Knight Therapeutics (GUD) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $95.6M, up 6% year-over-year, and record six-month revenues of CAD 180 million, driven by growth in promoted products and new launches.

• Adjusted EBITDA rose 10% to $15.7M, with over CAD 29 million for the first half of 2024.

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

• Expanded pipeline with in-licensing of JORNAY PM and other neurology assets; FDA approval of IPX203 expected to support regulatory submissions in new markets.

• Completed NCIB in July 2023, repurchasing nearly 6M shares; new NCIB launched for up to 5.3M shares.

Financial highlights

• Q2 2024 revenues reached $95.6M (reported) and $94.1M (excluding IAS 29), up 4–6% year-over-year; oncology/hematology portfolio grew 28% to $36M.

• Specialty portfolio revenues increased 22% to $20.6M, while infectious disease revenues declined 17% to $37.8M due to timing of AMBISOME orders.

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

• Cash outflows from operations in Q2 were $1.1M, mainly due to working capital increases from inventory payments.

• Cash, cash equivalents, and marketable securities totaled $152.7M at quarter-end.

Outlook and guidance

• 2024 revenue guidance raised to $355M–$365M (from $335M–$350M), with adjusted EBITDA expected at approximately 16% of revenues.

• Guidance reflects improved LATAM currency forecasts and accelerated pipeline investments.

• Pipeline of 18 products could generate over CAD 150 million in peak sales if successful.

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