Kamada Reports Robust Q1 2024 Results with 23% Revenue Growth and 96% Profit Surge; Increases Annual Guidance

Kamada Ltd., a global biopharmaceutical company specializing in plasma-derived products, announced its financial results for the first quarter of 2024. The company reported total revenues of $37.7 million, reflecting a 23% increase from the same period last year. The adjusted EBITDA for the quarter was $7.5 million, marking a significant 96% year-over-year growth. The revenue growth was primarily driven by increased U.S. sales of KEDRAB® and CYTOGAM®, the company’s two most critical products.

CEO Amir London expressed optimism about the company's trajectory, highlighting the robust financial and operational start to the year. "We are well-positioned for a highly successful 2024," he remarked. The company’s focus on KEDRAB® and CYTOGAM® has paid off, with CYTOGAM® seeing heightened demand due to active promotion and recent clinical data, while KEDRAB® continues to demonstrate solid growth.

Given the strong performance in the first quarter, Kamada has raised its full-year 2024 revenue guidance to between $158 million and $162 million, up from the previous range of $156 million to $160 million. The adjusted EBITDA guidance has also been increased to a range of $28 million to $32 million, from an initial forecast of $27 million to $30 million. London emphasized the company's commitment to pursuing new business development opportunities that would support continued double-digit growth beyond 2024.

Kamada's ongoing pivotal Phase 3 InnovAATe clinical trial for an inhaled Alpha-1 Antitrypsin therapy aimed at treating AAT Deficiency is progressing well. Following positive feedback from the U.S. Food and Drug Administration (FDA), the company has filed an IND amendment with a revised Statistical Analysis Plan and study protocol. Further FDA feedback is anticipated in the second half of 2024, which could potentially accelerate the program if the changes are approved.

Financially, the first quarter saw an improvement in gross profit and margins, reaching $16.8 million and 44%, respectively, compared to $11.9 million and 39% in the prior year. This improvement was driven by increased sales and market share gains for CYTOGAM® and KEDRAB® in the U.S. Operating expenses for the quarter totaled $12.7 million, up from $11.6 million in the same period last year, with sales and marketing costs encompassing $0.4 million in amortization expenses related to the acquisition of IgG products.

Kamada achieved a net income of $2.4 million, or $0.04 per share, in the first quarter of 2024, recovering from a net loss of $1.8 million, or $(0.04) per share, in the same quarter of 2023. Additionally, the company generated $1.0 million in cash from operating activities, an improvement from the cash outflow of $2.9 million in the first quarter of the previous year.

As of March 31, 2024, Kamada's balance sheet showed cash, cash equivalents, and short-term investments totaling $48.2 million, down from $55.6 million at the end of 2023. The decrease was primarily due to investments in the construction of a new plasma collection center in Uvalde, Texas, and payments related to long-term liabilities from a 2021 acquisition.

In the first quarter of 2024, Kamada also successfully launched BEVACIZUMAB KAMADA, a biosimilar to Avastin®, in Israel. Manufactured by mAbxience Research S.L. in Spain, this product is used to treat certain cancers, including colon and metastatic breast cancer, and marks Kamada's first biosimilar launch in Israel.

Looking ahead, Kamada is optimistic about sustaining its growth momentum throughout 2024 and beyond. The company plans to leverage its strong financial position and explore further business development opportunities to enhance growth and profitability.