Knight Therapeutics (GUD) Q2 2024 earnings summary

Executive summary

• Achieved record revenues of CAD 180 million for H1 2024 and Q2 2024 revenues of $95.6M, driven by growth in key promoted products, especially oncology and specialty, partially offset by declines in mature products.

• Gross margin improved to 50% (IFRS) and 48% (excluding IAS 29), reflecting favorable product mix.

• Adjusted EBITDA rose 10% to CAD 15.7 million in Q2, with per share up 23%; net loss was $1.9M compared to net income of $1.8M in Q2 2023.

• Completed NCIB repurchasing nearly 6M shares and launched a new NCIB for up to 5.3M shares.

• Entered exclusive supply and distribution agreement for Jornay PM in Canada and Latin America, expanding the neurology portfolio.

Financial highlights

• Q2 2024 revenues reached over CAD 94 million ($94.1M excluding IAS 29), up 4% year-over-year.

• Oncology/hematology revenues grew 28% to CAD 36 million; specialty portfolio up 22% to CAD 20.6 million; infectious disease revenues declined 17% to CAD 37.8 million due to lower AMBISOME orders.

• Gross margin improved to 48% (CAD 45.3 million) from 45% (CAD 40.2 million) year-over-year.

• Adjusted EBITDA for Q2 was CAD 15.7 million, up 10% year-over-year; Adjusted EBITDA per share rose 23% to $0.16.

• Cash, cash equivalents, and marketable securities totaled over CAD 150 million ($152.7M) at quarter-end.

Outlook and guidance

• 2024 revenue guidance raised to CAD 355–365 million ($355M–$365M), excluding hyperinflation.

• Adjusted EBITDA expected at approximately 16% of revenues, with dollar value within previous range.

• Guidance increase driven by improved LATAM currency forecasts and accelerated pipeline investments.

• Assumes no major business disruptions, supply interruptions, or new generic entrants on key brands.

• Pipeline of 18 products expected to generate over CAD 150 million in peak sales.