45104 - Knight CNS

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Summary of Investment Information

Project Number

45104

Company Name

KNIGHT THERAPEUTICS INC.

Date SPI Disclosed

Nov 22, 2022

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Jul 1, 2021

Environmental Category

B - Limited

Status

Active

Last Updated Date

Dec 17, 2022

Department

Regional Industry MAS LAC & EUR

Industry

other

Previous Events

Approved : Jul 1, 2021
Signed : Jun 30, 2022
Invested : Dec 15, 2022

Sector

other

Project Description

IFC is considering providing an up to US$40 million loan to Knight Therapeutics Inc. (“Knight” or the “Company”), a pan-American (ex-USA) specialty pharmaceutical company headquartered in Canada with significant operations in Latin America, to partially finance the acquisition of the rights to manufacture, market and sell Exelon® (rivastigmine) in Canada and Latin America (the “Territory”), as well as an exclusive license to use the intellectual property and the Exelon® trademark, from Novartis within the Territory (the “Exelon Acquisition”). Exelon® is indicated for the symptomatic treatment of mild to moderately severe dementia in people with Alzheimer’s disease and Parkinson’s disease.

Founded in 2014 in Montreal, Canada, Knight is pan-American (ex-USA) specialty pharmaceutical company that focused on acquiring or in-licensing and commercializing pharmaceutical products in Canada and Latin America.

In 2019, Knight acquired a controlling stake in Grupo Biotoscana (“GBT”), a specialty pharmaceutical company with a presence across Latin America. In August 2020, Knight completed the 100% acquisition of GBT. With the GBT acquisition, Knight has expanded its operations in Latin America through a direct presence in 10 countries.

Associated Advisory Engagement

N.A.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

Development Impact

Project outcomes: The Project helps respond to the existing and growing need for effective pharmaceuticals to treat dementia. Both Alzheimer's and Parkinson's are a fast-growing burden of disease in Latin America due to the rapidly aging population. Exelon® acts to reduce symptoms by slowing down the degradation of acetylcholine. Knight plans to actively promote Exelon® to revive a brand that has good brand equity and is accepted for its superior quality and tolerance. The patch form of Exelon® has been shown to have less side effects and provides convenience for patients and their caregivers, which is particularly important given the challenges patients with dementia face taking medication. Contribution to market creation: IFC anticipates that the Project will result in an increase in disease awareness, diagnosis and access to treatment in Brazil and other countries in Latin America through the improved promotion of the medication. Absent Knight's acquisition, access to Exelon® may have potentially been limited given the current under-investments in the product, and as a result knowledge of the effectiveness of the product and its market share could fall. The declining role of Exelon® would in turn lead to a further reduction in disease awareness, diagnosis, and access to treatment in the market. In particular, without Knight's acquisition, continued under-investment would cause a negative impact on the attractiveness of the market and would contribute to an under-developed market with less treatment options.

E&S Category Rationale / Risks and Mitigation

Contacts

For Inquiries About the Project, Contact

Knight Therapeutics Inc.
Arvind Utchanah
CFO
+1 514.484.4483 ext. 115
autchanah@knighttx.com
3400 De Maisonneuve Blvd. W., Suite 1055, Montreal QC. H3Z 3B8, Canada
www.gud-knight.com

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Local Access of Project Documentation

Contact Person: Arvind Utchanah

Company Name: Knight Therapeutics Inc.

Address: 3400 De Maisonneuve Blvd. W., Suite 1055, Montreal QC. H3Z 3B8, Canada

Email: autchanah@knighttx.com

Telephone Number: +1 514 484 4483 ext. 115

Fax: +1 514 481 4116

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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