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1 Adjusted Revenues, Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are non-GAAP measures and do not
have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
2 Excluding the impact of hyperinflation under IAS 29.
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Adjusted Revenues1 by Product Portfolio
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| Change | ||||||||
| Product Portfolio | Q1-26 | Q1-252 | $ | % | ||||
| Promoted | ||||||||
| Promoted – Launched Pipeline Products | 15,329 | 2,466 | 12,863 | 522% | ||||
| Promoted – Strategic Products | 83,685 | 55,241 | 28,444 | 51% | ||||
| Total Promoted | 99,014 | 57,707 | 41,307 | 72% | ||||
| Mature | 46,434 | 29,751 | 16,683 | 56% | ||||
| Discontinued | 2,146 | 521 | 1,625 | 312% | ||||
| Total Adjusted Revenues | 147,594 | 87,979 | 59,615 | 68% | ||||
| 1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||
| 2 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||
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Adjusted Revenues1 by Therapeutic Area
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| Change | ||||||||
| Therapeutic Area | Q1-26 | Q1-252 | $ | % | ||||
| Oncology/Hematology | 39,554 | 31,676 | 7,878 | 25% | ||||
| Infectious Diseases | 55,079 | 36,441 | 18,638 | 51% | ||||
| Neurology | 30,227 | 12,482 | 17,745 | 142% | ||||
| Other Specialty | 22,734 | 7,380 | 15,354 | 208% | ||||
| Total | 147,594 | 87,979 | 59,615 | 68% | ||||
| 1 Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||
| 2 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||
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[ii] Financial results at constant currency
Financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods.
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The Company believes that financial results at constant currency represents a useful measure to investors because it eliminates the effect that foreign currency exchange rate fluctuations may have on period-to-period comparability given the volatility in foreign currency exchange markets and therefore, provides greater transparency to the underlying performance of our consolidated financial results. The presentation of revenues and financial results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.
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| Q1-26 | Q1-25 | Change | ||||||||||
| Excluding the impact of IAS 291 | Excluding the impact of IAS 291 | Constant Currency Adjustment | Constant Currency | $ | % | |||||||
| Adjusted Revenues2 | 147,594 | 87,979 | 4,220 | 92,199 | 55,395 | 60% | ||||||
| Cost of goods sold | 76,946 | 47,045 | 2,258 | 49,303 | 27,643 | 56% | ||||||
| Gross margin | 70,648 | 40,934 | 1,962 | 42,896 | 27,752 | 65% | ||||||
| Gross margin (%) | 48% | 47% | 47% | |||||||||
| Expenses | ||||||||||||
| Selling and marketing | 20,191 | 13,840 | 503 | 14,343 | 5,848 | 41% | ||||||
| General and administrative | 13,893 | 11,584 | 142 | 11,726 | 2,167 | 18% | ||||||
| Research and development | 9,339 | 4,808 | 143 | 4,951 | 4,388 | 89% | ||||||
| Amortization of intangible assets | 14,891 | 9,472 | (360 | ) | 9,112 | 5,779 | 63% | |||||
| Operating income | 12,334 | 1,230 | 1,534 | 2,764 | 9,570 | 346% | ||||||
| Adjusted EBITDA2 | 27,917 | 13,295 | 14,622 | 110% | ||||||||
| Adjusted EBITDA2 (%) | 19% | 14% | ||||||||||
| Adjusted EBITDA per share2 | 0.28 | 0.13 | 0.15 | 113% | ||||||||
| 1Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. | ||||||||||||
| 2Adjusted Revenues, EBITDA, Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||||||
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Adjusted Revenues at Constant Currency2 by Product Portfolio
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| Three-month period ended March 31, | ||||||||
| Excluding impact of IAS 291 | ||||||||
| Constant Currency2 | ||||||||
| Product Portfolio | 2026 | 20253 | $ | % | ||||
| Promoted | ||||||||
| Promoted – Launched Pipeline Products | 15,329 | 2,547 | 12,782 | 502% | ||||
| Promoted – Strategic Products | 83,685 | 58,484 | 25,201 | 43% | ||||
| Total Promoted | 99,014 | 61,031 | 37,983 | 62% | ||||
| Mature | 46,434 | 30,643 | 15,791 | 52% | ||||
| Discontinued | 2,146 | 525 | 1,621 | 309% | ||||
| Total Adjusted Revenues | 147,594 | 92,199 | 55,395 | 60% | ||||
| 1 Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. | ||||||||
| 2 Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||
| 3 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||
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Adjusted Revenues at Constant Currency2 by Therapeutic Area
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| Three-month period ended March 31, | ||||||||
| Excluding impact of IAS 291 | ||||||||
| Constant Currency2 | ||||||||
| Innovative | 2026 | 20253 | $ | % | ||||
| Oncology/Hematology | 39,554 | 33,319 | 6,235 | 19% | ||||
| Infectious Diseases | 55,079 | 38,084 | 16,995 | 45% | ||||
| Neurology | 30,227 | 13,299 | 16,928 | 127% | ||||
| Other Specialty | 22,734 | 7,497 | 15,237 | 203% | ||||
| Total | 147,594 | 92,199 | 55,395 | 60% | ||||
| 1 Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. | ||||||||
| 2 Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||
| 3 Comparative figures have been reclassified to align with the three-month period ended March 31, 2026 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||
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[iii] Adjusted Gross Margin
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Adjusted Gross Margin is defined as revenues less cost of goods sold, adjusted for the impact of IAS 29. The Company believes that Adjusted Gross Margin represents a useful measure to investors to assess Gross Margin without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of Adjusted Gross Margin is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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| Change | ||||||||
| Q1-26 | Q1-25 | $ | % | |||||
| Gross margin | 69,109 | 34,866 | 34,243 | 98% | ||||
| Adjustments to gross margin: | ||||||||
| Impact of IAS 29 | 1,539 | 6,068 | ||||||
| Adjusted Gross Margin | 70,648 | 40,934 | 29,714 | 73% | ||||
| Adjusted Gross Margin (%)1 | 48 | % | 47 | % | ||||
| 1 Adjusted Gross Margin as a percentage of Adjusted Revenues. | ||||||||
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[iv] EBITDA
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EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of non-current assets, depreciation, but to include costs related to leases.
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The Company believes that EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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[v] Adjusted EBITDA
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Adjusted EBITDA is defined as EBITDA adjusted for the impact of IAS 29 (accounting under hyperinflation), acquisition and transaction costs and non-recurring expenses. The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:
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| Change | ||||||||
| Q1-26 | Q1-25 | $ | % | |||||
| Operating income (loss) | 10,578 | (5,537 | ) | 16,115 | N/A | |||
| Adjustments to operating income (loss): | ||||||||
| Amortization of intangible assets | 14,673 | 9,474 | 5,199 | 55% | ||||
| Depreciation of property, plant and equipment and ROU assets | 1,519 | 2,110 | (591 | ) | 28% | |||
| Lease payments | (1,206 | ) | (1,122 | ) | (84 | ) | 7% | |
| EBITDA | 25,564 | 4,925 | 20,639 | 419% | ||||
| Impact of IAS 29 | 1,807 | 6,146 | (4,339 | ) | 71% | |||
| Acquisition and transaction costs | 114 | 1,042 | (928 | ) | 89% | |||
| Other non-recurring expenses | 432 | — | 432 | —% | ||||
| Adjusted EBITDA | 27,917 | 12,113 | 15,804 | 130% | ||||
| Adjusted EBITDA per share | 0.28 | 0.12 | 0.16 | 133% | ||||
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For the quarter ended March 31, 2026, adjusted EBITDA increased by $15,804 or 130%. The increase was mainly driven by higher Adjusted Gross Margin, partly offset by higher operating expenses. Refer to Section 3 – Results of Operations of the MD&A for further details.
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Explanation of adjustments from EBITDA to Adjusted EBITDA
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| Impact of IAS 29 | Impact of hyperinflation accounting under IAS 29 over the operating income (loss). |
| Acquisition and transaction costs | Non-capitalizable acquisition and transaction costs relate to costs incurred on legal, consulting and advisory fees for the acquisitions. |
| Other non-recurring expenses | Other non-recurring expenses relate to expenses incurred by the Company that are not due to, and are not expected to occur in, the ordinary course of business. |
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[vi] Adjusted EBITDA per share
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Adjusted EBITDA per share is defined as Adjusted EBITDA divided by the number of common shares outstanding at the end of the respective period. The Company believes that Adjusted EBITDA per share represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities on a per common share basis, without the impact of hyperinflation under IAS 29, acquisition and transaction costs and non-recurring expenses, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The Company calculated adjusted EBITDA per share as follows:
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| Q1-26 | Q1-25 | |||
| Adjusted EBITDA | 27,917 | 12,113 | ||
| Adjusted EBITDA per share | 0.28 | 0.12 | ||
| Number of common shares outstanding at period end (in thousands) | 98,252 | 99,448 |
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| INTERIM CONSOLIDATED BALANCE SHEETS [In thousands of Canadian dollars] [Unaudited] | ||||
| As at | March 31, 2026 | December 31, 2025 | ||
| ASSETS | ||||
Current | ||||
| Cash and cash equivalents | 108,048 | 76,449 | ||
| Marketable securities | 19,242 | 18,834 | ||
| Trade receivables | 141,403 | 127,775 | ||
| Other receivables | 10,019 | 6,063 | ||
| Inventories | 141,918 | 135,866 | ||
| Prepaids and deposits | 5,240 | 6,505 | ||
| Other current financial assets | 15,891 | 18,946 | ||
| Income taxes receivable | 5,190 | 4,397 | ||
| Total current assets | 446,951 | 394,835 | ||
| Prepaids and deposits | 9,506 | 8,883 | ||
| Right-of-use assets | 11,136 | 9,919 | ||
| Property, plant and equipment | 19,235 | 12,006 | ||
| Intangible assets | 354,037 | 379,510 | ||
| Goodwill | 95,309 | 89,982 | ||
| Other financial assets | 78,826 | 79,484 | ||
| Deferred tax assets | 26,679 | 26,921 | ||
| Other long-term receivables | 44,921 | 44,760 | ||
| Total non-current assets | 639,649 | 651,465 | ||
| Total assets | 1,086,600 | 1,046,300 | ||
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| INTERIM CONSOLIDATED BALANCE SHEETS (continued) [In thousands of Canadian dollars] [Unaudited] | ||||
| As at | March 31, 2026 | December 31, 2025 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current | ||||
| Accounts payable and accrued liabilities | 147,327 | 120,868 | ||
| Lease liabilities | 3,698 | 3,398 | ||
| Other liabilities | 14,664 | 12,878 | ||
| Bank loans | 17,911 | 16,730 | ||
| Income taxes payable | 252 | 580 | ||
| Other balances payable | 8,597 | 10,806 | ||
| Total current liabilities | 192,449 | 165,260 | ||
| Accounts payable and accrued liabilities | 5,787 | 4,887 | ||
| Lease liabilities | 7,438 | 6,618 | ||
| Bank loans | 40,728 | 51,165 | ||
| Other balances payable | 49,763 | 48,105 | ||
| Deferred tax liabilities | 3,161 | 2,993 | ||
| Total liabilities | 299,326 | 279,028 | ||
| Shareholders’ equity | ||||
| Share capital | 525,533 | 530,140 | ||
| Contributed surplus | 30,651 | 32,449 | ||
| Accumulated other comprehensive income | 70,252 | 55,741 | ||
| Retained earnings | 160,838 | 148,942 | ||
| Total shareholders’ equity | 787,274 | 767,272 | ||
| Total liabilities and shareholders’ equity | 1,086,600 | 1,046,300 | ||
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| INTERIM CONSOLIDATED STATEMENTS OF INCOME [In thousands of Canadian dollars, except for share and per share amounts] [Unaudited] | ||||
| Three months ended March 31, | ||||
| 2026 | 2025 | |||
| Revenues | 148,439 | 88,076 | ||
| Cost of goods sold | 79,330 | 53,210 | ||
| Gross margin | 69,109 | 34,866 | ||
| Gross margin % | 47% | 40% | ||
| Expenses | ||||
| Selling and marketing | 20,321 | 13,924 | ||
| General and administrative | 14,127 | 12,219 | ||
| Research and development | 9,410 | 4,786 | ||
| Amortization of intangible assets | 14,673 | 9,474 | ||
| Operating income (loss) | 10,578 | (5,537 | ) | |
| Interest income on financial instruments measured at amortized cost | (952 | ) | (1,854 | ) |
| Interest expense | 2,641 | 1,756 | ||
| Other (income) expense | (4,174 | ) | 140 | |
| Net loss on financial assets measured at fair value through profit or loss | 2,033 | 945 | ||
| Foreign exchange gain | (2,437 | ) | (5,551 | ) |
| Gain on hyperinflation | (715 | ) | (574 | ) |
| Income (loss) before income taxes | 14,182 | (399 | ) | |
| Income taxes | ||||
| Current | 183 | 535 | ||
| Deferred | 830 | (3,119 | ) | |
| Income tax expense (recovery) | 1,013 | (2,584 | ) | |
| Net income for the period | 13,169 | 2,185 | ||
| Basic and diluted net income per share | 0.13 | 0.02 | ||
| Weighted average number of common shares outstanding | 98,457,286 | 99,641,300 | ||
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| INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS [In thousands of Canadian dollars] [Unaudited] | ||||
| Three months ended March 31, | ||||
| 2026 | 2025 | |||
| OPERATING ACTIVITIES | ||||
| Net income for the period | 13,169 | 2,185 | ||
| Adjustments reconciling net income to operating cash flows: | ||||
| Deferred income tax expense (recovery) | 830 | (3,119 | ) | |
| Share-based compensation expense | 1,381 | 1,012 | ||
| Depreciation and amortization | 16,192 | 11,584 | ||
| Net loss on financial assets measured at fair value through profit or loss | 2,033 | 945 | ||
| Interest expense | 2,641 | 1,756 | ||
| Accrued interest income | (110 | ) | 78 | |
| Unrealized foreign exchange loss | 1,254 | 1,330 | ||
| Other income | (4,174 | ) | — | |
| Gain on hyperinflation | (715 | ) | (574 | ) |
| 32,501 | 15,197 | |||
| Changes in non-cash working capital and other items | 8,193 | (11,527 | ) | |
| Cash inflow from operating activities | 40,694 | 3,670 | ||
| INVESTING ACTIVITIES | ||||
| Purchase of marketable securities | (8,836 | ) | (6,857 | ) |
| Purchase of intangible assets | (4,152 | ) | (3,328 | ) |
| Purchase of property and equipment | (3,326 | ) | (373 | ) |
| Investment in funds | (434 | ) | (107 | ) |
| Proceeds on maturity of marketable securities | 8,750 | 39,637 | ||
| Proceeds from return of commercial rights | 17,000 | — | ||
| Proceeds from sale of property and equipment | — | 30 | ||
| Proceeds from disposal of equity investments | 1,078 | — | ||
| Proceeds from distribution of funds | 402 | 3,124 | ||
| Cash inflow from investing activities | 10,482 | 32,126 | ||
| FINANCING ACTIVITIES | ||||
| Proceeds from contributions to share purchase plan | 112 | 114 | ||
| Proceeds from bank loans | — | 1,809 | ||
| Repurchase of common shares through Normal Course Issuer Bid | (8,237 | ) | (3,345 | ) |
| Principal repayment of lease liabilities | (1,206 | ) | (1,122 | ) |
| Principal repayment of bank loans | (11,329 | ) | (1,586 | ) |
| Interest paid on bank loans | (649 | ) | (569 | ) |
| Cash outflow from financing activities | (21,309 | ) | (4,699 | ) |
| Increase in cash and cash equivalents during the period | 29,867 | 31,097 | ||
| Cash and cash equivalents, beginning of the period | 76,449 | 80,106 | ||
| Effect of exchange rate changes on cash and cash equivalents | 1,732 | 952 | ||
| Cash and cash equivalents, end of the period | 108,048 | 112,155 | ||
| Cash and cash equivalents | 108,048 | 112,155 | ||
| Marketable securities | 19,242 | 29,350 | ||
| Total cash, cash equivalents and marketable securities | 127,290 | 141,505 | ||
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