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.”

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¹ Adjusted 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.

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:

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.

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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.

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.

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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.

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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-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.

Conference Call 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:

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.

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.

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 UNDER 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] 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.

Select financial results excluding the impact of hyperinflation under IAS 29¹

¹ Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 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.
² Excluding the impact of hyperinflation under IAS 29.

Adjusted Revenues¹ by Product Portfolio

Adjusted Revenues¹ by Therapeutic Area

[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.

Adjusted Revenues at Constant Currency² by Product Portfolio

Adjusted Revenues at Constant Currency² by Therapeutic Area

[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.

[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:

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

[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: