Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Knight Therapeutics Inc (KHTRF, Financial) reported record revenues of $180 million for the first six months of 2024, excluding hyperinflation.
- The company's innovative product portfolio grew by 12%, driven by products like Lenvima, Akynzeo, Trelstar, and the launch of Minjuvi in Brazil.
- Knight Therapeutics Inc (KHTRF) expanded its pipeline with the in-licensing of Journey PM, a novel formulation for ADHD, complementing its neurology portfolio.
- The oncology and hematologic disease portfolio saw a revenue increase of 28% compared to the same period last year.
- Knight Therapeutics Inc (KHTRF) increased its financial guidance for 2024 revenues to between $355 million and $365 million, up from the previous range of $335 million to $350 million.
Negative Points
- The infectious disease portfolio experienced a revenue decrease of 17% compared to the same period last year, primarily due to timing of orders and decreased demand for certain products.
- Operating expenses increased by 12% compared to the same period last year, driven by higher G&A costs and development expenses.
- Cash outflows from operations were $1.1 million during Q2 2024, influenced by an increase in working capital.
- The company faces challenges with hyperinflation in Argentina, making it difficult to predict financial outcomes accurately.
- Knight Therapeutics Inc (KHTRF) anticipates potential lumpy quarters and swings in working capital due to inventory purchases.
Q & A Highlights
Q: Did the approval of IPX203 by Amneal align with your expectations, and will it affect your approval timelines in your operating jurisdictions?
A: Yes, the approval timing was as expected since we knew when Amneal submitted it. It doesn't change our timelines as we had already started working on parts of the submission while awaiting approval.
Q: Can you elaborate on the accelerated investments into your pipeline products?
A: We are focusing on accelerating development work and pre-launch activities for our 18 pipeline products. This includes potentially launching Jornay PM by the end of next year and expecting approvals for Minjuvi and other products in various territories.
Q: How does Bausch Health's interest in LATAM affect your competitive landscape?
A: We haven't encountered Bausch Health as a competitor for deals. However, their interest in LATAM could align with our strategy of acquiring assets from companies looking to divest or focus elsewhere.
Q: Is there a concern about increased generic pressure on Jornay affecting revenues?
A: Launching new products takes time to reach peak sales, typically three to five years. Even if launches are accelerated, it won't significantly impact the existing portfolio's growth trajectory.
Q: What is the status of the Brazilian Ministry of Health's contract for Ambisome, and what is the patent situation?
A: Ambisome has no patent protection, and the Ministry of Health switched to it due to supply issues with a competitor. Fungal infections are a persistent issue in Brazil, and we have established a strong relationship with the Ministry, which could continue even if the competitor returns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
