Medison Expresses Concerns over Knight Therapeutics' Second Quarter Results and Demands Answers to Critical Questions from Jonathan Goodman

PETACH TIKVA, Israel, Aug. 9, 2019 /CNW/ - Medison Biotech (1995) Ltd. ("Medison"), which together with its affiliates owns more than 10.4 million shares or 7.5% of Knight Therapeutics, Inc. (TSX:GUD) ("Knight" or the "Company"), demands answers from Knight and Jonathan Goodman regarding Knight's second quarter financial statements and governance related issues.  Medison believes the owners of Knight deserve better and should ask the following questions:

1. Knight experienced another very disappointing quarter of financial results with no clear path for improvement in the future.  Why should investors continue to trust Knight and the current management with their hard-earned money?
   
   
2. Knight emphasizes the product pipeline that it has developed during the past 5 years, but sales levels continue to be marginal with no real growth in the first half of fiscal 2019.  Why does Knight not disclose its projected outlook for 2020 so investors can better understand the true results (or lack thereof) of all the Company's efforts to date?
   
   
3. In particular, Knight published a few press releases regarding its progress with the registration process of Probuphine® in Canada without disclosing the potential sales of this drug in Canada – what are the expected sales figures of this drug in the Canadian market?
   
   
4. Some products that were presented by Knight as significant value drivers in its near-term pipeline have achieved only nominal sales in the United States, a market that is approx. 20 times larger (in dollars) than the Canadian market.  For example, TherapeuticsMD reported earlier this week that the products that were licensed by Knight to Canada achieved US sales of only US$3.2 million in Q2, and Jaguar Health (JAGX), whose stock fell 98% in the past 12 months, generated only US$1.6 million a quarter in the past 2 reported quarters.  Is Knight considering abandoning the registration processes for products that are expected to generate operational losses in the Canadian market?
   
   
5. If Knight believes that it has created a significant pharma business, why doesn't the stock price reflect the potential of that business? Why does the stock trade at a price that does not assign any value in excess of the Company's asset value?
   
   
6. The Company has suffered over C$3 million in operational loss this quarter. How much of the approximately C$19 million net income generated during the second quarter of 2019 relates to the pharma business and is recurring in nature? Isn't all of Knight's net income generated by non-monetary line items, accounting adjustments and some financial non-recurring transactions?
   
   
7. Knight loaned $10 million to a Mexican pharmaceutical company, Moksha8, which distributes mostly generic drugs, and then further committed to lend up to $125 million, in a deal that it described as "strategic".  Can Knight provide an update on this transaction (e.g. EBITDA and cash balance of Moksha8), and its "strategic" contribution to the Company?
   
   
8. A $1 billion lawsuit against certain companies including Pharmascience and Joddes (Goodman family owned businesses in which Jonathan Goodman owns at least 25%) was initiated regarding opioid products.  How does this litigation affect Jonathan Goodman's ability to manage Knight and concentrate on creating value to shareholders?
   
   
9. Can the Company demonstrate actions and controls instituted in order to eliminate the untenable conflicts of interest of Jonathan Goodman with respect to his Pharmascience ownership?
   
   
10. Has the Company taken any actions to remedy serious governance related issues (including in Abir Therapeutics Ltd., its Israeli subsidiaries) that may expose the Company to adverse regulatory actions?

Meir Jakobsohn, Medison's CEO, added: "We are again very disappointed by another wasted quarter, in which Knight recorded non-impressive financial results and made no progress in building a sustainable pharma business. I invite all disappointed shareholders to continue and contact us on www.NewDayForKnight.com or contact me on my direct email:  Meirj@Medison.co.il."

Medison has maintained its website, www.NewDayForKnight.com, and encourages shareholders to visit for updates.

About Medison

Medison is one of the world's largest commercial partners of leading global biotech companies. Medison is uniquely qualified to provide the complete spectrum of integrated services for international companies looking to enter or expand their presence in selected ROW markets (Israel, Canada and CEE markets). Medison runs a corporate venture arm with a dedicated research and evaluation team boasting deep scientific and commercial backgrounds. Medison also operates a scouting program to cater its partners and is an active investor in life science projects around drug development and digital health.

SOURCE Medison Biotech Ltd.

View original content: http://www.newswire.ca/en/releases/archive/August2019/09/c0354.html