Knight Therapeutics Inc.

Good morning, ladies and gentlemen. My name is Matthew, and I will be your operator today. Welcome to Knight Therapeutics' second quarter 2026 results conference call. Before turning the call over to Samira Sakhia, President and CEO of Knight, listeners are reminded that portions of today's discussion may, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the company and its subsidiaries, may ultimately prove to be incorrect. The company disclaims any intention or obligation to update or revise any forward-looking statement Whether a result of new information, future events, except as required by law. We would also like to remind you questions during today's call will be taken from analysts only. Should there be any further questions, please contact Knight's Investor Relations Department via email to ir at knighttx.com or via phone at 514-484-4483. I would now like to remind everyone that this call is being recorded today, August 6, 2026, and would now like to turn the meeting over to your host for today's call, Samira Sakhia. Please go ahead, Ms. Sakhia.

Thank you, Matthew. Good morning, everyone, and welcome to Knight Therapeutics' second quarter 2026 conference call. I'm joined on today's call with Amal Khouri, our Chief Business Officer, and Arvind Utchanah, our Chief Financial Officer. I'm pleased to announce that Knight has delivered record high performance in the first six months of 2026. We reported revenues of $293 million, adjusted EBITDA of $52 million, and cash flow from operations of $70 million. During the first six months of the year, our promoted portfolio delivered nearly $200 million in revenues, an increase of over $50 million, or 36% on a constant currency basis. This was mainly the result of our commercial execution on our promoted products, including the contribution from the 17 launches we executed over the last two and a half years. We had six launches in Canada and 11 in Latin America. In Canada, we launched Invexi, Bejuva, Journey PM, Xcopri, MyFembre, and Orgovex. In Latin America, we have launched Minjuvi for DLBCL in Brazil, Mexico, and Argentina. for follicular lymphoma in Brazil. We also launched Pemezir in Brazil, Mexico, and Argentina, Tavalis in Mexico, and Akinzeo in Paraguay. In addition, we have also launched two branded generic products, Molapib in Argentina and Baposil in Colombia. In the second half of this year, we expect to launch Tavalis in Brazil, for which we received regulatory approval earlier this Q, as well as Wenzora in Canada and certain branded generics in LATAM. In addition, just yesterday, we received a notice of noncompliance from Health Canada on the new drug submission for Crexant. We will be working closely with our partner to respond to Health Canada. As a reminder, Crexant was approved in the US in August of 2024 and was launched in September of 2024. And in June of this year, the product received positive CHMP recommendation in Europe with an approval expected in September. On to the NCIB. In the first half of 2026, we purchased 1.5 million common shares at an average price of $6.33 for aggregate cash consideration of approximately $9.2 million. I will now turn the call over to Arvind to provide an update on our financial results.

Thank you, Samira. When speaking of our financial results, I will refer to certain non-IFRS measures, including adjusted EBITDA per share, adjusted gross margin, and constant currency results. Refer to our press release and MD&A and CDAR filings for their definitions. For the second quarter of 2026, we delivered revenues of $144 million, an increase of $37 million, or 34% compared to the same period last year. On a constant currency basis, the increase in revenues was $26 million or 22% driven by the growth of our promoted portfolio, including our pipeline launches, as well as the addition of the mature products from the Paladin and Sumitomo transactions. Our launch pipeline portfolio delivered $18 million in revenues, an increase of $14 million or 297% on a constant currency basis, driven by the 17 launches that Samira mentioned earlier. I would like to add that according to IQGA, the sales of the Canadian launch pipeline products grew by 189% in Q2 26 compared to Q2 25. As for our promoted strategic products, they delivered $76 million in the second quarter. Excluding the sales of Ambisome to MOH, the portfolio grew by $9 million or 16% on a constant currency basis driven by the growth of our promoted brands, including Cresemba, Lendema, Akinzeo, and Envosys. Finally, our mature portfolio delivered $48 million, an increase of $12 million, or 32% on a constant currency basis. The increase was driven by the addition of the mature products from the Paladin and Sumitomo portfolios. Now moving on to gross margin. We delivered adjusted gross margin of $17 million, or 49% of revenues, in Q2 26 compared to $49 million, or 46% of revenues in the same period last year. The increase in the gross margin percentage is mainly explained by the higher contribution of the Canadian business, which generates a higher gross margin as a percentage of revenues. I will now turn to our operating expenses, excluding amortization. For the second quarter, our operating expenses were $47 million, an increase of $9 million, or 25%, compared to the same period last year. The increase in operating expenses was mainly driven by the expansion in structure and spend required to support our mini-launchers and larger metro portfolio. Moving on to adjusted EBITDA. For the second quarter of 2026, we reported over $24 million of adjusted EBITDA, An increase of $9 million or 58% compared to the same period last year. Our adjusted EBITDA per share was $0.25, an increase of 61% compared to the same period last year. The increase was mainly driven by our higher gross margin, partly offset by higher operating expenses. I will now cover our financial assets which are valued at $81 million. In the second quarter, we recorded a net loss of $12 million driven by the mark-to-market revaluations of our strategic fund and equity investments. As a reminder, our funds continue to be a source of cash and have generated $51 million since 2020. Turning to our liquidity and cash flows. During the second quarter, our business generated operating cash inflows of $30 million and we paid $30 million on our revolving credit facility. Over the last year, our strong operating cash flows and balance sheet have supported our 17 launches, the acquisition of the Paladin and Sumitomo portfolios, as well as the full repayment of the $60 million loan used to finance the Paladin transaction within one year of closing. We ended the quarter with $110 million in cash and marketable securities and a net cash position of $87 million. In addition, with $280 million available under our credit facility, we are well positioned to fund future growth. I will now turn the call back to Samira.