- Makes Case for Urgent Change, Improved Governance and a
Common-Sense Strategic Growth Plan
- Details History of Failed Execution, Underperformance and
Conflicts of Interest Under Current Board and CEO
- Provides Background on Experienced, Independent Director
Nominees That Can Effect Positive Change
- Rebuts Knight's Campaign of Misinformation and Harassment
Against Shareholders
PETACH TIKVA, Israel,
April 18, 2019 /CNW/ - Medison
Biotech (1995) Ltd. ("Medison"), which together with its
affiliates owns more than 10.4 million shares or 7.3% of Knight
Therapeutics, Inc. (TSX:GUD) ("Knight" or the
"Company"), today made its case for urgent change, improved
governance and a promising future at the Company in a detailed
presentation to shareholders. The full presentation can be
downloaded at www.NewDayForKnight.com.
Meir Jakobsohn, CEO of Medison, said, "Knight has failed and the
need for change is indisputable. Hobbled by a conflicted
Board of Directors and CEO who have no strategy, the Company has
failed to realize its vision and deliver value for
shareholders. Knight's underperforming stock price, which
attributes insignificant value to Knight's pharmaceutical business,
is a clear reflection of shareholders' disappointment with Knight's
progress."
Medison's presentation to shareholders details why change is
urgently needed at Knight in order to build a sustainable pharma
business and long-term value for its shareholders. These
reasons include:
- In five years as a public company, Knight has failed to build
successful pharmaceutical operations.
- Knight's stock, buoyed only by its $787
million in cash on the balance sheet, has been flat for more
than three years while market indexes and pharma stocks have
appreciated substantially.
- The market recognizes Knight's lack of operating business and
prospects by currently valuing the Company as if it were a
financial asset holding company; the business prospects are valued
at $0.38 per share, down more than
90% in three years.
- Instead of building an operating business, Knight has
stockpiled cash and engaged in opportunistic, non-strategic and
risky financial transactions, such as investing in venture capital
funds and making illiquid loans to emerging companies – sometimes
involving related parties.
- Knight's CEO owns more equity in a direct competitor than he
owns in Knight, creating an unprecedented and untenable conflict of
interest.
- Knight's Chairman and other directors have extensive business
dealings and personal ties to the CEO, to major competitors and to
one another, making objective oversight difficult and unlikely.
- Knight's incumbent directors lack operating experience in the
pharma industry and have proven themselves unable to build a
profitable business.
Medison has nominated five exceptional and independent
professionals to the Board plus its CEO, Meir Jakobsohn, who has
served on Knight's Board since 2015. Unlike Knight's current
directors, none of the new Board candidates nominated by Medison
have any ties to Knight, Medison or any of their respective
executives. All of Medison's nominees have extensive
experience operating pharmaceutical companies at the highest
levels.
Mr. Jakobsohn continued, "We've spoken with many shareholders
who are just as frustrated as we are about the Company's poor
performance, lack of focus and inexcusable conflicts of
interest. They recognize that they have a real opportunity to
change the course of their Company by electing Medison's slate of
five highly-qualified, independent pharmaceutical executives, plus
myself. Knight shareholders can finally have a Board that
acts decisively and in the sole interest of the shareholders.
Tremendous momentum for change is building quickly. With
shareholders support, we can begin a new day for Knight."
With over twenty years of experience in the pharmaceutical
business, Medison firmly believes that Knight has the opportunity
to build a growing and profitable business. Accordingly,
Medison and the nominees have developed a plan to help Knight
become a world-class pharmaceutical business by:
- Focusing on in-licensing innovative medicines that treat
life-altering or life-threatening diseases, which are the drugs
that have the best economics in the pharma business;
- Building commercialization capabilities in Canada and other select "rest of world" (ROW)
markets;
- Becoming the partner-of-choice for innovative biotech companies
in the Canadian and other ROW markets; and
- Returning excess capital to shareholders, including at least
$100 million immediately.
Medison encourages shareholders to read its Information
Circular, available at www.NewDayForKnight.com for the complete,
truthful story about Knight's failure to create value for
shareholders and the best way forward.
TIME IS OF THE ESSENCE
VOTE ONLY GOLD TODAY
If you have any questions and/or need assistance completing your
GOLD form of proxy or VIF, please call Shorecrest at 1-888-637-5789
(toll-free) or 647-931-7454 (collect calls accepted), or e-mail
contact@shorecrestgroup.com.
About Medison
Medison is one of the world's largest commercial partners of
leading global biotech companies. Backed by three generations of
experience in the healthcare industry since 1937, Medison is
uniquely qualified to provide the complete spectrum of integrated
services for international companies looking to enter or expand
their presence in Israeli and selected ROW markets. Over the years,
Medison has become the partner of choice for biotech companies that
produce highly innovative, cutting edge therapeutics for
commercialization in the Israeli market and is currently the second
largest pharmaceutical company in Israel, with over CAD
250 million in revenues annually and over 270
employees. Medison runs a corporate venture arm with a
dedicated research and evaluation team boasting deep scientific and
commercial backgrounds. Medison also operates a scouting program to
cater to its partners and is an active investor in life science
projects around drug development and digital health.
Additional information can be found
at www.medison.co.il.
Forward Looking Statement
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws, including, without limitation, Medison's and
Knight's respective priorities, plans and strategies. All
statements and information, other than statements of historical
fact, included herein are forward-looking statements, including,
without limitation, statements regarding activities, events or
developments that Medison expects or anticipates may occur in the
future. These forward-looking statements can be identified by the
use of forward-looking words such as "may", "will", "expect",
"intend", "plan", "estimate", "anticipate", "believe" or "continue"
or similar words and expressions or the negative thereof. There can
be no assurance that the plans, intentions or expectations upon
which these forward-looking statements are based will occur or,
even if they do occur, will result in the performance, events or
results expected. We caution readers not to place undue reliance on
forward-looking statements contained herein, which are not a
guarantee of performance, events or results and are subject to a
number of risks, uncertainties and other factors that could cause
actual performance, events or results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include: changes in Knight's strategies, plans or
prospects; general economic, industry, business, regulatory and
market conditions; actions of Knight and its competitors;
conditions in the pharmaceutical industry; risks relating to
government regulation and changes thereto, including in respect of
the regulations concerning board composition, proxy solicitation
and shareholder meetings; the state of the economy including
general economic conditions globally and economic conditions in the
jurisdictions in which Knight operates; the unpredictability and
volatility of Knight's share price; and dilution and future sales
of securities of the Company. These factors should not be construed
as exhaustive. Certain forward-looking statements contained herein
may be considered to be future-oriented financial information or a
financial outlook for the purposes of applicable Canadian
securities laws. Future oriented financial information and
financial outlook contained herein about prospective financial
performance, financial position or cash flows are based on
assumptions about future events, including economic conditions and
proposed courses of action, based on the applicable management
team's assessment of the relevant information available to them at
the applicable time, and to become available in the future. In
particular, the information contains projected operational
information for future periods which are based on a number of
material assumptions and factors. The actual results of the
applicable operations for any period could vary from the amounts
set forth in these projections, and such variations may be
material. Further, there is no assurance or guarantee with respect
to the prices at which any securities of Knight will trade, and
such securities may not trade at prices that may be implied herein.
See above for a discussion of the risks that could cause actual
results to vary from such forward-looking statements. Readers are
cautioned that all forward-looking statements involve known and
unknown risks and uncertainties, including those risks and
uncertainties detailed in the continuous disclosure and other
filings of Knight, copies of which are available on the System for
Electronic Document Analysis ("SEDAR") at www.sedar.com. We urge
you to carefully consider those risks and uncertainties. The
forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. Unless expressly
stated otherwise, the forward-looking statements included herein
are made as of the date of this news release and Medison disclaims
any obligation to publicly update such forward-looking statements,
except as required by applicable law.
SOURCE Medison Biotech Ltd.