Kamada Reports Strong First Quarter 2024 Financial Results with Year-Over-Year Top-Line Growth of 23% and a 96% Increase in Profitability; Raises Full-Year Financial Guidance
Kamada reported strong first quarter 2024 financial results with a 23% increase in revenues and a 96% rise in profitability. The company's top-line growth was driven by U.S. sales of KEDRAB® and CYTOGAM®. Kamada increased its full-year revenue guidance to $158-162 million and adjusted EBITDA to $28-32 million. The company remains optimistic about its growth prospects beyond 2024.
Kamada reported a 23% increase in revenues for the first quarter of 2024 compared to the prior year, reaching $37.7 million.
The adjusted EBITDA for the first quarter of 2024 was $7.5 million, representing a significant 96% increase year-over-year.
The strong performance was attributed to the U.S. sales of KEDRAB® and CYTOGAM®, the company's key growth drivers.
Kamada raised its full-year revenue guidance to $158-162 million and adjusted EBITDA to $28-32 million, reflecting confidence in continued growth throughout 2024.
The company continues to explore new business development opportunities to sustain double-digit growth rates post-2024.
The gross profit margin for the first quarter of 2024 was 44%, down from 39% in the prior year, indicating potential cost pressures.
The net income for the first quarter of 2024 was $2.4 million, a significant improvement from the net loss of $1.8 million in the same period last year.
Cash provided by operating activities was $1.0 million in the first quarter of 2024, a positive shift from cash used in operating activities of $2.9 million in the first quarter of 2023.
The decrease in cash balance from $55.6 million on December 31, 2023, to $48.2 million on March 31, 2024, may raise concerns about capital investments and long-term liabilities.
Insights
- Revenues for First Quarter of 2024 were
$37.7 Million , Representing a23% Increase Year-over-Year - First Quarter 2024 Adjusted EBITDA of
$7.5 Million , Representing a96% Increase Year-over-Year - Momentum Primarily Driven by U.S. Sales of the Company’s Two Most Significant Catalysts, KEDRAB® and CYTOGAM®
- Strong First Quarter Results and Positive Outlook for Remainder of 2024 Support Increase of Full-Year Revenue Guidance to
$158 Million -$162 Million and Adjusted EBITDA to$28 Million -$32 Million - Conference Call and Live Webcast Today at 8:30 AM ET
REHOVOT, Israel and HOBOKEN, N.J., May 08, 2024 (GLOBE NEWSWIRE) -- Kamada Ltd. (NASDAQ: KMDA; TASE: KMDA.TA), a commercial stage global biopharmaceutical company with a portfolio of marketed products indicated for rare and serious conditions and a leader in the specialty plasma-derived field, today announced financial results for three months ended March 31, 2024.
“We are excited by our strong financial and operational start to 2024, which has us well-positioned for a highly successful year,” said Amir London, Kamada’s Chief Executive Officer. “Total revenues for the first quarter of 2024 were
“Based on our strong performance in the first quarter and our expectation for the continued momentum in our business throughout 2024, we are raising our full-year 2024 revenue guidance to be between
“Patient enrollment continues in our ongoing pivotal Phase 3 InnovAATe clinical trial for the inhaled Alpha-1 Antitrypsin therapy for the treatment of AAT Deficiency. Following recent positive feedback from the U.S. Food and Drug Administration (FDA) through which the FDA expressed its willingness to potentially accept a P<0.1 alpha level in evaluating InnovAATe for meeting the efficacy primary endpoint for registration, we recently filed an IND amendment with both a revised Statistical Analysis Plan (SAP) and study protocol, and we expect further FDA feedback during the second half of 2024. If approved, these changes may allow for the acceleration of the program,” concluded Mr. London.
Financial Highlights for the Three Months Ended March 31, 2024
- Total revenues were
$37.7 million in the first quarter of 2024, a23% increase from the prior year period. The increase in revenues was primarily attributable to increased sales of CYTOGAM due to increased demand for the product in the U.S. market, as well as increased sales of KEDRAB to Kedrion due to increased market share in the U.S. - Gross profit and gross margins were
$16.8 million and44% , respectively, in the first quarter of 2024, compared to$11.9 million and39% , respectively, reported in the prior year period. Cost of goods sold in the Company’s Proprietary segment for each of the first quarter of 2024 and 2023 included$1.3 million of depreciation expenses associated with intangible assets generated through the IgG products acquisition. - Operating expenses, including R&D, Sales & Marketing (S&M), G&A and other expenses, totaled
$12.7 million in the first quarter of 2024, as compared to$11.6 million in the first quarter of 2023. S&M costs for the first quarter of 2024 and 2023 included$0.4 million of amortization expenses of intangible assets generated through the IgG products acquisition. - Net income was
$2.4 million , or$0.04 per share, in the first quarter of 2024, as compared to a net loss of$1.8 million , or$(0.04) per share, in the first quarter of 2023. - Adjusted EBITDA, as detailed in the tables below, was
$7.5 million in the first quarter of 2024, a96% increase from the$3.8 million in the first quarter of 2023. - Cash provided by operating activities was
$1.0 million in the first quarter of 2024, as compared to cash used in operating activities of$2.9 million in the first quarter of 2023.
Balance Sheet Highlights
As of March 31, 2024, the Company had cash, cash equivalents, and short-term investments of
Recent Corporate Highlights
- During the first quarter of 2024, Kamada completed the successful launch in Israel of BEVACIZUMAB KAMADA, the biosimilar to Avastin®, which is indicated for the treatment of certain types of cancer, including colon cancer and metastatic breast cancer. This represents the first biosimilar product to be launched and distributed by Kamada in Israel. The product is manufactured by mAbxience Research S.L., from Madrid, Spain.
Fiscal Year 2024 Guidance
Based on the Company’s strong performance in the first quarter and its expectation for continued momentum in the business throughout 2024, Kamada is increasing its fiscal year 2024 total revenue guidance from a range of
Conference Call
Kamada management will host an investment community conference call today, Wednesday, May 8, 2024, at 8:30am Eastern Time to present the Company’s results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 1-888-886-7786 (from within the U.S.) or 1-809-468-221 (from Israel), or 1-416-764-8658 (International) and entering the conference ID 31202863. The call will also be webcast live on the Internet at https://viavid.webcasts.com/starthere.jsp?ei=1665369&tp_key=952bd14ce0.
Non-IFRS financial measures
We present EBITDA and adjusted EBITDA because we use these non-IFRS financial measures to assess our operational performance, for financial and operational decision-making, and as a means to evaluate period-to-period comparisons on a consistent basis. Management believes these non-IFRS financial measures are useful to investors because: (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and provide investors with a meaningful perspective on the current underlying performance of the Company’s core ongoing operations; and (2) they exclude the impact of certain items that are not directly attributable to our core operating performance and that may obscure trends in the core operating performance of the business. Non-IFRS financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, our IFRS results. We expect to continue reporting non-IFRS financial measures, adjusting for the items described below, and we expect to continue to incur expenses similar to certain of the non-cash, non-IFRS adjustments described below. Accordingly, unless otherwise stated, the exclusion of these and other similar items in the presentation of non-IFRS financial measures should not be construed as an inference that these items are unusual, infrequent or non-recurring. EBITDA and adjusted EBITDA are not recognized terms under IFRS and do not purport to be an alternative to IFRS terms as an indicator of operating performance or any other IFRS measure. Moreover, because not all companies use identical measures and calculations, the presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. EBITDA is defined as net income (loss), plus income tax expense, plus or minus financial income or expenses, net, plus or minus income or expense in respect of securities measured at fair value, net, plus or minus income or expenses in respect of currency exchange differences and derivatives instruments, net, plus depreciation and amortization expense, whereas adjusted EBITDA is the EBITDA plus non-cash share-based compensation expenses and certain other costs.
For the projected 2024 adjusted EBITDA information presented herein, the Company is unable to provide a reconciliation of this forward measure to the most comparable IFRS financial measure because the information for these measures is dependent on future events, many of which are outside of the Company’s control. Additionally, estimating such forward-looking measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods is meaningfully difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward-looking non-IFRS measures are estimated in a manner consistent with the relevant definitions and assumptions noted in the Company’s adjusted EBITDA for historical periods.
About Kamada
Kamada Ltd. (the “Company”) is a commercial stage global biopharmaceutical company with a portfolio of marketed products indicated for rare and serious conditions and a leader in the specialty plasma-derived field, focused on diseases of limited treatment alternatives. The Company is also advancing an innovative development pipeline targeting areas of significant unmet medical need. The Company’s strategy is focused on driving profitable growth from its significant commercial catalysts as well as its manufacturing and development expertise in the plasma-derived and biopharmaceutical fields. The Company’s commercial products portfolio includes six FDA approved plasma-derived biopharmaceutical products: CYTOGAM®, KEDRAB®, WINRHO SDF®, VARIZIG®, HEPAGAM B® and GLASSIA®, as well as KAMRAB®, KAMRHO (D)® and two types of equine-based anti-snake venom (ASV) products. The Company distributes its commercial products portfolio directly, and through strategic partners or third-party distributors in more than 30 countries, including the U.S., Canada, Israel, Russia, Argentina, Brazil, India, Australia and other countries in Latin America, Europe, the Middle East, and Asia. The Company leverages its expertise and presence in the Israeli market to distribute, for use in Israel, more than 25 pharmaceutical products that are supplied by international manufacturers. During recent years the Company added eleven biosimilar products to its Israeli distribution portfolio, which, subject to the European Medicines Agency (EMA) and the Israeli Ministry of Health approvals, are expected to be launched in Israel through 2028. The Company owns an FDA licensed plasma collection center in Beaumont, Texas, which currently specializes in the collection of hyper-immune plasma used in the manufacture of KAMRHO (D), KARAB and KEDRAB. In addition to the Company’s commercial operation, it invests in research and development of new product candidates. The Company’s leading investigational product is an inhaled AAT for the treatment of AAT deficiency, for which it is continuing to progress the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial. FIMI Opportunity Funds, the leading private equity firm in Israel, is the Company’s controlling shareholder, beneficially owning approximately
Cautionary Note Regarding Forward-Looking Statements
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) positive outlook for reminder of 2024, 2) anticipation of continued momentum through 2024 and continued growth at double-digit rates beyond 2024, 3) Full-Year Revenue Guidance to be between
CONTACTS:
Chaime Orlev
Chief Financial Officer
IR@kamada.com
Brian Ritchie
LifeSci Advisors, LLC
212-915-2578
britchie@LifeSciAdvisors.com
| CONDENCED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITTION | ||||||||||||
| As of | As of | |||||||||||
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Unaudited | Audited | |||||||||||
| Assets | ||||||||||||
| Current Assets | ||||||||||||
| Cash and cash equivalents | $ | 48,194 | $ | 27,121 | $ | 55,641 | ||||||
| Trade receivables, net | 18,855 | 20,925 | 19,877 | |||||||||
| Other accounts receivables | 6,411 | 3,603 | 5,965 | |||||||||
| Inventories | 84,348 | 79,754 | 88,479 | |||||||||
| Total Current Assets | 157,808 | 131,403 | 169,962 | |||||||||
| Non-Current Assets | ||||||||||||
| Property, plant and equipment, net | 30,727 | 26,496 | 28,224 | |||||||||
| Right-of-use assets | 7,632 | 5,836 | 7,761 | |||||||||
| Intangible assets, Goodwill and other long-term assets | 138,623 | 145,305 | 140,465 | |||||||||
| Contract assets | 8,384 | 7,755 | 8,495 | |||||||||
| Total Non-Current Assets | 185,366 | 185,392 | 184,945 | |||||||||
| Total Assets | $ | 343,174 | $ | 316,795 | $ | 354,907 | ||||||
| Liabilities | ||||||||||||
| Current Liabilities | ||||||||||||
| Current maturities of bank loans | $ | - | $ | 4,444 | $ | - | ||||||
| Current maturities of lease liabilities | 1,467 | 1,438 | 1,384 | |||||||||
| Current maturities of other long-term liabilities | 12,980 | 29,414 | 14,996 | |||||||||
| Trade payables | 16,492 | 26,210 | 24,804 | |||||||||
| Other accounts payables | 6,210 | 7,350 | 8,261 | |||||||||
| Deferred revenues | 26 | 419 | 148 | |||||||||
| Total Current Liabilities | 37,175 | 69,275 | 49,593 | |||||||||
| Non-Current Liabilities | ||||||||||||
| Bank loans | - | 11,852 | - | |||||||||
| Lease liabilities | 7,278 | 4,992 | 7,438 | |||||||||
| Contingent consideration | 16,760 | 18,115 | 18,855 | |||||||||
| Other long-term liabilities | 34,842 | 37,280 | 34,379 | |||||||||
| Employee benefit liabilities, net | 609 | 473 | 621 | |||||||||
| Total Non-Current Liabilities | 59,489 | 72,712 | 61,293 | |||||||||
| Shareholder’s Equity | ||||||||||||
| Ordinary shares | 15,022 | 11,736 | 15,021 | |||||||||
| Additional paid in capital net | 266,183 | 210,665 | 265,848 | |||||||||
| Capital reserve due to translation to presentation currency | (3,490 | ) | (3,490 | ) | (3,490 | ) | ||||||
| Capital reserve from hedges | 12 | (99 | ) | 140 | ||||||||
| Capital reserve from share-based payments | 6,336 | 5,750 | 6,427 | |||||||||
| Capital reserve from employee benefits | 282 | 539 | 275 | |||||||||
| Accumulated deficit | (37,835 | ) | (50,293 | ) | (40,200 | ) | ||||||
| Total Shareholder’s Equity | 246,510 | 174,808 | 244,021 | |||||||||
| Total Liabilities and Shareholder’s Equity | $ | 343,174 | $ | 316,795 | $ | 354,907 | ||||||
| CONDENCED CONSOLIDATED INTERIM OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||||||||
| Three months period ended | Year ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Unaudited | Audited | |||||||||||
| Revenues from proprietary products | $ | 33,758 | $ | 24,061 | $ | 115,458 | ||||||
| Revenues from distribution | 3,978 | 6,649 | 27,061 | |||||||||
| Total revenues | 37,736 | 30,710 | 142,519 | |||||||||
| Cost of revenues from proprietary products | 17,620 | 13,224 | 63,342 | |||||||||
| Cost of revenues from distribution | 3,365 | 5,647 | 23,687 | |||||||||
| Total cost of revenues | 20,985 | 18,871 | 87,029 | |||||||||
| Gross profit | 16,751 | 11,839 | 55,490 | |||||||||
| Research and development expenses | 4,295 | 3,231 | 13,933 | |||||||||
| Selling and marketing expenses | 4,631 | 3,922 | 16,193 | |||||||||
| General and administrative expenses | 3,786 | 3,418 | 14,381 | |||||||||
| Other expenses | - | 979 | 919 | |||||||||
| Operating income (loss) | 4,039 | 289 | 10,064 | |||||||||
| Financial income | 280 | 25 | 588 | |||||||||
| Income (expenses) in respect of currency exchange differences and derivatives instruments, net | 124 | 151 | 55 | |||||||||
| Financial Income (expense) in respect of contingent consideration and other long- term liabilities. | (1,845 | ) | (1,761 | ) | (980 | ) | ||||||
| Financial expenses | (159 | ) | (500 | ) | (1,298 | ) | ||||||
| Income before tax on income | 2,439 | (1,796 | ) | 8,429 | ||||||||
| Taxes on income | 74 | 13 | 145 | |||||||||
| Net Income (loss) | $ | 2,365 | $ | (1,809 | ) | $ | 8,284 | |||||
| Other Comprehensive Income (loss): | ||||||||||||
| Amounts that will be or that have been reclassified to profit or loss when specific conditions are met | ||||||||||||
| Gain (loss) on cash flow hedges | (71 | ) | (156 | ) | (186 | ) | ||||||
| Net amounts transferred to the statement of profit or loss for cash flow hedges | (57 | ) | 145 | 414 | ||||||||
| Items that will not be reclassified to profit or loss in subsequent periods: | ||||||||||||
| Remeasurement gain (loss) from defined benefit plan | 7 | 191 | (73 | ) | ||||||||
| Total comprehensive income (loss) | $ | 2,244 | $ | (1,629 | ) | $ | 8,439 | |||||
| Earnings per share attributable to equity holders of the Company: | ||||||||||||
| Basic net earnings per share | $ | 0.04 | $ | (0.04 | ) | $ | 0.17 | |||||
| Diluted net earnings per share | $ | 0.04 | $ | (0.04 | ) | $ | 0.15 | |||||
| CONDENCED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | ||||||||||||
| Three months period Ended | Year Ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Unaudited | Audited | |||||||||||
| Cash Flows from Operating Activities | ||||||||||||
| Net income (loss) | $ | 2,365 | $ | (1,809 | ) | $ | 8,284 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
| Adjustments to the profit or loss items: | ||||||||||||
| Depreciation and amortization | 3,237 | 3,123 | 12,714 | |||||||||
| Financial expenses (income), net | 1,600 | 2,085 | 1,635 | |||||||||
| Cost of share-based payment | 241 | 415 | 1,314 | |||||||||
| Taxes on income | 74 | 13 | 145 | |||||||||
| Loss (gain) from sale of property and equipment | - | (22 | ) | (5 | ) | |||||||
| Change in employee benefit liabilities, net | (4 | ) | (8 | ) | (125 | ) | ||||||
| 5,148 | 5,606 | 15,678 | ||||||||||
| Changes in asset and liability items: | ||||||||||||
| Decrease (increase) in trade receivables, net | 610 | 6,306 | 7,835 | |||||||||
| Decrease (increase) in other accounts receivables | (516 | ) | 1,362 | (1,150 | ) | |||||||
| Decrease (increase) in inventories | 4,131 | (10,970 | ) | (19,694 | ) | |||||||
| Decrease (increase) in deferred expenses | 112 | 3,554 | 2,814 | |||||||||
| Decrease (increase) in trade payables | (8,785 | ) | (6,712 | ) | (8,885 | ) | ||||||
| Decrease (increase) in other accounts payables | (2,051 | ) | (238 | ) | 765 | |||||||
| Decrease (increase) in deferred revenues | (122 | ) | 384 | 113 | ||||||||
| (6,621 | ) | (6,314 | ) | (18,202 | ) | |||||||
| Cash received (paid) during the period for: | ||||||||||||
| Interest paid | (129 | ) | (341 | ) | (1,228 | ) | ||||||
| Interest received | 280 | 25 | - | |||||||||
| Taxes paid | (23 | ) | (18 | ) | (217 | ) | ||||||
| 128 | (334 | ) | (1,445 | ) | ||||||||
| Net cash provided by (used in) operating activities | $ | 1,020 | $ | (2,851 | ) | $ | 4,315 | |||||
| CONDENCED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (continued) | ||||||||||||
| Three months period Ended | Year Ended | |||||||||||
| March, 31 | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Unaudited | Audited | |||||||||||
| Cash Flows from Investing Activities | ||||||||||||
| Purchase of property and equipment and intangible assets | $ | (2,682 | ) | $ | (1,117 | ) | $ | (5,850 | ) | |||
| Proceeds from sale of property and equipment | - | 24 | 7 | |||||||||
| Net cash provided by (used in) investing activities | (2,682 | ) | (1,093 | ) | (5,843 | ) | ||||||
| Cash Flows from Financing Activities | ||||||||||||
| Proceeds from exercise of share base payments | 1 | 1 | 4 | |||||||||
| Proceeds from issuance of ordinary shares, net | - | - | 58,231 | |||||||||
| Repayment of lease liabilities | (244 | ) | (271 | ) | (850 | ) | ||||||
| Repayment of long-term loans | - | (1,111 | ) | (17,407 | ) | |||||||
| Repayment of other long-term liabilities | (5,496 | ) | (1,500 | ) | (17,300 | ) | ||||||
| Net cash provided by (used in) financing activities | (5,739 | ) | (2,881 | ) | 22,678 | |||||||
| Exchange differences on balances of cash and cash equivalent | (46 | ) | (312 | ) | 233 | |||||||
| Increase (decrease) in cash and cash equivalents | (7,447 | ) | (7,137 | ) | 21,383 | |||||||
| Cash and cash equivalents at the beginning of the period | 55,641 | 34,258 | 34,258 | |||||||||
| Cash and cash equivalents at the end of the period | $ | 48,194 | $ | 27,121 | $ | 55,641 | ||||||
| Significant non-cash transactions | ||||||||||||
| Right-of-use asset recognized with corresponding lease liability | $ | 306 | $ | 3,580 | $ | 6,546 | ||||||
| Purchase of property and equipment and Intangible assets | $ | 905 | $ | 292 | $ | 646 | ||||||
| NON-IFRS MEASURES – ADJUSTED EBITDA | ||||||||||||
| Three months period Ended | Year ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| U.S. Dollars in thousands | ||||||||||||
| Net (loss) income | $ | 2,365 | $ | (1,809 | ) | $ | 8,284 | |||||
| Taxes on income | 74 | 13 | 145 | |||||||||
| Financial expense (income), net | 1,600 | 2,085 | 1,635 | |||||||||
| Depreciation and amortization expense | 3,237 | 3,123 | 12,714 | |||||||||
| Non-cash share-based compensation expenses | 241 | 415 | 1,314 | |||||||||
| Adjusted EBITDA | $ | 7,517 | $ | 3,827 | $ | 24,092 | ||||||
FAQ
What were Kamada's revenues for the first quarter of 2024?
What is Kamada's adjusted EBITDA for the first quarter of 2024?
What led to the increase in Kamada's revenues for the first quarter of 2024?
What is Kamada's full-year revenue guidance for 2024?
What does Kamada plan to do beyond 2024 for sustaining growth?
