Knight Therapeutics Reports Second Quarter 2026 Results

Increased 2026 guidance and expect revenues of $540 million to $560 million Achieved six month record-high revenues of $293 million and Adjusted EBITDA 1 of $52 million MONTREAL, Aug. 06, 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 second quarter ended June 30, 2026. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified. Q2-26 Highlights Financial Results - IFRS Revenues were $144,212, an increase of $36,854 or 34% over the same period in the prior year. The increase was primarily driven by the growth of our promoted products, incremental revenues from mature products added from the Paladin and Sumitomo transactions, and the appreciation of select LATAM currencies. Gross margin was $69,615 or 48% of revenues compared to $44,831 or 42% of revenues in the same period in prior year. The increase in gross margin % was driven by a higher contribution of the Canadian business and the lower impact of hyperinflation 2 . Operating income was $8,960 compared to an operating loss of $3,669 in the same period in prior year. Net loss was $3,361, compared to a net loss of $12,622 in the same period in prior year. Net loss per share was $0.03, compared to a net loss per share of $0.13 in the same period in prior year. Generated cash inflow from operations of $29,523. Financial Results - Non-IFRS Adjusted Revenues 1 were $143,969, an increase of $35,428 or 33% over the same period in the prior year, or $25,538 or 22% on a constant currency 1 basis, primarily driven by the growth of our promoted products and incremental revenues from mature products added from the Paladin and Sumitomo transactions. Adjusted Gross Margin 1 was $70,471 or 49% of Adjusted Revenues 1 compared to $49,431 or 46% of Adjusted Revenues 1 in the same period in prior year. The increase in the Adjusted Gross Margin 1 % was driven by a higher contribution of the Canadian business. Adjusted EBITDA 1 was $24,569, an increase of $9,062 or 58% over the same period in prior year. Adjusted EBITDA per share 1 was $0.25, an increase of $0.09 or 61% over the same period in prior year. Corporate developments Purchased 129,400 common shares through Knight's NCIB at an average purchase price of $7.45 for an aggregate cash consideration of $964. Repaid the revolving credit facility used to finance the Paladin Transaction within one year of the acquisition. 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. Products Obtained regulatory approval for Tavalisse ® (fostamatinib disodium hexahydrate) in Brazil. Executed on 4 commercial launches across our territories: Molapib ® (olaparib) in Argentina. Pemazyre ® (pemigatinib) in Argentina. Akynzeo ® (netupitant/palonosetron/fosnetupitant/palonosetron) in Paraguay. Tavalisse ® (fostamatinib disodium hexahydrate) in Mexico. 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. Entered into a supply and distribution agreement with Eton Pharmaceuticals, Inc. for the commercialization of Impavido ® (miltefosine) in the United States. Subsequent to quarter-end Hired Cristina Viayna as Global Vice President, Marketing. Received a Notice of Non-Compliance from Health Canada requesting additional information for its New Drug Submission for Crexont ® (carbidopa and levodopa) extended-release capsules. Knight will work with its partner to prepare a response to Health Canada. “I am pleased to announce that we have delivered strong revenue growth and cash flow from operations. For the quarter ended June 30, 2026, revenues grew by 34% to $144 million and adjusted EBITDA 1 by 58% to over $24 million. This strong performance is the result of our commercial execution driving the growth of our promoted portfolio which increased by over $21 million or 30% in the second quarter, coming from our seventeen launches over the last two and a half years including four launches in the second quarter. I am also excited to announce that we are raising our financial outlook for fiscal 2026 and expect to deliver revenues between $540 million to $560 million. The momentum of our promoted products, the strength of our diversified portfolio and healthy cash flows from operations, position us well to continue executing on our mission of acquiring, in-licensing, developing and commercializing pharmaceutical products in Latin America and Canada.” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc. ______________________________ 1 Adjusted Revenues, revenues on a constant currency basis, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA per share are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to Section 7 - Financial Results under Non-IFRS 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 Change Q2-26 Q2-25 $ 1 % 2 YTD-26 YTD-25 $ 1 % 2 Revenues 144,212 107,358 36,854 34% 292,651 195,434 97,217 50% Gross margin 69,615 44,831 24,784 55% 138,724 79,697 59,027 74% Gross margin % 48% 42% 47% 41% Selling and marketing 21,854 15,674 (6,180 ) 39% 42,175 29,598 (12,577 ) 42% General and administrative 14,781 15,814 1,033 7% 28,908 28,033 (875 ) 3% Research and development 10,561 6,281 (4,280 ) 68% 19,971 11,067 (8,904 ) 80% Amortization of intangible assets 13,459 10,731 (2,728 ) 25% 28,132 20,205 (7,927 ) 39% Operating expenses 60,655 48,500 (12,155 ) 25% 119,186 88,903 (30,283 ) 34% Operating income (loss) 8,960 (3,669 ) 12,629 N/A 19,538 (9,206 ) 28,744 N/A Net (loss) income for the period (3,361 ) (12,622 ) 9,261 N/A 9,808 (10,437 ) 20,245 N/A 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 June 30, 2026, revenues increased by $36,854 or 34% compared to the same period in prior year. On a constant currency 1 basis, the increase in revenues was $25,538 or 22%, driven by the following: The promoted portfolio grew by $13,447 or 17%; excluding the sales of Ambisome ® to the MOH, the promoted portfolio grew by $22,800 or 38%. This growth was mainly driven by Jornay PM ® , Xcopri ® , Orgovyx ® , Myfembree ® , Imvexxy ® , Cresemba ® , Minjuvi ® , Lenvima ® , Pemazyre ® and Palbocil ® , offset by the purchasing patterns of certain customers. According to IQVIA, the sales of Xcopri ® , Orgovyx ® and Myfembree ® , the launched pipeline products acquired in 2025, were $12,913 in Q2-26 compared to $4,665 in Q2-25, a growth of 177%. The sales of Ambisome ® to the MOH decreased by $9,353 in Q2-26 compared to Q2-25. The mature portfolio grew by $11,525 or by 32% driven by the addition of mature products from the Paladin and Sumitomo transactions. Our revenues by product portfolio are as follows: ______________________________ 1 Revenues on a constant currency basis is a Non-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-IFRS measures for additional details. Change Product Portfolio Q2-26 Q2-25 1 $ % Promoted Launched Pipeline Productsa 18,510 4,435 14,075 317% Strategic Productsb 76,438 68,857 7,581 11% Total Promoted 94,948 73,292 21,656 30% Maturec 48,060 33,443 14,617 44% Discontinuedd 1,204 623 581 93% Total Revenues 144,212 107,358 36,854 34% Definitions a: Promoted products currently in the early stage of launch, typically having been introduced to the market within the past five years. b: Promoted products that have reached, or are approaching, their peak potential, typically having been introduced to the market over five years ago. c: Products that require lower levels of promotional activity and/or have reached their peak potential. d: Products that the Company has stopped commercializing or is in the process of discontinuing. 1 Comparative figures have been reclassified to align with the three-month period ended June 30, 2026 reporting presentation. These reclassifications had no impact on total revenues. Promoted Portfolio: For the quarter ended June 30, 2026, the Promoted Portfolio increased by $21,656 or 30% or by $13,447 or 17% on a constant currency 1 basis, driven by: The Launched Pipeline Products grew by $13,836 or 297%. Since January 2024, Knight has executed 17 launches, including Minjuvi ® for DLBCL in Brazil, Mexico and Argentina, Minjuvi ® for FL in Brazil, Pemazyre ® in Brazil, Mexico and Argentina, Bapocil ® in Colombia, Akynzeo ® in Paraguay, Molapib ® in Argentina, Tavalisse ® in Mexico and Imvexxy ® , Bijuva ® , Jornay PM ® , Xcopri ® , Myfembree ® and Orgovyx ® in Canada. The Strategic products decreased by $389 or 1% in Q2-26. Excluding the sales of Ambisome ® to MOH, the Strategic Products grew by $8,964 or 16%. This growth was driven by our promoted strategic products including Cresemba ® , Lenvima ® , Akynzeo ® and Envarsus ® PA. The sales of Ambisome ® to MOH were $9,353 lower in Q2-26 compared to Q2-25. Mature Portfolio: For the quarter ended June 30, 2026, the Mature Portfolio increased by $14,617 or 44%, driven by the addition of mature products from the Paladin and Sumitomo transactions. Gross margin: For the quarter ended June 30, 2026, gross margin was $69,615 or 48%, compared to $44,831 or 42% in Q2-25. Excluding the Gross Margin Hyperinflation Impact 1 , the Adjusted Gross Margin 1 was $70,471 in Q2-26, an increase of $21,040 compared to Q2-25, due to the growth of revenues. The Adjusted Gross Margin 1 as a % of Adjusted Revenues 1 , was 49% in Q2-26 compared to 46% in Q2-25. The increase was driven by the higher contribution of the Canadian business in Q2-26 compared to Q2-25. Selling and marketing (“S&M”) expenses: For the quarter ended June 30, 2026, S&M expenses increased by $6,180 or 39% and by $4,690 or 27% on a constant currency 1 basis. The increase was mainly driven by an expansion in our sales and commercial structure to support the larger Canadian portfolio, the recent launches of Jornay PM ® , Xcopri ® , Myfembree ® and Orgovyx ® , as well as the launches of Minjuvi ® and Tavalisse ® in Mexico. In addition to structure, the increase also included our promotion and marketing expenses for 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, Brazil and Argentina, Tavalisse ® in Mexico and pre-launch activities including Tavalisse ® in Brazil. ______________________________ 1 Adjusted Revenues, Adjusted Gross Margin, revenues and financial results on a constant currency basis, are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-IFRS 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. General and administrative (“G&A”) expenses: For the quarter ended June 30, 2026, G&A expenses decreased by $1,033 or 7% and by $1,689 or 10% on a constant currency 1 basis. The decrease was mainly driven by the acquisition and transaction costs of $3,430 related to the Paladin Transaction incurred in Q2-25, partly offset by an increase in our structure following the addition of the Paladin and Sumitomo portfolios, as well as higher spending on professional and consulting fees. Research and development (“R&D”) expenses: For the quarter ended June 30, 2026, R&D expenses increased by $4,280 or 68% and by $3,748 or 55% on a constant currency 1 basis. The increase was mainly due to the expansion of our scientific affairs structure including field‑based medical personnel related to the larger Canadian portfolio. 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 Gemtesa ® , Jornay PM ® , Crexont ® , Niktimvo ® and Tavalisse ® . Net Loss For the quarter ended June 30, 2026, the net loss was $3,361 compared to $12,622 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 loss, gain on hyperinflation, interest expense, and income tax expense. SELECT BALANCE SHEET ITEMS [In thousands of Canadian dollars] Change As at June 30, 2026 December 31, 2025 $ 1 % 2 Cash, cash equivalents and marketable securities 109,600 95,283 14,317 15% Trade and other receivables 183,146 178,598 4,548 3% Inventories 144,572 135,866 8,706 6% Financial assets 81,395 98,430 (17,035 ) 17% Intangible assets 344,861 379,510 (34,649 ) 9% Accounts payable and accrued liabilities 141,653 125,755 15,898 13% Bank loans 23,133 67,895 (44,762 ) 66% 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 June 30, 2026, cash, cash equivalents and marketable securities were $109,600, an increase of $14,317 or 15%, compared to December 31, 2025. The increase was mainly driven by operating cash inflows of $70,217, and proceeds of $17,000 for the return of the Canadian commercial rights for certain non-core products. These increases were partly offset by principal repayments of bank loans of $48,565, the repurchase of common shares under the NCIB of $9,275, holdback payment of $8,442 related to the Paladin acquisition, investment in intangible assets of $5,132, and the acquisition of a manufacturing facility in Argentina of $2,950. Trade and other receivables: As at June 30, 2026, trade and other receivables were $183,146, an increase of $4,548 or 3%, compared to December 31, 2025, mainly due to the receivable of $4,500 related to the return of the Canadian commercial rights of six non-core products. The amount was collected in July 2026. Inventories: As at June 30, 2026, inventories were $144,572, an increase of $8,706 or 6%, 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 June 30, 2026, financial assets were $81,395, a decrease of $17,035 or 17%, compared to December 31, 2025. This was driven by a $9,661 reduction in fund investments, mainly due to a decrease in fair value of $9,352 and a $7,374 reduction in equity investments, primarily reflecting the revaluation of our publicly traded equity investments and the disposal of certain equities, including Crescita. Intangible assets: As at June 30, 2026, intangible assets were $344,861, a decrease of $34,649 or 9%, compared to December 31, 2025, primarily due to the derecognition of intangible assets in connection with the return of the Canadian commercial rights of six non-core products, as well as amortization, partly offset by foreign exchange revaluation. Accounts payable and accrued liabilities: As at June 30, 2026, accounts payable and accrued liabilities were $141,653, an increase of $15,898 or 13%, compared to December 31, 2025, mainly driven by the timing of purchases of inventory. Bank Loans: As at June 30, 2026, bank loans were $23,133, a decrease of $44,762 or 66%, compared to December 31, 2025, mainly due to the repayment of $40,000 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. Knight repaid the full amount within twelve months of the withdrawal, funded entirely by cash flow generated from operations. Repayments were made as follows: (1) $20,000 in December 2025, (2) $10,000 in February 2026, (3) $10,000 in April 2026, and (4) $20,000 in June 2026. Q2-26 Product Updates Tavalisse ® (fostamatinib disodium hexahydrate) Knight obtained the regulatory approval of Tavalisse ® in Brazil and expects to launch in the second half of 2026. Knight also launched Tavalisse ® in Mexico during the quarter for the treatment of adult patients with chronic immune thrombocytopenia who have had an insufficient response to a previous treatment. Molapib ® (olaparib) Molapib ® obtained regulatory approval and launched in Argentina. Molapib ® is a PARP inhibitor indicated for the treatment for certain types of advanced cancers in adult patients, including ovarian, breast, pancreatic and prostate cancers, under specific biomarker-defined conditions and treatment settings. Pemazyre ® (pemigatinib) 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) 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. Qelbree ® (viloxazine) 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. Impavido ® (miltefosine) Knight entered into a supply and distribution agreement with Eton Pharmaceuticals, Inc. for the U.S. commercialization rights to Impavido ® (miltefosine). Eton will assume exclusive U.S. commercialization rights of Impavido ® effective September 26, 2026. Impavido ® is an orphan drug and the first and only FDA-approved oral therapy for the treatment of visceral, cutaneous, and mucosal leishmaniasis due to specific Leishmania species in adults and adolescents 12 years of age and older weighing greater than or equal to 30 kg. Lenvima ® (lenvatinib) Colombia’s Ministry of Health published the list of medicines subject to the direct price control regime and added lenvatinib to the list. The inclusion of lenvatinib is effective August 19, 2026, and will result in a decrease in the selling price of lenvatinib. In addition, INVIMA approved a generic version of lenvatinib 10 mg. The Company expects these developments to negatively impact sales and the adjusted EBITDA of Lenvima ® in Colombia. Crexont ® (carbidopa and levodopa) On August 5, 2026, Knight received a Notice of Non-Compliance from Health Canada for its New Drug Submission for Crexont ® , for the treatment of Parkinson’s disease. Knight will work with its partner to prepare a response to Health Canada. Financial Outlook 1 For the fiscal 2026, Knight has increased its financial guidance on revenues and now expects to generate between $540 million to $560 million in revenues, up from $510 million to $525 million. The adjusted EBITDA 2 is expected to be at least 15% of revenues. The increase in our revenue outlook is driven primarily by the stronger performance of our promoted products across multiple countries as well as select LATAM currencies performing better against the Canadian dollar than previously anticipated. 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 August 5, 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. 2 Adjusted EBITDA is a Non-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Refer to section - Financial Results under Non-IFRS measures for additional details. Conference Call Notice Knight will host a conference call and audio webcast to discuss its second quarter ended June 30, 2026, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call. Date: Thursday, August 6, 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, 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 the 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: 514.484.4483 Email: IR@knighttx.com Email: IR@knighttx.com 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 six-month period ended June 30, 2026 and 2025, the Company applied the following inflation index for the restatement of each respective month. January February March April May June 2026 1.14 1.10 1.07 1.04 1.02 1.00 2025 1.13 1.10 1.06 1.03 1.02 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. Q2-26 Q2-25 Q1-26 Q1-25 Q4-25 Q4-24 ARS 1,043 874 999 746 1,059 717 Q2-26 Q2-25 YTD-26 YTD-25 ARS Variation % 1 (4)% (17)% 2% (22)% 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. Accordingly, the application of hyperinflation accounting under IAS 29 resulted in higher reported revenues and operating expenses, in CAD, for the Company's Argentine subsidiary in both Q2-26 and YTD-26 compared with the corresponding prior-year periods ("Hyperinflation Impact"). Under hyperinflation accounting, cost of goods sold denominated in ARS is restated using the inflation index from the inventory purchase or production date to the end of the reporting period and translated into CAD using the applicable quarter-end closing rates. In Q2-26 and YTD-26, the cumulative inflation adjustment applied to inventory sold was lower than in the corresponding prior-year periods, resulting in lower cost of goods sold reported under IAS 29 in CAD and, consequently, a higher gross margin. FINANCIAL RESULTS UNDER NON-IFRS MEASURES [In thousands of Canadian dollars] The Company discloses Non-IFRS 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-IFRS 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-IFRS 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-IFRS measure and does not have any standardized meaning under IFRS. 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. Q2-26 YTD-26 Reported under IFRS IAS 29 Adjustment Excluding the Impact of IAS 29 1 Reported under IFRS IAS 29 Adjustment Excluding the Impact of IAS 29 1 Revenues 144,212 (243 ) 143,969 292,651 (1,088 ) 291,563 Cost of goods sold 74,597 (1,099 ) 73,498 153,927 (3,483 ) 150,444 Gross margin 69,615 856 70,471 138,724 2,395 141,119 Gross margin (%) 48% 49% 47% 48% Expenses Selling and marketing 21,854 (39 ) 21,815 42,175 (169 ) 42,006 General and administrative 14,781 (115 ) 14,666 28,908 (349 ) 28,559 Research and development 10,561 (21 ) 10,540 19,971 (92 ) 19,879 Amortization of intangible assets 13,459 (218 ) 13,241 28,132 — 28,132 Operating income 8,960 1,249 10,209 19,538 3,005 22,543 1 Financial results excluding the impact of IAS 29 is a Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Q2-25 YTD-25 Reported under IFRS IAS 29 Adjustment Excluding the Impact of IAS 29 1 Reported under IFRS IAS 29 Adjustment Excluding the Impact of IAS 29 1 Revenues 107,358 1,183 108,541 195,434 1,086 196,520 Cost of goods sold 62,527 (3,417 ) 59,110 115,737 (9,582 ) 106,155 Gross margin 44,831 4,600 49,431 79,697 10,668 90,365 Gross margin (%) 42% 46% 41% 46% Expenses Selling and marketing 15,674 331 16,005 29,598 247 29,845 General and administrative 15,814 90 15,904 28,033 (547 ) 27,486 Research and development 6,281 198 6,479 11,067 220 11,287 Amortization of intangible assets 10,731 — 10,731 20,205 — 20,205 Operating (loss) income (3,669 ) 3,981 312 (9,206 ) 10,748 1,542 1 Financial results excluding the impact of IAS 29 is a Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Select financial results excluding the impact of hyperinflation under IAS 29 1 Change Change Q2-26 Q2-25 $ % YTD-26 YTD-25 $ % Adjusted Revenues 1 143,969 108,541 35,428 33% 291,563 196,520 95,043 48% Cost of goods sold 73,498 59,110 (14,388 ) 24% 150,444 106,155 (44,289 ) 42% Gross margin 70,471 49,431 21,040 43% 141,119 90,365 50,754 56% Gross margin (%) 49% 46% 48% 46% Expenses Selling and marketing 21,815 16,005 (5,810 ) 36% 42,006 29,845 (12,161 ) 41% General and administrative 14,666 15,904 1,238 8% 28,559 27,486 (1,073 ) 4% Research and development 10,540 6,479 (4,061 ) 63% 19,879 11,287 (8,592 ) 76% Amortization of intangible assets 13,241 10,731 (2,510 ) 23% 28,132 20,205 (7,927 ) 39% Operating income 10,209 312 9,897 3172% 22,543 1,542 21,001 1362% Adjusted EBITDA 1 24,569 15,507 9,062 58% 52,486 27,620 24,866 90% Adjusted EBITDA 1 (%) 17% 14% 18% 14% Adjusted EBITDA per share 1,2 0.25 0.16 0.09 61% 0.53 0.28 0.26 93% 1 Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Percentages are calculated using unrounded amounts; therefore, percentages presented may not correspond to calculations based on rounded figures. Adjusted Revenues 1 by Product Portfolio Change Change Product Portfolio Q2-26 Q2-25 2 $ % YTD-26 YTD-25 2 $ % Promoted Launched Pipeline Products 18,499 4,436 14,063 317% 33,828 6,902 26,926 390% Strategic Products 76,381 69,160 7,221 10% 160,066 124,401 35,665 29% Total Promoted 94,880 73,596 21,284 29% 193,894 131,303 62,591 48% Mature 47,886 34,311 13,575 40% 94,320 64,062 30,258 47% Discontinued 1,203 634 569 90% 3,349 1,155 2,194 190% Total Adjusted Revenues 1 143,969 108,541 35,428 33% 291,563 196,520 95,043 48% 1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a Non-IFRS measure and does not have any standardized meaning under IFRS. 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 and six-month periods ended June 30, 2026 reporting presentation. These reclassifications had no impact on total revenues. Adjusted Revenues 1 by Therapeutic Area Change Change Therapeutic Area Q2-26 Q2-25 2 $ % YTD-26 YTD-25 2 $ % Oncology/Hematology 42,394 35,449 6,945 20% 81,948 67,125 14,823 22% Infectious Diseases 44,665 45,298 (633 ) 1% 99,744 81,739 18,005 22% Neurology 35,091 18,927 16,164 85% 65,318 31,409 33,909 108% Other Specialty 21,819 8,867 12,952 146% 44,553 16,247 28,306 174% Total Adjusted Revenues 1 143,969 108,541 35,428 33% 291,563 196,520 95,043 48% 1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a Non-IFRS measure and does not have any standardized meaning under IFRS. 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 and six-month periods ended June 30, 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-IFRS measure and does not have any standardized meaning under IFRS. 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. Q2-26 Q2-25 Change Excluding the impact of IAS 29 1 Excluding the impact of IAS 29 1 Constant Currency Adjustment Constant Currency 2 $ % Adjusted Revenues 2 143,969 108,541 9,890 118,431 25,538 22% Cost of goods sold 73,498 59,110 5,860 64,970 (8,528 ) 13% Gross margin 70,471 49,431 4,030 53,461 17,010 32% Gross margin (%) 49% 46% 45% Expenses Selling and marketing 21,815 16,005 1,120 17,125 (4,690 ) 27% General and administrative 14,666 15,904 451 16,355 1,689 10% Research and development 10,540 6,479 313 6,792 (3,748 ) 55% Amortization of intangible assets 13,241 10,731 1 10,732 (2,509 ) 23% Operating income 10,209 312 2,145 2,457 7,752 316% Adjusted EBITDA 2 24,569 17,820 6,749 38% Adjusted EBITDA 2 (%) 17% 15% Adjusted EBITDA per share 2 0.25 0.18 0.07 40% 1 Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 2 Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results at constant currency are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. YTD-26 YTD-25 Change Excluding the impact of IAS 29 1 Excluding the impact of IAS 29 1 Constant Currency Adjustment Constant Currency 2 $ % Adjusted Revenues 2 291,563 196,520 14,110 210,630 80,933 38% Cost of goods sold 150,444 106,155 8,118 114,273 (36,171 ) 32% Gross margin 141,119 90,365 5,992 96,357 44,762 46% Gross margin (%) 48% 46% 46% Expenses Selling and marketing 42,006 29,845 1,623 31,468 (10,538 ) 33% General and administrative 28,559 27,486 595 28,081 (478 ) 2% Research and development 19,879 11,287 456 11,743 (8,136 ) 69% Amortization of intangible assets 28,132 20,205 (361 ) 19,844 (8,288 ) 42% Operating income 22,543 1,542 3,679 5,221 17,322 332% Adjusted EBITDA 2 52,486 31,115 21,371 69% Adjusted EBITDA 2 (%) 18% 15% Adjusted EBITDA per share 2 0.53 0.31 0.22 71% 1 Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 2 Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results at constant currency are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Adjusted Revenues at Constant Currency 1 by Product Portfolio Three-month period ended June 30, Six-month period ended June 30, Excluding impact of IAS 29 2 Constant Currency 1 Constant Currency 1 Product Portfolio 2026 2025 3 $ % 2026 2025 3 $ % Promoted Launched Pipeline Products 18,499 4,663 13,836 297% 33,828 7,210 26,618 369% Strategic Products 76,381 76,770 (389 ) 1% 160,066 135,254 24,812 18% Total Promoted 94,880 81,433 13,447 17% 193,894 142,464 51,430 36% Mature 47,886 36,361 11,525 32% 94,320 67,004 27,316 41% Discontinued 1,203 637 566 89% 3,349 1,162 2,187 188% Total Adjusted Revenues 1 143,969 118,431 25,538 22% 291,563 210,630 80,933 38% 1 Adjusted Revenues and Adjusted Revenues at constant currency are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 3 Comparative figures have been reclassified to align with the three and six-month periods ended June 30, 2026 reporting presentation. These reclassifications had no impact on total revenues. Adjusted Revenues at Constant Currency 1 by Therapeutic Area Three-month period ended June 30, Six-month period ended June 30, Excluding impact of IAS 29 2 Constant Currency 1 Constant Currency 1 Therapeutic Area 2026 2025 3 $ % 2026 2025 3 $ % Oncology/Hematology 42,394 38,822 3,572 9% 81,948 72,141 9,807 14% Infectious Diseases 44,665 49,744 (5,079 ) 10% 99,744 87,828 11,916 14% Neurology 35,091 20,723 14,368 69% 65,318 34,022 31,296 92% Other Specialty 21,819 9,142 12,677 139% 44,553 16,639 27,914 168% Total Adjusted Revenues 1 143,969 118,431 25,538 22% 291,563 210,630 80,933 38% 1 Adjusted Revenues and Adjusted Revenues at constant currency are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Refer to Subsection - [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. 3 Comparative figures have been reclassified to align with the three and six-month periods ended June 30, 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-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. Change Change Q2-26 Q2-25 $ % YTD-26 YTD-25 $ % Gross margin 69,615 44,831 24,784 55% 138,724 79,697 59,027 74% Adjustments to gross margin: Impact of IAS 29 856 4,600 2,395 10,668 Adjusted Gross Margin 1 70,471 49,431 21,040 43% 141,119 90,365 50,754 56% Adjusted Gross Margin (%) 1,2 49% 46% 48% 46% 1 Adjusted Gross Margin and Adjusted Gross Margin (%) are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 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-IFRS measure and does not have any standardized meaning under IFRS. 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-IFRS measure and does not have any standardized meaning under IFRS. 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 Change Q2-26 Q2-25 $ % YTD-26 YTD-25 $ % Operating income (loss) 8,960 (3,669 ) 12,629 N/A 19,538 (9,206 ) 28,744 N/A Adjustments to operating income (loss): Amortization of intangible assets 13,459 10,731 2,728 25% 28,132 20,205 7,927 39% Depreciation of property, plant and equipment and ROU assets 1,548 1,407 141 10% 3,067 3,517 (450 ) 13% Lease payments (1,155 ) (1,063 ) (92 ) 9% (2,361 ) (2,185 ) (176 ) 8% EBITDA 1 22,812 7,406 15,406 208% 48,376 12,331 36,045 292% Impact of IAS 29 990 3,896 (2,906 ) 75% 2,797 10,042 (7,245 ) 72% Acquisition and transaction costs 169 3,419 (3,250 ) 95% 283 4,461 (4,178 ) 94% Step-Up Expense — 160 (160 ) N/A — 160 (160 ) N/A Other non-recurring expenses 598 626 (28 ) 4% 1,030 626 404 65% Adjusted EBITDA 1 24,569 15,507 9,062 58% 52,486 27,620 24,866 90% Adjusted EBITDA per share 1 ,2 0.25 0.16 0.09 61% 0.53 0.28 0.26 93% 1 EBITDA, Adjusted EBITDA and Adjusted EBITDA per share are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 2 Percentages are calculated using unrounded amounts; therefore, percentages presented may not correspond to calculations based on rounded figures. For the quarter ended June 30, 2026, adjusted EBITDA increased by $9,062 or 58%. The increase was mainly driven by higher Adjusted Gross Margin 1 , partly offset by higher operating expenses. Refer to Section 3 - Results of Operations of the MD&A for further details. ______________________________ 1 Adjusted Gross Margin is a Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. 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-IFRS ratio and does not have any standardized meaning under IFRS. 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: Q2-26 Q2-25 YTD-26 YTD-25 Adjusted EBITDA 1 24,569 15,507 52,486 27,620 Adjusted EBITDA per share 1 0.25 0.16 0.53 0.28 Number of common shares outstanding at period end (in thousands) 98,224 99,653 98,224 99,653 1 Adjusted EBITDA and Adjusted EBITDA per share are Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies. INTERIM CONSOLIDATED BALANCE SHEETS [In thousands of Canadian dollars] [Unaudited] As at June 30, 2026 December 31, 2025 ASSETS Current Cash and cash equivalents 93,536 76,449 Marketable securities 16,064 18,834 Trade receivables 125,819 127,775 Other receivables 12,217 6,063 Inventories 144,572 135,866 Prepaids and deposits 7,804 6,505 Other current financial assets 11,572 18,946 Income taxes receivable 6,816 4,397 Total current assets 418,400 394,835 Prepaids and deposits 10,417 8,883 Right-of-use assets 10,923 9,919 Property, plant and equipment 20,452 12,006 Intangible assets 344,861 379,510 Goodwill 98,533 89,982 Other financial assets 69,823 79,484 Deferred tax assets 26,318 26,921 Other long-term receivables 45,110 44,760 Total non-current assets 626,437 651,465 Total assets 1,044,837 1,046,300 INTERIM CONSOLIDATED BALANCE SHEETS (continued) [In thousands of Canadian dollars] [Unaudited] As at June 30, 2026 December 31, 2025 LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 135,629 120,868 Lease liabilities 3,417 3,398 Other liabilities 7,217 12,878 Bank loans 16,303 16,730 Income taxes payable 375 580 Other balances payable 20,547 10,806 Total current liabilities 183,488 165,260 Accounts payable and accrued liabilities 6,024 4,887 Lease liabilities 7,726 6,618 Bank loans 6,830 51,165 Other balances payable 39,017 48,105 Deferred tax liabilities 3,162 2,993 Total liabilities 246,247 279,028 Shareholders’ equity Share capital 526,076 530,140 Contributed surplus 32,435 32,449 Accumulated other comprehensive income 82,878 55,741 Retained earnings 157,201 148,942 Total shareholders’ equity 798,590 767,272 Total liabilities and shareholders’ equity 1,044,837 1,046,300 INTERIM CONSOLIDATED STATEMENTS OF INCOME [In thousands of Canadian dollars, except for share and per share amounts] [Unaudited] Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Revenues 144,212 107,358 292,651 195,434 Cost of goods sold 74,597 62,527 153,927 115,737 Gross margin 69,615 44,831 138,724 79,697 Gross margin % 48% 42% 47% 41% Expenses Selling and marketing 21,854 15,674 42,175 29,598 General and administrative 14,781 15,814 28,908 28,033 Research and development 10,561 6,281 19,971 11,067 Amortization of intangible assets 13,459 10,731 28,132 20,205 Operating income (loss) 8,960 (3,669 ) 19,538 (9,206 ) Interest income on financial instruments measured at amortized cost (901 ) (2,026 ) (1,853 ) (3,880 ) Interest expense 2,125 2,374 4,766 4,130 Other expense (income) 487 2,190 (3,687 ) 2,330 Net loss on financial assets measured at fair value through profit or loss 9,665 5,737 11,698 6,682 Foreign exchange loss (gain) 42 4,559 (2,395 ) (992 ) Gain on hyperinflation (355 ) (893 ) (1,070 ) (1,467 ) (Loss) income before income taxes (2,103 ) (15,610 ) 12,079 (16,009 ) Income taxes Current 80 134 263 669 Deferred 1,178 (3,122 ) 2,008 (6,241 ) Income tax expense (recovery) 1,258 (2,988 ) 2,271 (5,572 ) Net (loss) income for the period (3,361 ) (12,622 ) 9,808 (10,437 ) Basic and diluted net (loss) income per share (0.03 ) (0.13 ) 0.10 (0.10 ) Weighted average number of common shares outstanding 98,198,847 99,629,927 98,327,353 99,635,582 INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS [In thousands of Canadian dollars] [Unaudited] Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 OPERATING ACTIVITIES Net (loss) income for the period (3,361 ) (12,622 ) 9,808 (10,437 ) Adjustments reconciling net (loss) income to operating cash flows: Deferred income tax expense (recovery) 1,178 (3,122 ) 2,008 (6,241 ) Share-based compensation expense 2,048 2,534 3,429 3,546 Depreciation and amortization 15,007 12,138 31,199 23,722 Net loss on financial assets measured at fair value through profit or loss 9,665 5,737 11,698 6,682 Interest expense 2,125 2,374 4,766 4,130 Accrued interest (income) expense (143 ) 288 (253 ) 366 Unrealized foreign exchange loss (gain) 1,230 (1,499 ) 2,484 (169 ) Other expense (income) 487 2,330 (3,687 ) 2,330 Gain on hyperinflation (355 ) (893 ) (1,070 ) (1,467 ) 27,881 7,265 60,382 22,462 Changes in non-cash working capital and other items 1,642 12,987 9,835 1,460 Cash inflow from operating activities 29,523 20,252 70,217 23,922 INVESTING ACTIVITIES Acquisition of Paladin (8,442 ) (106,885 ) (8,442 ) (106,885 ) Purchase of marketable securities (3,474 ) (7,025 ) (12,310 ) (13,882 ) Purchase of intangible assets (980 ) (24,508 ) (5,132 ) (27,836 ) Purchase of property and equipment (621 ) (620 ) (3,947 ) (963 ) Investment in funds — (28 ) (434 ) (135 ) Proceeds on maturity of marketable securities 6,896 21,990 15,646 61,627 Proceeds from return of commercial rights — — 17,000 — Proceeds from sale of property and equipment — — — — Proceeds from repayments of loans receivable — 13,758 — 13,758 Proceeds from disposal of equity investments 1,641 — 2,719 — Proceeds from distribution of funds — 2,024 402 5,148 Cash (outflow) inflow from investing activities (4,980 ) (101,294 ) 5,502 (69,168 ) FINANCING ACTIVITIES Proceeds from contributions to share purchase plan 133 138 245 252 Proceeds from issuance upon exercise of stock options 366 — 366 — Proceeds from bank loans — 109,394 — 111,203 Proceeds from repayment of share purchase loans 150 225 150 225 Repurchase of common shares through Normal Course Issuer Bid (1,038 ) (6 ) (9,275 ) (3,351 ) Principal repayment of lease liabilities (1,155 ) (1,063 ) (2,361 ) (2,185 ) Principal repayment on bank loans (37,236 ) (54,818 ) (48,565 ) (56,404 ) Interest paid on bank loans (1,933 ) (3,058 ) (2,582 ) (3,627 ) Cash (outflow) inflow from financing activities (40,713 ) 50,812 (62,022 ) 46,113 (Decrease) increase in cash and cash equivalents during the period (16,170 ) (30,230 ) 13,697 867 Cash and cash equivalents, beginning of the period 108,048 112,155 76,449 80,106 Effect of exchange rate changes on cash and cash equivalents 1,658 (4,109 ) 3,390 (3,157 ) Cash and cash equivalents, end of the period 93,536 77,816 93,536 77,816 Cash and cash equivalents 93,536 77,816 93,536 77,816 Marketable securities 16,064 13,375 16,064 13,375 Total cash, cash equivalents and marketable securities 109,600 91,191 109,600 91,191 Source: Knight Therapeutics