MONTREAL, CANADA–(Marketwired – Nov. 12, 2014) – Knight Therapeutics Inc. (“Knight”) (TSX:GUD) today reported its financial results for the quarter ended September 30, 2014.

Third Quarter 2014 Highlights

Subsequent to the quarter ended September 30, 2014:

To date, Knight has allocated $70 million out of the $130 million that the Company intends to invest in successful life science funds. These investments including Sectoral Asset Management, Forbion and Teralys have an ability to leverage their broad life sciences industry experience and existing relationships with key life science companies, including well placed introductions to their investee companies, to help secure Canadian product rights for the Company.

Third Quarter 2014 Financial Results Reported in Canadian Dollars

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

For the three-month period ended September 30, 2014, the Company reported Revenues of $6,901 and Net Income of $562,558. For the nine-month period ended September 30, 2014, the Company reported Revenues of $255,715 and Net Income of $877,434. As at September 30, 2014, the Company had $227.2 million of cash and 77,818,403 common shares outstanding.

“We are making GUD progress on becoming a Paladin 2.0. In the last nine months, we have 1) committed $70 million toward our fund strategy to secure Canadian rights to innovative products, 2) licensed in two late stage products through the acquisition of Orphan Canada, 3) lent $8 million on a secured basis to two life science companies, 4) received approval for Impavido in the U.S. by the FDA, 5) were granted the fourth priority review voucher ever issued by the FDA and hired a banker to monetize it, and most importantly 6) built a team of excellence to make it all happen.” said Jonathan Ross Goodman, President and CEO of Knight Therapeutics Inc.

Conference Call Notice

Knight will host a conference call to discuss its third 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]

September 30,
2014
December 31,
2013
$ $
ASSETS
Current assets
Cash 227,223,348 1
Interest, royalties and other receivable 527,477
Other current assets 238,795
Total current assets 227,989,620 1
Property and equipment 55,274
Intangible assets 864,731
Intangible asset held for sale 10,000,000
Other financial assets 22,704,212
Total assets 261,613,837 1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accruals 755,990
Deferred revenue 280,308
Total current liabilities 1,036,298
Shareholders' equity
Share capital 256,312,458 1
Contributed surplus 1,501,760
Accumulated other comprehensive income 1,885,887
Retained earnings 877,434
Total shareholders' equity 260,577,539 1
Total liabilities and shareholders' equity 261,613,837 1

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

[In Canadian dollars except for share amounts]

[unaudited]

Three months ended September 30, 2014 Nine months ended September 30, 2014
$ $
REVENUE
Royalty income 6,901 255,715
EXPENSES
General and administrative 1,227,438 1,998,070
Research and development 686,517 814,290
(1,907,054 ) (2,556,645 )
Depreciation of property and equipment 7,401 14,409
Amortization of intangible assets 18,970 44,264
Interest expense 23,538
Interest income (1,134,970 ) (2,054,697 )
Other income (329,295 ) (434,153 )
Foreign exchange gain (976,145 ) (977,355 )
Income before income taxes 506,985 827,349
Income tax (recovery) expense (1,177 ) 4,311
Deferred income tax recoverable (54,396 ) (54,396 )
Net income for the period 562,558 877,434
Basic and diluted earnings per share 0.007 0.018
Weighted average number of common shares outstanding
Basic 77,781,587 49,898,141
Diluted 77,869,627 49,963,080

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

[In Canadian dollars]

[unaudited]

Three months ended September 30, 2014 Nine months ended September 30, 2014
$ $
Net income for the period 562,558 877,434
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 $27,141 and $293,070 for the three and nine month-periods, respectively) 174,651 1,885,887
Other comprehensive income for the period 174,651 1,885,887
Comprehensive income for the period 737,209 2,763,321

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the nine months ended September 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 1,885,887 877,434 2,763,321
Stock based compensation expense 1,009,883 1,009,883
Issuance of common shares as part of Business Separation Agreement 11,909,000 11,909,000
Issuance of warrants, net of costs and deferred tax recoverable 244,559,373 491,877 245,051,250
Deemed exercise of Special Warrants into common shares 244,559,373 (244,559,373 )
Share purchase loans (450,000 ) (450,000 )
Issuance of shares for acquisition of product rights 294,084 294,084
Balance as at September 30, 2014 256,312,458 1,501,760 1,885,887 877,434 260,577,539

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

[In Canadian dollars]

[unaudited]

Nine months ended September 30, 2014
$
OPERATING ACTIVITIES
Net income 877,434
Deferred income tax recovery (54,396 )
Stock based compensation 1,009,883
Acquisition of product rights 294,084
Depreciation of property and equipment 14,409
Amortization of intangible assets 44,264
Other income (289,762 )
Unrealized foreign exchange gain (988,518 )
Changes in non-cash working capital related to operations (315,918 )
Cash inflow from operating activities 591,480
INVESTING ACTIVITIES
Purchase of property and equipment (69,683 )
Loans receivable (7,790,700 )
Investment in fund (11,202,290 )
Cash outflow from investing activities (19,062,673 )
FINANCING ACTIVITIES
Net impact of Business Separation Agreement 1,000,000
Net proceeds from warrants issuance 245,144,540
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 245,694,540
Increase in cash during the period 227,223,347
Cash, beginning of period 1
Cash, end of period 227,223,348
The following amounts are classified within operating activities:
Interest received 1,571,548
Interest paid 22,534