Drug company Kamada Ltd. (Nasdaq: KMDA); TASE: KMDA) today reported $22.9 million in revenue in the third quarter of 2017, 18% more than in the corresponding quarter last year. The results support the company's prediction that its revenue in 2017 will reach $100 million. The company's share is up 4.4% today, pushing its market cap up to $182.1 million.
Kamada's revenue in the first three quarters of the year totaled $67.1 million, 26% more than in the corresponding period last year. In order to meet the company's guidance for 2017, it needs $32.9 million in sales in the fourth quarter, representing 43% quarter-on-quarter growth.
Kamada's leading product, which accounts for 74% of its revenue, is sold through a single customer, Shire, so it can be assumed that Kamada is basing its guidance on orders already received from this customer. The company will also start receiving revenue from its product for treatment for preventing rabies, which the company recently registered for marketing in the US, together with Kedrion, its US partner.
On the other hand, if Kamada fails to achieve its guidance, it will create a deep crisis of trust in the company, which was once considered an exemplar for setting targets and achieving them. In recent years, however, this reputation was stained when an important clinical trial failed. The company initially refused to recognize this failure, but was eventually left with no choice.
Meanwhile, Kamada CEO Amir London is expressing confidence, with the company publishing guidance of $116-120 million in revenue for 2018.
Kamada posted a minimal $200,000 loss in the third quarter and a $600,000 profit in the first nine months of the year. The company is scheduled to begin a Phase III clinical trial of its AAT inhalation product for treatment of hereditary emphysema in the second half of 2018. The trial is a costly one, so whether the company's profits will continue is unknown.
Results from Kamada's Phase II trial for a product for preventing rejection of lung transplants are expected by the end of the year. Meanwhile, Kamada's entire product pipeline is based on the AAT protein, on which its leading product is also based. Its efficacy as an anti-inflammatory treatment, however, has not yet been proved in additional clinical trials. Kamada recently reached agreement with the Brosh Capital activist fund for adding three directors to the company board. This change will probably lead to an assessment of the company's strategic plan.
Kamada had $40.1 million in cash at the end of the third quarter, after raising $15.1 million in a public offering.
Published by Globes [online], Israel Business News - www.globes-online.com - on November 13, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017