Knight Therapeutics Inc. (OTC:KHTRF) Q4 2019 Earnings Conference Call March 30, 2020 5:30 PM ET
Company Participants
Jonathan Ross Goodman – Chief Executive Officer
Samira Sakhia – President
Amal Khouri – Vice President-Business Development
Arvind Utchanah – Chief Financial Officer
Conference Call Participants
David Martin – Bloom Burton
Endri Leno – National Bank
Justin Keywood – Stifel
Operator
Good afternoon, ladies and gentlemen, my name is Robert and I will be your operator today. Welcome to the Knight Therapeutics Inc. 2019 Fourth Quarter Financial Results Conference Call.
Before turning the call over to Jonathan Ross Goodman, CEO of Knight, listeners are reminded that portions of today’s discussion may, 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 by 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. The company disclaims any intentions or obligation to update or revise any forward-looking statements, whether as a result of new information, future events except any required by law.
We would also like to remind you questions during today’s call will be taken from analysts only. Should there be any further questions, please contact Knight’s Investor Relations department via e-mail to info@gudknight.com or via phone at 514-678-8930.
I would like to remind everyone that this call is being recorded today, March 30, 2020. I would now like to turn the meeting over to your host for today’s call, Jonathan Ross Goodman. Please go ahead, Mr. Goodman.
Jonathan Ross Goodman
Thank you, Robert. Good afternoon, everyone and welcome to Knight Therapeutics fourth quarter 2019 conference call. I’m joined on today’s call with Samira Sakhia, our President and CFO; Amal Khouri, our VP, Business Development; and Arvind Utchanah, our new promoted CFO and this is well-deserved, Arvind, congratulations. As we are all taking our call from our respective home offices, some in our pajamas of my dad.
I will turn over the call to Samira to take you through some of our activities and results. Samira?
Samira Sakhia
Thank you, Jonathan. Good afternoon, everyone. First of all, I also want to congratulate Arvind on his well-deserved promotion. We’re pleased to report that 2019 marked a transformative year for Knight as we furthered our mission to become the rest of the world pharmaceutical company and are now the premier pan-American ex-USA specialty pharmaceutical company.
For the last several years, we have been patiently seeking an attractive pan-Latin American specialty pharma company acquisition opportunity. In 2019, our patients was timely rewarded with a purchase of a controlling interest in group of Biotoscana.
Knight now has 700 employees located in 10 Latin American markets doing exactly what Knight does, making a difference in the health of patients through our innovative pharmaceutical products. The team remains focused on completing our acquisition of 100% of Biotoscana and I’m although provide more details regarding the acquisition later in the call.
In addition to GBT, we continue to advance Knight’s Canadian product portfolio. On January 9, 2019, Knight’s secured the exclusive Canadian rights to commercialize neratinib, marketed as NERLYNX and received regulatory approval from Health Canada in July, 2019 for the extended adjuvant treatment for adult patients with early-stage HER2-overexpressed/amplified breast cancer following adjuvant Herceptin therapy.
Unfortunately, pan-Canadian Oncology Drug Review Expert Review Committee or pERC published their report recommending that NERLYNX should not be reimbursed to public insurance plan. Knight is pursuing private reimbursement to ensure that patients have access to this novel life saving therapy.
On February 2019, the Company entered into a $5 million strategic loan with Triumvira Immunologics Inc. for the development of novel T cell technology. As consideration for the strategic loan, Knight entered into an exclusive license agreement with Triumvira to commercialize its future approved products for Canada, Israel, Mexico, Columbia, and for TAC01-CD19 for Israel, Mexico, Brazil and Colombia.
Triumvira is developing novel T cell therapies that are safer and more efficacious than current gene therapy cancer treatments, including chimeric antigen receptor and engineered T cell receptor therapies. In addition to the access to this early-stage pipeline, Knight also received warrants to purchase 3.5% of Triumvira’s fully diluted common shares.
Furthermore, in August, Knight reached an agreement with the pan-Canadian Pharmaceutical Alliance for Probuphine, and as of today, Probuphine is listed for reimbursement through public insurance plans administered by Alberta, Saskatchewan, New Brunswick, Manitoba, Quebec, Newfoundland, Nova Scotia, Veterans Affairs Canada, and the Non-Insured Health Benefits Program. Probuphine is indicated for the management of opioid dependence in patients clinically stabilized on no more than 8 milligrams of sublingual buprenorphine in combination with counseling and psychosocial support. Probuphine is now being promoted and distributed throughout Canada.
Furthermore, in the year, we announced that Ibsrela, Imvexxy and Bijuva were accepted for review by Health Canada. Imvexxy is an applicator-free estradiol soft gel vaginal capsule, and Bijuva, a bio-identical combination HRT for the treatment of vasomotor symptoms associated with menopause, were both licensed from TherapeuticsMD and are both FDA approved. Ibsrela was submitted for the treatment of Irritable Bowel Syndrome with Constipation and was licensed from Ardelyx. During 2020, we will pursue approval for neratinib and tenapanor for additional indications.
Now turning to updates on corporate developments. As a reminder, Knight commenced a normal course issuer bid on July 11, 2019, under which Knight may purchase for cancellation just over 12 million of its common shares, as at March 30, Knight has purchased approximately 9.4 million common shares for an aggregate cost of $68.1 million or $7.23 per common share, which represents approximately 78% of the maximum purchases allowed under the NCIB.
Lastly, in November, 2019, Knight and Medison entered into a definitive agreement pursuant to which Knight agreed to sell to the Medison group all of Knight’s shares in Medison, in consideration for $77 million payable in cash. The parties also agreed to release each other from all claims and withdraw all legal proceedings initiated by both parties. In addition, Medison, which together with its affiliates owns approximately 10.4 million shares of Knight, agreed to a four-year standstill and will divest its position in Knight during this period.
On March 16, 2020, subsequent to our year-end, Knight received 75% or $57.8 million of the consideration and the remaining 25% or $19.3 million is being held by a trustee and is expected to be released to Knight upon the issuance of a tax certificate by the Israeli Tax Authority.
I’m now going to turn the call over to Amal for an update on business development.
Amal Khouri
Thank you, Samira. As Samira mentioned, in 2019, Knight was transformed into a pan-American ex-USA company. On November 29, 2019, Knight completed the acquisition of 51.2% controlling interest of group of Biotoscana or GBT and established a profitable Latin American pharmaceutical company headquarters in Montevideo, Uruguay. GBT is the LatAm partner of choice for multinational pharmaceutical companies and has a diversified portfolio of innovative products as well as the portfolio of proprietary branded generics. As a consideration for the controlling interest, Knight paid BRL10.96 per share or approximately BRL596 million or $189 million.
Following the close of the transaction, Knight initiated the process of launching a mandatory public tender offer to acquire the remaining 48.8% of GBT, which trade as Brazilian Depositary Receipts on the Brazilian exchange. Assuming all public shareholders tender their shares, Knight expects to pay approximately BRL568 million or $179 million.
As previously announced, we expect the tender process to take four to eight months from launch to complete. Upon completion of the full acquisition of GBT, Knight expects to have paid a total of approximately BRL1.164 billion or $368 million for the common shares with an assumption of GBT’s net debt as of December 31, 2019 of BRL124 million or $40 million.
Turning to our Canadian portfolio, in January, 2020 subsequent to the quarter, Knight announced that it has entered into an exclusive agreements with Debiopharm that grants Knight the Canadian rights to commercialize, triptorelin marketed as Trelstar. Trelstar is currently approved and sold in Canada for the palliative treatment of hormone dependent advanced prostate cancer as well as for the management and relief of chronic pain associated with endometriosis. The agreement is expected to close during the first half of 2020 that which point, Knight will take over commercial activities and start recognizing related revenues.
I will now turn the call over to Arvind to go over the financial results for the quarter and 12 months.
Arvind Utchanah
Thank you, Amal. In the course of this conference call, I will refer to Knight’s adjusted operating income, which is a non-IFRS measure. Knight defines adjusted operating income as operating income or loss, adjusted to exclude amortization and impairment of intangible assets, depreciation, acquisition costs and non-recurring expenses incurred but to includes interest income earned and costs related to leases. In addition, the adjusted operating income does not reflect the portion of GBT’s earning attributable to the non-controlling interests.
I’m pleased to report that for the quarter ended December 31, 2019, we reported revenues of $37.3 million, an increase of $33.4 million or 859% versus the same period last year. For the 12-month period, we reported revenue of $47.5 million, an increase of $35 million or 280% compared to last year. These variances are explained by the consolidation of GBT’s financial results, which accounted for $34 million of incremental revenues.
I would like to remind listeners that the revenues over GBT for the month of December 2019 were exceptionally higher than the average monthly fiscal year 2019 revenues, due to timing of certain product shipments. Knight does not expect similar magnitude of monthly revenues to continue in the future.
Our selling and marketing, G&A and R&D expenses for the quarter increased by $14 million or 344% over the fourth quarter of 2018, an increase by $22 million or 154% for the 12-month period compared to the same period last year. For both the three and 12-month periods, the consolidation of GBT’s financial results accounted for $6.5 million of incremental expenses. The remainder of the increase for the quarter was mainly driven by the transaction fees of $5.5 million related to the acquisition of GBT.
For the 12-month period that GBT transaction fees were $8 million and the proxified expenses were $3.8 million. I would like to note that Knight expects to incur significant additional expenses in 2020 related to closing the GBT mandatory tender offer.
Now moving on amortization and impairment of intangible assets, for the quarter, our amortization of intangible asset is $2.1 million, an increase of $1.7 million and for the year, it is at $3.4 million, an increase of $1.8 million versus the prior periods. The increase is related to the amortization of the definite-life intangible assets that we have acquired in the GBT transaction. In addition, during the quarter, we recorded an impairment charge of $4.2 million due to changes in commercial expectation on certain products.
Moving on to interest loan on our cash, marketable securities and strategic loan for the quarter, we reported interest income, net of interest expense of $4.4 million, which is a decrease of 26% or $1.5 million, compared to the fourth quarter of 2018. The decrease issue to $644,000 on interest accretion on the liability related to the mandatory tender offer of GBT, as well as the interest expense on GBT’s loans.
For the 12-month period, interest income, net of interest expense was $22.5 million, an increase of 8% or $1.6 million over the same period last year. The increase is due to higher average loan balance, and an increase in interest rates, offset by interest expense and a decrease in the average cash and marketable securities loans.
For the quarter, adjusted operating income was $11.7 million, up 108% or $6 million compared to this same period last year. The consolidation of GBT’s financial results accounted for $9 million of the increase, offset by an increase in Knight’s selling and marketing activities due to new product launches as well as an increase in certain general and administrative expenses. For 2019, adjusted operating income was $26.4 million, an increase of 52% or $9 million compared to last year, mainly due to the consolidation of GBT’s results.
Now moving on to changes in fair value of our financial assets, which is not reflected in our operating income. For the quarter, we recorded a net gain on financial assets measured at fair value through profit or loss of $1.1 million, due to a realized gain of $2.6 million on our strategic investments, offset by unrealized losses of $1.5 million on the revaluation of Knight’s financial assets.
For the 12-month period, we recorded a net gain on financial assets of $20.7 million, due to the unrealized gains of $14 million and realized gains of $6.7 million, mainly driven by the strategic fund investments. Given the current market volatility, we expect the value of our financial assets on our balance sheet to decline significantly.
I would like to point out that we have recorded a current liability of BRL567 million or $184 million related to the mandatory tender offer to buy the remaining 48% of GBT. We have also entered into foreign exchange contracts to buy BRL 510 million or $164 million, which represents an average exchange rate of $3.12 per BRL. at every reporting period, we will revaluate the liability to Canadian dollars and we expect any gains or losses to be offset by the revaluation of foreign exchange contracts.
I will now turn the call back to Samira.
Samira Sakhia
Thank you, Arvind. As we embark onto 2020, we are facing an unprecedented situation with the COVID-19 pandemic. as a pharmaceutical company, Knight is working to alleviate some of the pressures at the global COVID-19 pandemic has placed on our healthcare systems and to ensure that we maintain supply over our medicines to patients. The company and its employees have transitioned to working remotely including our field sales and medical teams and that’s in Canada as well as in Latin America. These steps are being taken to minimize personal interactions as much as possible to send disease spread and to flatten the curve. in the field of pharmaceutical marketing, increased social contacts such as inter interactions between sales representatives and medical science liaisons with healthcare providers has the potential to counteract these important public health initiatives and to put our employees, patients, and healthcare professionals at risk. Because the company is taking steps to establish digital and virtual channels to ensure that physicians and patients continue to receive continued support. We are committed to ensuring the safety of our employees and the uninterrupted supply of our medicines.
We’re actively working with our partners to minimize business interruption and to ensure uninterrupted products apply. As of today’s date, the outbreak has not had a material impact on the company’s results.
I’ll now turn the call back to Jonathan for his concluding remarks.
Jonathan Ross Goodman
Thank you, Samira. As Knight embarks on a new phase, I am proud of the significant progress made in the execution of our strategy to build the Canadian and rest of the world pharmaceutical company. Looking ahead, we remain committed to improving the health of Canadians and now Latin Americans while delivering sustained shareholder value.
In light of the pandemic, we want to thank all the doctors, nurses, paramedics and all healthcare workers, who are on the front lines of this battle against COVID-19. We also want to thank the truck drivers, cashiers and folks, who are working in pharmacies at grocery stores to make sure that we are all safe and healthy in our homes. These are truly modern day heroes. Thank you.
Thank you for your support and confidence in the 2019. this concludes my formal remarks. I would now like to open up the call to questions. Operator?
Question-and-Answer Session
Operator
[Operator instructions] Your first question comes from the line of David Martin with Bloom Burton. Please go ahead.
David Martin
All right. Hi. Thanks for taking the questions. The first one is have there been or do you anticipate any significant changes with any of the major Biotoscana products? I’m thinking either new competition or agreements about to expire or on the flip side, are there any new major products that you’re licensing in or that you expect to launch in the near-term?
Samira Sakhia
Hi, Dave. This is Samira. I’m going to ask Amal to answer that question.
Amal Khouri
Thank you, Samira. Hi, David.
David Martin
Hi.
Amal Khouri
So, I think first of all, in terms of launches – the launches when you look at the current portfolio that the company has the launches are staggered. We’re talking of course, about the company operating across 10 countries in LatAm. So, some products have been launched in certain markets, not in others. So, within the current portfolio that are so new launches that are – that are coming up. in terms of changes to the current product, or the current agreements, I mean, as you know, some of the older agreements, this is a company that really came together as four different companies put together. So, there are some of the older agreements that were initially signed that were short-term.
So there may be – we’re currently in the process of finalizing the portfolio and we may be looking at renegotiating some of – some of these agreements come up for renewal. So, I hope that answers your question on launches, on agreements, current products and in terms of new deals. I think that was the other part of your question. I mean, again, we’re – we continued to work as the GBT team on bringing in these products, whether it’s for Canada or Latin America. That’s really why we did this transaction is to be with that product. So, we’re actively, we continue to actively work on that.
David Martin
And how about Mexico? That was a country where Biotoscana had a relatively small presence and you thought you could start building there. has that started or will that wait until you get the remaining 49% of the company?
Amal Khouri
No. We started – we started right away, we started really from day one, so actively looking at adding a critical mass in Mexico as well as products to the portfolio across the territory.
David Martin
Okay. I also had a question. So, it was mentioned the financial assets. It’s expected that they’ll take a hit with the market turbulence. What about the marketable securities? I added up the current and long-term, and it was about $362 million at December 31. Are they exposed to the market turbulence and do you expect a sharp drop in those as well?
Samira Sakhia
Hi, David. That’s actually great question. And the marketable securities are really more in GICs. Some of the – some of it is actually more liquid than others. The stuff that’s liquid is locked in at actually higher interest rates and will continue to benefit from that. The portion of especially the more current is more liquid and as the rates have fallen down, interest income on those will come off.
David Martin
Okay, great. And just back to the potential changes at Biotoscana as far as products go, I know before you bought the company, the Actelion products went away for Biotoscana. Is there anything like that potentially going to happen in the near-term?
Samira Sakhia
Hi. So like Amal said that there are certain agreements that, especially, the ones that were older, which were entered into on a more shorter-term basis, we are assessing those and we will be discussing with partners – with those partners to see what their expectations are and what they’re doing. as you can – it’s in the thing that I go back to is that some of these products are older and not as relevant in those company’s portfolio, but given where we don’t know how the partners will react, there may be some renegotiations to continue to retain these.
David Martin
Okay. But the Actelion, the idea I got was that was rather a material size to the businesses. Is there anything that is big like that, that is uncertain at this point?
Samira Sakhia
It really depends on the country-specific. There are certain agreements that are a little bit more material on a country basis. But we’re working through with the company and their partners.
David Martin
Okay, thanks. So, I’ll get back into queue.
Operator
Your next question comes from the line of David Novak with Raymond James. Please go ahead.
Unidentified Analyst
Hey, this is Ashwin [ph] on for David. Thanks for taking my questions. So, just the first question that I have is around regulatory activity. Do you guys…
Jonathan Ross Goodman
I’m sorry to interrupt. We only took your question, because we thought you were David.
Unidentified Analyst
Yes.
Jonathan Ross Goodman
I’m joking.
Unidentified Analyst
I’m happy about that. Do you guys anticipate any delays in regulatory activity related to your upcoming filings or approvals considering the increased burden on the agency at this time?
Samira Sakhia
Hi, that’s a really great question. So far, the team that’s really reviewing the files is continuing to progress. We continue to receive normal course responses as we would expect and we haven’t seen anything to-date on those.
Unidentified Analyst
Okay, perfect.
Samira Sakhia
And that’s what I said we are hearing – sorry, I do want to add, we are hearing from organizations that are like pCPA and T-powder that given where they’re focused, there may be delays when it comes to reimbursement.
Unidentified Analyst
I see. Okay. great. And could you maybe, share some additional color on the standstill agreement that’s in place between Knight and Medison? Specifically, could you talk a little bit about the types of restrictions that are in place and perhaps when and how much medicine is allowed to sell?
Samira Sakhia
Sure. So as far as the standstill is concerned, there – the issue is really more around other, any sort of shareholder activity and that is, he is no longer able to do anything like that as part of selling their shares. He has the four years to sell. But more in a structured manner so as to not impact the share price in any way.
Unidentified Analyst
Okay. I see. Fantastic. And my guess – my last question is, are you seeing any particularly interesting? I mean the opportunities or business development opportunities in light of the current market environment and depressed valuations.
Samira Sakhia
Sure. I’m actually going to pass that on to Amal, but before I let you go, please send our love to David.
Unidentified Analyst
Yes. I will do.
Amal Khouri
Hi. Thanks, Samira. So yes, I mean in terms of to answer your question on the BD side, where we are continuing to monitor as we’ve been monitoring for the last two years and we continue to be ready to act if and when the good opportunities are there. I think if you’re asking about the current kind of the impact from the current COVID-19 situation, today, it’s probably a little bit early to see kind of the full impact of that. So, we keep doing what we’re doing and monitor and be ready to act. Keep in mind that after we complete the full 100% acquisition of Biotoscana, we’re still going to have about $400 million to invest – continue investing and continue executing. So, we’re going to be ready to act when the opportunity comes.
Unidentified Analyst
Fantastic. Fantastic. Well, that answers all my questions for now. I’ll hop back in the queue.
Operator
Your next question comes from the line of Endri Leno with National Bank. Please go ahead.
Endri Leno
Hi, good evening and thanks for taking my question. Just a few from me, I was not first, if you can elaborate a little bit on the impairment of financial assets that $4.2 million, what in changing commercial executions – can you elaborate a little bit what is it related? Is it one product, multiple products please?
Samira Sakhia
Sure. I’m actually going to pass that on to Arvind to answer.
Arvind Utchanah
Yes. Thank you, Samira. So, regarding the impairment of $4.2 million [ph] in the intangible assets, this is really coming up from given the pricing that guidance that came out at the end of November from PMPRB and also, given a more difficult reimbursement landscape. We have assessed our full product portfolio and as a result, we took down an impairment of $4.2 million. So, this doesn’t come from just one product, it’s coming from multiple products across our portfolio.
Endri Leno
Okay. All right. Thank you, Arvind. Do we expect any more related to this issue or should it be stable at least for the foreseeable future?
Arvind Utchanah
At this point, we don’t expect anything as material as what we have taken in Q4 of 2019.
Endri Leno
Okay, great. Thank you. Next question. Of course is on NERLYNX. I was wondering if you can or if you are able to quantify what the private reimbursement market would be versus a combination of the public and the private one?
Samira Sakhia
Hi, Endri. It’s Samira. I actually haven’t – we haven’t provided any sort of guidance as to the revenue potential for NERLYNX, nor how much was public or private.
Endri Leno
Okay, okay. Thank you. The next question is on Biotoscana. I think as of the last update there at management anyways, there was an interim CEO. So, I was wondering if you had made any progress there. I mean, do you have somebody more prominent to place or what’s the strategy there?
Samira Sakhia
Hi, that’s a really interesting question. So, there is an interim CEO and an interim CFO as we kind of think through what a global night will be, it really isn’t – makes sense to have one person, who runs kind of the entire operation and we’re really working with the team that’s there to build the infrastructure that makes sense for the entire organization, including the Canadian piece as well as the LatAm piece.
Endri Leno
Okay. and do you have any timelines, where you might come to a conclusion of how it will be best structured?
Samira Sakhia
We’re looking to kind of put that into a place as we get to the 100%.
Endri Leno
Okay. Great. Thank you. And other questions for me a bit more kind of accounting like how would you reconcile and we can take it offline if it’s easier, but how would you reconcile adjusted operating EBITDA that you reported adjusted operating income to EBITDA, particularly for Biotoscana?
Samira Sakhia
There’s a schedule that’s included in the press release, so we can reconnect after if that’s not sufficient.
Endri Leno
Okay. All right. great, thank you and a very luck. If I want from me, I’ll jump into the queue, but do we expect any inefficiencies related to the COVID-19 and this social distances – social distancing measures particularly between the sales reps and there’s a doctor for those…
Samira Sakhia
What do you mean? Sorry, when you say inefficiencies…
Endri Leno
In terms of, I mean, are they hitting their – all the doctors that they needed to reach out to and the time that they need to spend with each one of them and things of that nature.
Samira Sakhia
So, that’s really a great question. So, the issue that we run into is that they are trying to reach the physicians that they have in their callers. They’re trying with digital means as much as they can. Obviously, we want to make sure that the physicians are dealing with the crisis, which is obviously more important. And in the meantime, we’re getting them to take on a little bit more training. And when it comes to our MSO, we’re starting to use them for supporting either regulatory submissions, reimbursement submissions, training, material preparation, and really trying to use the resources on different means right now, different parts of the business while they’re at home.
Endri Leno
Okay, great. Thank you. That’s it for me. Thank you.
Operator
Your next question comes from the line of Justin Keywood with Stifel. Please go ahead.
Justin Keywood
Good evening and thanks for taking my call. I know there was mentioned that the December month was a much higher than normal. Are you able to give an indication of what a more normalized level would be and should we expect some impact in Q1?
Samira Sakhia
Hi, Justin. I’m going to let Arvind answer that question.
Arvind Utchanah
Hi. Sorry. So, GBT actually has also just reported their 2019 results and if you – if I refer to their results, they reported about BRL 743 million, which approximates an average of $20 million of revenue per month. And then their revenues in December was really one time and it’s really because of higher shipment in December and it’s a cause of issue that created that higher revenues. Going into quite Q1 and we expected to be more stabilized at the $20 million range that I just mentioned.
Justin Keywood
Okay. Thank you. That’s helpful. And then for the MTO, for the remaining portion, what’s the expected timing that it would close now?
Samira Sakhia
So, as we previously announced that from the launch date in December, it will take about four to eight months and we’re still in that same time horizon.
Justin Keywood
Okay. And then the pro forma cash position after the transaction and considering the return of the medicine investment, do you have a number there? Yes.
Samira Sakhia
So, as Amal mentioned, it’s about 400 million.
Justin Keywood
And that includes the medicine.
Samira Sakhia
The medicine, that’s right. That’s getting all of it. We’ve already gotten 57.7 and it’s including the rest of the 2019 that we’re expecting later in the year.
Justin Keywood
Sorry, one more question. Would that include the 40 million in debt from GBT? Is that like a net cash basis?
Samira Sakhia
No, that does not include the 40 million deck at GBT.
Justin Keywood
Great. Thank you for taking my questions.
Operator
And your next question comes from the line of David Martin with Bloom Burton. Please go ahead.
David Martin
Yes. one housekeeping question, then a couple others. Just wanted to make sure you recognized 100% of GBT’s December revenues, not 51%. Is that correct?
Samira Sakhia
That’s right.
David Martin
Okay. next question with NERLYNX, despite the no reimbursement recommendation from PERC, can you give us ideas about how is it going as far as selling with the reimbursement potentially only coming from the private payers. Do you have any metrics that you’re measuring? How is the product selling?
Samira Sakhia
So, we’ve kind of faced the – we’re facing the launch right now. We have MSO working on it. There is a lot of interest in the product. We are starting to see some patient supplies through – like some physicians put patients through our patient support program, both for the adjuvant treatment as well as for metastatic and we’re continuing to work through kind of on a one-by-one basis with each of the – either the benefits managers or the insurance companies.
David Martin
Okay. Or insurance, sorry, I’m typing. When you were partnered with Medison or part owners of medicine, that belief was that the two companies could work together to license products for their respective territories and that didn’t really work out the way it was expected. I’m wondering do you anticipate that this will be easier to do Biotoscana and if so, why?
Samira Sakhia
So, I mean, I think the first half of the question and then I’ll pass it to Amal to give a little bit of more real world. So, the big difference between Medison and Knight is that we operate it at two different BD teams.
Today, we are one business development team, because we’re going to be owning 100% of Biotoscana. The second point is that Canada and Israel, very – both very interesting specialty pharmaceutical market, but not regionally as cohesive as pan-American ex-USA. And we think that the regional aspect as well as the coordinated. one team business development is going to be a lot more effective than what was done before. And I’m all pleased feel free to add more info.
Amal Khouri
No. I think Samira said it perfectly. It really goes down to these key points and yes, and going into this deal and deciding siding that Latin America is going to be our first significant foray into rest of world. That was the idea is to have this kind of cohesive geographic coverage and having had discussions in the past with different potential licensors so far, we’ve had positive reactions as to this makes sense. Now, we just have to make sure that we execute and we get deals for the territories that I think Samira really hit the key points on the difference.
David Martin
So, you’ve already started seeking out new assets jointly. You’re not waiting for the integration process to be fully complete, I guess.
Amal Khouri
We’re not waiting at all. We really started from very early on. We started operating as one BD team and really, chasing assets whether it’s yes, really chasing assets together for the entire geography.
David Martin
Okay. Thank you.
Operator
There are no further questions at this time. I’d turn the call back over to the presenters. Thank you for attending our conference call and please stay safe. Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.
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