Overview

* Knight fiscal Q2 revenue rises 12% yr/yr, beating analyst expectations

* Company reports net loss of C$12.6 mln, impacted by hyperinflation accounting

* Knight completed Paladin acquisition, secured $50 mln credit facility with NBC

Outlook

* Knight raises 2025 revenue guidance to C$410 mln-C$420 mln

* Adjusted EBITDA expected to be 13% of 2025 revenues

* Guidance increase due to strong H1 performance and Sumitomo transaction

* Assumptions include no major supply disruptions or new generic competition

Result Drivers

* REVENUE GROWTH - Driven by key promoted products and transactions with Paladin and Sumitomo

* GROSS MARGIN DECLINE - Impacted by hyperinflation accounting in Argentina and product mix changes

* NET LOSS INCREASE - Influenced by hyperinflation, increased operating expenses, and financial asset revaluation losses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$107.36 C$95.70

Revenue mln mln (6

Analysts

)

Q2 Net -C$12.62

Income mln

Q2 C$48.50

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy"

* Wall Street's median 12-month price target for Knight Therapeutics Inc ( KHTRF ) is C$7.50, about 16.1% above its August 6 closing price of C$6.29

* The stock recently traded at 73 times the next 12-month earnings vs. a P/E of 93 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)