Full Press Release Details
Kamada Reports Third Quarter and First
Nine Months of 2020 Financial Results, Recent Achievements and Corporate Development
REHOVOT, Israel - November 11,
2020 -- Kamada Ltd. (NASDAQ: KMDA; TASE: KMDA.TA), a plasma-derived biopharmaceutical company, today announced financial results
for the three and nine months ended September 30, 2020.
"We are pleased with our solid financial
and operational results during the recently completed quarter and first nine months of 2020, achieved in the midst of the COVID-19
global pandemic" said Amir London, Kamada's Chief Executive Officer. "Total revenues increased seven percent
for both the three and nine months ended September 30, 2020 as compared to the same periods in 2019. Based on our solid performance
in the first nine months of the year, and our positive outlook for the fourth quarter, we are reiterating our full-year 2020 total
revenue guidance of $132 million to $137 million."
"We continue to achieve important progress
in the development of our plasma derived immunoglobulin (IgG) product as a potential therapy for COVID-19 disease," continued
Mr. London. "We executed an agreement with the Israeli Ministry of Health ("IMOH") to supply our product for
the treatment of COVID-19 patients in Israel, under which the initial supply is expected to generate approximately $3.4 million
in revenues during the first quarter of 2021. Importantly, per recent discussions with the IMOH, the treatment utilizing our product
will be provided as part of a multi-center clinical study led by the IMOH. From a supply perspective, we are ramping up our COVID-19
IgG manufacturing capacity, and we intend to increase our supply capabilities during 2021 to support potential increased demand
from the IMOH as well as from other potential international markets. In addition, we completed enrollment and announced positive
initial interim results from our ongoing Phase 1/2 open-label COVID-19 clinical trial in Israel. Lastly, following recent response
from the U.S. Food and Drug Administration ("FDA") to our previously submitted pre-Investigational New Drug (IND) information
package, we, together with our partner, Kedrion Biopharma, are currently evaluating the suitable targeted patient population for
our US clinical program and will submit an IND application upon conclusion of such evaluation and successful completion of additional
required activities."
"As we move into 2021 and in anticipation
of the reduction in revenues due to the planned transition of GLASSIA manufacturing to Takeda, we are exploring strategic business
development opportunities that will utilize and expend our core plasma-derived therapeutics development, manufacturing, and commercialization
expertise. These opportunities will be funded by our strong cash position.
We believe that our COVID-19 IgG program demonstrates Kamada's ability to quickly respond to emerging pandemic situations,
and we plan to leverage these capabilities and our IgG platform technology as a strategic business line, with the ability to respond
to other potentially similar future pandemic situations. These strategic opportunities are anticipated to be added to the expected
organic commercial growth of our existing products portfolio, including KEDRAB, our distributed products
in Israel, the anticipated future royalty payments from Takeda, and the contract manufacturing of an FDA approved and commercialized
specialty IgG product." concluded Mr. London.
Financial Highlights for the Three Months
Ended September 30, 2020
Financial Highlights for the Nine months
Ended September 30, 2020
Balance Sheet Highlights
As of September 30, 2020, the Company had cash, cash equivalents,
and short-term investments of $99.7 million, as compared to $73.9 million at December 31, 2019. This increase is mainly related
to the sale of $25 million of equity to FIMI Opportunity Fund, the leading private equity investor in Israel.
Recent Corporate Highlights
Kamada Ltd. ("the Company")
is a commercial stage plasma-derived biopharmaceutical company focused on orphan indications, with an existing marketed product
portfolio and a late-stage product pipeline. The Company uses its proprietary platform technology and know-how for the extraction
and purification of proteins from human plasma to produce Alpha-1 Antitrypsin (AAT) in a highly-purified, liquid form, as well
as other plasma-derived immune globulins. The Company's flagship product is GLASSIA , the first liquid, ready-to-use,
intravenous plasma-derived AAT product approved by the U.S. FDA. The Company markets GLASSIA in the U.S. through a strategic partnership
with Takeda Pharmaceuticals Company Limited and in other countries through local distributors. Pursuant to an agreement with Takeda
the Company will continue to produce Glassia for Takeda through 2021 and Takeda is planning to initiate its own production of Glassia
for the U.S. market in 2021 at which point Takeda will commence payment of royalties to the Company. The Company's second
leading product is KamRab , a rabies immune globulin (Human) for post-exposure prophylaxis against rabies infection. KamRab
is FDA approved and is being marketed in the U.S. under the brand name KEDRAB through a strategic partnership with Kedrion
S.p.A. In addition to Glassia and KEDRAB, the Company has a product line of four other plasma-derived pharmaceutical products administered
by injection or infusion, that are marketed through distributors in more than 15 countries, including Israel, Russia, Brazil, India
and other countries in Latin America and Asia. The Company has late-stage products in development, including an inhaled formulation
of AAT for the treatment of AAT deficiency. In addition, the Company's intravenous AAT is in development for other indications,
such as GvHD and prevention of lung transplant rejection, and during 2020, the Company initiated the development of a plasma derived
hyperimmune immunoglobulin (IgG) product as a potential treatment for coronavirus disease (COVID-19). The Company leverages its
expertise and presence in the plasma-derived protein therapeutics market by distributing more than 20 complementary products in
Israel that are manufactured by third parties. FIMI Opportunity Fund, the leading private equity investor in Israel, is the Company's
lead shareholder, beneficially owning approximately 21% of the outstanding ordinary shares.
Cautionary Note Regarding Forward-Looking
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) total revenues to be in the range of $132 million to $137 million for fiscal 2020; 2) ability
to ramp up Kamada's COVID-19 IgG manufacturing capacity and its plan to increase its supply capabilities during 2021 to
support potential increased demand from the IMOH as well as from other potential international markets; 3) ability to advance
the U.S. clinical development of a plasma derived hyperimmune immunoglobulin (IgG) product as a potential treatment for COVID-19;
4) ability to explore strategic business development opportunities that utilize and expend Kamada's core plasma-derived
therapeutics development, manufacturing, and commercialization expertise; and 5) Kamada's belief that its COVID-19 IgG program
demonstrates its ability to quickly respond to emerging pandemic situations, and its plan to leverage these capabilities and its
IgG platform technology as a strategic line of business. 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 continued evolvement of the COVID-19 pandemic, its scope, effect
and duration, availability of sufficient raw materials required to maintain manufacturing plans, the effects of the COVID-19 pandemic
and related government mandates on the availability of adequate levels of work-force required to maintain manufacturing plans,
disruption to the supply chain due to COVID-19 pandemic, continuation of inbound and outbound international delivery routes, ability
to offset significant revenue loss associated with GLASSIA manufacturing transitioning to Takeda, continued demand for Kamada's
products, including GLASSIA and KEDRAB, in the U.S. market and its Distribution segment related products in Israel, financial
conditions of the Company's customer, suppliers and services providers, ability to obtain regulatory approval for clinical
trials of the plasma-derived hyperimmune IgG product for COVID-19, ability to continue enrollment of the pivotal Phase 3 InnovAATe
clinical trial, unexpected results of clinical studies and on-going compassionate-use treatments, Kamada's ability to manage
operating expenses, additional competition in the markets that Kamada competes, regulatory delays, prevailing market conditions
and the impact of general economic, industry or political conditions in the U.S., Israel or otherwise. The forward-looking statements
made herein speak only as of the date of this announcement and Kamada undertakes no obligation to update publicly such forward-looking
statements to reflect subsequent events or circumstances, except as otherwise required by law.
Chief Financial Officer
LifeSci Advisors, LLC
CONSOLIDATED CONDENSED
| As of September 30, | As of December 31, | |||||||||||
| 2020 | 2019 | 2019 | ||||||||||
| Unaudited | Audited | |||||||||||
| U.S Dollars in thousands | ||||||||||||
| Assets | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | $ | 52,487 | $ | 27,449 | $ | 42,662 | ||||||
| Short-term investments | 47,230 | 39,380 | 31,245 | |||||||||
| Trade receivables, net | 28,643 | 23,999 | 23,210 | |||||||||
| Other accounts receivables | 3,533 | 1,722 | 3,272 | |||||||||
| Inventories | 42,618 | 34,031 | 43,173 | |||||||||
| Total Current Assets | 174,511 | 126,581 | 143,562 | |||||||||
| Non-Current Assets | ||||||||||||
| Property, plant and equipment, net | 25,323 | 24,197 | 24,550 | |||||||||
| Right-of-use-assets | 3,694 | 4,100 | 4,022 | |||||||||
| Other long term assets | 1,081 | 178 | 352 | |||||||||
| Contract asset | 1,438 | - | - | |||||||||
| Deferred taxes | 298 | 1,445 | 1,311 | |||||||||
| Total Non-Current Assets | 31,834 | 29,920 | 30,235 | |||||||||
| Total Assets | $ | 206,345 | $ | 156,501 | $ | 173,797 | ||||||
| Liabilities | ||||||||||||
| Current Liabilities | ||||||||||||
| Current maturities of bank loans | $ | 322 | $ | 573 | $ | 489 | ||||||
| Current maturities of lease liabilities | 1,038 | 964 | 1,020 | |||||||||
| Trade payables | 15,110 | 13,079 | 24,830 | |||||||||
| Other accounts payables | 6,236 | 5,439 | 5,811 | |||||||||
| Deferred revenues | 486 | 561 | 589 | |||||||||
| Total Current Liabilities | 23,192 | 20,616 | 32,739 | |||||||||
| Non-Current Liabilities | ||||||||||||
| Bank loans | 48 | 461 | 257 | |||||||||
| Lease liabilities | 3,589 | 4,052 | 3,981 | |||||||||
| Deferred revenues | 1,525 | 347 | 232 | |||||||||
| Employee benefit liabilities, net | 1,262 | 884 | 1,269 | |||||||||
| Total Non-Current Liabilities | 6,424 | 5,744 | 5,739 | |||||||||
| Shareholder's Equity | ||||||||||||
| Ordinary shares | 11,703 | 10,420 | 10,425 | |||||||||
| Additional paid in capital | 209,650 | 179,589 | 180,819 | |||||||||
| Capital reserve due to translation to presentation currency | (3,490 | ) | (3,490 | ) | (3,490 | ) | ||||||
| Capital reserve from hedges | 234 | 18 | 8 | |||||||||
| Capital reserve from financial assets measured at fair value through other comprehensive Income | - | 137 | 145 | |||||||||
| Capital reserve from share-based payments | 4,550 | 9,898 | 8,844 | |||||||||
| Capital reserve from employee benefits | (356 | ) | 4 | (359 | ) | |||||||
| Accumulated deficit | (45,562 | ) | (66,435 | ) | (61,073 | ) | ||||||
| Total Shareholder's Equity | 176,729 | 130,141 | 135,319 | |||||||||
| Total Liabilities and Shareholder's Equity | $ | 206,345 | $ | 156,501 | $ | 173,797 |
CONSOLIDATED CONDENSED
STATEMENTS OF COMPREHENSIVE INCOME
| Nine months period ended | Three months period ended | Year ended | ||||||||||||||||||
| September 30, | September 30, | December 31, | ||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | 2019 | ||||||||||||||||
| Unaudited | Unaudited | Audited | ||||||||||||||||||
| U.S Dollars In thousands | ||||||||||||||||||||
| Revenues from proprietary products | $ | 77,633 | $ | 72,521 | $ | 29,691 | $ | 24,859 | $ | 97,696 | ||||||||||
| Revenues from distribution | 24,071 | 22,595 | 5,634 | 8,207 | 29,491 | |||||||||||||||
| Total revenues | 101,704 | 95,116 | 35,325 | 33,066 | 127,187 | |||||||||||||||
| Cost of revenues from proprietary products | 43,817 | 38,412 | 15,936 | 13,234 | 52,425 | |||||||||||||||
| Cost of revenues from distribution | 20,500 | 19,056 | 4,568 | 6,968 | 25,025 | |||||||||||||||
| Total cost of revenues | 64,317 | 57,468 | 20,504 | 20,202 | 77,450 | |||||||||||||||
| Gross profit | 37,387 | 37,648 | 14,821 | 12,864 | 49,737 | |||||||||||||||
| Research and development expenses | 10,335 | 9,730 | 3,365 | 3,477 | 13,059 | |||||||||||||||
| Selling and marketing expenses | 3,297 | 3,441 | 1,179 | 1,161 | 4,370 | |||||||||||||||
| General and administrative expenses | 7,133 | 6,851 | 2,514 | 2,230 | 9,194 | |||||||||||||||
| Other expenses | 34 | 327 | - | 299 | 330 | |||||||||||||||
| Operating income | 16,588 | 17,299 | 7,763 | 5,697 | 22,784 | |||||||||||||||
| Financial income | 865 | 887 | 250 | 328 | 1,146 | |||||||||||||||
| Income (expense) in respect of securities measured at fair value, net | 102 | (3 | ) | - | 55 | (5 | ) | |||||||||||||
| Income (expenses) in respect of currency exchange differences and derivatives instruments, net | (696 | ) | (503 | ) | (761 | ) | 25 | (651 | ) | |||||||||||
| Financial expenses | (204 | ) | (217 | ) | (69 | ) | (68 | ) | (293 | ) | ||||||||||
| Income before tax on income | 16,655 | 17,463 | 7,183 | 6,037 | 22,981 | |||||||||||||||
| Taxes on income | 1,144 | 574 | 348 | 214 | 730 | |||||||||||||||
| Net Income | $ | 15,511 | $ | 16,889 | $ | 6,835 | $ | 5,823 | $ | 22,251 | ||||||||||
| Other Comprehensive Income (loss) : | ||||||||||||||||||||
| Amounts that will be or that have been reclassified to profit or loss when specific conditions are met | ||||||||||||||||||||
| Gain (loss) from securities measured at fair value through other comprehensive income | (188 | ) | 132 | - | (66 | ) | 143 | |||||||||||||
| Gain (loss) on cash flow hedges | 516 | 99 | 75 | 28 | 92 | |||||||||||||||
| Net amounts transferred to the statement of profit or loss for cash flow hedges | (273 | ) | (20 | ) | (266 | ) | (18 | ) | (23 | ) | ||||||||||
| Items that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||||||||||
| Remeasurement gain (loss) from defined benefit plan | - | - | - | (388 | ) | |||||||||||||||
| Tax effect | 29 | (33 | ) | 14 | 16 | (11 | ) | |||||||||||||
| Total comprehensive income | $ | 15,595 | $ | 17,067 | $ | 6,658 | $ | 5,783 | $ | 22,064 | ||||||||||
| Earnings per share attributable to equity holders of the Company: | ||||||||||||||||||||
| Basic net earnings per share | $ | 0.35 | $ | 0.42 | $ | 0.15 | $ | 0.14 | $ | 0.55 | ||||||||||
| Diluted net earnings per share | $ | 0.35 | $ | 0.42 | $ | 0.15 | $ | 0.14 | $ | 0.55 |
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS