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Knight Therapeutics Inc KHTRF


Primary Symbol: T.GUD

Knight Therapeutics Inc. is a specialty pharmaceutical company. The Company’s principal business activity is developing, acquiring, in-licensing, out-licensing, manufacturing, marketing and distributing pharmaceutical products in Canada, Latin America and select international markets. It finances other life sciences companies and secures product distribution rights for Canada and select international markets. The Company invests in life sciences venture capital funds whereby the Company may receive preferential access to healthcare products for Canada and select international markets. It develops pharmaceutical products, including those to treat neglected tropical and rare pediatric diseases. The portfolio consists of pharmaceutical products with molecules and includes both in-licensed products such as Lenvima, Cresemba, Halaven, Trelstar, Akynzeo, Ambisome, Minjuvi, Imvexxy as well as products owned by Knight such as Exelon and Impavido.


TSX:GUD - Post by User

Comment by gudisgoodon Aug 11, 2023 1:08pm
143 Views
Post# 35584163

RE:RE:RE:Updated Outlook

RE:RE:RE:Updated OutlookThey have indeed put a lot of capital to use.

$370M = GBT
$180M = Exelon
$210M = buybacks

That's roughly $760M as you mentioned.

In 2022, in-licensing payments (upfront and milestones) totaled $26M.

So let's say we're at $800M spent on the platform, products and buybacks.

Have we seen a desirable return on these investments so far? I would love to hear your opinions on this. I would argue that it's not yet apparent... but then again, we're just getting started with in-licensing.

On top of these investments, we currently have "invested":

$40M = strategic loans
$126M = funds
$140M = cash
-$72M = bank loans

For a net total of $234M.

Additionally...

$40M = CRA (bonus option)

With a current market cap of $506M. Should the money already invested into GBT/products generate any sort of decent return and, furthermore, should we generate any sort of decent return on the capital that's yet to be invested into acquisitions, products and buybacks... the current market cap will look ridiculous in due time. 

I do agree that one acquisition can essentially take care of the "excess cash" problem. I would prefer to see more in-licensing deals though (and the maangement would prefer this as well, I'm sure) that don't require that much upfront capital but have the ability to generate meaningful business.
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