Full Press Release Details
Kamada Reports Strong Second Quarter and First
Half 2024 Financial Results with Year-Over-Year 6-Month Top-Line Growth of 18% and a 68% Increase in Profitability
REHOVOT, Israel, and Hoboken, NJ - August
14, 2024 -- Kamada Ltd. (NASDAQ: KMDA; TASE: KMDA.TA), a global biopharmaceutical company with a portfolio of marketed products indicated
for rare and serious conditions and a leader in the specialty plasma-derived field, today announced financial results for the three and
six months ended June 30, 2024.
"Our strong financial performance is
indicative of the successful execution of our growth strategy as we continue to effectively leverage our multiple diverse commercial catalysts,
including our six FDA-approved products," said Amir London, Kamada's Chief Executive Officer. "With total revenues for
the first half of 2024 of $80.2 million, which represents year-over-year growth of 18%, adjusted EBITDA of $16.6 million, up 68% year-over-year
and representing a 21% margin of revenues, we achieved the top- and bottom-line profitable growth
anticipated in our business. In addition, during the first six months of the year, we generated $15.0 million of cash provided
by operating activities, which demonstrates our ability to convert our reported adjusted EBITDA to operational cash flow."
"Based on our continued strong performance
and expectation for a cadence of financial results in the second half of 2024 consistent with those achieved in the first six months of
the year, we are reiterating our full-year 2024 revenue guidance of $158 million to $162 million, and our adjusted EBITDA guidance of
$28 million to $32 million. Importantly, we continue to pursue compelling new business development opportunities, leveraging our financial
strength. These opportunities are expected to support continued growth at double-digit rates beyond 2024," added Mr. London.
"Patient enrollment continues in our ongoing pivotal Phase 3 InnovAATe clinical trial for the inhaled Alpha-1
Antitrypsin therapy. Last quarter, we filed an IND amendment
with the FDA consisting of a revised Statistical Analysis Plan (SAP) and study protocol, which, if approved, may allow for the acceleration
of the program. We continue to expect further FDA feedback before the end of this year," concluded Mr. London.
Financial Highlights for the Three Months Ended
Highlights for the Six Months Ended June 30, 2024
Balance Sheet Highlights
As of June 30, 2024, the Company had cash, cash
equivalents, and short-term investments of $56.5 million, as compared to $55.6 million on December 31, 2023.
Fiscal Year 2024 Guidance
Kamada continues to expect to generate fiscal
year 2024 total revenues in the range of $158 million to $162 million, and adjusted EBITDA in the range of $28 million to $32 million,
representing double digit top- and bottom-line growth year-over-year.
Kamada management will host an investment community
conference call on Wednesday, August 14, 2024, at 8:30am Eastern Time to present the Company's results and answer questions. Shareholders
and other interested parties may participate in the conference call by dialing 1-877-407-0792 (from within the U.S.) or 1-809-406-247
(from Israel) or 1-201-689-8263 (International) using conference ID 13747542. The call will also be webcast live on the Internet at:
Non-IFRS financial measures
We present EBITDA and adjusted EBITDA because
we use these non-IFRS financial measures to assess our operational performance, for financial and operational decision-making, and as
a means to evaluate period-to-period comparisons on a consistent basis. Management believes these non-IFRS financial measures are useful
to investors because: (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational
decision-making and provide investors with a meaningful perspective on the current underlying performance of the Company's core
ongoing operations; and (2) they exclude the impact of certain items that are not directly attributable to our core operating performance
and that may obscure trends in the core operating performance of the business. Non-IFRS financial measures have limitations as an analytical
tool and should not be considered in isolation from, or as a substitute for, our IFRS results. We expect to continue reporting non-IFRS
financial measures, adjusting for the items described below, and we expect to continue to incur expenses similar to certain of the non-cash,
non-IFRS adjustments described below. Accordingly, unless otherwise stated, the exclusion of these and other similar items in the presentation
of non-IFRS financial measures should not be construed as an inference that these items are unusual, infrequent or non-recurring. EBITDA
and adjusted EBITDA are not recognized terms under IFRS and do not purport to be an alternative to IFRS terms as an indicator of operating
performance or any other IFRS measure. Moreover, because not all companies use identical measures and calculations, the presentation of
EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. EBITDA is defined as net income
(loss), plus income tax expense, plus or minus financial income or expenses, net, plus or minus income or expense in respect of securities
measured at fair value, net, plus or minus income or expenses in respect of currency exchange differences and derivatives instruments,
net, plus depreciation and amortization expense, whereas adjusted EBITDA is the EBITDA plus non-cash share-based compensation expenses
and certain other costs.
For the projected 2024 adjusted EBITDA information
presented herein, the Company is unable to provide a reconciliation of this forward measure to the most comparable IFRS financial measure
because the information for these measures is dependent on future events, many of which are outside of the Company's control. Additionally,
estimating such forward-looking measures and providing a meaningful reconciliation consistent with the Company's accounting policies
for future periods is meaningfully difficult and requires a level of precision that is unavailable for these future periods and cannot
be accomplished without unreasonable effort. Forward-looking non-IFRS measures are estimated in a manner consistent with the relevant
definitions and assumptions noted in the Company's adjusted EBITDA for historical periods.
Kamada Ltd. (the "Company") is a
global biopharmaceutical company with a portfolio of marketed products indicated for rare and serious conditions and a leader in the
specialty plasma-derived field, focused on diseases of limited treatment alternatives. The Company is also advancing an innovative development
pipeline targeting areas of significant unmet medical need. The Company's strategy is focused on driving profitable growth from
its significant commercial catalysts as well as its manufacturing and development expertise in the plasma-derived and biopharmaceutical
fields. The Company's commercial products portfolio includes six FDA approved plasma-derived biopharmaceutical products: CYTOGAM ,
KEDRAB , WINRHO SDF , VARIZIG , HEPAGAM B and GLASSIA , as well as KAMRAB , KAMRHO (D) and two
types of equine-based anti-snake venom (ASV) products. The Company distributes its commercial products portfolio directly, and through
strategic partners or third-party distributors in more than 30 countries, including the U.S., Canada, Israel, Russia, Argentina, Brazil,
India, Australia and other countries in Latin America, Europe, the Middle East, and Asia. The Company leverages its expertise and presence
in the Israeli market to distribute, for use in Israel, more than 25 pharmaceutical products that are supplied by international manufacturers.
During recent years the Company added eleven 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. The Company
owns an FDA licensed plasma collection center in Beaumont, Texas, which currently specializes in the collection of hyper-immune plasma
used in the manufacture of KAMRHO (D), KARAB and KEDRAB. In addition to the Company's commercial operation, it invests in research
and development of new product candidates. The Company's leading investigational product is an inhaled AAT for the treatment of
AAT deficiency, for which it is continuing to progress the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled,
pivotal Phase 3 trial. FIMI Opportunity Funds, the leading private equity firm in Israel, is the Company's controlling shareholder,
beneficially owning approximately 38% of the outstanding ordinary shares.
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts, including statements regarding: 1)
our expectation for a cadence of financial results in the second half of 2024 consistent with those achieved in the first six months of
the year, 2) full-year revenue guidance to be $158 million-$162 million and adjusted EBITDA to be between $28 million-$32 million, 3)
continuing to pursue compelling new business development opportunities, leveraging our financial strength and to support continued growth
at double-digit rates beyond 2024, 4) continued patient enrollment in the ongoing pivotal Phase 3 InnovAATe clinical trial, and 5) our
expectations to receive FDA feedback to the IND Amendment before the end of 2024, which, if approved, may allow for the acceleration of
the InnovAATe program. Forward-looking statements are based on Kamada's current knowledge and its present beliefs and expectations
regarding possible future events and are subject to risks, uncertainties and assumptions. Actual results and the timing of events could
differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited
to the evolving nature of the conflicts in the Middle East and the impact of such conflicts in Israel, the Middle East and the rest of
the world, the impact of these conflicts on market conditions and the general economic, industry and political conditions in Israel, the
U.S. and globally, continuation of inbound and outbound international delivery routes, continued demand for Kamada's products, financial
conditions of the Company's customer, suppliers and services providers, Kamada's ability to integrate the new product portfolio
into its current product portfolio, Kamada's ability to grow the revenues of its new product portfolio, and leverage and expand
its international distribution network, ability to reap the benefits of the acquisition of the plasma collection center, including the
ability to open additional U.S. plasma centers, and acquisition of the FDA-approved plasma-derived hyperimmune commercial products, the