Knight Therapeutics (TSE:GUD) reported record results for the first six months of 2026 and raised its full-year outlook, citing growth in its promoted products, contributions from recent launches and favorable foreign-exchange effects.
For the first half of 2026, the company reported revenue of CAD 293 million, adjusted EBITDA of CAD 52 million and cash flow from operations of CAD 70 million, President and CEO Samira Sakhia said during the company’s second-quarter conference call. Its promoted portfolio generated nearly CAD 200 million in revenue during the period, increasing by more than CAD 50 million, or 36% on a constant-currency basis.
Second-Quarter Revenue and EBITDA Growth
The company’s launch-pipeline portfolio generated CAD 18 million in quarterly revenue, an increase of CAD 14 million, or 297%, on a constant-currency basis. Utchanah said the growth reflected the company’s 17 product launches over the past two and a half years. According to IQVIA data cited by Knight, sales of the Canadian launch-pipeline products rose 189% in the second quarter from the prior-year period.
Knight’s promoted strategic products generated CAD 76 million in second-quarter revenue. Excluding sales of AmBisome to Brazil’s Ministry of Health, the portfolio grew CAD 9 million, or 16%, on a constant-currency basis. Management cited growth from CRYSVITA, Lenvima, AKYNZEO and INVOKANA.
The mature portfolio delivered CAD 48 million in quarterly revenue, up CAD 12 million, or 32%, on a constant-currency basis, largely due to the Paladin and Sumitomo portfolio additions.
Adjusted gross margin was 49% of revenue, compared with 46% a year earlier, as the Canadian business accounted for a greater portion of sales. Operating expenses excluding amortization rose 25% to CAD 47 million as the company expanded its structure and spending to support launches and its larger mature portfolio.
Adjusted EBITDA exceeded CAD 24 million, up 58% from a year ago, while adjusted EBITDA per share rose 61% to CAD 0.25. Knight recorded a CAD 12 million net loss on its financial assets during the quarter, which Utchanah attributed to mark-to-market revaluations of strategic fund and equity investments.
Launches and Regulatory Updates
Knight has completed six launches in Canada and 11 in Latin America over the last two and a half years. Canadian launches included IMVEXXY, BIJUVA, Jornay PM, Xcopri, MYFEMBREE and ORGOVYX. Latin American launches included MINJUVI in Brazil, Mexico and Argentina for diffuse large B-cell lymphoma, as well as in Brazil for follicular lymphoma; Pemazyre in Brazil, Mexico and Argentina; TAVALISSE in Mexico; and AKYNZEO in Paraguay.
In the second half, the company expects to launch TAVALISSE in Brazil after receiving regulatory approval earlier in the quarter, along with WYNZORA in Canada and certain branded generics in Latin America.
Knight also received a Notice of Non-Compliance from Health Canada for the new drug submission for CREXONT. Sakhia said the company would work with its partner to respond, but said it was too early to comment on whether additional clinical work could be required. CREXONT was approved and launched in the United States in 2024 and received a positive CHMP recommendation in Europe in June, with European approval expected in September, according to the company.
Outlook, Cash Position and Capital Allocation
Knight increased its 2026 guidance and now expects revenue of CAD 540 million to CAD 560 million, representing at least 20% growth from 2025. The company expects adjusted EBITDA to equal at least 15% of revenue, representing EBITDA growth of at least 10% from the prior year.
Sakhia said the higher outlook was primarily driven by stronger promoted-product performance across markets, while better-than-expected Latin American currency performance against the Canadian dollar also contributed. She said foreign exchange had added about CAD 10 million to first-half revenue versus the prior year, though much of that benefit had already occurred.
- Knight ended the quarter with CAD 110 million in cash and marketable securities.
- The company had a net cash position of CAD 87 million and CAD 280 million available under its credit facility.
- During the first half, Knight repurchased 1.5 million common shares at an average price of CAD 6.33, for approximately CAD 9.2 million.
Management said cash deployment remains focused on acquiring and in-licensing products, while share repurchases may continue when opportunities arise. Sakhia also said EBITDA margins should improve over the next several years as recently launched products contribute more revenue and the company’s infrastructure becomes more stable.
About Knight Therapeutics (TSE:GUD)
Knight Therapeutics Inc, headquartered in Montreal, Canada, is a 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 the TSX under the symbol GUD. For more information about Knight Therapeutics Inc, please visit the company’s web site at www.knighttx.com or www.sedarplus.ca.
