Kamada Ltd. (TASE: KMDA) today reported 11.8% growth in revenue to $13.8 million revenue for the second quarter of 2012 from $12.4 million for the corresponding quarter of 2011. First half revenue rose 33.3% to $33.4 million, mainly due to higher sales of the company's intravenous AAT drug, marketed in the US as Glassia, its treatment for congenital emphysema caused by Alpha-1 Antitrypsin protein deficiency. Glassia is Kamada's main export product, with $6.7 million in sales in the second quarter.
Kamada raised its full-year revenue guidance to $72 million (NIS 275 million) from its previous guidance, issued in April, of $69 million (NIS 257 million).
Kamada narrowed its operating loss 41% to $1.2 million for the second quarter from $2 million for the corresponding quarter. Second quarter net loss was flat at $2.6 million. Its first half net loss narrowed to $2.8 million.
Kamada CEO David Tsur said, "The agreement with Baxter, the orders backlog, and our competitive advantages allow the company to update its sales forecast for 2012, and to present further strong growth for Glassia sales this year. The full satisfaction with the company's drugs, rising demand, and our and our strategic partner Baxter's business plans give us the confidence to update our sales forecast now, and to set a full-year sales target of $72 million. The company is setting a goal of continuing of setting and meeting ambitious clinical and business targets."
Tsur added, "On the clinical sife, Kamada is making progress in line with its original plans, and intends to complete the Phase I/II clinical trial of AAT on juvenile diabetes, in the hope of demonstrating its effectiveness in delaying the onset of the disease and preventing the destruction of insulin-secreting cells in the pancreas."
Kamada also announced today the signing of an exclusive strategic agreement with Italy's Chiesi Farmaceutici SpA, which specializes in respiratory and rare diseases, for the marketing in Europe of Kamada's inhalable AAT for the treatment of congenital emphysema.
Kamada will receive $60 million in regulatory and sales milestone payments. Chiesi also committed to purchasing a minimum of the product totaling tens of millions of dollars in the first five years, after the necessary regulatory permits are obtained. The agreement is for 12 years, and Kamada estimates potential sales, if and when inhalable AAT, which has orphan drug status, successfully completes its clinical trial and obtains authorization in Europe, at hundreds of millions of dollars in the coming years.
Kamada's share price rose 4% in morning trading to NIS 29.20, giving a market cap of NIS 824 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2012
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