Knight Therapeutics Reports Second Quarter 2025 Results

Achieved record-high quarterly revenues since inception

Increased 2025 financial guidance

MONTREAL, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its second quarter ended June 30, 2025. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q2-25 Highlights

Financial results

• Revenues were $107,358, an increase of $11,785 or 12% over the same period in prior year.
• Gross margin was $44,831 or 42% of revenues compared to $47,337 or 50% of revenues in the same period in prior year. The decrease was mainly driven by the impact of the hyperinflation accounting in Argentina.
• Operating loss was $3,669 compared to an operating income of $4,494 in the same period in prior year.
• Net loss was $12,622, compared to a net loss of $1,942 in the same period in prior year.
• Loss per share was $0.13, compared to a loss per share of $0.02 in the same period in prior year.
• Cash inflow from operations was $20,252, compared to cash outflows from operations of $1,086 in the same period in prior year.

Non-GAAP measures

• Adjusted Revenues¹ were $108,541, an increase of $14,420 or 15% or $18,867 or 21% on a constant currency¹ basis.
• Innovative promoted product portfolio delivered an organic growth of 15% on a constant currency¹ basis during the six-month period ending June 30, 2025.
• Adjusted Gross margin¹ was $49,431 or 46% of Adjusted Revenues¹ compared to $45,281 or 48% of Adjusted Revenues¹ in the same period in prior year. The decrease in the Adjusted Gross margin¹, as a percentage of Adjusted Revenues¹, was mainly due to product mix.
• Adjusted EBITDA¹ was $15,507, a decrease of $237 or 2% over the same period in prior year.
• Adjusted EBITDA per share¹ was $0.16 and remained flat over the same period in prior year.

Corporate developments

• Entered into a revolving credit facility of US$50,000 with National Bank of Canada ("NBC"), of which $60,000 was withdrawn to fund a portion of the Paladin acquisition.
• Settled the Synergy loan agreement and collected $13,758 [US$10,000] in cash and received warrants with a fair value of $1,116 [US$811].
• Shareholders re-elected Jonathan Ross Goodman, Samira Sakhia, James C. Gale, Robert N. Lande, Michael J. Tremblay, Nicolás Sujoy, and Janice Murray on the Board of Directors.

Products

• Added profitable and growth assets and expanded our portfolio by over fifty products including five pipeline and early launch stage assets over the past six months.
  • Executed an asset purchase agreement with Paladin Pharma Inc., to acquire the Paladin business. At closing, Knight paid $84,544 and an additional $22,341 for inventory. The payment at closing was reduced by a holdback of $15,458 that may be released upon certain conditions. Furthermore, Knight may pay up to an additional US$15,000 upon achieving certain sales milestones.
  • Entered into exclusive license and supply agreements with Sumitomo to commercialize Myfembree^® (relugolix/estradiol/norethindrone acetate), Orgovyx^® (relugolix), vibegron, and an asset purchase agreement to acquire certain mature products in Canada for an upfront of $25,400. Knight may pay up to an additional $15,750 if certain sales milestones are met.
• Submitted Crexont^® (carbidopa and levodopa) for regulatory approval in Canada and Mexico.
• Submitted Minjuvi^® (tafasitamab) for follicular lymphoma for ANVISA approval in Brazil.
• Obtained regulatory approval for Pemazyre^® (pemigatinib) in Argentina.
• Obtained regulatory approval for Rembre^® (dasatinib) in Chile.
• Re-launched Onicit^® IV (palonosetron) in Mexico and Brazil.

Subsequent to quarter-end

• Completed the NCIB launched in July 2024 with a total purchase of 2,019,906 common shares at an average price of $5.48 for aggregate cash consideration of $11,065.
• Amended the Supply and Distribution Agreement with Incyte to add the exclusive rights to distribute ZYNYZ^® (retifanlimab) and NIKTIMVO™ (axatilimab) in Latin America.
• Collected strategic loan receivable with a life sciences company for $3,784 (US$2,771).
• Released $3,913 of the holdback amount payable under the Asset Purchase Agreement with Paladin to settle certain liabilities.

“I am excited to announce that for the first half of 2025, we achieved a record-high adjusted revenues¹ of $197 million, a growth of 9% and an adjusted EBITDA¹ of approximately $28 million. Our innovative promoted product portfolio delivered an organic growth of 15% on a constant currency¹ basis during the same period. In addition, we have added over fifty products with the Paladin and Sumitomo transactions. These profitable portfolios included seven pipeline and early launch assets that will further accelerate the growth trajectory of our Canadian business. In addition, we secured a revolving credit facility with NBC ensuring we remain well positioned to continue to transact and execute on our mission to acquire, in-license, develop, and commercialize pharmaceutical products in Latin America and Canada,” said Samira Sakhia, President and CEO of Knight Therapeutics Inc.

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¹ Adjusted Revenues, revenues at constant currency, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details.

¹ A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss).

² Percentage change is presented in absolute values.

Revenues: For the quarter ended June 30, 2025, revenues increased by $11,785 or 12% compared to the same period in prior year, which included an offset of $2,635 due the Hyperinflation Impact¹. Excluding IAS 29, the increase was $14,420 or 15% and $18,867 or 21% on a constant currency² basis. The increase in revenues was driven by our key promoted products which grew by $13,506 or 20% on a constant currency² basis, purchasing patterns of certain products as well incremental revenues of $2,437 from Paladin and Sumitomo Transactions, partly offset by declines in our mature products and the depreciation of select LATAM currencies.

Our revenues by therapeutic area is as follows:

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¹ The Hyperinflation Impact is due to the application of IAS 29 in Argentina. Refer to section - Hyperinflation for additional details.

² Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details.

The increase in revenues is explained by the following:

• Oncology/Hematology: Excluding the termination of a non-strategic distribution agreement in Colombia in December 2024, for the quarter ended June 30, 2025, the oncology/hematology portfolio decreased by $537 or 2%, which included an offset of $1,340 due to the Hyperinflation Impact¹. Excluding IAS 29, the oncology/hematology portfolio increased by $803 or 2%. The revenues from our key promoted products increased by $2,916 or 16% on a constant currency² basis driven by the growth of Akynzeo^®, the launch of Minjuvi^® and the addition of Orgovyx^® and Onicit^®. This growth was offset by a decline in our mature and branded generics products due to their lifecycle and the depreciation of select LATAM currencies.

• Infectious Diseases: For the quarter ended June 30, 2025, the infectious diseases portfolio increased by $6,565 or 17%, which included an offset of $909 due to the Hyperinflation Impact¹. Excluding IAS 29, the infectious diseases portfolio increased by $7,474 or 20% and $9,480 or 26% on constant currency² basis. The increase was due to the growth of Cresemba^®, additional Ambisome^® deliveries to the Ministry of Health in Brazil ("MOH"), offset by purchasing patterns of certain products.

The Company signed the following contracts with the MOH for Ambisome^®, with the following deliveries:

• Other Specialty: For the quarter ended June 30, 2025, the other specialty portfolio increased by $6,736 or 32%, which included an offset of $386 due to the Hyperinflation Impact¹. Excluding IAS 29, the other specialty portfolio increased by $7,122 or 34% and $8,166 or 42% on constant currency² basis driven by the launch of Imvexxy^® and Bijuva^®, incremental revenues from the Paladin and Sumitomo Transactions and purchasing patterns of certain customers.

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1</sup> The Hyperinflation Impact is due to the application of IAS 29 in Argentina. Refer to section - Hyperinflation for additional details.

² Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details.

Gross margin: For the quarter ended June 30, 2025, gross margin, as a percentage of revenues, was 42% compared to 50% in Q2-24. Excluding IAS 29, gross margin, as a percentage of Adjusted Revenues¹ was 46% compared to 48% in Q2-24. The decrease in the gross margin % is mainly explained by the product mix as well as severance costs of $626 related to the closure of Knight´s HIV and respiratory manufacturing facility in Argentina. All the key products produced in that facility were transferred to certain contract manufacturers.

Selling and marketing (“S&M”) expenses: For the quarter ended June 30, 2025, S&M expenses increased by $2,410 or 18%, which included an offset of $627 due to the Hyperinflation Impact². Excluding IAS 29, S&M expenses increased by $3,037 or 23%. The increase was mainly driven by an expansion in our sales and commercial structure behind the launches of Minjuvi^® in Mexico and Jornay PM^® in Canada as well as an increase in marketing activities behind our key promoted products. In addition, the S&M expenses included incremental costs related to the Paladin Transaction executed in June 2025.

General and administrative (“G&A”) expenses: For the quarter ended June 30, 2025, G&A expenses increased by $3,715 or 31%, which included an offset of $611 due to the Hyperinflation Impact². Excluding IAS 29, G&A increased by $4,326 or 37%. The increase is mainly driven by acquisition and transaction costs of $3,430 related to Paladin Transaction as well as an increase in share-based compensation as a result of the assessment of their vesting expectations.

Research and development (“R&D”) expenses: For the quarter ended June 30, 2025, R&D expenses increased by $475 or 8%, which included an offset of $427 due to the Hyperinflation Impact². Excluding IAS 29, R&D expenses increased by $902 or 16%. The increase is due to incremental expenses related to the portfolio of products added from the Paladin Transaction.

Net loss

For the quarter ended June 30, 2025, the net loss was $12,622 compared to net loss of $1,942 for the same period in prior year. The variance mainly resulted from the above-mentioned items and (1) a net loss of $5,737 on the revaluation of financial assets measured at fair value through profit or loss in Q2-25 versus a net loss of $665 in the same period in prior year, (2) Other expense of $2,190 in Q2-25 driven by the repayment of the Synergy loan compared to a gain of $42 in Q2-24, (3) gain on hyperinflation of $893 in Q2-25 compared to a gain on hyperinflation of $2,084 in Q2-24, (4) a foreign exchange loss of $4,559 in Q2-25 mainly driven by the appreciation of CAD vs USD, compared to a foreign exchange loss of $5,542 in Q2-24 mainly driven by unrealized losses on intercompany balances due to the depreciation of the BRL and COP vs USD, and (5) an income tax recovery of $2,988 in Q2-25 compared to an income tax expense of $2,655 in Q2-24.

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1</sup> Adjusted revenue is a non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details.

² The Hyperinflation Impact is due to the application of IAS 29 in Argentina. Refer to section - Hyperinflation for additional details.

Cash, cash equivalents and marketable securities: As at June 30, 2025, Knight had $91,191 in cash, cash equivalents and marketable securities, a decrease of $51,140 or 36% as compared to December 31, 2024. The decrease is mainly driven by payment of $130,985 for the Paladin and Sumitomo Transactions, repayment of principal and interest on bank loans by $8,829, partially offset by $60,000 withdrawn from the credit facility with NBC, cash inflows from operations of $23,922 and the collection of the Synergy loan of $13,758.

Trade and other receivables: As at June 30, 2025, Trade and other receivables were $149,049, a decrease of $5,469 or 4%, as compared to December 31, 2024, mainly due to the timing of collections from certain customers.

Inventories: As at June 30, 2025, Inventory were $148,652, an increase of $45,954 or 45%, as compared to December 31, 2024, mainly due to timing of purchases as well as investments on our new product launches and the inventory acquired as part of Paladin Transaction.

Financial assets: As at June 30, 2025, financial assets were $103,186, a decrease of $30,746 or 23%, as compared to December 31, 2024, mainly driven by the settlement of the loan agreement with Synergy and net decrease in the value of our investments in funds.

Intangible assets: As at June 30, 2025, intangible assets were $384,070, an increase of $100,458 or 35%, as compared to December 31, 2024, mainly due to the recognition of the fair value of intangible assets acquired in the Paladin Transaction for $93,088 and the Sumitomo Transaction for $29,708, offset by amortization, foreign exchange revaluation and the de-recognition of certain milestones not expected to be met.

Accounts payable and accrued liabilities: As at June 30, 2025, accounts payable and accrued liabilities were $109,972, an increase of $26,799 or 32%, as compared to December 31, 2024, mainly driven by the purchase of inventory for our key promoted products.

Bank Loans: As at June 30, 2025, bank loans were $97,665, an increase of $54,280 or 125%, as compared December 31, 2024, mainly due to the new credit facility with NBC with $60,000 withdrawn as at June 30, 2025, partly offset by net repayments of $4,954 and foreign exchange revaluation of $765.

Product Updates

Pemazyre^® (pemigatinib)

In Q2-25, Knight obtained the regulatory approval in Argentina for Pemazyre^® for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that have progressed after at least one prior line of systemic therapy.

Crexont^® (carbidopa and levodopa)

In Q2-25, Knight submitted Crexont^® for approval in Canada and Mexico. Crexont^® is a novel, oral formulation of carbidopa ("CD")/levodopa ("LD") extended-release capsules designed for the treatment of Parkinson’s disease.

Minjuvi^® (tafasitamab)

In Q2-25, Knight submitted Minjuvi^® for ANVISA approval in Brazil for an additional indication in combination with rituximab and lenalidomide for the treatment of adult patients with previously treated follicular lymphoma (FL).

Retifanlimab and axatilimab

In July 2025, Knight expanded its relationship with Incyte Biosciences International Sàrl, the Swiss-based affiliate of Incyte, for the exclusive rights to distribute retifanlimab (sold as ZYNYZ^® in the United States and Europe) and axatilimab (sold as NIKTIMVO™ in the United States) for Latin America.

Retifanlimab is approved in the United States and Europe for the treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC), a rare and aggressive type of skin cancer¹. Retifanlimab is also approved by the U.S. Food and Drug Administration (FDA) in combination with carboplatin and paclitaxel for the first-line treatment of adult patients with inoperable locally recurrent or metastatic squamous cell carcinoma of the anal canal (SCAC).¹ In addition, the FDA approved retifanlimab as a single agent for the treatment of adult patients with locally recurrent or metastatic SCAC with disease progression on or intolerance to platinum-based chemotherapy.¹

Axatilimab received FDA approval in August 2024 for the treatment of chronic graft-versus-host disease (cGVHD) after failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg.² Chronic GVHD is a serious complication of allogeneic stem cell transplantation in which the donor's immune cells attack the recipient’s tissues, potentially affecting multiple organs such as the skin, liver, lungs, and gastrointestinal tract.

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¹ Incyte Corporation. ZYNYZ (retifanlimab-dlwr) injection, for intravenous use: Full prescribing information. Retrieved July 24, 2025, from .

² Incyte Corporation. NIKTIMVO (axatilimab-csfr) injection, for intravenous use: Full prescribing information. Retrieved July 24, 2025, from .

Paladin Transaction

On March 10, 2025, Knight entered into a definitive Asset Purchase Agreement to acquire the international business of Endo Operations Limited which was mainly its Canadian business operating as Paladin Pharma Inc. ("Paladin Transaction"). On June 17, 2025, Knight closed the Paladin Transaction upon receipt of customary regulatory approvals including anti-trust clearance in Canada. Knight paid $106,885 in cash including $22,341 for inventory. Knight held back $15,458 of which $10,000 may be released under specific conditions and the remaining $5,458 is expected to be used to settle certain liabilities. Furthermore, Knight may pay future contingent payments of up to US$15,000 upon achieving certain sales milestones. As at August 6, 2025, as part of Knight's integrations activities, Paladin's headcount has been reduced by approximately 25%.

Sumitomo Transaction

On June 5, 2025, Knight entered into exclusive license and supply agreements with Sumitomo Pharma America Inc. and its affiliates to commercialize Myfembree^® (relugolix/estradiol/norethindrone acetate), Orgovyx^® (relugolix) and vibegron in Canada, as well as an asset purchase agreement under which Knight acquired certain mature products (“Sumitomo Transaction”). Under the terms of the agreements, Knight acquired the exclusive rights to distribute, promote, market and sell the in-licensed and acquired products in Canada. The consideration for the Sumitomo Transaction included an upfront of $25,400 as well as certain future contingent sales milestones of up to $15,750. At closing, Knight held back $1,300 that may be released if certain conditions are met.

Working capital line of credit with Citibank, N.A.

In Q1-25, Knight closed an uncommitted working capital line of credit with Citibank, N.A. for a total amount of US$40,000 [$57,504]. On April 7, 2025, US$35,000 [$50,316] was withdrawn under this facility, at an interest rate of SOFR+2.30%. The line of credit was fully repaid in June 2025.

Credit Facility with National Bank of Canada ("NBC")

On June 17, 2025, Knight entered into a revolving credit facility with NBC for a total amount of US$50,000 [$68,215] (“Credit Facility”), of which $60,000 was withdrawn at closing to fund a portion of the Paladin Transaction. The Credit Facility is secured by Knight’s assets held in Canada and has an initial term of 3 years, with the option to extend annually for additional one-year term. The Credit Facility is subject to customary covenants and stand-by fees for the undisbursed portion and can be drawn in USD or CAD at the SOFR or CORRA rate plus an applicable margin between 1.25% to 2.75% depending on Knight’s debt leverage. In addition, NBC has launched a syndication process, and it is expected that the size of the credit facility will be increased to US$100 million plus an accordion of US$50M by the end of 2025.

Financial Outlook¹

For fiscal 2025, Knight has increased its financial guidance on revenues and now expects to generate between $410 million to $420 million in revenues up from $390 to $405 million. The adjusted EBITDA² is expected to be approximately 13% of revenues. The increase in our revenues outlook is driven by the better performance in the first half of the year and the incremental revenues from the Sumitomo Transaction. The guidance is based on a number of assumptions, including but not limited to the following:

• no material impact on revenues due to the application of hyperinflation accounting for Argentina
• no revenues for business development transactions not completed as at August 6, 2025
• no unforeseen termination to our license, distribution & supply agreements
• no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues
• no new generic entrants on our key pharmaceutical brands
• no unforeseen changes to government mandated pricing regulations
• successful commercial execution on product listing arrangements with HMOs, insurers, key accounts, and public payers
• successful execution and uptake of newly launched products
• no material increase in provisions for inventory or trade receivables
• no significant variations of forecasted foreign currency exchange rates
• inflation remaining within forecasted ranges

Should any of the assumptions differ, the financial outlook and the actual results may vary materially. Refer to the risks and assumptions referred to in the Forward-Looking Statements section of this news release for further details.

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¹ This forward looking information is based on assumptions specific to the nature of the Company’s activities with regard to annual revenue growth considering industry information, expected market share, pricing assumptions, actions of competitors, sales erosion rates after the end of patent or other intellectual property rights protection, the timing of the entry of generic competition, the expected results of tenders, among other variables.

² Adjusted EBITDA is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section Financial Results under Non-GAAP measures for additional details.

Conference Call Notice 

Knight will host a conference call and audio webcast to discuss its second quarter ended June 30, 2025, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, August 7, 2025

Time: 8:30 a.m. ET

Telephone: Toll Free: 1-888-699-1199 or International 1-416-945-7677

Webcast: or

This is a listen-only audio webcast. Media Player is required to listen to the broadcast.

Replay: An archived replay will be available for 30 days at 

About Knight Therapeutics Inc. 

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing and commercializing pharmaceutical products for Canada and Latin America. Knight's Latin American subsidiaries operate under United Medical, Biotoscana Farma and Laboratorio LKM. 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 or .

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, 2024 as filed on a. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information or future events, except as required by law.

CONTACT INFORMATION:

HYPERINFLATION

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company’s Argentine subsidiary uses the Argentine Peso as its functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation. After applying for the effects of hyperinflation, the statement of income (loss) is converted using the closing foreign exchange rate of the month.

Revenues and operating expenses in the local currency, i.e. ARS, are restated from the month of the sales or the month in which the expense was incurred to the end of the reporting period using the inflation index during that period. The restatement calculation is performed on a year to date basis based on IAS29 ("Inflation Adjusted Figures"). For the six-month period ended June 30, 2025 and 2024, the Company applied the following inflation index for the restatement of each respective month.

Under IAS 29, the translation from the local currency, to the reporting currency is performed on the Inflation Adjusted Figures using the end of period rate at the reporting date. The Inflation Adjusted Figures were converted to CAD using the following quarter-end closing rates for each of the respective periods.

¹ Depreciation of ARS vs CAD during each period, calculated as follows: (End of period rate - Beginning of period rate) / Beginning of period rate.

In Q2-25 and YTD-25 the inflation rate used for the hyperinflation adjustment on revenues and operating expenses of the Company's subsidiary in Argentina was lower than the ARS depreciation in the same period. For example, the revenues generated and operating expenses incurred in January 2025 were restated by applying an inflation index of 13% while the ARS to CAD depreciated by 22% in YTD-25. Consequently, this resulted in lower revenues and operating expenses reported under IAS 29 in CAD. Conversely, in Q2-24 and YTD-24 the inflation index was higher than the ARS depreciation which resulted in higher revenues and operating expenses reported under IAS 29 in CAD. Therefore, the hyperinflation accounting under IAS 29 resulted in a decrease in the reported revenues and operating expenses of the Company's subsidiary in Argentina in CAD in both Q2-25 and YTD-25 when compared to the same periods in prior year ("Hyperinflation Impact").

Under hyperinflation accounting, the cost of goods sold in the local currency, i.e. ARS, is restated using the inflation index from the purchase or manufacturing date to the end of the reporting period, and are converted to CAD using the respective quarter-end closing rates. In Q2-25 and YTD-25, the cumulative inflation index applied on the inventory sold was higher than the prior year periods, leading to higher cost of goods sold reported under IAS 29 in CAD and consequently a lower gross margin both in Q2-25 and YTD-25 compared to the same periods in prior year ("Gross Margin Hyperinflation Impact").

FINANCIAL RESULTS UNDER NON-GAAP MEASURES

[In thousands of Canadian dollars]

The Company discloses non-GAAP measures and ratios that do not have standardized meanings prescribed by IFRS. The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company’s financial performance. Non-GAAP financial measures and adjusted EBITDA per share ratio do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies. The Company uses the following non-GAAP measures.

[i] Financial results excluding the impacts of hyperinflation under IAS 29

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiary used the Argentine Peso as their functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation.

Financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The impact of hyperinflation under IAS 29 is calculated by applying an appropriate general price index to express the effects of inflation. After applying the effects of translation, the statement of income is converted using the closing foreign exchange rate of the month.

The Company believes that financial results excluding the impact of hyperinflation under IAS 29 represents a useful measure to investors as they allow results to be viewed without those impacts, thereby facilitating the comparison of results period over period. The presentation of financial results excluding the impact of hyperinflation under IAS 29 is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following tables reconcile the financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.

Select financial results excluding the impact of hyperinflation under IAS 29¹

¹ Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

Adjusted Revenues¹ by Therapeutic Area

[ii] Financial results at constant currency

Financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods.

The Company believes that financial results at constant currency represents a useful measure to investors because it eliminates the effect that foreign currency exchange rate fluctuations may have on period-to-period comparability given the volatility in foreign currency exchange markets and therefore, provides greater transparency to the underlying performance of our consolidated financial results. The presentation of revenues and financial results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.

Select financial results at Constant Currency¹

¹ EBITDA, Adjusted EBITDA, Adjusted EBITDA per share and financial results at constant currency are a non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

Adjusted Revenues at Constant Currency¹ by Therapeutic Area

[iii] Adjusted Gross Margin

Adjusted Gross Margin is defined as revenues less cost of goods sold, excluding the impact of hyperinflation under IAS 29.

The Company believes that Adjusted Gross Margin represents a useful measure to investors as allow Gross Margin to be viewed without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of Adjusted Gross Margin is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

[iv] EBITDA

EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of non-current assets, depreciation, but to include costs related to leases.

The Company believes that EBITDA represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

[v] Adjusted EBITDA

Adjusted EBITDA is defined as EBITDA adjusted for the impact of IAS 29 (accounting under hyperinflation), acquisition and transaction costs, the impact in cost of goods sold of the difference between the fair value of inventory acquired and the cost paid in a transaction accounted under IFRS 3 (business combination) ("Step-Up Expense") and non-recurring expenses. The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities.

The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities, without the impact of hyperinflation under IAS 29, acquisition and transaction costs, Step-Up Expense and non-recurring expenses, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:

Explanation of adjustments from EBITDA to Adjusted EBITDA

[vi] Adjusted EBITDA per share

Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period.

The Company believes that Adjusted EBITDA per share represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities on a per common share basis, without the impact of hyperinflation under IAS 29, acquisition and transaction costs, Step-Up Expense and non-recurring expenses, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

The Company calculated adjusted EBITDA per share as follows: