Kamada Q2 2025 Earnings Report

Kamada EPS Results

• Actual EPS: $0.13
• Consensus EPS: $0.09
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

Kamada Revenue Results

• Actual Revenue: $44.75 million
• Expected Revenue: $158.59 million
• Beat/Miss: Missed by -$113.84 million
• YoY Revenue Growth: N/A

Kamada Announcement Details

• Quarter: Q2 2025
• Date: 8/13/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 13, 2025
• Conference Call Time: 8:30AM ET

Kamada (NASDAQ:KMDA) manufactures and sells plasma-derived protein therapeutics. Its commercial products include KAMRAB/KEDRAB for treating prophylaxis of rabies; CYTOGAM for Prophylaxis of Cytomegalovirus disease in kidney, lung, liver, pancreas, heart, and heart/lung transplants; VARIZIG for post exposure prophylaxis of varicella; WINRHO SDF for immune thrombocytopenic purpura and suppression of rhesus isoimmunization; HEPAGAM B for prevention of hepatitis B recurrence liver transplants and post-exposure prophylaxis; GLASSIA for intravenous AATD; KAMRHO (D) IM for prophylaxis of hemolytic disease of newborns; KAMRHO (D) IV for immune thermobocytopunic purpura; and Echis coloratus and Vipera palaestinae Antiserum for the treatment of snake bite. The company also distributes imported drug products in Israel, including BRAMITOB to manage chronic pulmonary infection; FOSTER to treat asthma; TRIMBOW for chronic obstructive pulmonary disease; PROVOCHOLINE for the diagnosis of bronchial airway hyperactivity; AEROBIKA, an OPEP device; RUPAFIN and RUPAFIN ORAL SOLUTION for allergic rhinitis and Urticaria; SINTREDIUS for rheumatoid arthritis, systemic lupus erythematosus, and mild-moderate juvenile dermatomyositis; IVIG for immunodeficiency-related conditions; VARITECT for chicken pox and zoster herpes; ZUTECTRA and HEPATECT CP for hepatitis B; MEGALOTECT CP for CMV virus; RUCONEST for angioedema attack; HEPARIN SODIUM INJECTION for thrombo-embolic disorders and prophylaxis of deep vein thrombosis and thromboembolic events; ALBUMIN and ALBUMIN for blood plasma; Factor VIII for hemophilia type A; and Factor IX for hemophilia type B. In addition, it distributes COAGADEX for hereditary factor X deficiency; IXIARO for Japanese encephalitis; VIVOTIF for Salmonella Typhi; PROCYSBI for nephropathic cystinosis; LAMZEDE for alpha-mannosidosis; ELIGARD for prostate cancer; and BEVACIZUMAB KAMADA for various cancers. The company was incorporated in 1990 and is headquartered in Rehovot, Israel.

Kamada Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Our H1 revenues rose to $88.8 M, up 11% Y/Y, with adjusted EBITDA up 35% to $22.5 M, and we raised 2025 EBITDA guidance to $40–44 M while reaffirming $178–182 M revenue outlook.
• Positive Sentiment: The U.S. FDA approved our new Houston plasma collection center, adding ~50,000 L capacity and positioning each Texas center to generate $8–10 M annually at full capacity.
• Positive Sentiment: We’re expanding our Israeli biosimilar portfolio with two more launches this year, aiming for $15–20 M in annual distribution sales within five years.
• Neutral Sentiment: We’re in active due diligence on multiple commercial-stage M&A and in-licensing targets, expecting to close transactions by 2026 to strengthen our portfolio.
• Negative Sentiment: Q2 gross margin narrowed to 42% from 45% a year ago due to ex-U.S. sales mix changes, which may pressure near-term profitability.

Presentation

[Operator]

Greetings and welcome to the Kamada Limited Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Ritchie, Managing Director of LifeSci Advisors. Thank you. You may begin.

[Brian Ritchie, Managing Director at LifeSci Advisors, LLC]

Thank you. This is Brian Ritchie with LifeSci Advisors. Thank you all for participating in today's call. Joining me from Kamada are Amir London, Chief Executive Officer and Jaime Orlov, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three months and six months ended 06/30/2025.

[Brian Ritchie, Managing Director at LifeSci Advisors, LLC]

If you have not received this news release, please go to the Investors page of the company's website at www.kamada.com. Before we begin, I would like to caution that comments made during this conference call by management will contain forward looking statements that involve risks and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Forms 20 F and six ks, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of the live broadcast, Wednesday, 08/13/2025. Amada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call.

[Brian Ritchie, Managing Director at LifeSci Advisors, LLC]

With that said, it's my pleasure to turn the call over to Amir London, CEO. Amir?

[Amir London, CEO at Kamada]

Thank you, Brian. My thanks also to our investors and analysts for your interest in Commodore and for participating in today's call. I'm pleased to report that our results for the second quarter and the 2025 were strong and that we continue to generate significant profitable growth. Total revenues for the first half of the year were $88,800,000 representing an 11% year over year increase, and adjusted EBITDA was $22,500,000 up 35% year over year and representing a 25% margin of revenues. For the second quarter, revenues were $44,800,000 up 5% over the prior year quarter, and adjusted EBITDA was $10,900,000 up 20% year over year.

[Amir London, CEO at Kamada]

These impressive results were driven by the diversity of our product portfolio and disciplined management of operational expenses. We expect to continue generating profitable growth through the remainder of 2025 and based on a positive outlook, we are increasing our adjusted EBITDA guidance to between $40,000,000 to $44,000,000 and reiterating our annual revenue guidance of $178,000,000 to $182,000,000 The midpoint of our updated 2025 guidance represents increase of approximately 12% in revenues and approximately 23% in adjusted EBITDA respectively, over our last year 2024 results. We're excited for growth prospects in our business over both the near and longer term, guided by our four pillar growth strategy of organic commercial growth, business development and M and A transactions, our plasma collection operation, and the advancement of our pivotal Phase III Inhaled AAT program. As you may recall, last quarter we announced the initiation of a comprehensive post marketing research program for Cytogam, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation, for years no new up to date clinical data regarding the benefits of Cytogarm was published.

[Amir London, CEO at Kamada]

To address this, we developed this program in collaboration with leading key opinion leaders to explore advancement of novel CMV disease management. The research studies supported by this program will focus on late onset CMV prevention and mitigation of active CMV disease, exploring alternative dosing strategies, and investigating potential new applications of Cytogram. We believe that the data generated by this program will support further product utilization for Cytogram, leading to additional organic growth. Our revenue growth for the first half of the year compared to the first six months of twenty twenty four was primarily due to increased sales of Glacier in ex U. S.

[Amir London, CEO at Kamada]

Market and VariSig sales in The U. S. As well as Glacier royalty payments. This positive trend is indicative of the diversity of our portfolio and our successful marketing activities across different territories and medical specialties. Also, as part of our activities to advance organic growth, following our first biosimilar product launch in Israel last year, which is expected to generate approximately $2,500,000 in revenues in 2025, we anticipate launching two additional biosimilars later this year and have several others in the pipeline to be launched in the coming years.

[Amir London, CEO at Kamada]

We believe that this portfolio will become an increasingly important portion of our Distribution business with annual sales of between $15,000,000 to $20,000,000 within the next five years. Moving to business development and M and A. We are currently conducting active due diligence of several potential commercial targets. During the balance of 2025 and into 2026, we expect to secure compelling in licensing collaboration and or M and A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operations. We anticipate that such transactions will generate operational and or commercial synergies with our current commercial portfolio and support future profitable growth.

[Amir London, CEO at Kamada]

In addition, we continue to ramp up plasma collection at our three Texas based plasma centers and are happy to announce earlier this week the U. S. FDA approval of a state of the art center in Houston, Texas. We're especially appreciative of the work of a dedicated team of plasma collection experts who achieved inspection and licensure of its facility on schedule. As previously stated, this center has annual collection capacity of approximately 50,000 liters of plasma, and each of our two centers in Houston and in San Antonio is expected to generate annual revenues of between $8,000,000 to $10,000,000 in sales of normal source plasma at full capacity.

[Amir London, CEO at Kamada]

Turning now to our ongoing pivotal Phase III INNOVATE clinical trial for inhaled alpha-one antitrypsin therapy. We continue to advance this program with its revised enrollment goal of approximately 180 subjects and we are on track to conduct an interim futility analysis by the end of this year 2025. With that, I'll turn the call over to Jaime for a detailed discussion of our financial results for the first quarter for the 2025 and first six months of the year. Please go ahead, Jaime. Thank you.

[Chaime Orlev, CFO at Kamada]

Thank you, Amir. As Amir stated at the top of the call, our results for the second quarter and six months ended 06/30/2025 were strong. Total revenues were $44,800,000 in the 2025, up 5% compared to the $42,500,000 in the 2024. Other revenues for the six months of twenty twenty five were $88,800,000 an 11% increase from the $80,200,000 generated in the 2024. As Amir indicated earlier, the increase in revenue was driven by the diversity of the company's portfolio.

[Chaime Orlev, CFO at Kamada]

Gross profit and gross margins were 18,900,000.0 42% in the 2025 compared to $19,000,000 and 45% in the 2024. Gross profit and gross margins for the 2025 were $39,700,000 and 45% compared to $35,700,000 and 45% in the 2024. The decrease in gross profitability in the 2025 is attributable to change in product and territory sales mix, whereas during this quarter, the increase in revenue was generated by ex U. S. Sales as compared to sales mix in the equivalent quarter last year.

[Chaime Orlev, CFO at Kamada]

Operating expenses including R and D, sales and marketing and G and A and other expenses totaled $11,900,000 in the 2024 as compared to $13,300,000 in the 2024. The decrease in operating expenses, which was also demonstrated in the first quarter of the year is indicative of our ability to adequately manage our operational expenditure while continuing to generate meaningful revenue growth. Net income was $7,400,000 or $0.13 per diluted share in the 2025 as compared to $4,400,000 or $08 per diluted share in the 2024. Net income for the six months of 2025 was $11,300,000 or $0.19 per diluted share as compared to net income of 6,800,000.0 or $0.12 per diluted share in the 2024. The increase in net income is attributable to increase in operating profits, which increased by 54% for the first half of the year and 25% for the second quarter as well as changes in the financial and tax expenses between the periods.

[Chaime Orlev, CFO at Kamada]

Adjusted EBITDA was $10,900,000 in the 2025, up 20% from the $9,100,000 achieved in the 2024. Adjusted EBITDA was $22,500,000 in the 2025, a 35% increase compared to the 16,600,000.0 for the 2024. As Amir indicated, we're increasing our adjusted EBITDA guidance for the year to between $40,000,000 and $44,000,000 Cash provided by operating activities was $8,000,000 in the 2025 and we continue to maintain a strong cash position even after the special dividend payment. And we ended the first half with a cash balance of $66,000,000 that is planned to be used to fund new business development initiatives. Before turning the call over to you for questions, I would like to indicate that we are continuing to monitor the evolving tariff situation closely.

[Chaime Orlev, CFO at Kamada]

Based on presently available information, our assessment is that the recently imposed tariffs are not applicable to drug products. To date, we have not experienced impact or interruptions of our operations or ability to maintain cost and pricing as a result of the tariffs. With that, we will open the call to questions.

[Operator]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. Please go ahead.

[Annabel Samimy, Managing Director at Stifel Financial Corp]

Hi, everyone. Thanks for taking my question and congratulations on a good quarter. So just a couple from me. It seems like for the last two quarters, Glauzy and Verazig have been the growth drivers, I guess, reasons you've stated, especially Verazig. But can you give us an idea about dynamics behind KEDRAB and Cytogam, which I guess had been the growth drivers?

[Annabel Samimy, Managing Director at Stifel Financial Corp]

Is it more difficult year over year comps? Are they performing as expected? Or maybe are physicians just slowing down on adoption of Cytogam until the next batch of data? Just any color there would be great. And then I'll just follow-up after that.

[Amir London, CEO at Kamada]

Hi, Annabel. Yes, we mentioned specifically Glacia, ex U. S. And royalties and Varisig because these are the products which have a significant contribution to our year over year growth. KedRAB and Cytogram are performing according to our expectations.

[Amir London, CEO at Kamada]

As you know, the KedRAB contract with Kedrion has like a four year it's an eight year with a four year committed volumes. Kedrion buys the product, we supply them according to the inventory management. We continue to see in market growth. But in general, the numbers are similar to 2024 numbers. Cytogam is going according to the plan.

[Amir London, CEO at Kamada]

We expect that the growth will come once we have the additional clinical and medical data, which we are currently collecting. But I think in general, it's an opportunity to emphasize the strengths and diversity of the portfolio. We've six FDA approved products and marketed in over 35 countries, over 25 products in our distribution business, the soon to be plasma sales. We have a very strong organic growth that's coming from multiple products. This year, it's been mainly glass and Varizig.

[Amir London, CEO at Kamada]

Previous years it's been Cytogam and KedRAB. But all in all, it's a very strong diverse portfolio that allows us to continue maintaining the growth year after year.

[Annabel Samimy, Managing Director at Stifel Financial Corp]

Yes, definitely noted. And then you have a solid cash position for a profitable company. But is it sufficient for impactful BD given its decline in the last couple of quarters? How should we think about the balance of your internal investments that you're obviously making quite a few and then the external BD and how that might be funded?

[Amir London, CEO at Kamada]

So, we plan to utilize to use our existing cash if needed. We have additional sources for additional funding in multiple vehicles of funding that we can put to work. We are looking and screening for commercial stage assets. I think the fact that we're looking for commercial assets gives us a lot of bandwidth in terms of the ability to fund those transactions. We're mainly focused on plasma derived products as well as specialty pharma and within the specialty pharma, the transportation field.

[Amir London, CEO at Kamada]

And as I mentioned during the call, we would like to leverage our supply chain capabilities, commercial infrastructure, take advantage of the synergies. And we are actively screening and doing due diligence on some multiple targets and hopeful that it will be mature over the next few months into 2026 and have meaningful impact on our 2026 performance. Funding to the scale of the transaction we're looking to do, we will have sufficient funding execute those transactions.

[Annabel Samimy, Managing Director at Stifel Financial Corp]

Okay, if I can just squeeze in one more on the inhaled AAT program. Obviously, we're just waiting for the interim analysis right now. But can you sort of describe the competitive landscape there have been? I guess, some more developments, whether it's gene therapy, other programs, anything that we should be watching for that might change the potential market opportunity there?

[Amir London, CEO at Kamada]

Yes, good question. So, there is lot of activity in the ALPHA-one space in general. Our in health program is the most advanced one in terms of an efficacy study in a pivotal stage. So, there's no other Phase III pivotal studies that are structured around efficacy endpoint. We are making progress and the other companies are also making progress.

[Amir London, CEO at Kamada]

I think you and other people following this space know that there are maybe two or three additional technologies which are currently being developed. The market is growing, growing. We see the growth through our royalties from Takeda. So, the 678% annual growth is actually happening. What used to be $05,000,000,000 market is like $1,300,000,000 $1,400,000,000 market.

[Amir London, CEO at Kamada]

We believe that by the time that we are going to have the results from our study, this is going to be like a $2,000,000,000 market. So we believe that there is enough business and enough opportunity for multiple new technologies and multiple new players. We believe that our technology being like a second generation augmentation therapy with better ease of use and quality of life with hopefully, if we are successful in the study, efficacy data will be a very strong competitor and player in the alpha-one space in general.

[Annabel Samimy, Managing Director at Stifel Financial Corp]

Great. Thank you for taking my questions.

[Amir London, CEO at Kamada]

Of course.

[Operator]

The next question is from James Sidoti from Sidoti and Company. Please go ahead.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Hi, good afternoon. Thanks for taking the question. As you said, the quarter really demonstrated how diverse your different revenue streams are. The one that grew this quarter in particular was the distributed revenue segment, I guess, with the launch of the new product, the new biosimilar product. Was there onetime sales in the quarter?

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Or how should we view this distribution channel going forward?

[Amir London, CEO at Kamada]

Thanks, James. No, this is not one time sale. The launch of the biosimilar product and the future launches, we expect two more by the end of this year, is going to build on an existing infrastructure of our commercial activity in the Israeli market, and this is something that we will continue growing. You also have seen that we had better gross margin this quarter. The more we launch biosimilars and based on our innovative portfolio in Israel will help us also improve our margins.

[Amir London, CEO at Kamada]

So this is a process that has started and will continue over the next few years.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Okay. So there was no stocking or channel filling in the quarter. These were you think these types of numbers you think will be going forward?

[Amir London, CEO at Kamada]

Correct.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Okay. And then a similar question on the SG and A expense. I mean, down pretty significantly from a year over year, down significantly year over year. Were there one time things there that helped that or do you think you'll stay around these levels?

[Amir London, CEO at Kamada]

So we're very conscious about our expenses. I think we've been very disciplined in the way that we deploy investment and ongoing expenses. There's been a slight, I'll say, kind of fluctuation between quarters and between the first six months of the year and the second six months of the year. So the second six months of the year might be a little bit higher, again, a little bit higher in general. But I think what's very highly promising and I think all analysts and investors need to look at this, our ability to generate a good and improved rate of EBITDA from top line.

[Amir London, CEO at Kamada]

And we said in the past that when we were under 20% EBITDA of top line that we are targeting 25% and above. I think we've been able to demonstrate this over the last few quarters and this is our goal to continue to be profitable. And from every dollar we make that we will have a bigger portion all the way to the bottom line EBITDA.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Okay. And then last question for me, something I asked three months ago. You said the tax rate would continue to be a little bit lumpy in 2025. What was responsible for the tax credit in the June? And where do you think the tax rate will be in September and December?

[Amir London, CEO at Kamada]

I'll refer this question to Jaime. Jaime?

[Chaime Orlev, CFO at Kamada]

Yeah. I'll take the this question. So we anticipate the the Israeli entity or the parent company is is reporting in in Israeli shekels. Over the course of the last quarter, there's been fluctuations in the currency exchange between the shekel, the Israeli shekel and and US dollars that affected our results for tax purposes and made the change. Overall, we still have the opinion that by the 2025, the company will be utilizing all of its tax losses carry forward and we will be moving into tax payments. Right now, the changes that you see are mostly in deferred tax, either assets or liabilities, which are causing the bumpiness as you alluded to.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Okay. So so when those those NOLs are used up, you know, as you look into 2026 and beyond, what what do you think will be an effective tax rate?

[Chaime Orlev, CFO at Kamada]

Well, we're looking at anywhere between 20% or 25%.

[Jim Sidoti, Analyst at Sidoti & Company, LLC]

Alright. Thank you.

[Operator]

There are no further questions at this time. I would like to turn the floor back over to Amir London for closing comments.

[Amir London, CEO at Kamada]

Thank you very much. In closing, we continue to invest in the four pillar growth strategy with continued progress made in organic growth of our existing commercial portfolio, business development and M and A transaction to support and expedite our growth, expansion of our Plasma Collection operation and the progression of our AET therapy program. We look forward to continuing to support clinicians and patients with those important life saving products that we develop, manufacture, and commercialize. We thank you all for your interest in Kamada, and we are committed to creating long term shareholder value. We hope you all stay healthy and safe. Thank you for participating in today's call.

[Operator]

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Amir London, CEO
• Chaime Orlev, CFO

Analysts

• Brian Ritchie, Managing Director at LifeSci Advisors, LLC
• Annabel Samimy, Managing Director at Stifel Financial Corp
• Jim Sidoti, Analyst at Sidoti & Company, LLC