Knight Therapeutics Reports First Quarter 2026 Results

Increased 2026 revenue guidance from $510 million to $525 million  Achieved record-high quarterly revenues, Adjusted EBITDA1 and Adjusted EBITDA per share1 since inception MONTREAL, May 07, 2026 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a pan-American (ex-US) pharmaceutical company, today reported financial results for its first quarter ended March 31, 2026. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified. Q1-26 Highlights Financial Results - IFRS Revenues were $148,439, an increase of $60,363 or 69% over the same period in prior year. The increase was primarily driven by the incremental revenues from the Paladin and Sumitomo portfolios, the growth of our promoted products, and the purchasing patterns of certain products including Ambisome® deliveries to the MOH. Gross margin was $69,109 or 47% of revenues compared to $34,866 or 40% of revenues in the same period in prior year. The increase in gross margin % was driven by both a higher contribution of the Canadian business in Q1-26 compared to Q1-25 and the lower impact of hyperinflation2, partly offset by product mix including a higher proportion of Ambisome® deliveries to the MOH. Operating income was $10,578 compared to an operating loss of $5,537 in the same period in prior year. Net income was $13,169, compared to $2,185 in the same period in prior year. Net income per share was $0.13, compared to $0.02 in the same period in prior year. Generated cash inflow from operations of $40,694, and ended Q1-26 with over $125,000 in cash, cash equivalents and marketable securities. Financial Results - Non-GAAP Adjusted Revenues1 were $147,594, an increase of $59,615 or 68% over the same period in prior year, or $55,395 or 60% on a constant currency1 basis, primarily driven by the incremental revenues from the Paladin and Sumitomo portfolios, the growth of our promoted products, and the purchasing patterns of certain products including Ambisome® deliveries to the MOH. Adjusted Gross Margin1 was $70,648 or 48% of Adjusted Revenues1 compared to $40,934 or 47% of Adjusted Revenues1 in the same period in prior year.. The increase in the Adjusted Gross Margin1 % was driven by a higher contribution of the Canadian business in Q1-26 compared to Q1-25, partly offset by product mix including a higher proportion of Ambisome® deliveries to the MOH. Adjusted EBITDA1 was $27,917, an increase of $15,804 or 130% over the same period in prior year. Adjusted EBITDA per share1 was $0.28, an increase of $0.16 or 133% over the same period in prior year. Trailing Twelve Months Financial Results - Non-GAAP Adjusted Revenues1 for the trailing twelve months ending March 31, 2026 were $511,966, an increase of $144,370 or 39% over the same period in prior year. Corporate developments Executed an asset purchase agreement to acquire a manufacturing facility in Argentina. Amended previously announced NCIB to purchase up to 6,190,493 common shares of the Company up to August 21, 2026. In Q1-26, the Company purchased 1,323,200 common shares at an average price of $6.22 for aggregate cash consideration of $8,233. Repaid principal of $10,000 on the revolving credit facility, and ended Q1-26 with over $58,000 in bank loans. Products Executed certain agreements with two partners to return the Canadian commercial rights of six non‑core products in exchange for $21,500 (the "Settlement Agreements") and, in accordance with the Asset Purchase Agreement, paid Paladin $8,442 in April 2026 for the final settlement of the holdback. Submitted multiple products for regulatory approval across our territories: Niktimvo® (axatilimab) in Brazil. Supplemental indication of Minjuvi® (tafasitamab) for follicular lymphoma (FL) in Argentina and Mexico. Obtained regulatory approval and launched the following products: Supplemental indication of Minjuvi® (tafasitamab) for FL in Brazil. Bapocil® (palbociclib) in Colombia. Subsequent to quarter-end Launched Pemazyre® (pemigatinib) in Argentina. Launched Akynzeo® (netupitant/palonosetron/fosnetupitant/palonosetron) in Paraguay. Withdrew the Health Canada New Drug Submission for Qelbree® due to certain manufacturing changes by our partner. The Company expects to resubmit Qelbree® for approval at a later date. Purchased 119,200 common shares through Knight's NCIB at an average purchase price of $7.45 for an aggregate cash consideration of $888. Repaid $10,000 of principal of the Credit Facility, and reduced the outstanding principal balance to $20,000. Shareholders re-elected Jonathan Ross Goodman, Samira Sakhia, James C. Gale, Robert N. Lande, Michael J. Tremblay, Nicolás Sujoy, and Janice Murray on the Board of Directors. “I am pleased to announce that we continue to deliver record results and cash flows from our operations. For the quarter ended March 31, 2026, revenues were over $148 million, an increase of $60 million or 68%, and Adjusted EBITDA1 was $28 million, an increase of $16 million or 130%. Over the last 12 months we have generated over $500 million in revenues, which reflects the contributions from the growth of our promoted products, including over fifteen launches over the last two years, as well as the incremental revenues from the mature cash flow generating products we acquired last year,” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc. “In addition, we are increasing our forecast for fiscal 2026 and expect to deliver over $500 million in revenues, which is double the size of our business from five years ago.” ____________________________________ 1Adjusted Revenues, revenues at constant currency, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details. 2 Refers to the impact of hyperinflation due to the application of IAS 29 in Argentina. Refer to section - Hyperinflation for additional details. SELECT FINANCIAL RESULTS REPORTED UNDER IFRS [In thousands of Canadian dollars]               Change   Q1-26 Q1-25 $1 %2           Revenues 148,439   88,076   60,363   69%   Gross margin 69,109   34,866   34,243   98%   Gross margin % 47%   40%       Selling and marketing 20,321   13,924   (6,397 ) 46%   General and administrative 14,127   12,219   (1,908 ) 16%   Research and development 9,410   4,786   (4,624 ) 97%   Amortization of intangible assets 14,673   9,474   (5,199 ) 55%   Operating expenses 58,531   40,403   (18,128 ) 45%             Operating income (loss) 10,578   (5,537 ) 16,115   N/A              Net income for the period 13,169   2,185   10,984   503%   1 A positive variance represents a positive impact to net income and a negative variance represents a negative impact to net income. 2 Percentage change is presented in absolute values. Revenues: For the quarter ended March 31, 2026, revenues increased by $60,363 or 69% compared to the same period in prior year. Excluding IAS 291, the increase was $59,615 or 68% and $55,395 or 60% on a constant currency2 basis. The mature products of the Paladin and Sumitomo portfolios contributed $17,037 of incremental revenues. The remainder of the increase was due to the growth of our promoted products and the purchasing patterns of certain products including Ambisome® deliveries to the MOH which were $14,115 higher in Q1-26 compared to Q1-25. Excluding the sales of Ambisome® to the MOH, our promoted portfolio grew by $27,192 or 60%. The Company categorizes its revenues by product portfolio, as defined as follows: Promoted - Launched Pipeline Products: Promoted products currently in the early stage of launch, typically having been introduced to the market within the past five years. Promoted - Strategic Products: Promoted products that have reached, or are approaching, their peak potential, typically having been introduced to the market over five years ago. Mature: Products that require lower levels of promotional activity and/or have reached their peak potential. Discontinued: Products that the Company has stopped commercializing or is in the process of discontinuing.  Our revenues by product portfolio are as follows:           Change Product Portfolio Q1-26 Q1-251 $ % Promoted               Promoted - Launched Pipeline Products 15,336   2,466   12,870   522%   Promoted - Strategic Products 83,916   55,269   28,647   52%   Total Promoted 99,252   57,735   41,517   72%   Mature 47,026   29,819   17,207   58%   Discontinued 2,161   522   1,639   314%   Total Revenues 148,439   88,076   60,363   69%   1 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues. Promoted Portfolio: For the quarter ended March 31, 2026, the Promoted Portfolio increased by $41,517 or 72%. Excluding IAS 291, the Promoted Portfolio increased by $41,307 or 72%. The Launched Pipeline Products grew by $12,863 or 522%. Since January 2024, Knight has launched multiple products in multiple countries, including Minjuvi® for DLBCL in Brazil, Mexico and Argentina, Minjuvi® for FL in Brazil, Pemazyre® in Brazil and Mexico, Bapocil® in Colombia, and Imvexxy®, Bijuva®, Jornay PM®, Xcopri®, Myfembree® and Orgovyx® in Canada. The Strategic Products increased by $28,444 or 51% driven by growth of the portfolio, as well as purchasing patterns including the MOH purchases of Ambisome® which were $14,115 higher in Q1-26 compared to Q1-25. Excluding the MOH purchases of Ambisome®, the Strategic Products grew by $14,329 or 34%. Mature Portfolio: For the quarter ended March 31, 2026, the increase in the Mature portfolio was driven by incremental revenues from the Paladin and Sumitomo portfolios. Discontinued: For the quarter ended March 31, 2026, the Discontinued portfolio revenues increased $1,639 or 314%. The increase is due to certain agreements executed with two partners to return the Canadian commercial rights of six non core products in exchange for $21,500. Gross margin: For the quarter ended March 31, 2026, gross margin was $69,109 or 47% compared to $34,866 or 40% in Q1-25. Excluding the Hyperinflation Impact1, the Adjusted Gross Margin2 was $70,648 in Q1-26, an increase of $29,714 compared to Q1-25, due to the growth of revenues. The Adjusted Gross Margin2 as a % of Adjusted Revenues2, was 48% in Q1-26 compared to 47% in Q1-25. The increase was driven by the higher contribution of the Canadian business in Q1-26 compared to Q1-25, which generates a higher Adjusted Gross Margin2 as a % of Adjusted Revenues2, partly offset by product mix including a higher proportion of Ambisome® deliveries to the MOH. Selling and marketing (“S&M”) expenses: For the quarter ended March 31, 2026, S&M expenses increased by $6,397 or 46%. The increase was mainly driven by an expansion in our sales and commercial structure to support the Paladin portfolio, the recent launches in the Sumitomo portfolio and Jornay PM®, as well as the launch of Minjuvi® in Mexico. In addition to structure, the increase also included our promotion and marketing expenses for the brands acquired in the Paladin and Sumitomo portfolios including Orgovyx®, Myfembree®, Xcopri® and Envarsus®PA, as well as for the recently launched brands including Jornay PM® in Canada, Minjuvi® in Mexico and Argentina, Pemazyre® in Mexico and Brazil, and pre-launch activities including Tavalisse® in Mexico and Brazil. General and administrative (“G&A”) expenses: For the quarter ended March 31, 2026, G&A expenses increased by $1,908 or 16%. The increase was mainly due to an increase in our structure due to the addition of the Paladin and Sumitomo portfolios and higher spending on professional and consulting fees. Research and development (“R&D”) expenses: For the quarter ended March 31, 2026, R&D expenses increased by $4,624 or 97%. The increase was mainly due to the expansion of our scientific affairs structure including field‑based medical 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 development, regulatory, pre‑launch, and launch expenses on our pipeline and new launches, including Niktimvo®, Minjuvi®, Jornay PM®, Pemazyre®, Crexont® and Tavalisse®. Net Income For the quarter ended March 31, 2026, the net income was $13,169 compared to $2,185 for the same period in prior year. The variance was mainly driven by the above-mentioned items, as well as changes in amortization of intangible assets, net loss on financial assets measured at fair value through profit or loss, foreign exchange gain, gain on hyperinflation, interest income or expense, and income tax expense. ____________________________________ 1 Refers to the impact of hyperinflation due to the application of IAS 29 in Argentina. Refer to section - Hyperinflation for additional details. 2 Adjusted Revenues, revenues at constant currency and Adjusted Gross Margin are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-GAAP measures for additional details. SELECT BALANCE SHEET ITEMS [In thousands of Canadian dollars]                       Change As at March 31, 2026 December 31, 2025 $1 %2               Cash, cash equivalents and marketable securities 127,290   95,283   32,007   34%   Trade and other receivables 196,343   178,598   17,745   10%   Inventories 141,918   135,866   6,052   4%   Financial assets 94,717   98,430   (3,713 ) 4%   Intangible assets 354,037   379,510   (25,473 ) 7%   Accounts payable and accrued liabilities 153,114   125,755   27,359   22%   Bank loans 58,639   67,895   (9,256 ) 14%   1 A positive variance represents a positive impact to net assets and a negative variance represents a negative impact to net assets. 2 Percentage change is presented in absolute values. Cash, cash equivalents and marketable securities: As at March 31, 2026, Knight had $127,290 in cash, cash equivalents and marketable securities, an increase of $32,007 or 34%, compared to December 31, 2025. The increase is mainly driven by operating cash inflows of $40,694 and proceeds of $17,000 from the return of the Canadian commercial rights for certain non-core products. These increases were partly offset by principal repayments of bank loans of $11,329, the repurchase of common shares under the NCIB of $8,237, investment in intangible assets of $4,152, and the acquisition of a manufacturing facility in Argentina of $2,950. Trade and other receivables: As at March 31, 2026, trade and other receivables were $196,343, an increase of $17,745 or 10%, compared to December 31, 2025, due to the growth across our portfolio including the timing of deliveries of Ambisome® to the MOH, as well as the receivable of $4,500 remaining under the Settlement Agreements. The amount is expected to be collected in H2-26. Inventories: As at March 31, 2026, inventories were $141,918, an increase of $6,052 or 4%, compared to December 31, 2025, primarily due to the timing of purchases and foreign exchange revaluation, partly offset by sales during the period. Financial assets: As at March 31, 2026, financial assets were $94,717, a decrease of $3,713 or 4%, compared to December 31, 2025. This decrease was driven by a decrease in equity investments of $3,055 mainly due to the revaluation of our publicly traded equity investments and the disposal of certain equities during the period, as well as a decrease in fund investments of $658, which included a decrease in fair value of $350 and a return of capital of $308. Intangible assets: As at March 31, 2026, intangible assets were $354,037, a decrease of $25,473 or 7%, compared to December 31, 2025, primarily due to the derecognition of intangible assets in connection with the Settlement Agreements, as well as amortization, partly offset by the appreciation of USD vs CAD. Accounts payable and accrued liabilities: As at March 31, 2026, accounts payable and accrued liabilities were $153,114, an increase of $27,359 or 22%, compared to December 31, 2025, mainly driven by the timing of purchases of inventory. Bank Loans: As at March 31, 2026, bank loans were $58,639, a decrease of $9,256 or 14%, compared to December 31, 2025, primarily driven by the repayment of $10,000 on the revolving credit facility. Corporate Updates Revolving Credit Facility In June 2025, the Company withdrew $60,000 from the revolving credit facility to fund a portion of the Paladin Transaction. To date, Knight has repaid $40,000 of the credit facility through the use of the free cash flows generated from operations. The principal balance was repaid as follows: (1) $20,000 in December 2025, (2) $10,000 in February 2026, and (3) $10,000 in April 2026, resulting in an outstanding balance of $20,000.    Product Updates Return of commercial rights In March 2026, Knight executed certain agreements with two partners to return the Canadian commercial rights of six non-core products in exchange for $21,500 ("Settlement Agreements"). These products generated revenues of $7,5271 in 2025. In accordance with the Asset Purchase Agreement of the Paladin Transaction, as a final and full settlement, Knight paid $8,442 in April 2026 of the Settlement Agreement holdback to Paladin. Minjuvi® (tafasitamab) In Q1-26, Knight obtained regulatory approval and launched the supplemental indication of Minjuvi® in combination with rituximab and lenalidomide for the treatment of adult patients with previously treated FL in Brazil. In addition, Knight filed supplemental applications for this second indication in Argentina and Mexico in Q1-26. Niktimvo® (axatilimab) In Q1-26, Knight announced the submission of Niktimvo® for regulatory approval in Brazil, for the treatment of chronic graft-versus-host disease (cGVHD) after failure of at least two prior lines of systemic therapy in adult and pediatric patients weighing at least 40 kg. Pemazyre® (pemigatinib) Subsequent to Q1-26, Knight launched Pemazyre® in Argentina, as monotherapy, for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement which has progressed following at least one prior line of systemic therapy. Akynzeo® (netupitant/palonosetron/fosnetupitant/palonosetron) In April 2026, Knight launched Akynzeo® in Paraguay in combination with dexamethasone, for the prevention of acute and delayed nausea and vomiting associated with moderately to highly emetogenic chemotherapy. Bapocil® (palbociclib) In Q1-26, Knight obtained regulatory approval and launched Bapocil® in Colombia. Bapocil®, in combination with endocrine therapy, is indicated for the treatment of patients with metastatic or advanced breast cancer that is hormone receptor positive and HER2-negative, in combination with: an aromatase inhibitor as initial endocrine-based therapy, in post-menopausal women; or with fulvestrant, in patients with disease progression after endocrine therapy. Qelbree® (viloxazine) Subsequent to quarter-end, Knight withdrew the Health Canada New Drug Submission for Qelbree® due to certain manufacturing changes by our partner. Knight expects to resubmit Qelbree® for approval at a later date. The submission is expected to include both the data required for the manufacturing changes as well as the additional information previously requested by Health Canada in the Notice of Non-Compliance issued in Q4-25. ____________________________________ 1 For certain products, revenues include $3,247 generated by Paladin Pharma Inc. between January 1 and June 17, 2025. Financial Outlook1 For fiscal 2026, Knight has increased its financial guidance on revenues and now expects to generate between $510 million to $525 million in revenues, up from $490 million to $510 million. The adjusted EBITDA2 is expected to be approximately 15% of revenues. The increase in our revenues outlook is primarily due to better performance of our promoted products across multiple countries including Canada, Mexico and Colombia as well as an improvement in forecasted LATAM currencies against the Canadian dollar. The guidance is based on a number of assumptions, including but not limited to the following: no material impact on revenues due to the application of hyperinflation accounting for Argentina no revenues for business development transactions not completed as at May 6, 2026 no unforeseen termination to our license, distribution and supply agreements no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues no material impact from changes in tariffs, trade barriers, or custom duties no material adverse impact from wars, armed conflicts, or geopolitical hostilities no new generic entrants on our key pharmaceutical brands no unforeseen changes to government mandated pricing regulations successful commercial execution on product listing arrangements with HMOs, insurers, key accounts, and public payers successful execution and uptake of newly launched products no material increase in provisions for inventory or trade receivables no significant variations of forecasted foreign currency exchange rates inflation remaining within forecasted ranges Should any of the assumptions differ, the financial outlook and the actual results may vary materially. Refer to the risks and assumptions referred to in the Forward-Looking Statements section of this news release for further details. ____________________________________ 1 This forward looking information is based on assumptions specific to the nature of the Company’s activities with regard to annual revenue growth considering industry information, expected market share, pricing assumptions, actions of competitors, sales erosion rates after the end of patent or other intellectual property rights protection, the timing of the entry of generic competition, the expected results of tenders, among other variables. 2Adjusted EBITDA is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section Financial Results under Non-GAAP measures for additional details. ConferenceCall Notice  Knight will host a conference call and audio webcast to discuss its first quarter ended March 31, 2026, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call. Date: Thursday, May 7, 2026 Time: 8:30 a.m. ET Telephone: Toll Free: 1-888-699-1199 or International 1-416-945-7677 Webcast: www.knighttx.com or Webcast This is a listen-only audio webcast. Media Player is required to listen to the broadcast. Replay: An archived replay will be available for 30 days at www.knighttx.com About Knight Therapeutics Inc.  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 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. 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, 2025 as filed on www.sedarplus.ca. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information or future events, except as required by law. CONTACT INFORMATION: Investor Contact:     Knight Therapeutics Inc.     Samira Sakhia   Arvind Utchanah President & Chief Executive Officer   Chief Financial Officer T: 514.484.4483   T. +598.2626.2344 F: 514.481.4116     Email: [email protected]   Email: [email protected] Website: www.knighttx.com   Website: www.knighttx.com       HYPERINFLATION The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company’s Argentine subsidiary uses the Argentine Peso as its functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is that of a hyperinflationary economy be adjusted based on an appropriate general price index to reflect the effects of inflation. After applying for the effects of hyperinflation, the statement of income (loss) is converted using the closing foreign exchange rate of the month. Revenues and operating expenses in the local currency, i.e. ARS, are restated from the month of the sales or the month in which the expense was incurred to the end of the reporting period using the inflation index during that period. The restatement calculation is performed on a year to date basis based on IAS 29 ("Inflation Adjusted Figures"). For the three-month period ended March 31, 2026 and 2025, the Company applied the following inflation index for the restatement of each respective month.   January February March 2026 1.06 1.03 1.00 2025 1.06 1.04 1.00         Under IAS 29, the translation from the local currency, to the reporting currency is performed on the Inflation Adjusted Figures using the end of period rate at the reporting date. The Inflation Adjusted Figures were converted to CAD using the following quarter-end closing rates for each of the respective periods.   Q1-26 Q1-25 Q4-25 Q4-24 ARS 999 746 1,059 717   Q1-26 Q1-25 ARS Variation %1 6% (4)% 1 Appreciation (depreciation) of ARS vs CAD during each period, calculated as follows: (End of period rate - Beginning of period rate) / Beginning of period rate. In Q1‑26, Argentina experienced both inflation and an appreciation of the ARS, resulting in higher amounts when restated into CAD. For example, revenues generated and operating expenses incurred in January 2026 were restated by applying an inflation index of 6% while the ARS appreciated by 6% against the CAD during the same period. As a result, revenues and operating expenses reported under IAS 29 were higher in CAD. By contrast, in Q1‑25, although inflation was at a level comparable to that of Q1‑26, the ARS depreciated at a similar rate. Consequently, the impact of the hyperinflation adjustments on revenues and operating expenses was not significant when reported under IAS 29 in CAD. Therefore, the hyperinflation accounting under IAS 29 resulted in higher reported revenues and operating expenses for the Company's subsidiary in Argentina in CAD in Q1-26 when compared to the same period in prior year ("Hyperinflation Impact"). Under hyperinflation accounting, cost of goods sold in the local currency, i.e. ARS, is restated using the inflation index from the purchase or manufacturing date to the end of the reporting period and converted to CAD using the respective quarter-end closing rates. In Q1-26, the cumulative inflation index applied on the inventory sold was lower than the prior year period, leading to lower cost of goods sold reported under IAS 29 in CAD and consequently a higher gross margin in Q1-26 compared to the same period in prior year. FINANCIAL RESULTS UNDERNON-GAAP MEASURES [In thousands of Canadian dollars] The Company discloses non-GAAP measures and ratios that do not have standardized meanings prescribed by IFRS. The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company’s financial performance. Non-GAAP financial measures and adjusted EBITDA per share ratio do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies. The Company uses the following non-GAAP measures. [i] Financial results excluding the impacts of hyperinflation under IAS 29 The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiary uses the Argentine Peso as their functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation. Financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The impact of hyperinflation under IAS 29 is calculated by applying an appropriate general price index to express the effects of inflation. After applying the effects of translation, the statement of income is converted using the closing foreign exchange rate of the month. The Company believes that financial results excluding the impact of hyperinflation under IAS 29 represents a useful measure to investors as they allow results to be viewed without those impacts, thereby facilitating the comparison of results period over period. The presentation of financial results excluding the impact of hyperinflation under IAS 29 is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. The following tables are reconciliations of financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.   Q1-26 Q1-25   Reported under IFRS IAS 29 Adjustment Excluding the Impacts of IAS 29 Reported under IFRS IAS 29 Adjustment Excluding the Impact of IAS 29                 Revenues 148,439   (845 ) 147,594   88,076   (97 ) 87,979   Cost of goods sold 79,330   (2,384 ) 76,946   53,210   (6,165 ) 47,045   Gross margin 69,109   1,539   70,648   34,866   6,068   40,934   Gross margin (%) 47%     48%   40%     47%                 Expenses             Selling and marketing 20,321   (130 ) 20,191   13,924   (84 ) 13,840   General and administrative 14,127   (234 ) 13,893   12,219   (635 ) 11,584   Research and development 9,410   (71 ) 9,339   4,786   22   4,808   Amortization of intangible assets 14,673   218   14,891   9,474   (2 ) 9,472   Operating income (loss) 10,578   1,756   12,334   (5,537 ) 6,767   1,230   Select financial results excluding the impact of hyperinflation under IAS 291       Change   Q1-26 Q1-25 $ %           Adjusted Revenues1,2 147,594   87,979   59,615   68%   Cost of goods sold 76,946   47,045   (29,901 ) 64%   Gross margin 70,648   40,934   29,714   73%   Gross margin (%) 48%   47%                 Expenses         Selling and marketing 20,191   13,840   (6,351 ) 46%   General and administrative 13,893   11,584   (2,309 ) 20%   Research and development 9,339   4,808   (4,531 ) 94%   Amortization of intangible assets 14,891   9,472   (5,419 ) 57%   Operating income 12,334   1,230   11,104   903%             Adjusted EBITDA1 27,917   12,113   15,804   130%   Adjusted EBITDA1 (%) 19%   14%       Adjusted EBITDA per share1 0.28   0.12   0.16   133%   1 Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are non-GAAP measures and do nothave any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues1 by Product Portfolio           Change Product Portfolio Q1-26 Q1-252 $ % Promoted               Promoted - Launched Pipeline Products 15,329   2,466   12,863   522%   Promoted - Strategic Products 83,685   55,241   28,444   51%   Total Promoted 99,014   57,707   41,307   72%   Mature 46,434   29,751   16,683   56%   Discontinued 2,146   521   1,625   312%   Total Adjusted Revenues 147,594   87,979   59,615   68%   1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues.   Adjusted Revenues1 by Therapeutic Area           Change Therapeutic Area Q1-26 Q1-252 $ % Oncology/Hematology 39,554   31,676   7,878   25%   Infectious Diseases 55,079   36,441   18,638   51%   Neurology 30,227   12,482   17,745   142%   Other Specialty 22,734   7,380   15,354   208%   Total 147,594   87,979   59,615   68%   1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues.   [ii] Financial results at constant currency Financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods. The Company believes that financial results at constant currency represents a useful measure to investors because it eliminates the effect that foreign currency exchange rate fluctuations may have on period-to-period comparability given the volatility in foreign currency exchange markets and therefore, provides greater transparency to the underlying performance of our consolidated financial results. The presentation of revenues and financial results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. The following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.   Q1-26 Q1-25 Change   Excluding the impact of IAS 291 Excluding the impact of IAS 291 Constant Currency Adjustment Constant Currency $ %                 Adjusted Revenues2 147,594   87,979   4,220   92,199   55,395   60%   Cost of goods sold 76,946   47,045   2,258   49,303   27,643   56%   Gross margin 70,648   40,934   1,962   42,896   27,752   65%   Gross margin (%) 48%   47%     47%                         Expenses               Selling and marketing 20,191   13,840   503   14,343   5,848   41%   General and administrative 13,893   11,584   142   11,726   2,167   18%   Research and development 9,339   4,808   143   4,951   4,388   89%   Amortization of intangible assets 14,891   9,472   (360 ) 9,112   5,779   63%   Operating income 12,334   1,230   1,534   2,764   9,570   346%                   Adjusted EBITDA2 27,917       13,295   14,622   110%   Adjusted EBITDA2 (%) 19%       14%         Adjusted EBITDA per share2 0.28       0.13   0.15   113%   1Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 2Adjusted Revenues, EBITDA, Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.   Adjusted Revenues at Constant Currency2 by Product Portfolio   Three-month period ended March 31,   Excluding impact of IAS 291       Constant Currency2       Product Portfolio 2026 20253 $ % Promoted               Promoted - Launched Pipeline Products 15,329   2,547   12,782   502%   Promoted - Strategic Products 83,685   58,484   25,201   43%   Total Promoted 99,014   61,031   37,983   62%   Mature 46,434   30,643   15,791   52%   Discontinued 2,146   525   1,621   309%   Total Adjusted Revenues 147,594   92,199   55,395   60%   1Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 2 Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 3Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues.   Adjusted Revenues at Constant Currency2 by Therapeutic Area   Three-month period ended March 31,   Excluding impact of IAS 291       Constant Currency2       Innovative 2026 20253 $ % Oncology/Hematology 39,554   33,319   6,235   19%   Infectious Diseases 55,079   38,084   16,995   45%   Neurology 30,227   13,299   16,928   127%   Other Specialty 22,734   7,497   15,237   203%   Total 147,594   92,199   55,395   60%   1Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 2 Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 3 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues.   [iii] Adjusted Gross Margin Adjusted Gross Margin is defined as revenues less cost of goods sold, adjusted for the impact of IAS 29. The Company believes that Adjusted Gross Margin represents a useful measure to investors to assess Gross Margin without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of Adjusted Gross Margin is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.       Change   Q1-26 Q1-25 $ % Gross margin 69,109   34,866   34,243   98%   Adjustments to gross margin:         Impact of IAS 29 1,539   6,068           Adjusted Gross Margin 70,648   40,934   29,714   73%   Adjusted Gross Margin (%)1 48 % 47 %     1 Adjusted Gross Margin as a percentage of Adjusted Revenues.   [iv] EBITDA EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of non-current assets, depreciation, but to include costs related to leases. The Company believes that EBITDA represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. [v] Adjusted EBITDA Adjusted EBITDA is defined as EBITDA adjusted for the impact of IAS 29 (accounting under hyperinflation), acquisition and transaction costs and non-recurring expenses. The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:       Change   Q1-26 Q1-25 $ % Operating income (loss) 10,578   (5,537 ) 16,115   N/A  Adjustments to operating income (loss):         Amortization of intangible assets 14,673   9,474   5,199   55%   Depreciation of property, plant and equipment and ROU assets 1,519   2,110   (591 ) 28%   Lease payments (1,206 ) (1,122 ) (84 ) 7%   EBITDA 25,564   4,925   20,639   419%   Impact of IAS 29 1,807   6,146   (4,339 ) 71%   Acquisition and transaction costs 114   1,042   (928 ) 89%   Other non-recurring expenses 432   —   432   —%   Adjusted EBITDA 27,917   12,113   15,804   130%   Adjusted EBITDA per share 0.28   0.12   0.16   133%             For the quarter ended March 31, 2026, adjusted EBITDA increased by $15,804 or 130%. The increase was mainly driven by higher Adjusted Gross Margin, partly offset by higher operating expenses. Refer to Section 3 - Results of Operations of the MD&A for further details. Explanation of adjustments from EBITDA to Adjusted EBITDA Impact of IAS 29 Impact of hyperinflation accounting under IAS 29 over the operating income (loss). Acquisition and transaction costs Non-capitalizable acquisition and transaction costs relate to costs incurred on legal, consulting and advisory fees for the acquisitions. Other non-recurring expenses Other non-recurring expenses relate to expenses incurred by the Company that are not due to, and are not expected to occur in, the ordinary course of business. [vi] Adjusted EBITDA per share Adjusted EBITDA per share is defined as Adjusted EBITDA divided by the number of common shares outstanding at the end of the respective period. The Company believes that Adjusted EBITDA per share represents a useful measure to investors to assess profitability and measure the Company's ability to generate liquidity through operating activities on a per common share basis, without the impact of hyperinflation under IAS 29, acquisition and transaction costs and non-recurring expenses, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. The Company calculated adjusted EBITDA per share as follows:   Q1-26   Q1-25   Adjusted EBITDA 27,917   12,113   Adjusted EBITDA per share 0.28   0.12   Number of common shares outstanding at period end (in thousands) 98,252   99,448   INTERIM CONSOLIDATED BALANCE SHEETS [In thousands of Canadian dollars] [Unaudited]             As at March 31, 2026   December 31, 2025   ASSETS         Current         Cash and cash equivalents 108,048   76,449   Marketable securities 19,242   18,834   Trade receivables 141,403   127,775   Other receivables 10,019   6,063   Inventories 141,918   135,866   Prepaids and deposits 5,240   6,505   Other current financial assets 15,891   18,946   Income taxes receivable 5,190   4,397   Total current assets 446,951   394,835             Prepaids and deposits 9,506   8,883   Right-of-use assets 11,136   9,919   Property, plant and equipment 19,235   12,006   Intangible assets 354,037   379,510   Goodwill 95,309   89,982   Other financial assets 78,826   79,484   Deferred tax assets 26,679   26,921   Other long-term receivables 44,921   44,760   Total non-current assets 639,649   651,465   Total assets 1,086,600   1,046,300   INTERIM CONSOLIDATED BALANCE SHEETS (continued) [In thousands of Canadian dollars] [Unaudited]            As at March 31, 2026   December 31, 2025             LIABILITIES AND SHAREHOLDERS' EQUITY         Current         Accounts payable and accrued liabilities 147,327   120,868   Lease liabilities 3,698   3,398   Other liabilities 14,664   12,878   Bank loans 17,911   16,730   Income taxes payable 252   580   Other balances payable 8,597   10,806   Total current liabilities 192,449   165,260             Accounts payable and accrued liabilities 5,787   4,887   Lease liabilities 7,438   6,618   Bank loans 40,728   51,165   Other balances payable 49,763   48,105   Deferred tax liabilities 3,161   2,993   Total liabilities 299,326   279,028             Shareholders’ equity         Share capital 525,533   530,140   Contributed surplus 30,651   32,449   Accumulated other comprehensive income 70,252   55,741   Retained earnings 160,838   148,942   Total shareholders’ equity 787,274   767,272   Total liabilities and shareholders’ equity 1,086,600   1,046,300   INTERIM CONSOLIDATED STATEMENTS OF INCOME [In thousands of Canadian dollars, except for share and per share amounts] [Unaudited]       Three months ended March 31,     2026   2025         Revenues 148,439   88,076   Cost of goods sold 79,330   53,210   Gross margin 69,109   34,866   Gross margin % 47%   40%         Expenses     Selling and marketing 20,321   13,924   General and administrative 14,127   12,219   Research and development 9,410   4,786   Amortization of intangible assets 14,673   9,474   Operating income (loss) 10,578   (5,537 )       Interest income on financial instruments measured at amortized cost (952 ) (1,854 ) Interest expense 2,641   1,756   Other (income) expense (4,174 ) 140   Net loss on financial assets measured at fair value through profit or loss 2,033   945   Foreign exchange gain (2,437 ) (5,551 ) Gain on hyperinflation (715 ) (574 ) Income (loss) before income taxes 14,182   (399 )       Income taxes     Current 183   535   Deferred 830   (3,119 ) Income tax expense (recovery) 1,013   (2,584 ) Net income for the period 13,169   2,185               Basic and diluted net income per share 0.13   0.02   Weighted average number of common shares outstanding 98,457,286   99,641,300   INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS [In thousands of Canadian dollars] [Unaudited]       Three months ended March 31,     2026   2025   OPERATING ACTIVITIES     Net income for the period 13,169   2,185   Adjustments reconciling net income to operating cash flows:     Deferred income tax expense (recovery) 830   (3,119 ) Share-based compensation expense 1,381   1,012   Depreciation and amortization 16,192   11,584   Net loss on financial assets measured at fair value through profit or loss 2,033   945   Interest expense 2,641   1,756   Accrued interest income (110 ) 78   Unrealized foreign exchange loss 1,254   1,330   Other income (4,174 ) —   Gain on hyperinflation (715 ) (574 )   32,501   15,197   Changes in non-cash working capital and other items 8,193   (11,527 ) Cash inflow from operating activities 40,694   3,670         INVESTING ACTIVITIES     Purchase of marketable securities (8,836 ) (6,857 ) Purchase of intangible assets (4,152 ) (3,328 ) Purchase of property and equipment (3,326 ) (373 ) Investment in funds (434 ) (107 ) Proceeds on maturity of marketable securities 8,750   39,637   Proceeds from return of commercial rights 17,000   —   Proceeds from sale of property and equipment —   30   Proceeds from disposal of equity investments 1,078   —   Proceeds from distribution of funds 402   3,124   Cash inflow from investing activities 10,482   32,126         FINANCING ACTIVITIES     Proceeds from contributions to share purchase plan 112   114   Proceeds from bank loans —   1,809   Repurchase of common shares through Normal Course Issuer Bid (8,237 ) (3,345 ) Principal repayment of lease liabilities (1,206 ) (1,122 ) Principal repayment of bank loans (11,329 ) (1,586 ) Interest paid on bank loans (649 ) (569 ) Cash outflow from financing activities (21,309 ) (4,699 )       Increase in cash and cash equivalents during the period 29,867   31,097   Cash and cash equivalents, beginning of the period 76,449   80,106   Effect of exchange rate changes on cash and cash equivalents 1,732   952   Cash and cash equivalents, end of the period 108,048   112,155         Cash and cash equivalents 108,048   112,155   Marketable securities 19,242   29,350   Total cash, cash equivalents and marketable securities 127,290   141,505