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On Wednesday, March 19, 2025, Kamada Ltd (NASDAQ: KMDA) presented at the Sidoti Small-Cap Virtual Conference, outlining a robust financial performance and strategic growth initiatives. The CEO, Amir London, highlighted Kamada’s profitability and cash generation, while also discussing future challenges and opportunities in specialty plasma therapeutics.
Key Takeaways
- Kamada’s 2025 revenue guidance is set between $178 million and $182 million, with EBITDA projected between $38 million and $42 million.
- The company is expanding its plasma collection capabilities with two new centers in Texas, contributing significantly to revenue.
- Kamada is paying dividends for the first time, with a payout of $0.2 per share.
- The inhaled Alpha-1 Antitrypsin (AAT) product is in a Phase III study, targeting a $2 billion market.
- Kamada plans to execute at least one M&A transaction in 2025 to accelerate growth.
Financial Results
- 2025 revenue guidance: $178 million to $182 million.
- 2025 EBITDA guidance: $38 million to $42 million, reflecting an approximate 22% margin.
- 2024 revenues were $161 million, up from $142 million in 2023.
- Gross margin increased by 4 percentage points from 2023 to 2024.
- Earnings per share rose by 70%, from $0.15 in 2023 to $0.25 in 2024.
- First-time dividend of $0.2 per share, totaling $11.5 million, to be paid in April.
Operational Updates
- Opened plasma collection centers in Newstone and San Antonio, each expected to contribute $8 million to $10 million annually at peak capacity.
- The inhaled AAT product is undergoing a Phase III pivotal study, with interim results expected by the end of 2025.
- Kamada’s anti-rabies immunoglobulin, KedRAB, generated $50 million in sales in 2024, with a $135 million minimum commitment over the next three years.
Future Outlook
- Kamada plans to grow organically and through M&A, with at least one transaction expected in 2025.
- Plasma collection centers are projected to reach peak capacity by 2026-2027.
- The inhaled AAT product could launch in 2030, targeting a $2 billion market for alpha-1 antitrypsin deficiency.
Q&A Highlights
- Kamada aims to lower costs through vertical integration of plasma collection.
- The inhaled AAT study’s interim analysis will be conducted externally, with Kamada remaining blinded.
- The company is exploring M&A opportunities in plasma-derived products and specialty infectious diseases.
Kamada Ltd invites readers to refer to the full transcript for a detailed understanding of its strategic direction and financial outlook.
Full transcript - Sidoti Small-Cap Virtual Conference:
Jim, Unidentified role: company or the first company to present actually is Kamada Limited. With us, we have the CEO, Emil London, and the CFO, Jaime Olav. There’s thirty minutes for the presentation. There should be some time at the q and a. So if you do have a question, you can type it into the q and a tab at the bottom of your screen.
With that, it’s all yours, Amir.
Amir London, CEO, Kamada Limited: Thank you, Jim, and thank you, everyone, for joining us this morning. So in the next twenty minutes or so, I’ll give an overview of Kamada, you are traded on the Nasdaq and the Tel Aviv Exchange, a leading biopharmaceutical company. And then I leave some time for questions. Please feel free to engage in the QA session. One second.
Okay. Okay. So this is our introduction slide. I think maybe the most important slide is the presentation. Basically provides kind of an overview of the company.
So, Kamadet is a global leader in the area of specialty plasma therapeutics. We have, portfolio of six FDA approved product. The company is commercial profitable generating cash with a significant growth over the last few years and a significant growth roadmap moving forward. We have designed and structured our growth over four main pillars, which I’m going to describe throughout the presentation. A little bit about our numbers.
So for this year 2025, we guided the market that we will be selling between 178 to $182,000,000 and that our EBITDA will be between 38 to $42,000,000 So we are running at approximately 22% of EBITDA from a top line. As of end of twenty twenty four, we had over $78,000,000 of cash and the company has been growing 15% average annually over the last few years. The product, the the FDA approved products listed below, KEDROP, Cytogam, Heplagam, Varis, Iguino, and GLASSIA. The first five products are all specialty immunoglobulins which are being given to patients at different acute conditions. I I’ll talk about it in a minute.
And GLASSIA is alpha one antitrypsin given chronically patients suffering from alpha one deficiency, a severe lung disease similar to COPD, but because of a genetic disorder. Kamada has been an extremely innovative company over the last ten to fifteen years. We were the first to develop a liquid ready to use ALPHA one product. We’re the first to develop an inhaled nebulous AET, which is currently in a Phase III pivotal study. Back in 2020, we were the first company globally to develop, manufacture, and bring basically to treatment a plasma derived anti COVID immunoglobulins for patients that were suffering from the COVID pandemic, and we were the first to run a study and demonstrate safety and efficacy of anti rabies hemoglobin for, for children, for pediatric populations.
We’ve been very agile and fast in the way that we’ll be able to develop our programs. We also been very active in developing the vertical integration of the company over the last few years. We’re currently operating in over 35 countries through a network of our own teams as well as distributors and partners. The US is our biggest market, and then Canada, Latin America, some European countries, and Israel. Management Team has been working together for quite some time.
I’ve been with the company for now over ten years. Jaime, CFO, been over seven years and the rest of the team anywhere between, you know, three, four, five up to ten years and more well experienced in the areas of plasma products all the way from plasma collection to R and D, clinical, medical, manufacturing, supply chain, and commercialization. We’ve been very good in delivering our commitments. If you go back and you look at our annual guidance since we started giving guidance to the market, we’ve always been very successful in guiding the market in in terms of our top line and bottom line as well as different other strategic programs that we have been planning and executing. These slides provide kind of an overview of the last four years, four to five years in terms of top line and bottom line.
As I said, we’re growing significantly. So in 2021, we sold $104,000,000 last year, $161,000,000 and then we guided the market will be $180,000,000 this year. If we’re looking at our profitability, so from a $6,000,000 EBITDA to a midpoint of 40,000,000 in this year. So it’s not just we’re growing, but we’re also growing in a profitable way. So economy of scales, the mix of the products, the focus on more profitable markets, and the fact that we’ll be able to expand and increase our activity globally has been very profitable in the way that we’ve been growing the business.
So as I said, in 2021, dollars ’6 million out of 104, basically around 6% EBITDA, while this year we are running at over 20%. Twenty twenty four was a successful year. We generated over $47,000,000 of cash from operation resulting in year end strong cash position of $78,400,000 Recently, right now for the first time since the company was founded, the company is paying dividend on the 2024 results. We are paying a $0.2 a share. And basically the payment will be in April, April seventh, so around two weeks from now.
When I compare the 2024 to the previous year 2023, you see the progress and the increase and the growth in every aspect of our financials, so revenues went from 142 to 161, gross margin went up by four points, earning per share from $0.15 to $0.25 so it’s a 70% increase and adjusted EBITDA grew by 42% from $24,000,000 to $34,100,000 As mentioned, paying cash for the first time, paying dividends for the first time totaling approximately $11,500,000 or $0.2 per share. So going back to what is generating this growth and moving forward also for the next few years. So with six FDA approved products, all of them specialty products, unique products, how to make products with kind of a difficult entry barrier for competitors, we’ve been able to grow this business in The U. S. And Ex U.
S. In over 30 territories over the last few years, and we have a good projection moving forward in our ability to continue growing this in the different territories. We also have what we call a distribution portfolio. It’s a product that we don’t we did not develop them, but we basically represent companies in the resilient market. We’re also taking this model also to the MENA region from our office in Dubai, and this is a product that we are distributing and providing like a full scale type of turnkey solution to our partners from regulatory registration all the way to commercialization in those specific markets.
In addition, we’re looking to expedite and accelerate the growth through M and As in licensing and different type of BD transactions. We are very proactive now searching for the right opportunities. We’d like to engage in opportunities which are within our current scope of activities or to leverage existing infrastructure that we have in order to execute on those transactions. And we’re currently, as I said, screening opportunities, and I hope that Samsung will mature already in 2025, allowing us to accelerate our growth. As I mentioned, we’re close to $80,000,000 cash, and the main purpose of this cash is for BD and M and A transactions.
Plasma collection. So as of basically 2021, we established our own plasma collection. Plasma is our main raw material, being collected from donors in The US market and then being used for our own needs production wise, but also to sell it to external partners. So we started this line of business in 2021 through an acquisition we’ve made. And then in 2023, last year 2024.
So last year in September, we opened a very large collection center in Newstone. And last week, basically, this morning, we announced that last week we opened our second large center in the city of San Antonio, also in in Texas. Each one of those centers, once it reaches, like, its peak capacity, will contribute between 8 to $10,000,000 to a top line business. So two centers, new centers, will be between 16 to $20,000,000 of additional business. And in the future, if needed, we will consider opening additional centers.
And again, each one of those will contribute between $8,000,000 to $10,000,000 to our top line. In Health IT, a Phase III pivotal study in an area that we’re already active in our fund efficiency targeting a market of over $2,000,000,000 We are the most advanced company in a Phase III pivotal study to try and to bring to market a new technology, investigational product that could be a game changer in this significant market. I’ll talk about it throughout the presentation. So moving on and looking at those four pillars over the course of the next, you know, five to six years. So organic growth is already happening as you’ve seen on the on the chart.
M and As, as I mentioned, we are expecting to have at least, you know, one transaction already in 2025 and, contributing to our growth moving forward. Plasma collection, the centers that we’ve opened will reach, you know, the the peak capacity and collection contribution starting on 2026, ’20 ’20 ’7 and would have positive contribution to our business. And then in HELD A T pivotal study, we expect results in late ’twenty eight, early ’twenty ’9 top line results. And then if the study is successful, we expect the product in the market in 2021, ’2 thousand and ’30 with significant top line and bottom line contribution to our business. Talking about two or three of our main products, which have been the main growth drivers over the last few years.
So anti rabiesinoglobulin for people that exposed to a potentially rabid animal, rabies is a deadly disease. So if someone has been exposed, they need to go to the ER and get like a full protocol of, what’s called post exposure prophylactic treatment and antirepizemoglobulin is an important part of this treatment. There are only two products approved by the FDA, our product and a competitor’s product. When we launched the product, the competitor had the majority of the market, but we’ve been able successfully to take a significant market share over the last few years. In 2024, we sold to our distributor partner $50,000,000 of the product, which they basically marked up and sold it for more than that.
And in general, we are running to run 40% to 50% market share, and we expect to continue growing this business moving forward. With The U. S. Success, we also have kind of leveraged it in other countries. We won the Canadian, Australia and Israeli, some Latin American countries.
We won the tenders and we are one of the top two three global players in this important life saving therapeutic market. We have a minimum commitment from our partner in The US to buy from us at least $135,000,000 of the product over the next three years, twenty five, twenty six, twenty seven, so this will continue to be a major contributor to our business and moving forward. Our second largest product in The US is Cytogam. Cytogam is an anti CMV immunoglobulin. It’s used part of solid organ transplantation, primarily for high risk patients, what we call the mismatch patients, where the organ is in fact, it is CMV positive and the patient is CMV negative.
This is like the most, the leading cause for organ rejection post transplantation. In general, we’re looking at around twenty three percent increase in U. S. Organ Transplant over the last five years, so specifically for lungs, which are the main organ that we are focused on, we’re looking at the high single digit growth annually. In 2024, we sold 23,000,000 of the product.
This was a thirty one percent increase compared to the previous year. We are doing a lot of work in terms of generating new clinical and medical data, working with The U. S. KOLs in order to support the product promotion and sales, and we expect to continue growing it in the primarily in The U. S.
But also in the Canadian market. As mentioned there, in addition to our own proprietary products, we have additional lines of business. One of them is the distribution business focused primarily on the Israeli market, but also recently we’ve taken this business model also to the MENA region working with companies from our office in Dubai. The lead or the biggest opportunity here has to do with a portfolio of biosimilar products. We are representing Alvotech in the Israeli market.
We expect the biosimilar portfolio to add between 15 to $20,000,000 per year within the next five years. So this will be a significant growth engine, profitable growth engine to our business in the plasma space. As mentioned, main focus in terms of our growth for the next few years comes from our BD, M and A in licensing opportunities, and we are focusing on products which are synergetic to our existing commercial or production activities. We have a strong financial position and our commercial footprint, and we are looking forward for this to have positive contribution to the business. I spoke about the plasma collection.
So in those centers that we are opening, we are collecting specialty plasma for ONIDs like anti rabies, NTD, hepatitis, while we’re also collecting what’s called normal source plasma, which we are going to sell to external parties. Recently opened the two new centers, Houston and Texas, Houston and San Antonio, so both of them in Texas of course, and we’re looking for revenues between $8,000,000 to $10,000,000 per year for each one of those centers. Moving to the inhaled alpha one product which I mentioned earlier, so alpha one deficiency is a genetic chronic disease, people that are born with their body not producing sufficient levels of the AAT protein. The main complication of this disease is what’s called a lung disorder similar to COPD. Those patients will develop a severe emphysema over the years and the treatment or the standard of care is basically to give them on a weekly basis the missing protein.
It does not reverse the situation of the lung, but it really slows down the disease progression. This is still a highly misdiagnosed disease because the symptoms are similar to COPD, which is a chronic obstructive preliminary disease, like like the smoker’s disease if I may, and in many cases a patient will complain to the physician, to the pulmonologist about the symptoms and they will be treated for the COPD symptoms without actually testing and diagnosing the alpha one deficiency. But this has been improving because there’s better awareness and patients are asking physician and physician are aware that this COPD patient might be suffering from alpha one deficiency. So we see a steady market growth. What used to be like a billion dollar market now is around 1.3, 1 point 5 billion dollars continue to grow around 7% a year, expected to reach around $2,000,000,000 by twenty twenty eight, twenty twenty nine.
In our study, we’ve taken our product, which is currently given as IV with infusion, and we developed it as a drug device combination with a nebulizer, so it can be, can be given at home, non invasive, on a daily basis as a nebulized inhaled product going directly into the lungs. Because of this effective mode of administration, giving and the lungs are the target organ, we are giving one eighth of the dose compared to the IV systematic treatment. So we are in a phase three pivotal study. It’s a double blind randomized placebo controlled study. The key endpoint is lung function measured by FEV1.
We’re also collecting CT scan data, lung density, and many other different parameters about the health of the patients. Recently, we’ve announced that we reached a positive feedback from the FDA, which is based on the positive safety data we presented to the regulators, and the regulators agreed that they are in agreement with us that our proposed p value of 0.1 instead of 0.05 will be sufficient in evaluating the trial efficacy primary endpoint. This allows us to reduce the sample size in the study from two twenty patients to 180 patients. We also announced we’re going to conduct an interim futility analysis by the end of this year. So we are around fifty percent into recruitment.
We are hoping to complete recruitment by end of twenty twenty six. The study is a two year treatment, meaning that last patient out will be by end of twenty eight if we complete recruitment by end of twenty six, meaning that we’re going to have data readout in early twenty nine, if successful submission and product launch in 02/1930. We also opened what’s called an open level extension, meaning every patient completing the two years randomized phase can roll into a treatment arm that will continue for additional two years. The advantages, it’s non invasive, at home treatment, better ease of use, better quality of life compared to a weekly infusion, which the patients are required to receive currently, meaning they need to go to the clinic or have a nurse to come to the home. All of this will not be needed once the inhaled, even once the inhaled is approved, the most effective mode of treatment because we’re going directly into the lungs, and a very well established safety profile as I mentioned earlier.
So to summarize and to leave enough time for questions, so Kamada is a global leader in the area of specialty plasma therapeutics. We have been very successful delivering our commitments. The company is profitable generating cash, even recently announced that we are going to pay dividend, growing a significantly double digit rate every year, guided the market this year between $178,000,000 to $182,000,000 with a midpoint of $40,000,000 EBITDA, close to $80,000,000 cash, looking to turn this cash into business transactions, M and As in order to accelerate the growth, continuing with our organic growth and the plasma collection centers opening and ramp up, and we have being held AAT as a potential game changer transformational product in a $2,000,000,000 market with results expected in few years. So this is a nutshell, the company, with our strengths and our plan moving forward for the next few years. And now I’ll open it for for questions from the, from the audience.
Jim, Unidentified role: Great. Thank you very much, Amir. With regard to the plasma centers, as you said, you opened the third one today. Why is that important to to Kamada, to to have its own supply of plasma?
Amir London, CEO, Kamada Limited: Okay. So there’s basically two reasons for opening the centers. The first one is what we call the specialty plasma, which we need for our specialty noglobalins. Every liter that we collect instead of buying from an external supplier is cheaper, which means that our cost of goods are going to be lower once we have sufficient self donated or self collected plasma. So this is going to have a positive impact on our gross margin and cost of goods.
Also, being vertically integrated allows you basically to be more independent, allows you to be able to expand based on the plasma you’re collecting yourself. In addition, the normal source plasma that we are collecting, we’re going to sell it to external partners, so it’s just another line of business that adds to our top line and profitability. And when we looked into this business a few years ago, we found that it’s really from a economy of scales and efficiency, effectiveness. It makes sense that the center would be collecting normal source plasma and specialty plasma. This gives you a very wide, kind of a better cost structure, allowing you to be more efficient in the way that you’re collecting the plasma.
Jim, Unidentified role: And do you think the three centers gives you enough capacity and enough supply of the specialty plasma for your products, or do you anticipate opening more centers going forward?
Amir London, CEO, Kamada Limited: Currently, that’s our plan of three centers. Based on the pace we’re moving and the capacity and the actual ability to turn capacity into plasma, we decide if and when we need to open additional centers.
Jim, Unidentified role: Right. And with regard to the inhaled AATD drug, you indicated that you’ll complete the interim futility analysis early twenty twenty six. Is that the next milestone? And, you know, will investors see any data from that?
Amir London, CEO, Kamada Limited: So we’re not we’ve got the date by end of this year, so it will be late twenty five, not not early twenty six. Okay. The basically, the way that futility analysis works, we we are we remain blinded to the data. There is an external committee that is independent. They’re going to see the data unblinded, allowing them to do the analysis, looking at the data up to that point, and basically from that data analysis, statistical analysis to drive some assumption related to the probability of success of the study moving forward.
So this will be the main next milestone of the study. You are correct.
Jim, Unidentified role: And then, you indicated that this treatment will be able to be done in the home as opposed to having the patient go to a, to a clinic for intravenous administration. Does that, does that give you more favorable reimbursement? Do the insurance companies prefer to have a treatment in in the home, or have you even, contemplated reimbursement yet?
Amir London, CEO, Kamada Limited: So in countries where it’s currently reimbursed, the IV, like The US, for example, or Germany, Spain, Italy, so if and when the inhaled is successful, definitely, you know, reimbursement will be available because the payers are already paying for this today. So to pay for alternative treatment that is more convenient, non invasive, done at home will be a very favorable move for the payers. There are countries, especially in Europe, like The UK, where currently the IV treatment is not being paid by the payers. So it’s not being reimbursed. In those countries, we believe, we hope that coming within health treatment based on successful efficacy study driven for a placebo controlled study will allow us to convince those payers that they should pay for the health treatment.
So it’s not only that we believe that this is a highly competitive product compared to the current standard of care, but also the ability to grow the market by getting reimbursement in countries currently not reimbursing for the IV treatment.
Jim, Unidentified role: Right. One of the pillars for growth was acquisitions or M and A. Can you talk about what the pipeline looks like right now?
Amir London, CEO, Kamada Limited: Yeah. So as I said, we are screenings for some opportunities. We’re looking at areas which are relatively close to our current business because we’d like to leverage an existing infrastructures that we’ve built. And, you know, our current business is primarily in the plasma derived, of course, but if you look on the specialty, infectious disease, emergency rooms, hospital products, transplant centers, and also, as I mentioned, we do have a distribution business in Israel and the MENA region. So these are the areas where we currently, our main focus is, and we are optimistic that we’ll be able to execute on such a transaction, at least one, already in 2025.
Jim, Unidentified role: Now the agreement with Kendrian, I believe it was $180,000,000 over four years. So you’re one year into that agreement. Are you running ahead of schedule, at schedule, behind schedule?
Amir London, CEO, Kamada Limited: Yep. So the original agreement was signed for four basically for eight years. The first four years, we had a predefined minimum, commitment by Kedrion. We’re talking about the KEDRA anti rabies in the global for The US market. That’s the scope of the collaboration.
And as as you said, hundred and $80,000,000 minimum, meaning $45,000,000 on average per year. In 2024, Kedra already ordered from us above the minimum, so we sold them $50,000,000 of the product, which which means that for twenty twenty five, six, and seven, their minimum commitment is 135, 40 5 times three, and we expect, I hope that in reality, they will be ordering more than that.
Jim, Unidentified role: And, do you have other distributors selling outside The United States, and how how are those markets going?
Amir London, CEO, Kamada Limited: Absolutely. So we are a global leader in that space, in that specialty. As I mentioned, we are we won the tenders Canada, some European countries, Australia, Israel, some Asian countries. We won the very large tender, with an international organization mainly supplying Latin America. We announced this earlier this year.
It’s like a $25,000,000 agreement tender for the next three years, twenty five, twenty six, twenty seven for a combination of KedRAB and VARISIQ.
Jim, Unidentified role: Alright. We we have just about a minute left. Do you have any closing comments before we, we sign up?
Amir London, CEO, Kamada Limited: So thank you for the very good questions. I hope that listeners have appreciated the verticality and the variety of gross engines and businesses under the umbrella of Kamada, very clearly defined strategy moving forward. When I mentioned earlier about M and A or BD transaction, we are focused on commercial assets. We’re looking to grow the business and keep at least, you know, this double digit growth mode moving forward in an annual basis and in a profitable way. So I think a very healthy business with a nice outlook moving forward.
Jim, Unidentified role: Alright. Well, thank you for the update, and we look forward to talking to you soon to get further updates. Thank you, Amir. Thank you.
Amir London, CEO, Kamada Limited: Thank you, Amir. Bye bye.
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