Pharmaceutical company Kamada Ltd. (TASE: KMDA) today reported that it expects $74 million revenue in 2013, up from $73 million in 2012.
Kamada expects further growth in its industrial segment sales (including growth in Glassia sales) to $54 million in 2013 from $47 million in 2012. The profit margin in the industrial segment is higher than in the distribution segment (imports), and this change indicates that the company is implementing its strategic plan to increase the proportion of revenue from its industrial segment at the expense of revenue from the distribution segment, which is expected to fall. The company expects that its overall profit margin will improve in 2013.
Kamada says that it expects to complete the Phase II/III clinical trial in Europe of its inhalable AAT drug for the treatment of Alpha-1 Antitrypsin deficiency by the end of 2013, and that it will begin a Phase II clinical trial of this product in the US. The company believes that the US trial will enable it to register the product there, in part on the basis of the results of the European trial. The company is also preparing for a Phase II or Phase II/III clinical trial this year of intravenous AAT for the treatment of type 1 diabetes in patients diagnosed with the disease for the first time.
In the past few years, Kamada has expanded the production capacity at its plant at Beit Kama in order to meet growing demand for AAT for its various indications if and when the drug is approved for marketing for them. As part of the these measures, the company said that it in parallel with regular production of Glassia, intravenous AAT for the treatment of Alpha-1 Antitrypsin deficiency, it has adapted the production process to greatly increase production capacity of the drug, and that it has asked the US Food and Drug Administration (FDA) to approve the changes for which the company has received a request for additional data.
Kamada said that its sales guidance for 2013 does not include approval of the improved production process for sales in the US. If and when the improved production process is approved, it will improve the company's gross and operating profit margins beginning in the second half of 2013, and especially from 2014. Until the approval is received, the company will continue production by its existing approved process.
Kamada CEO David Tsur said, "Kamada expects to continue to show strong sales growth in the industrial segment in 2013. We expect that the number of patients treated with Glassia will continue to grow during the coming year. Kamada and Baxter are ready to continue supporting the market need. We're encouraged by the broad potential of Kamada's AAT for a range of indications of orphan drugs, including the inhalable treatment for patients with Alpha-1 Antitrypsin deficiency and patients diagnosed for the first time with type 1 diabetes. This year, we will commence a number of clinical trials which will serve as future growth engines for the company.
"Kamada operates out of a sense of commitment to continue to improve its profit margins. In this context, in the past two years, we have invested millions of dollars in building another industrial plant as part of the company's preparations to provide a full response to future demand in the Alpha 1 market. In the third quarter of 2013, we intend to inaugurate the new building, which will help us to expand our storage space and boost our sales."
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2013
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