11:59 p.m. ET. To access the replay, please call 1-800-585-8367 or 416-621-4642 and use access code 16647769.

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.com or 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, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.

CONSOLIDATED BALANCE SHEETS
[In thousands of Canadian dollars]
As at December 31,	2016	2015
ASSETS
Current
Cash and cash equivalents	514,942	237,481
Marketable securities	221,108	233,726
Trade and other receivables	6,440	2,994
Inventories	790	1,460
Other current financial assets	51,789	23,588
Income taxes receivable	4,683	231
Total current assets	799,752	499,480
Property and equipment	32	18
Intangible assets	14,153	3,320
Other financial assets	90,643	62,616
Investment in associate	80,113	81,027
Deferred income tax assets	6,077	2,527
Total assets	990,770	648,988
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities	3,207	2,416
Income taxes payable	5,659	4,031
Other balances payable	537	-
Deferred other income	355	293
Total current liabilities	9,758	6,740
Deferred other income	417	-
Other balances payable	877	-
Deferred income tax liabilities	-	186
Total liabilities	11,052	6,926
Shareholders' equity
Share capital	760,447	439,148
Warrants	785	161
Contributed surplus	9,469	6,772
Accumulated other comprehensive income	30,431	35,955
Retained earnings	178,586	160,026
Total shareholders' equity	979,718	642,062
Total liabilities and shareholders' equity	990,770	648,988

CONSOLIDATED STATEMENTS OF INCOME
[In thousands of Canadian dollars, except for share and per share amounts]
	2016		2015
Revenues	5,940		1,037
Cost of goods sold	1,550		428
Gross margin	4,390		609
Expenses
Selling and marketing	532		-
General and administrative	9,302		9,086
Research and development	1,955		2,707
	(7,399	)	(11,184	)
Depreciation of property and equipment	18		30
Amortization of intangible assets	419		94
Interest income	(24,414	)	(18,632	)
Other income	(3,894	)	(2,860	)
Net gain on financial assets	(1,659	)	(17,347	)
Purchase gain on business combination	-		(515	)
Net loss on settlement of loans receivable	-		650
Share of net income of associate	(2,793	)	(1,041	)
Foreign exchange loss (gain)	1,451		(8,579	)
Income before income taxes	23,473		37,016
Income tax expense	4,190		1,939
Deferred income tax expense	723		910
Net income for the year	18,560		34,167
Basic earnings per share	0.15		0.36
Diluted earnings per share	0.15		0.35
Basic	120,723,270		96,191,285
Diluted	121,263,522		96,532,104

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
[In thousands of Canadian dollars]
	2016		2015
Net income for the year	18,560		34,167
Realized gain on available for sale financial instruments reclassified to statement of income net of tax of $247 (2015: $1,345)	(1,592	)	(8,654	)
Other comprehensive (loss) income to be reclassified to statement of income in subsequent periods:
Unrealized gain on available for sale financial instruments net of tax of $245 (2015: $528)	1,146		7,083
Unrealized (loss) gain on translation of foreign operations	(5,078	)	27,559
Other comprehensive (loss) income for the year	(5,524	)	25,988
Total comprehensive income for the year	13,036		60,155

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
[In thousands of Canadian dollars]
	Share capital		Warrants	Contributed surplus		Accumulated other comprehensive income		Retained earnings	Total shareholders' equity
Balance as at January 1, 2015	341,065		-	2,100		9,967		125,859	478,991
Net income for the year	-		-	-		-		34,167	34,167
Realized gain reclassified to statement of income, net of tax of $1,345	-		-	-		(8,654	)	-	(8,654	)
Unrealized gain on available for sale financial instruments, net of tax of $528	-		-	-		7,083		-	7,083
Unrealized gain on translation of foreign operations	-		-	-		27,559		-	27,559
Comprehensive income	-		-	-		25,988		34,167	60,155
Share-based compensation expense	-		-	4,421		-		-	4,421
Issuance of shares upon financing, net of costs and deferred tax of $2,155	14,573		-	-		-		-	14,573
Issuance upon investment in associate	80,684		-	1,100		-		-	81,784
Issuance due to share-based payments	332		-	-		-		-	332
Exercise of stock options	1,487		-	(554	)	-		-	933
Issuance of warrants	-		161	-		-		-	161
Exercise of compensation warrants	930		-	(295	)	-		-	635
Issuance under share purchase plan	77		-	-		-		-	77
Balance as at December 31, 2015	439,148		161	6,772		35,955		160,026	642,062
Balance as at January 1, 2016	439,148		161	6,772		35,955		160,026	642,062
Net income for the year	-		-	-		-		18,560	18,560
Realized gain reclassified to statement of income, net of tax of $247	-		-	-		(1,592	)	-	(1,592	)
Unrealized gain on available for sale financial instruments, net of tax of $245	-		-	-		1,146		-	1,146
Unrealized loss on translation of foreign operations	-		-	-		(5,078	)	-	(5,078	)
Comprehensive (loss) income	-		-	-		(5,524	)	18,560	13,036
Share-based compensation expense	-		-	3,640		-		-	3,640
Issuance upon bought deals, net of costs and includes deferred tax of $4,465	317,616		-	-		-		-	317,616
Issuance of shares to associate	2,073		-	(943	)	-		-	1,130
Issuance upon investment	1,846		624						2,470
Share purchase loans	(350	)	-	-		-		-	(350	)
Issuance under share purchase plan	114		-	-		-			114
Balance as at December 31, 2016	760,447		785	9,469		30,431		178,586	979,718

CONSOLIDATED STATEMENT OF CASH FLOWS
[In thousands of Canadian dollars]
		2016		2015
OPERATING ACTIVITIES
Net income for the year		18,560		34,167
Adjustments reconciling net income to operating cash flows:
	Deferred tax	723		910
	Share-based compensation expense	3,640		4,421
	Depreciation and amortization	437		124
	Accretion of interest	(6,201	)	(6,985	)
	Other income	(1,274	)	-
	Realized gain on financial assets	(2,569	)	(15,381	)
	Unrealized loss (gain) on financial assets	910		(1,966	)
	Net loss on settlement of loans receivable	-		535
	Foreign exchange loss (gain)	1,451		(2,068	)
	Purchase gain on business combination	-		(515	)
	Share of net income from associate	(2,793	)	(1,041	)
	Deferred other income	479		(747	)
		13,363		11,454
Changes in non-cash working capital related to operations		(3,462	)	(3,818	)
Dividends from associate		4,837		2,015
Cash inflowfrom operating activities		14,738		9,651
INVESTING ACTIVITIES
Purchase of marketable securities		(535,685	)	(583,225	)
Purchase of equities		(16,371	)	(11,360	)
Purchase of property and equipment		(7	)	-
Purchase of intangibles		(9,853	)	(1,750	)
Investment in funds		(16,503	)	(15,694	)
Issuance of loans receivable		(43,274	)	(40,280	)
Investment in associate		-		(217	)
Proceeds from repayments of loans receivable		11,324		40,420
Proceeds from sale of marketable securities		544,812		503,935
Proceeds from distribution of funds		4,610		19,314
Proceeds from disposal of equities		9,572		19,758
Proceeds from disposal of derivatives		2,157		-
Cash outflow from investing activities		(49,218	)	(69,099	)
FINANCING ACTIVITIES
Proceeds from share issuance		313,574		12,424
Proceeds from exercise of compensation warrants		-		635
Share option plan		-		933
Share purchase plan		105		77
Share purchase loans		(350	)	-
Cost related to prior period share issuance		-		(207	)
Cash inflow from financing activities		313,329		13,862
Increase (decrease) in cash during the year		278,849		(45,586	)
Cash and cash equivalents, beginning of the year		237,481		283,445
Net foreign exchange difference		(1,388	)	(378	)
Cash and cash equivalents, end of the year		514,942		237,481
Supplemental cash flow information:
Interest received		15,665		10,107
Income taxes paid		7,010		1,980