MONTREAL, QUEBEC–(Marketwired – June 26, 2014) – Knight Therapeutics Inc. (TSX:GUD) (“Knight”), a leading Canadian specialty pharmaceutical company, announced today that it has entered into a letter of agreement with Sectoral Asset Management Inc. (“Sectoral”) to invest USD$13 million into its New Emerging Medical Opportunities Funds II, Ltd. (“NEMO II”).
In exchange for Knight's investment in NEMO II, which is expected to close June 30, 2014, Sectoral will encourage Sectoral-invested companies (“Investee Companies”) to select Knight as their Canadian partner of choice. Additionally, Sectoral will facilitate introductions for loan agreements between Investee Companies and Knight.
As of the end of March, 2014, Sectoral has USD$3.6 billion in assets under management, all invested in the healthcare sector. Since 2000, Sectoral has invested in over 500 companies and currently holds positions in over 100 companies. “Sectoral is an ideal partner from which we can leverage their proven pharma deal hunting skills and vast relationships to secure Canadian product rights,” said Jonathan Ross Goodman, President and CEO of Knight. “We expect this investment to pay dividends both (i) from the fund return and (ii) from new products commercialized in Canada by Knight.”
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. Knight Therapeutics' shares began trading on the TSX-V on March 3, 2014 and graduated to the TSX on April 29, 2014 under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or at www.sedar.com.
About Sectoral Asset Management Inc.
Founded in 2000 by Jérôme Pfund, CFA and Michael Sjöström, CFA, Sectoral Asset Management, is an industry-leading specialist in managing global investment portfolios in the healthcare sector. In its small cap strategy, currently managed by Dr. Maha Katabi, CFA, Sectoral has done over 70 different investments, since 2007, in small cap listed and late stage private equity companies in the biotech, medtech and life sciences tools industries, generating a first quartile performance as compared to a late stage private equity peer group over that time period.
Knight Therapeutics Forward-Looking Statement
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 the 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 and except as required by law.