Knight Therapeutics (KHTRF) AI Stock Analysis

32 Followers

Top Page

Positive Factors

Acquisition

The acquisition of the Paladin business unit from Endo Inc. is expected to be immediately accretive, potentially enhancing Knight's financial performance.

Licensing Agreement

Knight's exclusive Canadian licensing agreement with Sumitomo Pharma America for Myfembree, Orgovyx, and Vibegron could boost its market presence and revenue potential.

Revenue Growth

Revenues are projected to increase due to a new $22.4M contract with the Brazilian Ministry of Health, indicating strong business prospects.

Negative Factors

Currency and Inflation Impact

FX and hyperinflation have skewed topline results, potentially affecting Knight's financial stability and predictability.

Sales Performance

The portfolio of assets generated only $11.2M of revenue in the last fiscal year, which might raise questions about asset performance.

Topline Estimates

Knight reported results that missed topline estimates, which could lead to concerns about meeting market expectations.

Knight Therapeutics (KHTRF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$435.96M

Dividend YieldN/A

Average Volume (3M)1.74K

Price to Earnings (P/E)56.1

Beta (1Y)0.17

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees745

SectorHealthcare

Sector Strength42

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.01

Shares Outstanding99,627,420

10 Day Avg. Volume1,270

30 Day Avg. Volume1,744

Financial Highlights & Ratios

PEG Ratio0.40

Price to Book (P/B)0.75

Price to Sales (P/S)0.00

P/FCF Ratio-39.39

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.77

Price Target Upside30.84% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Knight Therapeutics Business Overview & Revenue Model

Company DescriptionKnight Therapeutics Inc., a specialty pharmaceutical company, develops, acquires, in-licenses, out-licenses, markets, and distributes pharmaceutical and consumer health products, and medical devices in Canada, Latin America, and internationally. It offers Nerlynx for extended adjuvant breast cancer and metastatic breast cancer; Tafasitamab for relapsed or refractory diffuse large B-cell lymphoma; Pemigatinib to treat metastatic cholangiocarcinoma; Trelstar for advanced prostate cancer and for pain associated with endometriosis; Vidaza for myelodysplastic syndrome; Abraxane for metastatic pancreatic adenocarcinoma; Halaven for metastatic breast cancer and doft tissue sarcoma; and Lenvima for differentiated thyroid cancer, advanced renal cell cancer, and unresectable hepatocellular carcinoma. The company also provides Ladevina for multiple myeloma, myelodysplastic syndrome, mantle cell lymphoma, and follicular lymphoma; Zyvalix for metastatic prostate cancer; Karfib for relapsed or refractory multiple myeloma; Leprid for advanced prostate cancer; Rembre for chronic myeloid leukemia; Ambisome and Cresemba for fungal infection; Impavido for leishmaniasis; Exelon for mild to moderately severe dementia; and Ibsrela for the treatment of irritable bowel syndrome with constipation. In addition, it offers Salofalk for ulcerative colitis; Ursofalk to treat biliary cirrhosis; Imvexxy for moderate to severe dyspareunia; Bijuva for moderate to severe vasomotor symptoms associated with menopause in women with intact uteri; Fibridoner to treat idiopathic pulmonary fibrosis; Toliscrin DPI for pseudomonas aeruginosa lung infection in patients with cystic fibrosis; Toliscrin 1-2 for severe acute or resistant chronic infections; and Tobradosa Haler for chronic lung infections. Further, the company finances other life science companies; and invests in life sciences venture capital funds. Knight Therapeutics Inc. was incorporated in 2013 and is headquartered in Montreal, Canada.

How the Company Makes Money

Knight Therapeutics Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 0.68%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with notable revenue growth and strategic acquisitions offset by a decline in adjusted EBITDA, financial asset losses, and increased operating expenses. While there are promising developments in the promoted portfolio and upcoming product launches, financial challenges need to be addressed.

Q1-2025 Updates

Positive Updates

Revenue Growth

Knight Therapeutics reported revenues of $88 million for Q1 2025, an increase of $2 million or 3% over the same period last year.

Promoted Portfolio Performance

The promoted portfolio, accounting for over 75% of total revenues, grew by $9 million or 16% on a constant currency basis.

Oncology and Hematology Portfolio Growth

This portfolio delivered $32 million in revenues, a growth of $1 million or 3%, and $2 million or 6% on a constant currency basis.

Infectious Disease Portfolio Growth on Constant Currency

Despite a nominal decrease, the portfolio grew by $1 million or 3% on a constant currency basis.

Pipeline and Product Launches

Knight continued to advance its portfolio with regulatory submissions and approvals, launching Minjuvi in Mexico and relaunching Onicit in Brazil and Mexico.

Paladin Acquisition

Knight entered into an agreement to acquire the assets of Paladin for $100 million plus $20 million of inventory, with potential future contingent payments up to $15 million.

Financial Outlook for 2025

Knight expects to generate revenues between $390 million to $405 million and an adjusted EBITDA of approximately 13% of revenues.

Negative Updates

Adjusted EBITDA Decline

The adjusted EBITDA for Q1 2025 decreased by $1.5 million or 11% compared to the same period last year, with adjusted EBITDA per share decreasing by 8%.

Financial Assets Loss

Knight recorded a total net loss of $3.8 million on its financial assets due to mark-to-market revaluation and changes in the value of certain equities.

Increased Operating Expenses

Operating expenses increased by $3 million or 10%, driven by commercial spend for new launches and transaction fees related to the Paladin acquisition.

Company Guidance

During Knight Therapeutics' first-quarter 2025 conference call, the company reported revenues of $88 million, marking a 3% year-over-year increase, primarily driven by a 16% growth in their promoted portfolio. Adjusted EBITDA stood at over $12 million, with a decrease of 11% from the previous year. The oncology and hematology portfolio contributed $32 million, growing by 3%, while the infectious disease portfolio reported $36 million, a 4% decline. Knight also highlighted significant transactions, including the $100 million acquisition of Paladin's assets and the expansion with Helsinn to include Onicit in specific Latin American markets. Financial guidance for fiscal 2025 anticipates revenues between $390 million and $405 million, with an adjusted EBITDA margin of approximately 13%. The company also executed a share buyback under the NCIB and secured a $40 million line of credit to support their financial strategy.

Knight Therapeutics Financial Statement Overview

Summary

Knight Therapeutics shows strong revenue growth with a robust balance sheet characterized by low leverage and high equity ratios. However, profitability challenges and issues with cash flow sustainability present concerns for future financial flexibility.

Income Statement

Positive

The income statement shows a steady revenue increase, with a notable 13.3% growth from 2022 to 2023, contributing to the positive revenue trajectory. Gross profit margins have been maintained above 45% across periods, indicating good cost management. However, the company faces challenges in profitability, with EBIT margins fluctuating and sometimes negative, impacting net profit margins. Recent improvement in net income for TTM suggests potential recovery.

Balance Sheet

Positive

The balance sheet reflects a strong equity base, with a high equity ratio of approximately 79.3% in TTM, indicating financial stability. The debt-to-equity ratio remains low, around 0.07, which suggests prudent use of leverage. However, there is room for improvement in ROE, which, despite being positive in TTM, remains modest compared to industry norms.

Cash Flow

Neutral

Cash flow analysis reveals challenges in sustaining free cash flow, with negative free cash flow reported in TTM. The operating cash flow to net income ratio is high, indicating good operational efficiency. However, the negative free cash flow growth and fluctuating capital expenditures pose concerns for long-term cash sustainability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
372.78M	371.30M	328.20M	293.56M	243.48M	199.52M
	Gross Profit
167.57M	174.41M	152.65M	138.06M	115.41M	81.69M
	EBIT
-800.00K	7.40M	-2.89M	-2.40M	-5.32M	-3.44M
	EBITDA
70.81M	64.38M	40.90M	25.26M	42.59M	67.56M
	Net Income Common Stockholders
11.06M	4.33M	-16.84M	-29.89M	15.68M	31.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
638.55M	172.84M	154.42M	185.61M	162.99M	411.34M
	Total Assets
1.06B	963.80M	945.49M	1.05B	991.89M	1.04B
	Total Debt
1.07M	49.46M	69.09M	77.70M	40.96M	56.19M
	Net Debt
-230.04M	-30.65M	10.33M	6.02M	-45.01M	-173.40M
	Total Liabilities
25.64M	168.69M	198.62M	228.98M	149.87M	153.44M
	Stockholders Equity
1.03B	795.11M	746.87M	825.86M	842.02M	886.24M
Cash Flow		Free Cash Flow
-15.18M	4.81M	25.98M	14.66M	-179.56M	-32.87M
	Operating Cash Flow
7.97M	36.28M	35.94M	40.48M	44.62M	-12.21M
	Investing Cash Flow
71.26M	16.96M	29.34M	-63.08M	-105.28M	101.35M
	Financing Cash Flow
-35.34M	-33.54M	-81.00M	1.76M	-78.31M	-29.23M

Knight Therapeutics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHTRF		$435.96M	56.11	1.41%	―	―	―
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
THTX		$118.30M	―		―	―	―
CPHRF		$248.15M	26.16	9.69%	―	―	―
RX	82 Outperform	C$137.08M	17.46	22.17%	1.59%	16.55%	14.70%
MDP	71 Outperform	C$91.61M	14.26	11.27%	―	-3.82%	-50.36%
HLS	60 Neutral	C$155.64M	―	-23.05%	―	-3.73%	32.70%

* Healthcare Sector Average

Performance Comparison

KHTRF

Knight Therapeutics

4.41

0.18

4.26%

THTX

Theratechnologies

2.60

1.43

122.22%

CPHRF

Cipher Pharmaceuticals

9.46

2.95

45.31%

TSE:MDP

Medexus Pharmaceuticals Inc

2.84

1.16

69.05%

TSE:RX

Biosyent

11.95

2.81

30.74%

TSE:HLS

HLS Therapeutics Inc

4.92

1.37

38.59%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.