Canada's Knight Therapeutics Q4 revenue beats estimates on acquisitions strength

Overview

• Canada specialty pharma firm's Q4 revenue rose 37% yr/yr, beating analyst expectations

• Adjusted EBITDA and cash flow from operations reached record highs for the year

• Growth driven by Paladin and Sumitomo acquisitions and key product expansion

Outlook

• Knight Therapeutics expects 2026 revenues between C$490 mln and C$510 mln

• Company sees 2026 adjusted EBITDA at approximately 15% of revenues

Result Drivers

• ACQUISITIONS - Revenue growth was primarily driven by incremental contributions from the Paladin and Sumitomo transactions

• KEY PROMOTED PRODUCTS - Growth of key promoted products contributed to higher revenue, especially in Oncology/Hematology and Neurology

• PRODUCT LAUNCHES - New product launches and expanded portfolio, including innovative assets in Canada and Latin America, supported revenue growth

Company press release: ID:nGNX6m1tmD

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Knight Therapeutics Inc is C$7.73, about 25.2% above its March 18 closing price of C$6.17

• The stock recently traded at 130 times the next 12-month earnings vs. a P/E of 255 three months ago

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