Keenova Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales from continuing operations for Q3 2026 were $550 million, an increase of $133 million (32%) compared to $416.1 million in Q3 2025.
• Acthar Gel net sales reached $227 million, a 25% increase year-over-year.
• XIAFLEX net sales were $164 million, driven by increased demand in Peyronie's disease and net price.
• Loss from continuing operations was $96 million, an improvement from a $242 million loss in the prior-year period.
• Adjusted EBITDA from continuing operations was $233 million, compared to $45.7 million in Q3 2025.
• Nine-month 2026 net sales totaled $1,535.0 million, up 73% from $887.6 million in the prior-year period.
• Nine-month 2026 loss from continuing operations was $430.1 million, compared to $347.8 million in the prior-year period.
• Nine-month 2026 Adjusted EBITDA from continuing operations was $617.8 million, compared to $170.8 million in the prior-year period.
• Cash and cash equivalents at September 30, 2026, were $1,085.6 million, up from $812.8 million at December 31, 2025.
• Long-term debt stood at $2,511.7 million at September 30, 2026, down from $2,532.3 million at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $290.0 million, compared to a use of $41.1 million in the prior-year period.
• Capital expenditures for the nine months ended September 30, 2026, were $21.4 million.

Guidance and Future Outlook:

• Keenova raised full-year 2026 pro forma net sales guidance to $2.00 billion to $2.025 billion, up from the previous range of $1.94 billion to $2.00 billion.
• Full-year 2026 pro forma Adjusted EBITDA guidance was raised to $750 million to $770 million, up from the previous range of $715 million to $745 million.
• The company reiterates full-year Acthar Gel net sales growth guidance of 20% to 22%.
• The company raised full-year XIAFLEX net sales growth guidance to 10% to 11% year-over-year, up from high single-digit growth previously expected.
• The company expects to realize approximately $110 million in pre-tax synergies in 2026.
• The company remains on track to achieve $150 million in annual pre-tax run-rate synergies by the merger's three-year anniversary.
• Guidance excludes the full-year contribution of Percocet and does not account for future acquisition or divestiture activity.

Business Segments and Product Lines:

• Acthar Gel performance was driven by higher patient demand and commercial investments.
• XIAFLEX performance was driven by increased demand in Peyronie's disease and net price.
• INOmax net sales for Q3 2026 were $57.1 million, a 3% decrease from $58.9 million in Q3 2025.
• Other products net sales for Q3 2026 were $83.2 million, a 5% increase from $79.0 million in Q3 2025.
• License revenues for Q3 2026 were $19.0 million, up from $6.7 million in Q3 2025.
• XIAFLEX pipeline update: The company targets submission of an sBLA to the FDA for plantar fibromatosis in the first quarter of 2027.
• XIAFLEX pipeline update: Enrollment for the Hammer Toe Phase 3 study was initiated in August 2026.

Market and Competitive Landscape:

• The company is executing a strategy to become a pure-play branded therapeutics company focused on rare or unaddressed conditions.
• The company benefits from a strong U.S. manufacturing footprint with facilities in Louisiana, New Jersey, New York, Pennsylvania, and Wisconsin.
• The company's portfolio spans rheumatology, ophthalmology, nephrology, neurology, pulmonology, orthopedics, urology, and neonatal respiratory critical care.

Risks and Challenges:

• The company faces risks related to the realization of business combination synergies with Endo and the separation of Par Health.
• Significant indebtedness and transaction costs associated with the Endo merger and Par Health separation remain a factor.
• The company is subject to risks regarding the Percocet divestiture, including the total consideration received.
• Regulatory and legal risks include potential governmental investigations, inquiries, and lawsuits related to the company, its officers, and its products.
• Risks include pricing pressure due to public scrutiny of healthcare costs, reimbursement practices, and changes in laws or regulations.
• The company relies on a limited number of individual products, specifically Acthar Gel and XIAFLEX, which are material to its financial performance.
• Risks include potential undesirable side effects of products, product liability losses, and litigation liability.
• The company faces risks related to supply chain disruptions, reliance on third-party manufacturers, and complex manufacturing processes.

Management Commentary and Tone:

• Siggi Olafsson, Board Chair and CEO, stated that the company has made significant strategic, commercial, operational, and clinical progress toward its goal of becoming a pure-play branded therapeutics company.
• Management noted that core brands Acthar Gel and XIAFLEX contributed better-than-expected performance in the quarter.
• Management highlighted that merger synergies are ahead of plan and on track to achieve the three-year target.
• Management expressed confidence in the clinical progress for XIAFLEX, noting the sBLA submission for plantar fibromatosis is on track for Q1 2027.

Other Key Points:

• The Company completed its business combination with Endo LP on July 31, 2025, and recorded Endo's assets and liabilities at fair value.
• The Company completed the separation of Par Health, Inc. on November 10, 2025, and presents Par Health's results as discontinued operations retroactively.
• The company realized $31 million in synergies during the third quarter of 2026.
• A $151 million pre-tax loss on the divestiture of Percocet impacted the current period results.
• The company benefited from the absence of $100 million in transaction-related compensation expenses, $76 million lower professional fees related to merger activities, and $52 million lower non-cash amortization of inventory fair value step-up adjustments compared to the prior year.
• The company updated its definition of Adjusted EBITDA in Q2 2026 to include an adjustment for strategic initiative costs.
• The company reported a loss on divestiture of $150.6 million for the three months ended September 30, 2026.
• The company has 39,646,269 ordinary shares issued and outstanding as of September 30, 2026.