Knight Therapeutics Reports Third Quarter 2024

Knight Therapeutics Inc. (TSX: GUD) ("Knight" or "the Company"), a leading pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its third quarter ended September 30, 2024. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q3   2024   Highlights

Financial Results

  • Delivered revenues of $92,263, an increase of $10,763 or 13% or $13,801 or 18% on a constant currency 1 basis, over the same period in the prior year. The increase is driven by growth of our key promoted products partly offset by declines of our mature products.
  • Gross margin of $45,017 or 49% of revenues compared to $40,182 or 49% of revenues in the same period in the prior year.
  • Adjusted EBITDA 1 was $13,454, a decrease of $2,058 or 13% over the same period in the prior year.
  • Adjusted EBITDA per share 1 of $0.13, a decrease of $0.02 or 10% over the same period in the prior year driven by investments on our new launches and pipeline.
  • Net income was $85, compared to $9,588 in the same period in the prior year.
  • Cash inflow from operations was $5,016, compared to $15,166 in the same period in the prior year.

Corporate   Developments

  • Purchased 437,500 common shares through Knight's NCIB at an average price of $5.65 for an aggregate cash consideration of $2,474.

Subsequent   to   quarter-   end

  • Obtained regulatory approval for Minjuvi ® (tafasitamab) in Mexico.
  • Recorded an unrealized gain of $14,412 recognized in other comprehensive income in Q3-24 on our shares of Synergy driven by its IPO in October 2024.

"I am excited to report that for the nine months ended September 30, 2024, we delivered record revenues of over $271 million and adjusted EBITDA of over $42 million. This strong performance is the result of the growth of our key promoted products and our commercial execution across Canada and Latin America. In addition, we have advanced our pipeline with the regulatory approval of Minjuvi ® in Mexico with a launch expected in the first half of 2025. We remain committed to advancing our pipeline products with regulatory submissions and approvals to grow our business in Canada and Latin America." said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

______________________
1 Adjusted   EBITDA,   Adjusted   EBITDA   per   share   and   revenues   at   constant   currency   are   non-GAAP   measures.   Refer   to   section   Non-GAAP   measures   for   additional   details.


SELECTED   FINANCIAL   RESULTS   REPORTED   UNDER   IFRS
[In thousands of Canadian dollars]

Change Change
Q3-   24 Q3-23 $ 1 % 2 YTD-   24 YTD-23 $ 1 % 2
Revenues 92,263 81,500 10,763 13% 274,440 254,002 20,438 8%
Gross margin 45,017 40,182 4,835 12% 134,053 118,437 15,616 13%
Gross   margin   % 49   % 49   % 49   % 47   %
Selling and marketing 13,372 11,924 (1,448 ) 12% 39,285 35,463 (3,822 ) 11%
General and administrative 12,110 11,080 (1,030 ) 9% 34,747 29,305 (5,442 ) 19%
Research and development 5,153 4,768 (385 ) 8% 15,939 13,291 (2,648 ) 20%
Amortization of intangible assets 11,179 11,480 301 3% 33,725 33,925 200 1%
Operating expenses 41,814 39,252 (2,562 ) 7% 123,696 111,984 (11,712 ) 10%

Operating income
3,203 930 2,273 244% 10,357 6,453 3,904 60%

Net (loss) income
85 9,588 (9,503 ) 99% (6,403 ) 7,491 (13,894 ) 185%

1 A   positive   variance   represents   a   positive   impact   to   net   income   (loss)   and   a   negative   variance   represents   a   negative   impact   to   net   income   (loss).
2 Percentage   change   is   presented   in   absolute   values.


SELECTED   FINANCIAL   RESULTS   EXCLUDING   IAS   29 1
[In thousands of Canadian dollars]

Change Change
Q3-   24 Q3-23 $ % YTD-   24 YTD-23 $ %
Revenues 91,430 81,669 9,761 12% 271,346 254,736 16,610 7%
Gross margin 43,196 42,121 1,075 3% 129,173 123,751 5,422 4%
Gross   margin   % 47   % 52   % 48   % 49   %
Selling and marketing 13,197 11,937 1,260 11% 38,658 35,635 3,023 8%
General and administrative 11,922 11,009 913 8% 33,711 29,084 4,627 16%
Research and development 5,372 4,651 721 1% 15,789 13,376 2,413 18%
Amortization of intangible assets 11,161 11,475 (314 ) 3% 33,707 33,789 (82 ) —%
Operating expenses 41,652 39,072 2,580 7% 121,865 111,884 9,981 9%
EBITDA 1 13,330 15,512 (2,182 ) 14% 42,560 48,018 (5,458 ) 11%
Adjusted EBITDA 1 13,454 15,512 (2,058 ) 13% 42,787 48,018 (5,231 ) 11%
Adjusted EBITDA per share 1 0.13 0.15 (0.02 ) 10% 0.42 0.46 (0.04 ) 7%

1 Financial   results   excluding   the   impact   of   IAS   29,   EBITDA,   adjusted   EBITDA   and   adjusted   EBITDA   per   share   are   non-GAAP   measures.   Refer   to   section   "   Non-   GAAP   measures" for additional details.


Revenues

For the quarter ended September 30, 2024, revenues excluding the impact of IAS 29 were $91,430 an increase of $9,761 or 12% mainly driven by a growth of $13,526 or 25% from our key promoted products offset by a decline in our mature products. On a constant currency 1 basis, revenues increased by $13,801 or 18% for the three period ended September 30, 2024. The table below provides revenues by therapeutic area.

Excluding   the   impact   of   IAS   29 1
Change
Therapeutic   Area Q3-   24 Q3-   23 $ %
Oncology/Hematology 36,821 31,336 5,485 18%
Infectious Diseases 33,827 29,195 4,632 16%
Other Specialty 20,782 21,138 (356 ) 2%
Total 91,430 81,669 9,761 12%

1 Revenues   excluding   the   impact   of   IAS   29   is   a   non-GAAP   measure,   refer   to   section   "   Non-GAAP   measures"   for   additional   details.


The increase in revenues is explained by the following:

  • Oncology/Hematology : The oncology/hematology portfolio increased by $5,485 or 18% or $6,729 or 22% on a constant currency 1 basis driven by continued growth of key promoted products including Lenvima ® , Akynzeo ® , Trelstar ® and the launch of Minjuvi ® in Brazil. Furthermore, in Q3-24, a competitor in Brazil launched both a branded generic and a generic of Lenvima ® . Knight and Eisai are collaborating to defend Lenvima ® 's market exclusivity in Brazil. While we continue to challenge the generic entrants, the introduction of generics and branded generics will increase competitive pressures and negatively impact future sales and margins of Lenvima ® in Brazil.
  • Infectious Diseases: The infectious diseases portfolio increased by $4,632 or 16% or $6,572 or 24% on constant currency 1 basis mainly driven by the timing of orders for Ambisome ® under the MOH contract and growth of our key promoted products including Cresemba ® , partly offset by a decrease in the demand of Impavido ® . During Q3-24 the Company delivered $6,700 of Ambisome ® to MOH compared to nil in Q3-23.
    MOH Contract : The Company signed a contract with the Ministry of Health of Brazil for Ambisome ® in December 2022 ("2022 MOH Contract"). Knight delivered a total of $34,600 under the 2022 MOH Contract as follows: $7,000 in 2022, $25,200 in 2023 ($2,400 in Q1-23, $18,000 in Q2-23 and $4,800 in Q4-23) and $2,400 Q1-24. In December 2023, Knight signed a new contract with the MOH ("2024 MOH Contract") and delivered $6,800 in Q1-24, $8,900 in Q2-24 and $6,700 in Q3-24. The total MOH sales AmBisome ® delivered in Q3-24 and YTD-24 was $6,700 and $24,800, respectively.
  • Other   Specialty : The specialty portfolio decreased by $356 or 2%. There was no significant variance.

Gross   margin
Excluding the impact of IAS 29, gross margin as a percentage of revenues was 47% in Q3-24 compared to 52% in Q3-23. The decrease in the Q3-24 gross margin, as a percentage of revenues, was due to product mix including a higher proportion of Ambisome ® sales to MOH.

Selling and marketing ("S&M") expenses: For the quarter ended September 30, 2024, S&M expenses excluding the impact of IAS 29, were $13,197 in Q3-24 compared to $11,937 in Q3-23, an increase of $1,260 or 11%. The increase was mainly driven by the marketing spend for the launches of Minjuvi ® in Brazil, Imvexxy ® and Bijuva ® in Canada as well as pre-launch activities for Jornay PM™.

1 Revenues   at   constant   currency   is   a   non-GAAP   measure.   Refer   to   section   "   Non-GAAP   measures"   for   additional   details.

General and administrative ("G&A") expenses: For the quarter ended September 30, 2024, G&A expenses excluding the impact of IAS 29, were $11,922 in Q3-24 compared to $11,009 in Q3-23, an increase of $913 or 8%. The increase was mainly driven by structure and compensation expenses along with higher spending on professional and consulting fees.

Research and development ("R&D") expenses: For the quarter ended September 30, 2024, R&D expenses excluding the impact of IAS 29, were $5,372 in Q3-24 compared to 4,651 in Q3-23, an increase of $721 or 16%. The increase was driven by medical initiatives related to key promoted products.

Adjusted   EBITDA
For the quarter ended September 30, 2024, adjusted EBITDA decreased by $2,058 or 13%. The decrease was driven by higher marketing spend related to the launches of Minjuvi ® in Brazil, Imvexxy ® and Bijuva ® in Canada as well as pre-launch activities for Jornay PM™, higher general and administrative expenses mainly related to structure and compensation increase along with higher spending on professional and consulting fees, and an increase in research and development expenses mainly driven by medical initiatives related to key promoted products, partly offset by a higher gross margin.

Net   Income
For the quarter ended September 30, 2024, the net income was $85 compared to $9,588 for the same period in prior year. The variance mainly resulted from the above-mentioned items and a net loss on the revaluation of $2,820 financial assets measured at fair value through profit or loss of versus a net gain of $5,562 in the same period in prior year and income tax expense of $523 in Q3-24 versus an income tax recovery of $690 in Q3-23 mainly driven by operating income and timing differences related to our financial assets

SELECT   BALANCE   SHEET   ITEMS
[In thousands of Canadian dollars]

Change  
September   30,   2024 December   31,   2023 $ %
Cash, cash equivalents and marketable securities 151,500 161,825 (10,325 ) 6 %
Trade and other receivables 142,943 141,684 1,259 1 %
Inventories 114,959 91,834 23,125 25 %
Financial assets 126,457 128,369 (1,912 ) 1 %
Accounts payable and accrued liabilities 93,795 90,617 3,178 4 %
Bank loans 51,651 61,866 (10,215 ) 17 %


Cash,   cash   equivalents   and   marketable   securities : As at September 30, 2024, Knight had $151,500 in cash, cash equivalents and marketable securities, a decrease of $10,325 or 6% as compared to December 31, 2023. The decrease is mainly due to the settlement of upfront and milestone payments in connection with product licensing agreements including Qelbree TM , IPX203, Jornay PM TM and Cresemba ® , principal and interest payments on bank loans and repurchase of shares through the NCIB, partly offset by the cash inflows from operations. The cash inflows from operating activities were $34,811 for the nine-month period ended September 30, 2024 driven by the operating results adjusted for noncash items such as depreciation, amortization as well as increase in working capital of $7,416. The increase in working capital was mainly due to an increase in inventory due to the timing of purchases as well as investments on our new product launches.

Financial assets: As at September 30, 2024, financial assets were at $126,457, an decrease of $1,912 or 1% as compared December 31, 2023 mainly driven by unrealized gain on the fair value of our equity investment in Synergy as a result of Synergy's IPO partly offset by unrealized losses on the valuation of certain private investments of our strategic funds.

Bank   loans: As at September 30, 2024, bank loans were at $51,651, a decrease of $10,215 or 17% as compared December 31, 2023 mainly due to principal repayments of bank loans as well as the depreciation of the Brazilian Real, Mexican Peso and Colombian Peso.

Product   update

Minjuvi ®
In Q4-24, Knight obtained regulatory approval by COFEPRIS, the Mexican health regulatory agency, for Minjuvi ® (tafasitamab) in combination with lenalidomide followed by Minjuvi ® monotherapy for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), who are not eligible for autologous stem cell transplantation (ASCT). The Company expects to launch Minjuvi ® in Mexico in the first half of 2025.

Lenvima ®
During 2023, two companies received ANVISA's approval for generic lenvatinib in Brazil. During 2024, both of those companies received the approval for a branded generic lenvatinib. Additionally, in Q3-24, a competitor received the approval of a generic lenvatinib in Chile.

In Q3-24, a competitor in Brazil launched both a branded generic and a generic of Lenvima ® . Knight and Eisai are collaborating to defend Lenvima ® 's market exclusivity in Brazil. While we continue to continue to challenge the generic entrants, the introduction of generics and branded generics will increase competitive pressures and negatively impact future sales and margins of Lenvima ® in Brazil.

Corporate   Update

NCIB

On July 15, 2024, the Company commenced an NCIB where Knight may purchase for cancellation up to 5,312,846 common shares of the Company. During the three-month period ended September 30, 2024, the Company purchased 437,500 common shares at an average price of $5.65 for aggregate cash consideration of $2,474 under the NCIB. Subsequent to the quarter-end up to October 31, 2024, the Company purchased an additional 190,000 common shares at an average purchase price of $5.66 for an aggregate cash consideration of $1,076.

Financial   Outlook

Knight provides guidance on revenues on a non-GAAP basis. This is due to both the difficulty in predicting Argentinian inflation rates and its IAS 29 impact.

Knight reconfirmed its financial guidance targets for 2024. Knight expects to generate between $355 million to $365 million in revenues and adjusted EBITDA 1 to be approximately 16% of revenues. The guidance is based on a number of assumptions, including but not limited to the following:

  • no revenues or expenses for business development transactions not completed as at November 6, 2024
  • no unforeseen termination to our license, distribution & supply agreements
  • no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues
  • 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 Revenues   excluding   the   impact   of   IAS   29   and   adjusted   EBITDA   are   a   non-GAAP   measure.   Refer   to   the   definitions   in   section   "Non-GAAP   measures"   for   additional   details.


Conference
  Call   Notice

Knight will host a conference call and audio webcast to discuss its third quarter ended September 30, 2024, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, November 7, 2024
Time: 8:30 a.m. ET
Telephone : Toll Free: 1-800-836-8184 or International 1-289-819-1350
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 specialty 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, 2023 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: IR@knighttx.com Email: IR@knighttx.com
Website: www.knighttx.com Website: www.knighttx.com


NON-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]   Revenues   and   Financial   results   excluding   the   impact   of   hyperinflation   under   IAS   29

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiaries used 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.

Revenues and 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.

Revenues and financial results excluding the impact of hyperinflation under IAS 29 allow results to be viewed without the impact of IAS 29 thereby facilitating the comparison of results period over period. The presentation of revenues and 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.

Q3-   24  
YTD-   24
Reported
under IFRS
IAS 29
Adjustment
Excluding the
Impact of
IAS 29
Reported
under IFRS
IAS 29
Adjustment
Excluding the
Impact of
IAS 29
Revenues 92,263 (833 ) 91,430 274,440 (3,094 ) 271,346
Cost of goods sold 47,246 988 48,234 140,387 1,786 142,173
Gross   margin 45,017 (1,821 ) 43,196 134,053 (4,880 ) 129,173
Gross   margin   (%) 49   % 47   % 49   % 48   %

Expenses
Selling and marketing 13,372 (175 ) 13,197 39,285 (627 ) 38,658
General and administrative 12,110 (188 ) 11,922 34,747 (1,036 ) 33,711
Research and development 5,153 219 5,372 15,939 (150 ) 15,789
Amortization of intangible assets 11,179 (18 ) 11,161 33,725 (18 ) 33,707
Operating   income   (loss) 3,203 (1,659 ) 1,544 10,357 (3,049 ) 7,308



Q3-23 YTD-23
Reported
under IFRS
IAS 29
Adjustment
Excluding the
Impact of
IAS 29
Reported
under IFRS
IAS 29
Adjustment
Excluding the
Impact of
IAS 29
Revenues 81,500 169 81,669 254,002 734 254,736
Cost of goods sold 41,318 (1,770 ) 39,548 135,565 (4,580 ) 130,985
Gross   margin 40,182 1,939 42,121 118,437 5,314 123,751
Gross   margin   (%) 49   % 52   % 47   % 49   %

Expenses
Selling and marketing 11,924 13 11,937 35,463 172 35,635
General and administrative 11,080 (71 ) 11,009 29,305 (221 ) 29,084
Research and development 4,768 (117 ) 4,651 13,291 85 13,376
Amortization of intangible assets 11,480 (5 ) 11,475 33,925 (136 ) 33,789
Operating   income 930 2,119 3,049 6,453 5,414 11,867


[ii]
  Revenues   and   Financial   results   at   constant   currency
Revenues and 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.

Revenues and financial results at constant currency allow results to be viewed without the impact of fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. 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.

Q3-   23 YTD-   23
Excluding the
impact of
IAS 29 1
Constant
Currency
Adjustment
Constant
Currency
Excluding the
impact of
IAS 29 1
Constant
Currency
Adjustment
Constant
Currency
Revenues 81,669 (4,040 ) 77,629 254,736 (448 ) 254,288
Cost of goods sold 39,548 (2,455 ) 37,093 130,985 (1,002 ) 129,983
Gross   margin 42,121 (1,585 ) 40,536 123,751 554 124,305
Gross   margin   (%) 52   % 52   % 49   % 49   %

Expenses
Selling and marketing 11,937 (559 ) 11,378 35,635 (354 ) 35,281
General and administrative 11,009 (249 ) 10,760 29,084 252 29,336
Research and development 4,651 (111 ) 4,540 13,376 (15 ) 13,361
Amortization of intangible assets 11,475 129 11,604 33,789 256 34,045
Operating   income 3,049 (795 ) 2,254 11,867 415 12,282

1 Refer   to   Subsection   -   [   i   ]   Revenues   and   Financial   results   excluding   the   impact   of   hyperinflation   under   IAS   29   for   additional   details.


[iii]
  EBITDA

EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases.

EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. 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.

[iv]   Adjusted   EBITDA

Adjusted EBITDA is defined EBITDA adjusted for acquisition costs and non-recurring expenses.

Adjusted EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation), acquisition costs and non-recurring expenses but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. 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.

Q3-   24 Q3-   23 YTD-   24 YTD-   23
Operating   income 3,203 930 10,357 6,453
Adjustments   to   operating   income:
Amortization of intangible assets 11,179 11,480 33,725 33,925
Depreciation of property, plant and equipment and ROU assets 2,210 2,218 5,414 5,014
Lease costs (IFRS 16 adjustment) (997 ) (779 ) (2,861 ) (2,146 )
Impact of IAS 29 (2,265 ) 1,663 (4,075 ) 4,772
EBITDA 13,330 15,512 42,560 48,018
Acquisition and transition costs 18 121
Other non-recurring expenses 106 106
Adjusted   EBITDA 13,454 15,512 42,787 48,018


[v]
  Adjusted   EBITDA   per   share

Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective 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 following table calculates adjusted EBITDA per share as follows:

Q3-   24 Q3-   23 YTD-   24 YTD-   23
Adjusted EBITDA 13,454 15,512 42,787 48,018
Adjusted EBITDA per common share 0.13 0.15 0.42 0.46
Number of common shares outstanding at period end (in thousands) 100,976 105,045 100,976 105,045



SELECTED   FINANCIAL   RESULTS   AT   CONSTANT   CURRENCY 1
[In thousands of Canadian dollars]

Excluding   impact   of   IAS   29
Constant
Currency 1
Change Constant
Currency 1
Change
Q3-   24 Q3-23 $ % YTD-   24 YTD-23 $ %

Revenues
91,430 77,629 13,801 18% 271,346 254,288 17,058 7%
Gross margin 43,196 40,536 2,660 7% 129,173 124,305 4,868 4%
Gross   margin   % 47   % 52   % 48   % 49   %
Operating expenses 41,652 38,282 (3,370 ) 9% 121,865 112,023 (9,842 ) 9%
EBITDA 13,330 14,757 (1,427 ) 10% 42,560 48,672 (6,112 ) 13%
Adjusted EBITDA 13,454 14,757 (1,303 ) 9% 42,787 48,672 (5,885 ) 12%
Adjusted EBITDA per share 0.13 0.14 (0.01 ) 7% 0.42 0.45 (0.03 ) 7%

1 Financial results at constant currency is a non-GAAP measure. Refer to section "Non-GAAP measures" for additional details.


Revenues
  at   Constant   Currency 1 by   Therapeutic   Area

Three   months   ended   September   30,
Nine   months   ended   September   30,
Excluding   impact   of   IAS   29
Constant
Currency 1
Constant
Currency 1
Innovative 2024 2023 $ % 2024 2023 $ %
Oncology/Hematology 36,821 30,092 6,729 22 % 103,288 88,979 14,309 16 %
Infectious Diseases 33,827 27,255 6,572 24 % 109,714 104,687 5,027 5 %
Other Specialty 20,782 20,282 500 2 % 58,344 60,622 (2,278 ) 4 %
Total 91,430 77,629 13,801 18 % 271,346 254,288 17,058 7 %

1 Revenues   at   constant   currency   is   a   non-GAAP   measure.   Refer   to   Section   15   -   Non-GAAP   measures   for   additional   details.



INTERIM   CONSOLIDATED   BALANCE   SHEETS
[In thousands of Canadian dollars]
[Unaudited]

As   at September   30,   2024 December 31, 2023
ASSETS
Current
Cash and cash equivalents 73,755 58,761
Marketable securities 73,965 95,657
Trade receivables 91,250 88,722
Other receivables 7,294 7,427
Inventories 114,959 91,834
Prepaids and deposits 7,287 4,881
Other current financial assets 24,598 15,753
Income taxes receivable 4,458 2,080
Total   current   assets 397,566 365,115

Marketable securities
3,780 7,407
Prepaids and deposits 7,682 7,767
Right-of-use assets 6,352 6,190
Property, plant and equipment 15,292 11,669
Intangible assets 279,681 289,960
Goodwill 84,783 79,844
Other financial assets 101,859 112,616
Deferred income tax assets 20,900 19,390
Other long-term receivables 44,399 45,535
Total   non-current   assets 564,728 580,378
Total   assets 962,294 945,493



INTERIM   CONSOLIDATED   BALANCE   SHEETS   (continued)
[In thousands of Canadian dollars]
[Unaudited]

As   at September   30,   2024 December 31, 2023

LIABILITIES
  AND   EQUITY
Current
Accounts payable and accrued liabilities 86,620 85,366
Lease liabilities 3,015 1,728
Other liabilities 2,193 1,046
Bank loans 18,691 17,850
Income taxes payable 2,493 1,182
Other balances payable 5,140 6,857
Total   current   liabilities 118,152 114,029

Accounts payable and accrued liabilities
7,175 5,251
Lease liabilities 3,551 5,497
Bank loans 32,960 44,016
Other balances payable 22,284 27,012
Deferred income tax liabilities 4,263 2,817
Total   liabilities 188,385 198,622

Shareholders'
  equity
Share capital 539,317 540,046
Warrants 117 117
Contributed surplus 26,215 25,991
Accumulated other comprehensive income 64,077 29,829
Retained earnings 144,183 150,888
Total   shareholders'   equity 773,909 746,871
Total   liabilities   and   shareholders'   equity 962,294 945,493



INTERIM   CONSOLIDATED   STATEMENTS   OF   INCOME   (LOSS)
[In thousands of Canadian dollars, except for share and per share amounts]
[Unaudited]

Three   months   ended   September   30, Nine   months   ended   September   30,
2024 2023 2024 2023

Revenues
92,263 81,500 274,440 254,002
Cost of goods sold 47,246 41,318 140,387 135,565
Gross   margin 45,017 40,182 134,053 118,437

Expenses
Selling and marketing 13,372 11,924 39,285 35,463
General and administrative 12,110 11,080 34,747 29,305
Research and development 5,153 4,768 15,939 13,291
Amortization of intangible assets 11,179 11,480 33,725 33,925
Operating   income   (loss) 3,203 930 10,357 6,453

Interest income on financial instruments measured at amortized cost
(2,458 ) (2,024 ) (6,554 ) (6,218 )
Other interest income (65 ) (1,031 ) (1,194 ) (3,276 )
Interest expense 1,915 2,603 6,776 8,398
Other expense (795 ) (1,907 ) (1,006 ) (2,123 )
Net loss (gain) on financial instruments measured at fair value through profit or loss 2,820 (5,562 ) 19,752 2,346
Foreign exchange loss (gain) 2,326 1,317 5,934 6,162
Gain on hyperinflation (1,148 ) (1,364 ) (7,528 ) (3,000 )
(Loss)   income   before   income   taxes 608 8,898 (5,823 ) 4,164

Income
  tax
Current 1,862 1,112 4,776 3,251
Deferred (1,339 ) (1,802 ) (4,196 ) (6,578 )
Income   tax   expense   (recovery) 523 (690 ) 580 (3,327 )
Net   income   (loss)   for   the   period 85 9,588 (6,403 ) 7,491

Basic and diluted net income (loss) per share
0.09 (0.06 ) 0.07
Weighted   average   number   of   common   shares   outstanding
Basic 101,132,799 106,250,793 101,211,415 108,728,924
Diluted 101,132,799 106,511,761 101,211,415 108,958,045



INTERIM   CONSOLIDATED   STATEMENTS   OF   CASH   FLOWS
[In thousands of Canadian dollars]
[Unaudited]

Three   months   ended
September
  30,
Nine   months   ended
September
  30,
2024 2023 2024 2023
OPERATING   ACTIVITIES
Net (loss) income for the period 85 9,588 (6,403 ) 7,491
Adjustments reconciling net income to operating cash flows:
Depreciation and amortization 13,389 13,698 39,139 38,939
Net loss (gain) on financial instruments 2,820 (5,562 ) 19,752 2,346
Unrealized foreign exchange (gain) loss 98 3,619 (6,231 ) 1,557
Other operating activities (384 ) 1,058 (4,030 ) 966
16,008 22,401 42,227 51,299
Changes in non-cash working capital and other items (10,992 ) (7,235 ) (7,416 ) (33,303 )
Cash inflow (outflow) from operating activities 5,016 15,166 34,811 17,996

INVESTING   ACTIVITIES
Purchase of marketable securities (45,417 ) (52,118 ) (123,339 ) (237,668 )
Proceeds on maturity of marketable securities 58,703 81,204 150,693 262,372
Investment in funds (1,372 ) (1,006 ) (2,575 ) (1,176 )
Purchase of intangible assets (1,671 ) (60 ) (28,488 ) (7,727 )
Other investing activities 1,284 7,736 2,623 15,441
Cash inflow (outflow) from investing activities 11,527 35,756 (1,086 ) 31,242

FINANCING   ACTIVITIES
Repurchase of common shares through Normal Course Issuer Bid (2,474 ) (9,833 ) (3,716 ) (34,396 )
Principal repayment of bank loans (2,039 ) (2,571 ) (10,698 ) (8,580 )
Proceeds from bank loans 1,638 2,706 2,930 4,796
Other financing activities (1,052 ) (1,541 ) (6,702 ) (7,124 )
Cash outflow from financing activities (3,927 ) (11,239 ) (18,186 ) (45,304 )

Increase (decrease) in cash and cash equivalents during the period

12,616

39,683

15,539

3,934
Cash and cash equivalents, beginning of the period 60,807 37,844 58,761 71,679
Net foreign exchange difference 332 (109 ) (545 ) 1,805
Cash and cash equivalents, end of the period 73,755 77,418 73,755 77,418

Cash and cash equivalents

73,755

77,418

73,755

77,418
Marketable securities 77,745 76,397 77,745 76,397
Total   cash,   cash   equivalents   and   marketable   securities 151,500 153,815 151,500 153,815

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Medtronic announces cash dividend for third quarter of fiscal year 2025

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Bold thinking. Bolder actions. We are Medtronic . Medtronic plc , headquartered in Galway , Ireland , is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic , visit www.Medtronic.com and follow Medtronic on LinkedIn .

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