Q1 2025 Kamada Ltd Earnings Call

Operator: Greetings and welcome to the Kamada First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Greetings and welcome to the Commonwealth first quarter 2025 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. Please press star zero on your telephone keypad.

Operator: A question and answer session will follow the formal presentation.

Operator: If anyone should require operator assistance, please press star zero on your telephone keyboard. As a reminder, this conference is being recorded.

As a reminder, this conference is being recorded.

Brian Ritchie: It is now my pleasure to introduce Brian Ritchie with Lifesci Advice. Thank you.

Speaker Change: It's now my pleasure to introduce Brian Ritchie with lifestyle advisors.

Speaker Change: Thank you this is Brian Ritchie with lifestyle advisors and thank you all for participating in today's call.

Brian Ritchie: This is Brian Ritchie with Lifestyle Advisors and thank you all for participating in today's call.

Brian Ritchie: Joining me from Kamada are Amir London, Chief Executive Officer, and Chaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three months ended March 31st, 2025. If you have not received this news release, please go to the investors page of the company's website at www.kamada.com.

Speaker Change: Joining me from commodity are Amir, London, Chief Executive Officer, and Jaime I'll, let chief Financial Officer.

Speaker Change: Earlier today.

Speaker Change: [noise] announced its financial results for the three months ended March 31st 2025.

Speaker Change: If you have not received this news release you just go to the investors page of the company's website at www dot commodity dot com.

Brian Ritchie: Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements that involve risk. and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company's filings, the Securities and Exchange Commission, including, without limitation, the company's Forms 20-F and 6-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statement.

Speaker Change: Before we begin I would like to caution that comments made during this conference call by management will contain forward looking statements that involve risks.

Speaker Change: Uncertainties regarding the operations and future results of <unk>.

Speaker Change: I encourage you to review the company's filings with <unk>.

Speaker Change: Securities and Exchange Commission, including Wood.

Speaker Change: Without limitation, the company's forms 20-F, and 6K, which identify specific factors that may cause actual results or events could differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of.

Brian Ritchie: Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, Wednesday, May 14, 2025. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call.

Speaker Change: The live broadcast Wednesday may 14th 2025 Tomorrow undertakes no obligation to revise or update any statements to reflect events or circumstances. After the date of this conference call, but that said, it's my pleasure to turn the call over to Amir London CEO Amir.

Amir London: With that said, it is my pleasure to turn the call over to Amir London, CEO. Thank you. Thank you, Brian. My thanks also to our investors and analysts for your interest in Kamada and for participating in today's call. I am pleased to report on our strong first quarter results, representing double-digit profitable growth and a continuation of the operational performance we generated over the course of 2024. Total revenues for the first quarter were $44 million, an increase of approximately 17% year-over-year. adjusted EBITDA was $11.6 million, an increase of approximately 54% year-over-year. Our growth compared to Q1 2024 was primarily as a result of an increase in sales of Glacier and CumRub in ex-US markets, as well as varisic sales and Glacier royalties in We expect to continue to generate profitable growth throughout the diversity of our portfolio and disciplined management of our operational expenses.

Speaker Change: Yeah.

Amir London: Thank you Brian My Thanks also to our investors and analysts for your interest in Colorado and for participating in today's call.

Amir London: I'm pleased to report on our strong first quarter results, representing double digit profitable growth and a continuation of the operational performance we generated over the course of 'twenty 'twenty four.

Amir London: Total revenues for the first quarter with $44 million, an increase of approximately 17% year over year.

Amir London: Adjusted EBITDA was $11 6 million, an increase of approximately 54% year over year.

Amir London: Our growth compared to Q1 2024 was primarily as a result of an increase in sales of Gloucestershire and camera in ex U S small kits as well as far as excels and glass your royalty income.

Amir London: Yeah.

Amir London: We expect to continue to generate profitable growth throughout the diversity of our portfolio and disciplined management of operational expenses.

Amir London: through the remainder of 2025. Based on a positive outlook for the year, we are reiterating our 2025 annual guidance of anticipated annual revenues of $178 million to $182 million and $38 million to $42 million of adjusted EBITDA. Importantly, the midpoints of our 2025 guidance represent an increase of 12% in revenues and approximately 17% in adjusted EBITDA, respectively, over our 2024 results. As our expectations for strong top and bottom line growth indicate, we are excited for the near-term prospects of our business.

Amir London: Through the remainder of 2025.

Amir London: Based on our positive outlook for the year, we are reiterating our 2025 annual guidance of anticipated annual revenues of $178 million or $182 million.

Amir London: And $38 million to $42 million of adjusted EBITDA Importantly, the midpoint about 2025 guidance represent increase of approximately 12% in revenues and approximately 17% in adjusted EBITDA, respectively over our 20.

Amir London: <unk> 'twenty full results.

Amir London: And is there expectation for strong top and bottom line growth indicate we are excited for the near term prospects of our business.

Amir London: We are even more excited about the longer-term opportunities ahead of us as we continue to progress on our four-pillar growth strategy, consisting of organic commercial growth, business development and M&A transactions, our plasma collection operation, and advancement of our pivotal Phase III inhaled Alpha-1 program.

Amir London: We are even more excited about the longer term opportunities ahead of us as we continue to progress on our four pillar growth strategy.

Amir London: <unk> organic commercial growth business development and M&A transactions.

Amir London: Plasma collection operation and.

Amir London: And advancement of our pivotal phase III inhaled Alpha one program.

Amir London: To this end, last week we announced the initiation of a comprehensive post-marketing research program for Cytogam, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. This program, which consists of 10 different studies, most of them as investigator-initiated studies, was developed in collaboration with leading KOLs and is directed at advancing CMV disease management through novel strategies. Studies will focus on late-onset CMV prevention and mitigation of active CMV disease, exploring alternative dosing strategies.

Amir London: To this end last week, we announced initiation of a comprehensive post marketing research program for site took them, which we believe will help demonstrate the advantages of the product and the prevention and management of CMV disease.

Amir London: This program, which consists of 10 different studies most of them as investigator initiated studies was developed in collaboration with leading Kols and is directed at advancing CMV disease management through novel strategies.

Amir London: Studies will focus on late onset CMV prevention and mitigation of active CMV diseases exploring alternative dosing strategies.

Amir London: and investigating potential new applications of site-to-site. Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation, for years no new up-to-date clinical data regarding the benefits of cytogram were published. The data generated by this program will support further product utilization.

Amir London: And investigating potential new applications are cyclical.

Amir London: Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation fully use knowing you up to their clinical data regarding the benefits of site to gum well published the data generated by this program will support further product utilization.

Amir London: As part of our activities to advance organic growth, I am happy to update that following our first biosimilar product launch in Israel last year, which is expected to generate approximately $2 million in revenue this year, we expect to launch two additional biosimilars later this year and have several others in the pipeline to be launched in the coming years. We expect that this portfolio will become an increasingly important portion of our distribution business with annual sales of between $15 million to $20 million within the next five moving to business development and M&A.

Amir London: As part of our activities to advance organic growth I'm happy to have falling our first biosimilar product launch in Israel last deal, which is expected to generate approximately $2 million in revenue. This year, we expect to launch two additional biosimilars later this year and have several others.

Amir London: In the pipeline to be launched in the coming years, we expect that this portfolio will become an increasingly important portion of our distribution business with annual sales of between 15 million to $20 million within the next five years.

Moving to business development and M&A.

Amir London: During 2025, we expect to secure compelling new business development in licensing, collaboration, and or M&A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operation. We anticipate that such agreements will generate operational and or commercial synergies with our current commercial portfolio and will support future profitable growth.

Amir London: During 2025, we expect to secure compelling new business development in licensing collaboration and or M&A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operation.

Amir London: We anticipate that such agreements will generate operational and commercial synergies with our current commercial portfolio and will support future profitable growth.

Amir London: Also, during the recently completed quarter, we expanded our plasma collection operation with the opening of our third location in San Antonio, Texas. The 11,000-square-foot San Antonio Center will support over 50 donor beds with an estimated total collection capacity of approximately 50,000 liters annually. Once they are at full collection capacity, we anticipate that our Houston and San Antonio collection centers will each contribute annual revenues of between $8 million to $10 million in the sales of normal source plasma.

Amir London: Also during the recently completed quarter, we expanded our plasma collection operation with the opening of a third location in San Antonio Texas.

Amir London: 11000 square foot San Antonio Center will support over 50 Donuts bed with an estimated total collection capacity of approximately 50000 liters annually once they all its full collection capacity, we anticipate that our Houston and San Antonio collection centers will each contribute annual revenue.

Amir London: Of between 8 million to $10 million in the sales of normal source plasma.

Amir London: Turning now to our ongoing Pivotal Phase III Innovate clinical trial for inhaled alpha-1 antitrypsin therapy. We continue to advance this program with its revised enrollment goal of 180 subjects, and we are on track to conduct an interim futility analysis by the end of 2025.

Amir London: Turning now to our ongoing pivotal phase III innovate clinical trial for inhaled Alpha one antitrypsin therapy.

Amir London: We continue to advance this program with its revised enrollment goal of 180 subjects and we are on track to conduct an interim futility analysis by the end of 2020 five.

Chaime Orlev: With that, I now turn the call over to Chaime for a detailed discussion of our financial results for the first quarter of 2025. Chaime, please go ahead. Thanks, Amir. As Amir stated at the top of the call, our results for the first quarter of the year were strong. All our revenues were $44 million in the first quarter, compared to $37.7 million in the first quarter of 2024. As Amir mentioned, the increase in revenues stemmed from the diversity of our portfolio and were primarily attributable to increased sales of Glacier and Camarob in ex-US market, as well as Varzig sales and Glacier royalties in 2020.

Amir London: With that I'll now turn the call over to Jaime for a detailed discussion of our financial results for the first quarter of 2025 Jaime. Please go ahead.

Amir London: Yeah.

Thanks Samir.

Speaker Change: And some of your stated at the top of the call our results for the first quarter of the year were strong.

Speaker Change: Although revenues were $44 million in the first quarter compared to $37 7 million in the first quarter of 2024 as Amir mentioned the increase in revenues stems from the diversity of our portfolio and were primarily attributable to increased sales of glacier and camera in ex U S.

Speaker Change: Kit as well as very good sales and lesser royalties.

Speaker Change: Yeah.

Chaime Orlev: Gross profit and gross margins were $20.7 million and 47% in the first quarter of 2025 compared to $16.7 million and 44% in the first quarter of 2024. The increase in both matrices is attributable to improved product sales. Operating expenses, including R&D, sales and marketing, G&A, and other expenses totaled $13 million in the first quarter of 2025, as compared to $12.7 million in the first quarter of 2024. The marginal increase in operating expenses is indicative of our ability to manage operational expenses while continuing to generate meaningful revenue growth. Net income was $4 million or $0.07 per share.

Speaker Change: Gross margin and gross profit and gross margins were 27 million and 47% in the first quarter of 2025 compared to $16 7 million and 44% in the first quarter of 2024.

Speaker Change: The increase in both matrices.

Speaker Change: Is attributable to improved product sales mix.

Speaker Change: Operating expenses, including R&D sales and marketing G&A and other expenses totaled 30 million $13 million in the first quarter of 2025 as compared to $12 7 million in the first quarter of 2024.

Speaker Change: The marginal increase in operating expenses is indicative of our ability to manage operational expenses, while continuing to generate meaningful revenue growth.

Speaker Change: Net income was $4 million.

Speaker Change: Or seven cents per share.

Chaime Orlev: in the first quarter of 2025, up 67% from the $2.4 million, or $0.04 per share, in the first quarter of 2024. Adjusted EBDA was $11.6 million in the first quarter, compared to $7.5 million in the first quarter of 2024, representing a 54% year-over-year increase.

In the first quarter of 2025 up 67% from the $2 4 million or <unk> <unk> per share in the first quarter of 2024.

Speaker Change: Adjusted EBITDA was 11 6 million in first quarter compared to $7 5 million in the first quarter of 2024, representing a 54 year 50.

Speaker Change: 54% year over year increase.

Chaime Orlev: While the dividend payment declared in March was only paid after the end of the quarter, we continue to maintain a strong cash transition that is planned to be used to fund new business development initiatives.

Speaker Change: Well the dividend payment declared in March was only paid after the end of the quarter. We continued to maintain a strong cash position that is planned to be used to fund new business development initiatives.

Chaime Orlev: With that, we will turn the call over to questions. Thank you.

Speaker Change: With that we will turn the call over to questions.

Speaker Change: Thank you well now be conducting a question and answer session.

Operator: We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. One moment, please, while we poll for questions.

Speaker Change: You'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: One moment, please while we poll for questions.

Annabel Samimy: Our next, our first question is from Annabel Samimy with Stiefel. Hi, all. Thanks for taking my question. Great start of the year.

Speaker Change: Our next our first question is from Annabel <unk> with Stifel.

Hi, all thanks for taking my question great start of the year.

Annabel Samimy: I had some questions around the different growth contributors. I noticed that CytoGAM is incited as a growth contributor this quarter. So I was just wondering, with your expanded investment in clinical studies for CytoGAM, should we read into anything of what prompted this? Has it reached a plateau right now? Or maybe does it signal anything for the potential to update guidelines based on the data that you have to date? I just wanted to understand the decision for making this investment, so I guess that's the first question.

Speaker Change: Hum.

Speaker Change: Some questions around them the different growth contributor as I noticed.

That side again, that's been cited as a growth contributor this quarter. So I was just wondering.

Speaker Change: With your expanded investment in clinical studies for Sarah Gamma is that should we read into anything that there is at what prompted this.

Has it reached a plateau right now.

Speaker Change: Or maybe does it signal anything for the potential uptake guidelines based on the data that you have to date I'm just trying to understand the decision for making this investment. So I guess, that's the first question I have some follow ups.

Amir London: I have some follow-up. Thanks Annabel. So we emphasize the basically year-over-year growth and basically Q1 2025 was kind of similar to Q1 2024 in terms of the sales. As a reminder, end of 2023 we launched the new batches from our own production. So Q1 of 2024 was strong with this fresh inventory that was basically shipped to the market. So we had a strong quarter back then. So when comparing the quarter-to-quarter year-over-year, Cytogram didn't have a major contribution to the growth. The growth came from other products. We're very happy to see the strength of our portfolio, the diversity of our portfolio, including Glacier XUS, Kamrab XUS, Varizing in the US market and the Glacier Royalties had a significant contribution to the growth of the business.

Okay.

Speaker Change: Thanks Annabel.

Speaker Change: So we emphasize the basically year over year growth.

Speaker Change: And basically Q1, 'twenty 25, well, it's kind of similar to Q1 2020 full in terms of the sales as a reminder, end of 2023 we.

Speaker Change: M launch.

Speaker Change: Launched.

Speaker Change: The new the new batches from our own production. So in Q1 of 2024 was strong with this fresh inventory that was basically shipped to the market. So we had a strong quarter back then so when comparing the quarter to quarter or year over year.

Speaker Change: Twin set to them they didn't have a major contribution to the growth. The growth came from other products were very happy to see the the strengths of our portfolio the diversity of our portfolio, including our glass your ex U S. M Commerce hub ex U S.

Speaker Change: The very thing in the U S small cap and the glass the royalties and the significant contribution to the growth of the business in general we spoke about this in previous quarters. The fact that we have six FDA approved products and are currently active in over 35 different countries territories makes a very significant very soon.

Amir London: In general, we spoke about it in previous quarters, the fact that we have six FDA approved products and we're currently active in over 35 different countries, territories, makes a very significant, a very strong portfolio that can continue growing organically in the next year.

Speaker Change: Strong portfolio that can continue growing.

Speaker Change: Organically in the next few years.

Amir London: Okay, any, any, and, and, and just any thoughts on. How the guidelines might be updated for Cytogam, for CMV rather, and is there anything to read into the fact that you're expanding these studies? Does that mean that you just need more data to update these guidelines? So the idea to conduct multiple studies in order to basically present new, fresh clinical data, something we started working already in 2023. It took us time to work with the pool of KOLs, creating advisory boards, and basically work with each one of those to identify what is the key set of data that will be important for the community to see.

Speaker Change: Any any and and and just any thoughts on.

Speaker Change: How the guidelines might be updated for Saturday Cam for CMT, rather and Ah was is there anything to read into the fact that you're expanding this study is does that mean that you just need more data these guidelines.

Speaker Change: So the idea to conduct multiple studies in order to mystically present, new clinical data something we started walking already in 2023. It took us time to work with them the pool of Kols.

Speaker Change: Kols.

Speaker Change: So we I think advisory boards and basically work with each one of those to identify what is like the key set of data that will be important for the community. It too to see so it takes time of course to design develop those clinical studies and this is mature to a point that we were in a position that we could announce this.

Amir London: So it takes time of course to design and develop those clinical studies and this has matured to a point that we were in a position that we could announce this comprehensive program. Between 2023 when it started and now when we announced it, we already had like three different presentations, posters in industry conferences and we are starting to see that there is positive impact on this work in the field working with the physicians. Changing guidelines takes time. Recently there was a meeting of the consortium that basically the KOLs that work on CMV prevention, CMV management guidelines and there is a modest change to the guideline.

Speaker Change: The comprehensive program.

Speaker Change: Between <unk> and 2023 when it started and now when we announce it we already had like three different presentations or posters in industry conferences, and we're starting to see that there is a positive impact on this work in the field working with the physicians changing guidelines Stakes.

Speaker Change: Time recently, there was a meeting of the of the consortium that basically the kols to walk on a CMV prevention safety management guidelines and.

Speaker Change: There is a modest change to the guideline, we expect that with new data, we are going to be able to prove that.

Amir London: We expect that with new data we are going to be able to prove that CMV imoglobulin has a significant advantage in the prevention and management of CMV and that it will be well reflected in future guidelines.

Speaker Change: Same thing in a globally and has a significant advantage in the prevention and management of CMV and that's the it will be well reflected in future guidelines.

Annabel Samimy: Got it. And just I guess I can have a ton of questions, but I'll just. Cut it to one, just have to ask the extent to which you're, you know, You're globally, you know, you have a global business. Can you just? So I wanted to sort of lay out how you think about the tariffs that are being posed right now. I know for right now pharmaceuticals are excluded, but have you thought about the potential impact and how you might be protected just having plasma here or, you know, where you're sourcing your different products? Any kind of calculation that you've made on, in a worst case scenario, what kind of impact that might have on margins or on the business overall?

Speaker Change: Okay got it and just a.

Speaker Change: And I guess I can I have a ton of questions that I've.

Speaker Change: Got it to one.

Speaker Change: Just have to ask them the extent of what fair yeah.

Speaker Change: Your globally, you know you have a global business and can you just.

Speaker Change: Sort of lay out how you think about.

Speaker Change: The terrorists, they're being because right now I know for right now pharmaceuticals are excluded but have you.

Speaker Change: <unk> thought about the potential impact and how you might be protected just having plasma here or you know where you're sourcing your different products any kind of calculation that you've made on in a worst case scenario, what kind of impact that might have on on margins or on the business overall.

Chaime Orlev: Okay, Chaime will answer this question. Chaime, please. Yes, so we can have an evaluation of the issue and our understanding based on currently available information is that there should be no direct impact on sales of our specific products.

Jaime: Okay. Jaime will answer this question Hanmi place Oh, yes, so we cannot.

Jaime: <unk> of our of the issue and our understanding based on currently available information is that there should be no direct impact on sales.

Our specific products.

Chaime Orlev: However, as we know, this is an evolving situation which we will keep on monitor and will advise in the future if our conclusion changes. I would also note that at present time it is not possible to fully assess the potential indirect effect of the tariff discussions over global trade and how that might play in effect. But based on the analysis we made thus far, we do not think there is going to be a direct impact on our business. Okay, great.

Jaime: However, as we know this is an evolving situation, which we will keep on monitor and we'll advise in the future if our conclusion changes.

Jaime: I would also note that.

Jaime: In time it is not.

Jaime: Possible to fully assess the potential indirect effect of the tariff discussions over global trade and how that might play a role to play in check.

Jaime: But based on the.

Jaime: The analysis, we made thus far.

Jaime: We do not think there is going to be a direct impact on our business.

Jaime: Okay, great and if I can squeeze in one more any.

Annabel Samimy: And just if I can squeeze in one more, any updates on what percent you are enrolled for Innovate at this point? So we have around 55% enrollment and we are making good progress in working on the futility analysis. We will have a cutoff of the data in the second part of the year and soon after that the data will be available for the DSMB to run the statistical analysis for the futility analysis.

Speaker Change: Any updates on what percent you are enrolled for innovate at this point.

Speaker Change: So we are at around 55% enrollment and we are making good progress in our walking on the futility analysis and that we would have a cut off of the data and the second part of the year and soon after that and all the data will be available for the D. S. M B two.

Speaker Change: Ron This statistical analysis for the futility analysis.

Annabel Samimy: Great, thank you.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you.

Speaker Change: Yeah.

James Sidoti: Our next question is from James Sidoti with Sidoti and Company. Hi, good morning. Thanks for—or good afternoon, actually. Thanks for taking the questions. Just a follow-up on the Cytogram post-marketing study. Can you talk a little bit about the timing of that? When do you expect that to be completed? Because it's an array of 10 different studies, so each one of those has its own timeline. Some are things that are done quicker, especially the non-human clinical studies, but more of kind of the in vitro analysis that we are doing. Some of it will be available already later this year into 2026, and some of the work will continue all the way to 2027, 2028.

Our next question is from James Sidoti with Sidoti <unk> Company.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Hi, good morning, Thanks here or good afternoon actually thanks for taking the questions just a follow up on the Saturday brand post marketing study can you talk a little bit about the timing of that when do you expect that to be completed.

Speaker Change: Because it's an area of 10 different studies. So each one of those has its own timeline some of things that's all done quicker.

Speaker Change: And especially the non human clinical studies with more of kind of the in vitro analysis that we're doing and.

Speaker Change: So some of it will be available already you know later this year into 2026 and some of the work will continue all the way to 2027 and 2028 in general I'll say too on a full year program that we have launched across multiple sites multiple kols and basically kind of covering the majority of the.

James Sidoti: In general, I'll say it's around a four-year program that we have launched across multiple sites, multiple KOLs, and basically kind of covering the majority of the relevant CMV management and preventive in organ transplantation.

Speaker Change: Yeah, Hey, relevant the CMV management, and preventive and organ transplantation.

James Sidoti: All right, and then. I know you addressed the tariffs, but one of the other changes in the U.S. in the past few months is the cutbacks in NIH spending. Do you expect those to have any impact on your business?

Speaker Change: Alright, and then.

Speaker Change: I know you addressed the tariffs, but one of the other changes in the U S. A past few months as the cutbacks in NIH spending do you expect those to have any impact on your business.

James Sidoti: And not not not currently no no so with our current understanding of the potential changes and regulations we don't anticipate that this will have any impact on the business because of the nature of the business and the hospital critical critical care type of treatment that we are doing pretty unique type of medicines again like how you mentioned about the tariff if there's going to be any change in our understanding of situation we will update. Okay, and then the last one for me, detail in the quarter, the tax rate, you reported a 40% tax rate compared to a 3% tax rate a year ago.

Speaker Change: And not not not currently no no so with our current understanding of the potential changes in regulations. We don't anticipate that this will have an impact on the business.

Speaker Change: Cause of the nature of the business in the hospital.

Speaker Change: We took the critical care type of treatment that were doing pretty unique type of medicines again like some you mentioned about the tariff is there going to be any change you know understanding the situation we will update on this.

Speaker Change: Okay and then the last one for me in detail on the quarter. The tax rate you reported a 40% tax rate.

Speaker Change: Compared to a 3% tax rate a year ago, I guess two questions what happened and although it's real cash taxes or.

Chaime Orlev: I guess two questions, what happened and are those real cash taxes or was that a non-cash expense? The taxes changes in the Fair Tax Liability, you can refer to our cash flow to see that it had no cash effect. Okay, and should we expect you to report similar tax rates going forward? Well, through 2025, I think we're going to be fluctuating a little bit in terms of our tax expenses, mainly because of shifts between deferred tax assets and deferred tax liabilities. And I expect that by the end of this year, it would smooth out and going forward, you'll be able to see our effective tax rates more clearly.

Speaker Change: Was that in.

Speaker Change: Noncash expense.

Speaker Change: Pardon me.

Speaker Change: The taxes changes in deferred tax liability.

Speaker Change: You can refer to our cash flow to see that.

Speaker Change: It had no cash effect.

Speaker Change: Sure.

Speaker Change: Okay and should.

Speaker Change: Should we expect you to report similar tax rate go forward.

Speaker Change: Well through through 2025, I think we're going to be fluctuating a little bit in terms of.

Speaker Change: Our tax expenses, mainly because of shifts between deferred tax assets and deferred tax liabilities and I expect that by the end of this year, it would smooth out and and going forward you'll.

Speaker Change: You'll be able to see our effective tax rate more clearly.

Chaime Orlev: But as of now, we have. As of now, we're still using NOLs, so we're not paying taxes. We expect to be in a taxable income and start paying taxes at the end of 2025 or beginning of 2025. Okay, great. That was my next question. Thank you very much.

Speaker Change: But as of now we have.

Speaker Change: And as of now we have yes.

Speaker Change: We're still using Nols, so we're not.

Speaker Change: Paying taxes.

Speaker Change: We expect to be in a in a taxable income and and start paying taxes.

At the end of 2025 or beginning of 2026.

Speaker Change: Okay. Great that was my next question. Thank you very much.

Speaker Change: Okay.

Chaime Orlev: Thank you.

Speaker Change: Thank you.

Brian Ritchie: I would like to hand the floor back over to Brian Ritchie for additional questions. Thank you.

Brian Ritchie: Like to hand, the floor back over to Brian Ritchie for additional questions.

Speaker Change: Thank you just one question from the from the web Amir what Disney strong start to Q1 mean for your annual guidance.

Brian Ritchie: Just one question from the web, Amir.

Amir London: What does the strong start to Q1 mean for your annual guidance? Great question. So, we had a strong first quarter. We are going to monitor progress during the second quarter. And although we should be evaluated on an annual basis, we will definitely see if this strong performance continues. And if that's the case, we will update our guidance moving forward.

Yeah.

Speaker Change: Great questions. So of course, we are going to so we had a strong first quarter and we're going to monitor progress and doing the second quartile.

Speaker Change: And although it should be evaluated on an annual basis, we will definitely see if this strong performance continues and if that's the case, we will update our guidance and moving forward.

Amir London: Thanks, Amir.

Sameer: Thanks, Sameer I'll turn the floor back over to you for closing comments.

Brian Ritchie: I'll turn the floor back over to you for closing. Thank you. Thank you, Brian.

Sameer: Thank you. Thank you Brian So in closing we continue to invest in the full pillar growth strategy continue the progress made in all across our business and organic growth of our existing commercial portfolio business development and M&A opportunities to support and expedite the growth expansion of our plasma collection operation.

Amir London: So, in closing, we continue to invest in the four-pillar growth strategy, continued progress made in all across our business, organic growth of our existing commercial portfolio, business development, and M&A opportunities to support and expedite the growth, expansion of our plasma collection operation, and progression of our AET therapy program. We look forward to continue to support clinicians and patients with the important life-saving products that we develop, manufacture, and commercialize. And we thank you all for your support, and we remain committed to creating long-term shareholder value. We hope you all stay healthy and safe.

Sameer: And the progression over a T. A therapy program and we look forward to continue to support clinicians and patients with important lifesaving product that we develop an affection commercialized and we thank you all for your support and we remain committed to creating long term shareholder value we will.

Sameer: You all stay healthy and safe. Thank you for joining us today good luck.

Operator: Thank you for joining us today. Good luck.

Sameer: Okay.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

Sameer: Yeah.