MONTREAL, CANADA--(Marketwired - March 16, 2017) - Knight Therapeutics Inc. (TSX:GUD) ('Knight' or the 'Company'), a leading Canadian specialty pharmaceutical company, today reported financial results for its fourth quarter and year-ended December 31, 2016. All dollar amounts are in thousands except for per share amounts. All currencies are Canadian unless otherwise specified.

'In 2016, we continued to make substantial progress towards building Canada's leading speciality pharmaceutical company by strengthening our team, our product pipeline and our balance sheet,' said Jonathan Ross Goodman, CEO of Knight Therapeutics Inc. 'In the year ahead, we look forward to advancing our product pipeline, commercializing Movantik® in Canada and making a difference to the health of patients.'

Financial Results

For the quarter ended December 31, 2016, Knight reported revenues of $1,845, an increase of $1,502 over the same period last year, and net income of $7,939, an increase of $2,385 over the same period last year.

For the year ended December 31, 2016, Knight reported revenues of $5,940, an increase of $4,903 over the same period last year, and net income of $18,560, a decrease of $15,607 over the same period last year.

As at December 31, 2016, the Company had $736,050 in cash, cash equivalents and marketable securities and 142,713,489 common shares outstanding.

2016 Highlights

•Signed license agreements for Netildex™ and Probuphine™ for Canada, and Movantik® for Canada and Israel.

•Terminated the agreement with Paladin Labs Inc. related to the distribution and sale of Impavido® in all countries other than the U.S.

•Launched Impavido® in U.S. through commercialization partner Profounda, Inc.

•Issued secured loans of US$23,000 to Medimetriks Pharmaceuticals Inc. and $6,841 to Crescita Therapeutics Inc. as part of secured lending strategy.

•Appointed Samira Sakhia, former CFO of Paladin Labs Inc., as President of Knight.

•Completed two bought deals at $8 and $10 per common share for gross proceeds of $230,000 and $100,050, respectively, including over-allotment exercise.

Key Subsequent Events

•Submitted Iluvien® for regulatory approval by Health Canada.

•Announced the commercial relaunch of Movantik® in Canada.

•Received a Notice of Deficiency Withdrawal from Heath Canada with respect to its ATryn® regulatory submission.

Conference Call Notice

Knight will host a conference call to discuss its fourth quarter and year end results today at 8:30 am ET. Investors and other interested parties may call 1-877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).

A taped replay of the conference call will be available from today at 11:30 a.m. ET until Sunday, April 16, 2017 at 11:59 p.m. ET. To access the replay, please call 1-800-585-8367 or 416-621-4642 and use access code 16647769.

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. 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 www.gud-knight.com or www.sedar.com.

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, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.

CONTACT INFORMATION:

Knight Therapeutics Inc.
Jeffrey Kadanoff, P.Eng., MBA
Chief Financial Officer
T: 514-484-GUD1 (4831)
F: 514-481-4116
info@gudknight.com
www.gudknight.com

CONSOLIDATED BALANCE SHEETS

[In thousands of Canadian dollars]

As at December 31,

2016

2015

ASSETS

Current

Cash and cash equivalents

514,942

237,481

Marketable securities

221,108

233,726

Trade and other receivables

6,440

2,994

Inventories

790

1,460

Other current financial assets

51,789

23,588

Income taxes receivable

4,683

231

Total current assets

799,752

499,480

Property and equipment

32

18

Intangible assets

14,153

3,320

Other financial assets

90,643

62,616

Investment in associate

80,113

81,027

Deferred income tax assets

6,077

2,527

Total assets

990,770

648,988

LIABILITIES AND SHAREHOLDERS' EQUITY

Current

Accounts payable and accrued liabilities

3,207

2,416

Income taxes payable

5,659

4,031

Other balances payable

537

-

Deferred other income

355

293

Total current liabilities

9,758

6,740

Deferred other income

417

-

Other balances payable

877

-

Deferred income tax liabilities

-

186

Total liabilities

11,052

6,926

Shareholders' equity

Share capital

760,447

439,148

Warrants

785

161

Contributed surplus

9,469

6,772

Accumulated other comprehensive income

30,431

35,955

Retained earnings

178,586

160,026

Total shareholders' equity

979,718

642,062

Total liabilities and shareholders' equity

990,770

648,988

CONSOLIDATED STATEMENTS OF INCOME

[In thousands of Canadian dollars, except for share and per share amounts]

2016

2015

Revenues

5,940

1,037

Cost of goods sold

1,550

428

Gross margin

4,390

609

Expenses

Selling and marketing

532

-

General and administrative

9,302

9,086

Research and development

1,955

2,707

(7,399)

(11,184)

Depreciation of property and equipment

18

30

Amortization of intangible assets

419

94

Interest income

(24,414)

(18,632)

Other income

(3,894)

(2,860)

Net gain on financial assets

(1,659)

(17,347)

Purchase gain on business combination

-

(515)

Net loss on settlement of loans receivable

-

650

Share of net income of associate

(2,793)

(1,041)

Foreign exchange loss (gain)

1,451

(8,579)

Income before income taxes

23,473

37,016

Income tax expense

4,190

1,939

Deferred income tax expense

723

910

Net income for the year

18,560

34,167

Basic earnings per share

0.15

0.36

Diluted earnings per share

0.15

0.35

Basic

120,723,270

96,191,285

Diluted

121,263,522

96,532,104

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[In thousands of Canadian dollars]

2016

2015

Net income for the year

18,560

34,167

Realized gain on available for sale financial instruments reclassified to statement of income net of tax of $247(2015: $1,345)

(1,592)

(8,654)

Other comprehensive (loss) income to be reclassified to statement of income in subsequent periods:

Unrealized gain on available for sale financial instruments net of tax of $245(2015: $528)

1,146

7,083

Unrealized (loss) gain on translation of foreign operations

(5,078)

27,559

Other comprehensive (loss) income for the year

(5,524)

25,988

Total comprehensive income for the year

13,036

60,155

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

[In thousands of Canadian dollars]

Share capital

Warrants

Contributed surplus

Accumulated other comprehensive income

Retained earnings

Total shareholders' equity

Balance as at January 1, 2015

341,065

-

2,100

9,967

125,859

478,991

Net income for the year

-

-

-

-

34,167

34,167

Realized gain reclassified to statement of income, net of tax of $1,345

-

-

-

(8,654)

-

(8,654)

Unrealized gain on available for sale financial instruments, net of tax of $528

-

-

-

7,083

-

7,083

Unrealized gain on translation of foreign operations

-

-

-

27,559

-

27,559

Comprehensive income

-

-

-

25,988

34,167

60,155

Share-based compensation expense

-

-

4,421

-

-

4,421

Issuance of shares upon financing, net of costs and deferred tax of $2,155

14,573

-

-

-

-

14,573

Issuance upon investment in associate

80,684

-

1,100

-

-

81,784

Issuance due to share-based payments

332

-

-

-

-

332

Exercise of stock options

1,487

-

(554)

-

-

933

Issuance of warrants

-

161

-

-

-

161

Exercise of compensation warrants

930

-

(295)

-

-

635

Issuance under share purchase plan

77

-

-

-

-

77

Balance as at December 31, 2015

439,148

161

6,772

35,955

160,026

642,062

Balance as at January 1, 2016

439,148

161

6,772

35,955

160,026

642,062

Net income for the year

-

-

-

-

18,560

18,560

Realized gain reclassified to statement of income, net of tax of $247

-

-

-

(1,592)

-

(1,592)

Unrealized gain on available for sale financial instruments, net of tax of $245

-

-

-

1,146

-

1,146

Unrealized loss on translation of foreign operations

-

-

-

(5,078)

-

(5,078)

Comprehensive (loss) income

-

-

-

(5,524)

18,560

13,036

Share-based compensation expense

-

-

3,640

-

-

3,640

Issuance upon bought deals, net of costs and includes deferred tax of $4,465

317,616

-

-

-

-

317,616

Issuance of shares to associate

2,073

-

(943)

-

-

1,130

Issuance upon investment

1,846

624

2,470

Share purchase loans

(350)

-

-

-

-

(350)

Issuance under share purchase plan

114

-

-

-

114

Balance as at December 31, 2016

760,447

785

9,469

30,431

178,586

979,718

CONSOLIDATED STATEMENT OF CASH FLOWS

[In thousands of Canadian dollars]

2016

2015

OPERATING ACTIVITIES

Net income for the year

18,560

34,167

Adjustments reconciling net income to operating cash flows:

Deferred tax

723

910

Share-based compensation expense

3,640

4,421

Depreciation and amortization

437

124

Accretion of interest

(6,201)

(6,985)

Other income

(1,274)

-

Realized gain on financial assets

(2,569)

(15,381)

Unrealized loss (gain)on financial assets

910

(1,966)

Net loss on settlement of loans receivable

-

535

Foreign exchange loss (gain)

1,451

(2,068)

Purchase gain on business combination

-

(515)

Share of net income from associate

(2,793)

(1,041)

Deferred other income

479

(747)

13,363

11,454

Changes in non-cash working capital related to operations

(3,462)

(3,818)

Dividends from associate

4,837

2,015

Cash inflowfrom operating activities

14,738

9,651

INVESTING ACTIVITIES

Purchase of marketable securities

(535,685)

(583,225)

Purchase of equities

(16,371)

(11,360)

Purchase of property and equipment

(7)

-

Purchase of intangibles

(9,853)

(1,750)

Investment in funds

(16,503)

(15,694)

Issuance of loans receivable

(43,274)

(40,280)

Investment in associate

-

(217)

Proceeds from repayments of loans receivable

11,324

40,420

Proceeds from sale of marketable securities

544,812

503,935

Proceeds from distribution of funds

4,610

19,314

Proceeds from disposal of equities

9,572

19,758

Proceeds from disposal of derivatives

2,157

-

Cash outflow from investing activities

(49,218)

(69,099)

FINANCING ACTIVITIES

Proceeds from share issuance

313,574

12,424

Proceeds from exercise of compensation warrants

-

635

Share option plan

-

933

Share purchase plan

105

77

Share purchase loans

(350)

-

Cost related to prior period share issuance

-

(207)

Cash inflow from financing activities

313,329

13,862

Increase (decrease) in cash during the year

278,849

(45,586)

Cash and cash equivalents, beginning of the year

237,481

283,445

Net foreign exchange difference

(1,388)

(378)

Cash and cash equivalents, end of the year

514,942

237,481

Supplemental cash flow information:

Interest received

15,665

10,107

Income taxes paid

7,010

1,980

Knight Therapeutics Inc. published this content on 16 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 March 2017 18:21:19 UTC.

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