MONTREAL, QUEBEC–(Marketwired – Aug. 14, 2014) – Knight Therapeutics Inc. (“Knight”) (TSX:GUD) today reported its financial results for the quarter ended June 30, 2014.

2nd Quarter 2014 Highlights

During the second quarter of 2014:

Subsequent to the quarter ended June 30, 2014

Second Quarter 2014 Financial Results Reported in Canadian Dollars

The Company's financial statements for the period ended June 30, 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting.

For the three-month period ended June 30, 2014, the Company reported Revenues of $247,373 and Net Income of $390,617. For the six-month period ended June 30, 2014, the Company reported Revenues of $248,814 and Net Income of $314,875. As at June 30, 2014, the Company had $234,507,236 of cash and 77,764,640 common shares outstanding.

“I am pleased with our progress since inception on February 28, 2014. During these five and a half months, we have raised $255 million, listed on TSX, received FDA approval for Impavido, been awarded a priority review voucher by the FDA and concluded three business development deals. And we did this all with only three full-time permanent staff! We look forward to expanding our team and capacity to invest in low risk, high return life science opportunities.” said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc.

Conference Call Notice

Knight will host a conference call to discuss its second quarter results today at 8:30 am ET. Investors and other interested parties may call 877-223-4471 (Operator Assisted Toll-Free) or 647-788-4922 (local or international).

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. For more information about Knight Therapeutics Inc., please visit the Company's website at www.gud-knight.com or at www.sedar.com.

This press release may contain forward-looking statements and predictions. These forward-looking statements, 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. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the Company's final application for listing on TSX Venture Exchange and in two Short Form Prospectuses which can be found on SEDAR at www.sedar.com, which investors should consult for additional information. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.

Neither TSX nor its Regulation Services Providers (as that term is defined in policies of TSX) accepts responsibility for the adequacy or accuracy of this release.

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

As at
[In Canadian dollars]
[unaudited]
June 30,
2014
December 31,
2013
$ $
ASSETS
Current assets
Cash 234,507,236 1
Interest, royalties and other receivable 670,811
Other current assets 175,123
Total current assets 235,353,170 1
Property and equipment 57,476
Intangible assets 883,701
Intangible asset held for sale 10,000,000
Other financial assets 14,029,454
Total assets 260,323,801 1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accruals 1,501,718
Total current liabilities 1,501,718
Deferred income tax liability 265,929
Total liabilities 1,767,647
Shareholders' equity
Share capital 255,779,700 1
Contributed surplus 750,344
Accumulated other comprehensive income 1,711,235
Retained earnings 314,875
Total shareholders' equity 258,556,154 1
Total liabilities and shareholders' equity 260,323,801 1

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

[In Canadian dollars except for share amounts]
[unaudited]
Three months ended June 30, 2014 Six months ended June 30, 2014
$ $
REVENUE
Royalty income 247,373 248,814
EXPENSES
General and administrative 693,360 770,632
Research and development 112,736 127,773
(558,723 ) (649,591 )
Depreciation of property and equipment 6,515 7,008
Amortization of intangible assets 18,970 25,294
Interest expense 4,500 23,540
Interest income (878,744 ) (919,727 )
Other income (104,859 ) (104,859 )
Foreign exchange gain (1,210 ) (1,210 )
Income before income taxes 396,105 320,363
Income tax expense 5,488 5,488
Net income for the period 390,617 314,875
Basic and diluted earnings per share 0.006 0.009
Weighted average number of common shares outstanding
Basic 63,066,993 35,725,338
Diluted 63,166,988 35,784,315

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[In Canadian dollars]
[unaudited]
Three months ended June 30, 2014 Six months ended June 30, 2014
$ $
Net income for the period 390,617 314,875
Other comprehensive income to be reclassified to income or loss in subsequent periods:
Change in fair value of available-for-sale financial instruments (net of tax of $265,929) 1,711,235 1,711,235
Other comprehensive income for the period 1,711,235 1,711,235
Total comprehensive income for the period 2,101,852 2,026,110

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the six months ended June 30, 2014
[In Canadian dollars]
[unaudited]
Share
capital
Warrant Contributed Surplus Accumulated Other Comprehensive Income Retained Earnings Total Shareholders' Equity
$ $ $ $ $ $
Balance on Incorporation and as at January 1, 2014 1 1
Net income and comprehensive income for the period 1,711,235 314,875 2,026,110
Stock based compensation expense 258,467 258,467
Issuance of common shares as part of Business Separation Agreement 11,909,000 11,909,000
Issuance of warrants, net of costs 244,320,699 491,877 244,812,576
Deemed exercise of Special Warrants into common shares 244,320,699 (244,320,699 )
Share purchase loans (450,000 ) (450,000 )
Balance as at June 30, 2014 255,779,700 750,344 1,711,235 314,875 258,556,154

Knight Therapeutics Inc.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

[In Canadian dollars]
[unaudited]
Six months
ended June 30, 2014
$
OPERATING ACTIVITIES
Net income 314,875
Depreciation of property and equipment 7,008
Amortization of intangible assets 25,294
Stock based compensation 258,467
Changes in non-cash working capital related to operations (364,230 )
Cash inflow from operating activities 241,414
INVESTING ACTIVITIES
Purchase of property and equipment (64,484 )
Loan receivable (850,000 )
Investment in Fund (10,664,025 )
Cash outflow from investing activities (11,578,509 )
FINANCING ACTIVITIES
Net impact of Business Separation Agreement 1,000,000
Net proceeds from warrants issuance 245,294,330
Share purchase loans (450,000 )
Loan from related party 2,500,000
Repayment of loan from related party (2,500,000 )
Cash inflow from financing activities 245,844,330
Increase in cash during the period 234,507,235
Cash, beginning of period 1
Cash, end of period 234,507,236
The following amounts are classified within operating activities:
Interest received 593,863
Interest paid 22,534