01:50 PM EDT, 06/06/2025 (MT Newswires) -- Stifel Canada has reiterated its Buy rating and $7.45 target on Knight Therapeutics ( KHTRF ) after the company said it had expanded its Canadian portfolio with $41 million transaction from Sumitomo Pharma of Japan.

Analyst Justin Keywood notes that the deal comprises $25.4 million in cash up front and $15.8 million in future contingent payments for mature products, will generate $11.4 million in sales and six new launch assets. The assets span women's health, urology and prostate cancer.

Knight is to finance the transaction with cash on hand and potentially new debt. Knight last reported $141.5 million in cash but is also in the process of closing the $120 million Paladin transaction.

"We see the transaction and renewed M&A focus as positive for the stock, given limited investor interest for the LATAM exposure. Growth quarters ahead and potentially additional M&A could continue to re-rate shares higher."

Price: 6.01, Change: -0.01, Percent Change: -0.17