Knight Therapeutics Expands Canadian Presence with $99M Acquisition of Endo's Paladin Pharma

Montreal-based Knight Therapeutics has announced a significant expansion of its Canadian operations through the acquisition of Endo International's Paladin Pharma unit. The deal, valued at CAD $120 million ($84 million USD), is set to close in mid-2025, marking a strategic move in Knight's ongoing efforts to strengthen its position in the North American pharmaceutical market.

Deal Structure and Financial Details

Knight Therapeutics will pay an upfront sum of CAD $120 million for Paladin Pharma, with the potential for an additional $15 million in contingent payments based on future sales performance. The acquisition is expected to significantly boost Knight's Canadian business, adding a portfolio of stable, cash-generating medicines to its existing operations.

Paladin Pharma reported revenues of CAD $70 million in 2024, excluding discontinued products. This financial injection is anticipated to fuel Knight's growth initiatives across Canada and Latin America, aligning with the company's pan-American expansion strategy.

Strategic Implications for Both Companies

For Knight Therapeutics, this acquisition represents a major step in its ongoing investment strategy. Since its founding in 2014, Knight has invested hundreds of millions of dollars to build its presence across the Americas. The company currently employs approximately 700 staff members across Canada and 10 Latin American countries.

Samira Sakhia, CEO of Knight Therapeutics, emphasized the strategic importance of the deal, stating that it "significantly increases" the size of Knight's Canadian operations while providing a stable revenue stream to support further growth.

On the seller's side, Endo International views this divestiture as a crucial step in its strategic transformation. Scott Hirsch, Endo's interim CEO, commented, "This divestiture is an important step forward in our strategic transformation and focus on investing in our core-growth assets." He expressed confidence in Paladin's future success under Knight's ownership in the Canadian market.

Historical Context and Industry Implications

The sale of Paladin Pharma to Knight Therapeutics brings an interesting full circle to the companies' histories. Endo initially acquired Paladin, a 29-year-old generic and specialty drugmaker, in a 2013 deal worth $1.6 billion. Notably, Knight Therapeutics itself was formed as part of that Endo-Paladin transaction.

This latest deal underscores the ongoing consolidation and strategic realignment within the pharmaceutical industry, as companies seek to optimize their portfolios and focus on core growth areas. For Knight Therapeutics, the acquisition reinforces its commitment to expanding its presence in the Canadian market, while for Endo, it represents a streamlining of operations and a renewed focus on key assets.