Knight Therapeutics Inc T.GUD

Results

[gudisgood]

Pleasantly surprised by Q4 - and with that - FY22.

The guidance is also surprising, but not that pleasantly, considering that we'll have a full year of full Exelon revenue, and the mid-point of the revenue guidance is the same as FY22, and the EBITDA is lower. (The reason is a decline in branded generics due to new competition which has a relatively higher impact on margins.)

Samira says we will ride out this wave and it has to do with timing of products at the end of their lifecycles vs. new pipeline releases.

Any acquisitions could, of course, impact the guidance. I would also consider it a possiblity that this is a very careful guidance with little risk of overpromising as we saw in 2022 (guidance of $265M-$275M with actual results of $294M).

They say the deal flow is healthy and the BD team is busy. Now, to be fair, they've said this for a while now. Hopefully some deals materialize soon.

[EbbFlow88]

That's a good summary gudisgood. The growth of the last two years has been great. Back to back 20% growth in revenues. Hyperinflation is biting into that which explains the debt to hedge it and sounds like it can be put to use in 2023/24. Amal said they're busy but they haven't seen valuations change much and it's still competitive, which doesn't bode well for a ton of M&A

[Chianchin]

The limping knight keeps losing money. Nothing else to spin. Shareholders have lost fortunes for 10 Years on GUD and will continue till MNGT and BOD resign at one billion dollar later badly invested

[curiousj]

Keep in mind , that mid point guidance last year and mid point guidance this year would assume internally mgmt budgeting  for growth YoY. Just so happened that sales in Q4 far outpaced and led to earning way more earlier than expected. What struck me on the call , was how profitable BGx are and that I would of assumed the opposite , in-licensed would far outpace BGx on margin.  Peers GM

[MrMugsy]

Deal flow should be healthy - a lot of struggling small pharma companies out there. Question is ... does GUD find the right deals at the right prices?  Best opportunities in a long time (I would assume). Growth with Samira/Goodman always plateaus and stalls - gets a shot in the arm - moves forward again. That is the nature of their business - all in how they manage it. $170 in cash. They

[curiousj]

Knight will continue to be in a position to execute on BD opportunity.  what about the ROI on current business though... especially given how low GM% are. What are the opportunities to scale further the existing portfolio ?