Israeli biopharmaceutical company Kamada Ltd. (Nasdaq: KMDA; TASE:KMDA) today announced that it has entered into a share purchase agreement with Israeli private equity firm FIMI Opportunity Funds (FIMI) to purchase $60 million of its ordinary shares in a private placement.
Before today's share purchase, FIMI, led by Ishay Davidi, already had a 21% stake in Kamada, and after the announcement of the private placement, the company's share price jumped 10%, leaving FIMI with a handsome profit on the investment so far. After the investment, FIMI has a 38% stake in Kamada and becomes the controlling shareholder. After the rise, Kamada has a market cap of NIS 875 million.
FIMI first invested in Kamada in 2019, buying a 12% stake at $6 per share, 26% above the company's current share price. In early 2020, FIMI increased its holding to 21% at the same price per share.
Before its initial investments, FIMI knew that Kamada was approaching a crossroads. The company was committed to transferring the production rights for its lead product for AAT deficiency, a condition that raises risk for lung and other diseases, to its marketing partner Takeda. As a result, the company would no longer record revenue from the product, but only a reduced profit, requiring it to generate revenue from other products.
Since 2021, together with FIMI, Kamada has acquired and developed a portfolio of promising products including six FDA approved plasma-derived biopharmaceutical products and two types of equine-based anti-snake venom (ASV) products. In recent years, Kamada has added 11 biosimilar products to its Israeli distribution portfolio, which, subject to the European Medicines Agency (EMA) and the Israeli Ministry of Health approvals, are expected to be launched in Israel through 2028.
Published by Globes, Israel business news - en.globes.co.il - on May 24, 2023.
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