KMDA - Bull Thesis
(Published 3/24/22; Please note that because of our bearish view on KMDA currently, we likely will not update this bull/bear thesis in the near future.)
BULL THESIS SUMMARY
KMDA overall corporate and summary
Acquired 4 IgG products in 2021 to expand portfolio: Cytogam, VariZIG, Winrho, and Hepagam
2021 Net Sales of the acquired portfolio of $41.9M
Cytogam and Varizig only FDA approved IgG products for their indications (CMV disease and post-exposure prophylaxis of varicella respectively)
Each product represents significant global growth fro KMDA
Kamada Inc will commercialize all of Kamada’s products in US
Plan to enter 2022 as a fully integrated specialty plasma company
Acquired an FDA-licensed plasma collection center in Texas in Q1 2021 that primarily focuses on collecting hyper-immune plasma
Commercial products in over 30 countries
Exclusive distributor in Israel for leading biopharma companies
Agreement w/ 3 international companies to commercialize biosimilar product candidates; launch in Israel in 2022-2025
Peak sales expected between $25-35M annually from all nine biosimilar products
FS/MV 3/24/22
(See below for full bull/bear analysis)
BULL THESIS
KMDA overall corporate and summary
Acquired 4 IgG products in 2021 to expand portfolio: Cytogam, VariZIG, Winrho, and Hepagam
2021 Net Sales of the acquired portfolio of $41.9M
Cytogam and Varizig only FDA approved IgG products for their indications (CMV disease and post-exposure prophylaxis of varicella respectively)
Each product represents significant global growth fro KMDA
Kamada Inc will commercialize all of Kamada’s products in US
Plan to enter 2022 as a fully integrated specialty plasma company
Acquired an FDA-licensed plasma collection center in Texas in Q1 2021 that primarily focuses on collecting hyper-immune plasma
Commercial products in over 30 countries
Exclusive distributor in Israel for leading biopharma companies
Agreement w/ 3 international companies to commercialize biosimilar product candidates; launch in Israel in 2022-2025
Peak sales expected between $25-35M annually from all nine biosimilar products
KEDRAB/KAMRAB (Human rabies immune globulin)
Launched in April 2018 in collab with Kedrion
~$150M market opportunity
Key supplier to WHO/PAHO and recent label update confirmed safety and efficacy in children
Over 1.8M vials sold to date
GLASSIA (liquid AAT for AAT deficiency) (Alpha-1 proteinase inhibitor)
First liquid, FDA approved ready-to-use plasma-derived AAT product
Approved in 2016 and distributed in US by Takeda
Projected 2021 revenue of $25M (2020 sales of $18M)
US BLA transferred to Takeda in Q4 2021; royalty payments commencing in Q2 2022
US royalties of $10-20M/year from 2022 - 2040
Inhaled AAT (for Alpha-1 antitrypsin deficiency (AATD))
Expected to reach market potential of $1.8B in 2025
Only ⅛ of the IV AAT dosing and most effective way of delivering therapeutic amounts of AAT into airways
Only new innovative AATD treatment in Phase 3 trials
InnovAATe Phase 3 trial
Cytogam
Transfering of Cytogam manufacturing to Kamada is underway
Paying quarterly installments of $1.5M to total of $15M for inventory of Cytogam to Saol Therapeutics
COVID-19 IgG
Phase ½ study reported topline results in March 2021
11 of 12 patients recovered following receipt of IgG treatment: 7 discharged at or before Day 5 and 4 discharged by Day 9
IgG level increase associated with enhanced neutralization activity
Supply agreement with Israeli MOH to enable COVID-19 IgG treatment in Israel
Initial order generated $3.5M revenue
Will treat ~500 patients
FS/MV 3/24/22
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#KMDA #KEDRAB #GLASSIA #InhaledAAT #Cytogam #COVID19IgG