KMDA — Kamada Ltd.

Kamada Ltd. Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenues: $47 million in Q3 2025, up 13% from $41.7 million in Q3 2024. Year-to-date revenues reached $135.8 million, an 11% increase from $121.9 million in the same period last year.
• Adjusted EBITDA: $11.7 million in Q3 2025, a 34% increase year-over-year. Year-to-date adjusted EBITDA was $34.2 million, up 35% from the previous year.
• Net Income: $5.3 million or $0.09 per diluted share in Q3 2025, a 37% increase compared to Q3 2024. Year-to-date net income was $16.6 million or $0.29 per diluted share, up 56%.
• Gross Profit: $19.8 million in Q3 2025, with a gross margin of 42%, compared to 41% in Q3 2024. Year-to-date gross profit was $59.4 million with a 44% margin.
• Cash Position: Strong cash position of $72 million at the end of Q3 2025.

2. Strategic Updates and Business Highlights

• Growth Strategy: Kamada is focused on a four-pillar growth strategy: organic commercial growth, business development/M&A, plasma collection operations, and advancing the Phase III inhaled AAT program.
• Product Performance: Significant growth attributed to increased sales of GALASIA (AAT IV product) in ex-US markets and strong performance of KedRAB (anti-rabies immunoglobulin) in the US and international markets.
• Cytogam Study: Enrollment in the SHIELD study for Cytogam has begun, aimed at demonstrating its benefits in preventing late-onset CMV disease in kidney transplant recipients.
• Biosimilars: Following the launch of a biosimilar in Israel, two additional biosimilars are set to launch soon, expected to contribute $15 million to $20 million in annual sales over the next five years.
• Plasma Collection: Ramp-up of plasma collection at new facilities in Houston and San Antonio, with FDA approval for Houston and expected approval for San Antonio in early 2026.

3. Forward Guidance and Outlook

• Revenue Guidance: Reiterated annual revenue guidance of $178 million to $182 million for 2025, indicating continued growth.
• Adjusted EBITDA Guidance: Expected between $40 million and $44 million for the year, reflecting double-digit growth over 2024 results.
• Cytogam Growth: Anticipated gradual growth as clinical data from the SHIELD study becomes available.

4. Bad News, Challenges, or Points of Concern

• Cytogam Sales: Sales have been below expectations due to inventory management issues, slower integration into hospital formularies, and fewer transplants performed in H1 2025.
• Glacia Royalties: A decline in royalty income from Glacia due to a reduced royalty rate that took effect in Q3 2025, although management expects to mitigate this through other revenue streams.
• Enrollment Challenges: Recruitment for the AATD clinical trial is ongoing but remains a challenge due to competition and the nature of the study design.

5. Notable Q&A Insights

• Cytogam Study Details: The SHIELD study will test Cytogam's efficacy in late-stage CMV management, differing from its current prophylactic use.
• Enrollment in AATD Program: Currently at 60-65% of the revised enrollment goal, with completion expected by early 2027 and top-line results projected for H1 2029.
• Distribution Business Growth: Recent growth in the distribution segment is driven by actual usage rather than stocking orders, with expectations for continued growth due to a richer product portfolio.
• Plasma Collection Progress: Current collections are primarily normal source plasma, with specialty plasma collection ramping up gradually.

Overall, Kamada reported strong financial performance in Q3 2025, driven by a diverse product portfolio and strategic initiatives, while also facing challenges in specific product sales and clinical trial enrollments.