Knight Therapeutics Q3 2025 Earnings Report

Knight Therapeutics EPS Results

• Actual EPS: -C$0.04
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Knight Therapeutics Revenue Results

• Actual Revenue: $122.63 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Knight Therapeutics Announcement Details

• Quarter: Q3 2025
• Date: 11/6/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, November 6, 2025
• Conference Call Time: 8:30AM ET

Knight Therapeutics (TSE:GUD) Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and distributing innovative pharmaceutical products, consumer health products, and medical devices in Canada and select international markets. Knight finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights.

Knight Therapeutics Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record financial performance — Knight reported Q3 revenues of CAD 122.6M (+34% YoY) and record nine‑month adjusted revenues of CAD 319M with adjusted EBITDA ~CAD 49M, and raised FY2025 guidance to CAD 430–440M with an adjusted EBITDA margin target of 13.5%–14.5%.
• Positive Sentiment: Growth driven by M&A and promoted products — The Paladin and Sumitomo transactions added ~CAD 25–27M of incremental revenue and promoted products grew ~12% on a constant currency basis, supported by multiple recent launches and an expanded Incyte LATAM licensing deal.
• Negative Sentiment: Regulatory setbacks — ANVISA rejected the Tavlesse MAA (company has appealed; appeal process could take ~14 months) and Health Canada issued a Notice of Noncompliance for Calquence requiring additional information to be filed in 2026, creating timing risk to those launches.
• Positive Sentiment: Strong liquidity and capital flexibility — Net debt was roughly CAD 1M (CAD 95.6M cash/marketable securities vs CAD 96.5M debt), the NCIB repurchased 389k shares (~CAD 2.3M), and the revolver was syndicated and doubled from USD 50M to USD 100M with a USD 100M accordion for additional capacity.

Presentation

[Operator]

Morning, ladies and gentlemen. My name is Lilly, and I will be your operator for today. Welcome to Knight Therapeutics' third-quarter 2025 results conference call. Before turning the call over to Ms. Samira Sakhia, President and CEO of Knight. Listeners are reminded that portions of today's discussion may, by their nature, necessarily involve risk and uncertainties that could cause actual results to differ materially from the contemplated by the forward-looking statements. The company considers the assumption on which these forward-looking statements are based to be reasonable at the time that they were prepared. However, cautions that these assumptions regarding the future events, many of which are beyond the control of the company and its subsidiaries, may ultimately prove to be incorrect. The company disclaims any intentions or obligation to update or revise any forward-looking statements, whether a result of new information and/or future events, except as required by law.

[Operator]

We would also like to remind you that questions during today's call will be taken from analysts only. Should there be any further questions, please contact Knight's Investor Relations Department via email to ir@knightpx.com or via phone at 514-484-4483. I would like to remind everyone that this call is being recorded today, November 6, 2025. I would now like to turn the meeting over to your host for today's call, Ms. Samira Sakhia. Please go ahead.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Thank you, Lilly. Good morning, everyone, and welcome to Knight Therapeutics' third-quarter 2025 conference call. I'm joined on today's call with Amal Khouri, our Chief Business Officer, and Arvind Utchanah, our Chief Financial Officer. I'm excited to announce that we achieved record-high adjusted revenues of CAD 319 million, as well as record-high Adjusted EBITDA of approximately CAD 49 million for the nine-month period ended September 30th, 2025. During that period, our revenues grew by approximately CAD 48 million, or 18%, compared to the same period last year. This growth was not only driven by the Paladin and Sumitomo transactions, which contributed CAD 27 million of incremental revenues, but also our key promoted products, which delivered organic growth of 12% on a constant currency basis. In addition to achieving record financial results, we have continued to strengthen our oncology portfolio.

[Samira Sakhia, President and CEO at Knight Therapeutics]

This quarter, we expanded our partnership with Incyte by in-licensing the LATAM rights to two innovative drugs, retifanlimab and axatilimab. Furthermore, we have advanced our pipeline with the launches of three products in multiple countries. We have launched JORNAY PM in Canada, MINJUVI in Argentina, and PEMAZYRE in both Brazil and Mexico. Moving on to our regulatory updates. In the third quarter, we received a rejection of our marketing authorization application for TAVALISSE from Anvisa, the Brazilian Health Agency. We have already submitted an appeal to ANVISA, which could take up to 14 months. In addition, subsequent to the quarter, we have received a Notice of Noncompliance, or NON, from Health Canada on the drug submission of Qelbree. The NON requires additional information, which we will submit in 2026. Despite these setbacks on these two products, we expect to address the health agency's request and bring both drugs to market.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Moving on to the NCIB. In August 2023, Knight launched an NCIB under which we can purchase for cancellation up to 3 million common shares over the next 12 months. Subsequent to the quarter, we purchased 389,000 shares at an average price of CAD 5.84 for an aggregate cash consideration of CAD 2.3 million. I will now turn the call over to Arvind to provide an update on our financial results.

[Arvind Utchanah, CFO at Knight Therapeutics]

Thank you, Samira. When speaking of our financial results, I will refer to Adjusted EBITDA and financial results at constant currency, which are Non-IFRS measures, as well as Adjusted EBITDA per share, which is a Non-IFRS ratio. Knight defined Adjusted EBITDA as operating income or loss, excluding amortization and impairment of non-Current Assets, Depreciation, the impact of accounting under hyperinflation, acquisition cost and transaction cost, inventory step-up expense, and other non-recurring expenses, but to include costs related to leases. We define Adjusted EBITDA per share as Adjusted EBITDA over the number of common shares outstanding at the end of the respective period. In addition, revenues and financial results at constant currency are also Non-GAAP measures. Financial results at constant currency are obtained by translating the prior period results at the average foreign exchange rates in effect during the current period, except for Argentina, where we only exclude hyperinflation.

[Arvind Utchanah, CFO at Knight Therapeutics]

Adjusted gross margin is defined as revenues less cost of goods sold adjusted for the impact of accounting under both hyperinflation and purchase price accounting. Furthermore, my discussion on operating results will refer to figures that exclude hyperinflation unless otherwise noted. For the third quarter of 2025, we delivered record revenues of CAD 122.6 million, an increase of CAD 31.2 million, or 34%, versus the same period last year. On a constant currency basis, revenues increased by approximately CAD 29 million, or 31%. The Paladin and Sumitomo portfolios contributed to CAD 25 million of incremental revenues. The rest of the variance was mainly driven by our key promoted products, which grew by CAD 5.5 million, or 8%, on a constant currency basis, as well as purchasing patterns of certain products. This was partly offset by declines in our match rule and branded generic products and the termination of a non-strategic agreement in Colombia.

[Arvind Utchanah, CFO at Knight Therapeutics]

Moving on to revenues by therapeutic area. The oncology/hematology portfolio delivered CAD 38.3 million in Q3 2025, relatively unchanged compared to the same period last year. Excluding the termination of a non-strategic distribution agreement in Colombia and on a constant currency basis, the portfolio increased by just under CAD 1 million, or 2%. The increase was driven by our key promoted products, which grew by CAD 2.8 million, or 15%, as a result of the growth of AKYNZEO, the launch of MINJUVI, and the addition of both ORGOVYX and ONICIT. This growth was partly offset by declines in our mature and branded generics products due to the life cycle. Our infectious disease portfolio delivered approximately CAD 37.2 million, an increase of CAD 3.4 million, or 10%. On a constant currency basis, the portfolio grew by CAD 2.3 million, or 6%, compared to the same period last year.

[Arvind Utchanah, CFO at Knight Therapeutics]

The increase was due to the growth of CRESEMBA and the purchasing patterns of certain products. Turning to our other specialty therapeutic area. The portfolio generated CAD 47.1 million in revenues, an increase of CAD 26.3 million, or 127%, compared to the same period last year. The incremental revenues from the Paladin and Sumitomo portfolio were CAD 23.4 million. The rest of the variance was driven by the launches of IMVEXXY and BIJUVA, and the purchasing patterns of certain customers. Now moving on to gross margin. We reported adjusted gross margin of CAD 59.9 million in Q3 2025 versus CAD 43 million in Q3 last year. The adjusted gross margin, as a percentage of adjusted revenues, increased by 2%, going from 47% in Q3 2024 to 49% in Q3 2025.

[Arvind Utchanah, CFO at Knight Therapeutics]

The increase is mainly explained by the addition of the Paladin and Sumitomo portfolios, resulting in the higher weighting of the Canadian business in Q3 2025 when compared to Q3 2024. I will now turn to our operating expenses, excluding amortization. For the third quarter, our operating expenses were CAD 39.7 million, an increase of CAD 9 million, or 30%, compared to the same period last year. The increase was driven by higher selling and marketing, as well as R&D expenses. Our selling and marketing expenses increased by CAD 4.5 million, mainly driven by the expansion of our sales and commercial structure behind the addition of the Paladin and Sumitomo portfolios.

[Arvind Utchanah, CFO at Knight Therapeutics]

In addition to structure, the increase included higher promotion and marketing expenses for the promoted brands acquired in the Paladin and Sumitomo transactions, including ORGOVYX, MYFEMBREE, XCOPRI, and ENVARSUS, as well as spend on our pre-launch and recently launched brands, including JORNAY PM, IMVEXXY, MINJUVI, TAVALISSE, Qelbree, and PEMAZYRE. Our R&D expenses increased by CAD 3.5 million due to the expansion of our scientific affairs structure, including field-based personnel related to the Paladin and Sumitomo portfolios. In addition to structure, the increase included incremental medical, regulatory, and pharmacovigilance spend on the Paladin and Sumitomo portfolios, as well as on our pipeline and recent launches. Moving on to Adjusted EBITDA. For the third quarter of 2025, we reported CAD 21 million of Adjusted EBITDA, an increase of CAD 7.5 million, or 56%, compared to the same period last year.

[Arvind Utchanah, CFO at Knight Therapeutics]

The increase was mainly driven by the higher adjusted gross margin, partly offset by higher operating expenses. Our Adjusted EBITDA per share was CAD 0.21, an increase of CAD 0.08, or 62%, compared to the same period last year. I will now cover our financial assets, which are valued at CAD 94 million. In the third quarter, we recorded a net loss of CAD 4.6 million, driven by the mark-to-market revaluations of our strategic fund investments. As a reminder, our funds continue to be a source of cash. During 2023, we received net proceeds of CAD 5.7 million and CAD 45 million since 2020. Moving on to our cash position and cash flows. At the end of Q3, our net debt position was just under CAD 1 million. We held CAD 96.5 million in debt and CAD 95.6 million in cash and marketable securities.

[Arvind Utchanah, CFO at Knight Therapeutics]

During the quarter, we generated cash inflows from operations of CAD 10 million, despite an investment of CAD 11 million in working capital. The increase in working capital was due to the higher accounts receivable, given the growth in our Canadian operations, partly offset by a decrease in inventory and an increase in accounts payable. Finally, as announced last week, we have closed the syndication process with a group of four lenders and doubled our revolving credit facility from $50 million-$100 million, with an accordion feature for another $100 million. This facility is secured by Knight's assets held in Canada, Luxembourg, and Uruguay, and has an initial term of three years, with the option to extend annually for an additional one-year term. As a reminder, we drew down CAD 60 million from the facility in Q2 to fund part of the Paladin acquisition. I will now turn the call back to Samira.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Thank you, Arvind. Now on to our financial outlook for fiscal 2025. I would like to remind everyone that the guidance provided assumes that there is no material adjustment due to hyperinflation accounting in Argentina. In addition, our guidance is based on a number of assumptions which are described in our press release. Should any of these assumptions differ, the actual results may vary materially. We are increasing our outlook for fiscal 2025 and expect to generate revenues between CAD 430 million and CAD 440 million, and an Adjusted EBITDA between 13.5%-14.5% of revenues. The increase in our financial outlook is driven primarily by the strong performance of our promoted products. Our team has been extremely successful in executing on our Pan-American ex-U.S. strategy and building a profitable business. In the first nine months, we have delivered record results.

[Samira Sakhia, President and CEO at Knight Therapeutics]

We in-licensed three new products, and we completed two acquisitions which strengthened our Canadian operations. We are already starting Q4 on a high note. At the beginning of the quarter, we announced the relaunch of ORGOVYX and MYFEMBREE, and just last week, we announced the launches of JORNAY PM in Canada and MINJUVI in Argentina. We also added more flexibility to our balance sheet upon closing the syndication of the revolving credit facility. Following the closing of this credit facility, we can now borrow up to an additional CAD 100 million and another CAD 135 million through the accordion feature. This is in addition to the CAD 95 million of cash and marketable securities that we reported at the end of Q3.

[Samira Sakhia, President and CEO at Knight Therapeutics]

With our expanded portfolio, increased operational scale, and capital flexibility, we remain well-positioned to drive long-term value and deliver on our mission to acquire, in-license, develop, and commercialize pharmaceutical products for Canada and Latin America. This concludes our formal remarks. I would now like to open up the call for questions.

[Operator]

Thank you. Before we begin, may I please remind you questions during today's call will be taken from analysts only. Should there be any further questions, please contact Knight's Investor Relations Department via email to ir@knightpx.com or via phone at 514-484-4483. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. If you are using a speakerphone, please lift the handset before pressing the star keys. One moment, please, for your first question. Your first question comes from Michael Freeman of Raymond James. Please go ahead.

[Michael Freeman, Analyst at Raymond James]

Good morning, team, and congratulations on these results. I wonder if you could spend some time and dig into the organic growth of the branded products a bit further. What products stood out? What geographies stood out? What do you think drove this very positive performance?

[Samira Sakhia, President and CEO at Knight Therapeutics]

It's really across the board where we're seeing good performance. We're seeing good performance in our oncology portfolio, AKYNZEO, the launch of MINJUVI. We're seeing it on CRESEMBA. We had some buying patterns on AmBisome, even though we didn't have MOH in the quarter. We're seeing it. We continue to see growth of LENVIMA in Colombia. We're seeing growth in Canada behind. These are not in the organic, but again, ORGOVYX, MYFEMBREE, XCOPRI. So all of these products are growing. What I would highlight is in the Canadian portfolio, Q3 was an integration quarter. As you recall, we only closed in the middle of June. Yes, the teams were in the field, but there was a lot of focus on integrating. Now, as we announced at the beginning of the quarter, the field force is completely in place. Everybody's been trained.

[Samira Sakhia, President and CEO at Knight Therapeutics]

We've relaunched ORGOVYX, MYFEMBREE, and the team is on XCOPRI. They're on JORNAY PM. We expect to have all of these products continuing to grow in Q4 and into next year.

[Michael Freeman, Analyst at Raymond James]

Okay. Okay. I appreciate all that color. Now, on the expansion of your credit facility. It looks like you're sort of shoring up capacity. I wonder if you could describe where your geographic focus will be when it comes to future business development, future potential M&A. There has been a lot of activity in Canada recently. Should we expect that to continue or maybe more a broadly distributed effort?

[Amal Khouri, Chief Business Officer at Knight Therapeutics]

Hi, Michael. It's Amal. I think you can expect really more of the same as we've been doing and executing in the last few years, really across all of our countries. Also, in terms of type of deal as well, whether it's acquiring products with existing sales or whether it's acquiring—and that includes acquiring one product at a time, portfolio of products, or even M&A, as well as pipeline products as well. Really more of the same execution as we've been doing across our market.

[Samira Sakhia, President and CEO at Knight Therapeutics]

I just want to highlight, if you look at this year, we've had the two transactions that we had for Canada, but we had multiple transactions that also had LATAM. The license agreement, the Incyte agreement expansion was for two products for LATAM. Honestly, it was for LATAM.

[Samira Sakhia, President and CEO at Knight Therapeutics]

If you look at last year, we had JORNAY PM, we had Insights. Products, both for Canada and Latin America. I'm sure I'm missing a couple of other deals that we signed last year. It is really we are a partnering organization. We're going to do what's right for the business, and we have to be flexible. For our territories, the fact that we have all of these territories allows us to be extremely productive when it comes to our transactions.

[Michael Freeman, Analyst at Raymond James]

Gotcha. Okay. Thank you. Can I ask one more quick one? Your agreements with the Brazilian Ministry of Health, these renew on an annual basis. I wonder if there's any news relating to the renewal of your contracts with the MOH on Amazon.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Sure. We did sign at the end of last year that agreement. They've bought what they've bought so far this year. We are in discussions with them for their 2026 purchases. It's a government organization. They take their time. We're dealing with bureaucrats. It could be. It's really still too early to tell whether or when this agreement gets signed and if there will be a shipment in Q4. I know I'm talking at the beginning of November, and there's not a lot of weeks left in the year. Again, we're dealing with bureaucrats, and it could either get signed this year with a small shipment this year, or it gets signed later in the year or early next, and we ship everything in 2026.

[Michael Freeman, Analyst at Raymond James]

Okay. All right. Thanks for all this. I'll pass it on.

[Operator]

Your next question comes from David Martin of Bloom Burton. Please go ahead.

[David Martin, Analyst at Bloom Burton]

Hi. Good morning and congratulations on the quarter. The first one's a follow-up to the last question. For the Amazon Ministry of Health in Brazil, I think previously there had been a competitor. Is there a competitor now, or are you going into this as the sole source?

[Samira Sakhia, President and CEO at Knight Therapeutics]

At this time, we don't see the competitor. The competitor is not there. We are a single source. We expect that. Like I said, the team has been in discussions. Discussions continue. We do expect something. We will be successful in this, but it's a question of time at this point.

[David Martin, Analyst at Bloom Burton]

Okay. Got it. Can you provide more color on the Brazilian action on TAVALISSEand Health Canada on Qelbree? What are the regulators looking for? Are these things that are in your control or out of your control, such as run another trial? You mentioned 14 months for the response in Brazil. Once you refile Qelbree, how long do you expect it'll take Health Canada to render a decision?

[Samira Sakhia, President and CEO at Knight Therapeutics]

On both, we didn't really provide details. In the case of Qelbree, it is not going back to doing more clinical trials. Our team is working on the response. We expect to refile in 2026 and get approval by the end of 2026. In the case of TAVALISSE, it's really more on a technicality, and that is why we're appealing to ANVISA. The normal course of this appeal process is in the range of 14 months. We'll continue to pursue that. Again, I'm confident that TAVALISSE will get approval even if, worst case, we have to refile the product.

[David Martin, Analyst at Bloom Burton]

Okay. Okay. One last quick question. You mentioned Q3 was an integration quarter in Canada. Were there headcounts in Q3 that'll be reduced in Q4?

[Samira Sakhia, President and CEO at Knight Therapeutics]

As you know, in the integration, at the end of last Q, we had announced that we had restructured 20-some %. At the end of this quarter, we've announced that we've restructured about 30%. The integration was not just in relation to restructuring the teams, but really on the commercial front, where we are bringing the Paladin team onto the new portfolio, into the new products that Knight was launching, including JORNAY PM, including the Sumitomo portfolios. There was a lot of territory assignment, product training. While, yes, people were in the field, I would say activity was a bit lower. Going into Q4, our activities are actually ramping up.

[David Martin, Analyst at Bloom Burton]

Okay. Got it. Thank you.

[Operator]

Your next question comes from Scott McAuley of Paradigm Capital. Please go ahead.

[Scott McAuley, Analyst at Paradigm Capital]

Morning, everyone. Thanks for taking the questions here. A lot has been touched on already, but wanted to highlight the EBITDA margin expansion for 2025, which is great to see. As we're kind of nearing the end of the year, I know you haven't given guidance for 2026, but kind of the levels you're looking for 2025, do you see those as sustainable going forward, even with, as you say, you're launching new products and investing in the platform for the next little while and the new product growth?

[Samira Sakhia, President and CEO at Knight Therapeutics]

What I will say is we will guide to 2026 when we announce. March. As I said in the earlier question, that there was a slowdown of activity in Q3. That activity kicked up. There are more products that are launching next year. All in all, more investors, we're going to continue to have a lot of investments behind new products next year.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Yeah. Expect like there's like 5%-5%.

[Scott McAuley, Analyst at Paradigm Capital]

Yep. Absolutely. That's great. Another thing is on the cash flow. I know the cash flow from operations is a little lumpy, but it's great to see. I think it was CAD 10 million this quarter, CAD 20 million last quarter versus kind of single digits in kind of number quarters in the past. Are you seeing some more normalization of that? Should we continue to expect kind of relatively lumpy or swings in that kind of cash flow from operations perspective?

[Samira Sakhia, President and CEO at Knight Therapeutics]

Sure. One of the things is, we're a very healthy company. We generate good EBITDA and a good EBITDA from cash. Where we get impacted is really in association with inventory. That comes with some lumpiness. Whether we acquire an asset or whether we are preparing for a launch or some purchasing commitments that we have with our partners, it could be lumpy. In general, we are aiming—you can't look at it on a quarter-by-quarter basis. You have to look at it over multiple quarters at a time. We aim to be between 60%-80% cash flow as a percentage of EBITDA.

[Scott McAuley, Analyst at Paradigm Capital]

That's great. Good to hear. Just lastly, on the M&A front, obviously, with the increased credit facility, it gives you guys some more firepower. Just wanted to check in terms of visibility on the entire territories. I know you highlighted signing more deals that take advantage of Canada and throughout LATAM. In terms of conversations you're having or the things you're looking at, are you seeing more of those types of interest for signing for products that take advantage of your entire geographic reach?

[Amal Khouri, Chief Business Officer at Knight Therapeutics]

Hi, Scott. It's Amal. I think we're seeing on the fact that we cover the footprint that we have, we've been getting very positive feedback from potential partners, but also existing partners, that it's much easier for them to deal with one company that covers all of these markets at the same time. I think Samira mentioned it earlier, we do remain flexible because in some cases, for example, there are companies that have their own affiliates in Canada. In that case, we do a deal just for LATAM. We have that flexibility, but we also have the ability to execute on the entire territory. We have been getting good feedback, and you see it in the deal flow. We've been relatively consistent and productive. In the last few years, we've been averaging about three deals per year. Of course, it varies from one year to the other, but it's been a really consistent, productive deal flow.

[Scott McAuley, Analyst at Paradigm Capital]

That's great. Appreciate it. Thanks for taking the questions.

[Operator]

As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from David Martin of Bloom Burton. Please go ahead.

[David Martin, Analyst at Bloom Burton]

I have two follow-ups. The first one, what does the launch schedule look like for your branded generics business? Are you launching a few products each quarter? Do you expect there'll be a bolus of new products launched sometime in the near term?

[Samira Sakhia, President and CEO at Knight Therapeutics]

In our branded generics, we have a couple of products that are launching in Argentina in the next few months. Between the end of this Q to kind of first half of next quarter, these products will be relatively small. We have a pipeline, and it's in our pipeline table, kind of when the timings of those launches will be. They pace over several years. I believe the earliest probably starts in 2027. We're really rebuilding that pipeline at this point in time.

[David Martin, Analyst at Bloom Burton]

Are these a couple in Argentina over the next few months? Are they the first you've launched in a while, or have there been others in previous quarters?

[Samira Sakhia, President and CEO at Knight Therapeutics]

They're the first in a while. There's been a few that launched, but it would have been in smaller territories like Chile, which basically provides cash flow. It's opportunistic. It's a market access. It provides us a tool when it comes to market access and negotiating with accounts. Relatively small. Again, good for the business.

[David Martin, Analyst at Bloom Burton]

Okay. Last question. The XBIs moved up about 20% in third quarter. Knight's other financial assets were a little down. Can you walk us through the gifts and takes on that? I would have expected maybe your financial assets would have increased.

[Samira Sakhia, President and CEO at Knight Therapeutics]

I'm going to take a wing at it, and then maybe Arvind can add. Our portfolio is venture cap funds. A lot of those assets are private companies. We follow what the fund manager, the VC, is doing to account for the write-downs or the write-ups. In the case of the assets that are in that portfolio, we do take an increase or decrease based on how they are performing in the public markets. This quarter, we did have one of those assets on which there was a decline in the share price. We continue to monitor. It seems to be coming back. There may be a small write-up going into when we report Q4. Arvind, I'm not sure if you wanted to add anything.

[Arvind Utchanah, CFO at Knight Therapeutics]

Yes. That's correct. I would just add that some of the biotech do hold some public equities. That too has been very volatile, going up and down depending on the share price at the end of each quarter.

[David Martin, Analyst at Bloom Burton]

Okay. Thanks.

[Operator]

The next question comes from Michael Freeman. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Mr. Michael, please go ahead.

[Michael Freeman, Analyst at Raymond James]

Hi. Hi, again. Yeah. Thank you very much. Yeah. One follow-up. I just wanted to ask how we should be thinking about SG&A moving forward. Do we expect things to be stable through the end of the year? Also, should we expect a ramp through 2026 as you are launching your slate of products?

[Samira Sakhia, President and CEO at Knight Therapeutics]

What I can say is we are ready in a lot of launches. Over this year, multiple things have been changing along the way. We've added a whole lot of portfolio, a whole lot of products that are in. What we just signed needs promotion activities. As I said, in Q3, kind of due to integration, some of the activities were less than what would be normally in Q3. As we go into Q4, where there is a full field force that is out in Canada, you can expect a bit of a rise. Going into next year, and again, we don't guide towards quarters, but we have JORNAY PM. We have JORNAY PM will continue to be part of that. It's launched mid-Q4. We have MINJUVI launching in Argentina. We have TAVALISSE launching in Mexico. And we have new portfolios that we just licensed: ZYNYZ, Nektinvo.

[Samira Sakhia, President and CEO at Knight Therapeutics]

There will be pre-launch efforts behind both of those products. We have MINJUVI Follicular, which is a second indication for MINJUVI that will be launching some point next year in Brazil. We are building a great portfolio, and each one of these products requires investment.

[Scott McAuley, Analyst at Paradigm Capital]

Gotcha. Okay. Thank you very much for the color.

[Operator]

There are no further questions at this time. I will now turn the call over to Ms. Sakhia. Please continue.

[Samira Sakhia, President and CEO at Knight Therapeutics]

Thank you, Lilly. Once again, thank you for the confidence in the Knight team and joining our Q3 2025 conference call. Have a great morning.

[Operator]

Ladies and gentlemen, this concludes today's conference. You may now disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Arvind Utchanah, CFO
• Samira Sakhia, President and CEO
• Amal Khouri, Chief Business Officer

Analysts

• David Martin, Analyst at Bloom Burton
• Scott McAuley, Analyst at Paradigm Capital
• Michael Freeman, Analyst at Raymond James