• Total Revenue: $161 million for 2024, a 13% increase over 2023.
• Adjusted EBITDA: $34.1 million, representing a 42% year-over-year growth.
• Cash from Operations: $47.6 million generated in 2024.
• Year-End Cash Balance: $78.4 million.
• Net Income: $14.5 million for 2024, a 75% increase from 2023.
• Gross Margin: 43% for 2024, up from 39% in 2023.
• Operating Expenses: $49.9 million in 2024, up from $45.4 million in 2023.
• KEDRAB Sales: $50 million in 2024.
• CYTOGAM Sales: $23 million, a 31% increase from 2023.
• Dividend: $0.20 per share declared, payable in April.
• 2025 Revenue Guidance: $178 million to $182 million.
• 2025 Adjusted EBITDA Guidance: $38 million to $42 million.

• Warning! GuruFocus has detected 3 Warning Sign with KMDA.

Release Date: March 05, 2025

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

Positive Points

• Kamada Ltd (NASDAQ:KMDA) reported record financial results for 2024, with total revenue reaching $161 million, a 13% increase over 2023.
• Adjusted EBITDA for 2024 was a record $34.1 million, representing a 42% year-over-year growth.
• The company generated $47.6 million in cash from operations, resulting in a strong year-end balance sheet with $78.4 million in cash.
• Kamada Ltd (NASDAQ:KMDA) declared a second cash dividend of $0.20 per share, reflecting confidence in its business prospects.
• The company successfully launched its first biosimilar product in Israel and plans to launch two additional biosimilars in 2025, with expectations of significant sales growth in this segment.

Negative Points

• Operating expenses increased to $49.9 million in 2024, primarily due to higher sales and marketing costs and increased R&D expenses.
• The reduction in net income in the fourth quarter of 2024 was attributed to increased financial expenses related to the revaluation of contingent consideration.
• The company's plasma collection centers are expected to take 24 to 30 months to reach full revenue potential, indicating a longer timeline for realizing returns.
• Kamada Ltd (NASDAQ:KMDA) faces risks associated with its ongoing Phase III pivotal trial for inhaled AAT, including potential outcomes from a futility analysis.
• The company's growth strategy heavily relies on successful execution of M&A and business development transactions, which may not materialize as planned.

Q & A Highlights

Q: Can you provide details on the futility analysis for the inhaled AAT program? Will the data be blinded to you, and what are the potential outcomes? A: Amir London, CEO: The data will be reviewed by an external DSMB group, and we will remain blinded. The analysis will look at efficacy data to provide feedback on the study's success potential. The outcomes could be to continue, modify, or stop the program based on futility data.

Q: What are the growth drivers for KEDRAB and CYTOGAM? Are there plans for clinical presentations or studies? A: Amir London, CEO: KEDRAB's growth is driven by international expansion, with a significant contract in Latin America. For CYTOGAM, we are advancing clinical work with US-based KOLs and plan to announce presentations at medical conferences.

Q: Why did Kamada decide to offer a special dividend, and does it indicate the size of future BD activities? A: Amir London, CEO: The dividend reflects our strong 2024 financial results and outlook for 2025. We have sufficient funds to pay the dividend while continuing BD and M&A activities. We are screening multiple opportunities to accelerate growth.

Q: What is the timeline for the third plasma collection center to reach peak revenue, and what will be the mix of plasma collected? A: Amir London, CEO: The San Antonio center will open this month, and we expect it to reach peak revenue of $8 million to $10 million in 24 to 30 months. Approximately 20% to 25% of the plasma will be specialty, with the rest being normal source plasma.

Q: How will the use of in-source plasma affect gross margins for proprietary products? A: Amir London, CEO: Using in-source plasma will reduce costs and improve efficiencies, but it will take time to replace externally sourced plasma. The overall impact will be seen through improved economies of scale and increased sales in the US market.

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