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Kamada projects growth with strong 2023 financials

EditorIsmeta Mujdragic
Published 03/06/2024, 07:35 AM
© Reuters.

REHOVOT, Israel, and HOBOKEN, N.J. - Kamada Ltd . (NASDAQ: NASDAQ:KMDA), a biopharmaceutical company specializing in plasma-derived products, reported a successful financial year for 2023 and provided optimistic guidance for 2024. The company announced revenues of $142.5 million and an adjusted EBITDA of $24.1 million for the past year, marking a 35% increase in adjusted EBITDA compared to 2022.

The company attributes its robust performance to the success of its anti-rabies immunoglobulin product, KEDRAB®, and its CYTOGAM® product, among others. KEDRAB® sales in the United States more than doubled from the previous year, generating approximately $32.8 million in revenue. This growth is expected to continue following an extended distribution agreement with Kedrion, which guarantees about $180 million in revenue over the first four years of an eight-year term.

For 2024, Kamada is introducing revenue guidance of $156 million to $160 million and adjusted EBITDA guidance of $27 million to $30 million, suggesting double-digit top- and bottom-line growth. The company's CEO, Amir London, expressed confidence in the continued partnership with Kedrion to maximize the growth potential of KEDRAB®.

Kamada also reported advancements in its U.S. commercial operations, with direct engagement efforts increasing the footprint of their specialized FDA-approved IgG products in transplantation centers. The company received FDA and Health Canada approvals to manufacture CYTOGAM® at its Israeli facility, ensuring continuous supply to the U.S. and Canadian markets.

The company is also pursuing growth through its investigational Inhaled AAT product candidate for AAT Deficiency treatment, which is in a pivotal Phase 3 trial. Additionally, Kamada anticipates royalties from Takeda for the sales of GLASSIA® in the U.S., which are expected to contribute $10 million to $20 million per year through 2040.

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Kamada's plasma collection business, based in Texas, is set to expand with the opening of a second center in Houston in the second half of 2024. The company's distribution segment plans to launch a portfolio of eleven biosimilar products, subject to regulatory approvals, with anticipated peak sales of approximately $30 million to $34 million annually within several years of launch.

Concluding a year of progress and strategic execution, Kamada ended 2023 with over $55 million in cash, maintaining financial flexibility to support growth and explore business development opportunities.

This news article is based on a press release statement from Kamada Ltd.

InvestingPro Insights

Kamada Ltd. (NASDAQ: KMDA) has shown a promising outlook, backed by its strong financial performance in 2023. The company's strategic initiatives are bearing fruit, as evidenced by the impressive growth in revenue and adjusted EBITDA. According to InvestingPro data, Kamada boasts a market capitalization of $372.9 million and a significant revenue growth of 31.34% over the last twelve months as of Q3 2023. This growth trajectory is expected to persist with the company's optimistic revenue guidance for 2024.

InvestingPro Tips suggest that Kamada is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 39.12 as of the last twelve months ending Q3 2023. This indicates that the stock could be undervalued considering its earnings potential. Moreover, analysts predict the company will be profitable this year, which is corroborated by Kamada's net income growth expectation. This financial stability is further reinforced by the fact that Kamada holds more cash than debt on its balance sheet, providing the company with a solid foundation for future investments and business development.

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Investors seeking to delve deeper into Kamada's financial health and stock performance can find a wealth of additional InvestingPro Tips by visiting https://www.investing.com/pro/KMDA. With a total of 11 tips listed, users can gain a comprehensive understanding of the company's investment potential. To enhance their investing experience, users can take advantage of the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insightful data and analytics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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