Kamada Ltd. (TASE: KMDA) has obtained an enthusiastic review from Clal Finance Ltd., which gives the drug development company a "Buy" recommendation with a target price of NIS 48, a 25% premium over today's opening price of NIS 38.16.
Clal Finance expert consultant Dr. Yoav Keidar says, "In the event of success in Europe, Kamada's market cap could reach $1 billion." This valuation is several times the company's current market cap of NIS 1.1 billion.
Keidar says that, by the end of 2013, Kamada will publish the results of the Phase II/III clinical trial in Europe of its inhalable AAT drug for the treatment of Alpha-1 Antitrypsin deficiency. "The close target date and our estimate of the potential demands raising the target price. The weighted potential of the two success scenarios gives a company value of $912 million," he says.
Keidar outlines two success scenarios, each of which has a 10% probability. The first scenario is a clear success in the European study by meeting the primary endpoints (from which a company value of $1.2 billion is derived). The second scenario is a partial success (from which a company value of $625 million is derived).
In the scenario of failure (with an 80% probability), Kamada's value will remain around its current market cap of $250 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2013
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