Kamada sees $100m revenue in 2017

Kamada CEO Amir London, photo: Efi Sameach

The agreement with Shire for emphysema treatment Glassia will lift the Israeli company's revenue above this year's expected $80 million.

Kamada Ltd.'s (Nasdaq: KMDA); TASE: KMDA) third quarter financial reports this year are being published together with the news that the company's agreement with Shire, a leading pharmaceutical company, for marketing Glassia, Kamada's leading product, has been extended. The new agreement, which extends the current agreement, has enabled Kamada to confirm its sales forecasts of $75-80 million for 2016 and $100 million for 2017. Former Kamada CEO David Tsur made the forecast of 2017 two years ago, when it appeared over-ambitious, but the agreement with Shire now makes it appear more feasible. Kamada's market cap is NIS 752 million.

Kamada's third quarter revenue totaled $19.4 million, up 21%, compared with the corresponding quarter in 2015. The company's added value products department, which consists primarily of Glassia, already accounted for $15 million of this (the company's revenue from added value products and imports was equal up until a few years ago), 57% more than in the corresponding quarter last year.

Sales of imported products were down 44% to $4.3 million, but the company asserts that the difference is due to the timing of orders during the year. In its bottom line, the company lost $1 million, compared with a $4.3 million loss in the third quarter of 2015.

Kamada's revenue totaled $53.2 million in the first nine months of 2016, 20% higher than in the corresponding period last year. $38 million of this came from added value products. The company's nine-month loss was $3.9 million, compared with a $10.7 million loss during the corresponding period last year. Kamada has $27.2 million in cash. In a conference call following publication of his company's results, CEO Amir London predicted good growth for the company in the fourth quarter, which is usually its strongest quarter.

Marketing approval for products in Europe, US

The agreement with Shire is projected to generate $237-288 million in revenue for the company in 2017-2020, i.e. an annual average of $62-70 million. Kamada believes that this revenue from marketing Galassia, will be enough for it to meet its forecasts. Based on this revenue, Kamada is likely to step up its development during this period if its new products are successful. The company plans to submit its product for treatment of hereditary emphysema (administered through breathing, in contrast to Galassia, which is administered by IV) for marketing approval in Europe in 2017.

The company is slated to receive an answer from the US Food and Drug Administration to its marketing approval request for its rabies vaccine. The market is not a large one, but the product is expected to be unique in the market, and already has a distributor.

Results of a Phase II trial for Kamada's diabetes treatment and its trial for prevention of transplant rejection are scheduled to arrive in mid-2017. Together with Shire, Kamada is also conducting a trial of a treatment for graft-versus-host disease, a deadly byproduct of bone marrow transplants for treatment of blood cancer. This treatment utilizes Kamada's technology for Galassia. Results of this trial are expected only in 2020.

Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Kamada CEO Amir London, photo: Efi Sameach
Kamada CEO Amir London, photo: Efi Sameach
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