Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kamada Ltd (NASDAQ:KMDA) reported a 10% increase in total revenues for the third quarter of 2024 compared to the same period in 2023.
• The company achieved a 15% increase in total revenues for the first nine months of 2024 over the prior year period.
• Gross profit margin improved to 41% in Q3 2024 from 39% in Q3 2023, driven by a better product sales mix.
• Net income for Q3 2024 increased by 20% compared to Q3 2023, reflecting strong financial performance.
• Kamada Ltd (NASDAQ:KMDA) increased its full-year 2024 EBITDA guidance to between $32 to $35 million, indicating confidence in continued growth.

Negative Points

• Operating expenses increased to $38 million for the first nine months of 2024, up from $33.8 million in the same period of 2023.
• The company is still awaiting further FDA feedback on its phase three innovate clinical trial, which could impact timelines.
• Market share for Kedrab is approaching a potential saturation point, raising concerns about future growth in this segment.
• The exact percentage of enrollment for the innovate trial is uncertain due to ongoing discussions with the FDA.
• Kamada Ltd (NASDAQ:KMDA) faces competition in its development programs, which could impact its market position and growth potential.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Sign with KMDA.

Q: Can you provide a breakdown of Kedrab and Cytogam sales, and what is your expectation for market share growth? A: We report detailed product-level revenues annually, not quarterly. Both products are experiencing double-digit growth compared to last year. We estimate our market share is between 40% to 50%, with room for growth. We are a global leader in anti-rabies immunoglobulin, with opportunities to expand in Latin America, Europe, Canada, Australia, and Israel. EBITDA expansion is driven by economies of scale, efficiency, and a favorable sales mix, particularly in the U.S. market. - Unidentified_1

Q: What is the current status of the InnovAte trial enrollment, and how are competitive programs affecting it? A: We are around 50% in recruitment. Discussions with the FDA regarding the P-value and sample size are ongoing. We are gaining clarity on these aspects, and partnering discussions are also in progress to find the right partner. - Unidentified_1

Q: Is there any progress on the preclinical pipeline and business development activities? A: Yes, we are actively seeking licensing and M&A opportunities, expecting commercial contributions by 2025. Our preclinical plasma-derived programs, particularly the plasma-derived immunoglobulin program, are advancing well. - Unidentified_1

Q: What are your goals for the plasma collection business, especially with the new Houston Center? A: We are pleased with the Houston Center's growth and plan to open the San Antonio Center in early 2025. These centers will collect specialty plasma for our products and sell normal source plasma to external clients. We will decide on further expansion after these centers are operational. - Unidentified_1

Q: Can you provide a high-level outlook for 2025? A: While it's early to provide detailed guidance, we expect to continue double-digit growth in both top and bottom lines. We are executing our plan effectively, as evidenced by our increased EBITDA. Detailed guidance will be shared at the beginning of 2025. - Unidentified_1

For the complete transcript of the earnings call, please refer to the full earnings call transcript.