Q2 2025 Kamada Ltd Earnings Call
Greetings and welcome to the Kamada Ltd. second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode.
A brief question and answer session will follow the formal presentation.
Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host. Brian Richie managing director of life's I advisors thank you. You may begin.
Thank you. This is Brian Richie with lifeside advisors. Thank you. All for participating in today's call.
Joining me from Kamada are Amir London, Chief Executive Officer, and Hime Arab, Chief Financial Officer.
earlier today Amada announced its Financial results for the 3 months and 6, months ended June 30th 2025
If you have not received this news release, please go to the investors page at the company's website at www.commodity.com.
Before we begin.
I encourage you to review the company's filings with the Securities and Exchange Commission, including without limitation, the company's forms, 20f and 6K, which identifies specific factors that may cause actual results or events to 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 the live broadcast, Wednesday, August 13th, 2025, Amada undertakes. No, obligation to revise or update, any statements to reflect events or circumstances after the date of this conference call. With that said as my pleasure to turn the call over to Amir London, CEO mere
Thank you, Brian. My thanks also to our investors and analysts for your interest in Canada and for participating in today's call.
I'm pleased to report that our resolve for the second quarter and the first half of 2025 was strong and that we continue to generate significant profitable growth.
Total revenues for the first half of the year were 88.8 million representing an 11% year-over-year, increase and adjusted Ava for 22.5 million up, 35% year-over-year and representing a 25% margin of revenues.
For the second quarter, revenues were $44.8 million, up 5% over the prior year quarter, and adjusted EBITDA was $10.9 million, up 20% year-over-year.
By the diversity of our product portfolio, and disciplined management of operational expenses.
We expect to continue generating profitable growth through the remainder of 2025, and based on a positive outlook. We are increasing our adjusted EBITDA guidance to between $40 million and $44 million, and reiterating our annual revenue guidance of $178 million to $282 million.
The midpoint of our updated 2025 guidance, that present increase of approximately 12% in revenues and approximately 23% in adjusted ebra. Respectively over our last year 2024 results,
We're excited for growth prospects in our business, over both the near and longer term Guided. By our 4 pilot growth strategy of organic. Commercial growth is the development and m&a transactions, our plasma collection operation, and the advancement of our pivotal Faith Tree in health, aat program
As you may recall last quarter, we announced the initiation of a comprehensive post-marketing research program for Saito gum, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease.
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 benefit of Saito ground was published
To address this, we developed this program in collaboration with leading key opinion leaders to explore the advancement of novel CMV disease management.
The reach of the research studies supported by this program will focus on late. Onset CMV prevention and mitigation of active CMV disease, exploring alternative dosing, strategies, and investigating potential, new applications of fee to them.
We delivered, the data generated by this program will support further product utilization for site program leading to additional organic growth.
However, new growth for the first half of the year compared to the first 6 months of 2024 was primarily due to increased sales of galatia in X US market and various excel in the US as well as glossier royalty payments.
This positive trend is indicative of the diversity of our portfolio and our successful marketing activities across different territories and Medical Specialties.
Also as a part of activities to Advanced organic growth, following our first biosimilar product launch in Israel last year, which is expected to generate approximately 2.5 million in revenues, in 2025, we anticipate launching 2 additional biosimilar later this year and have several others in the pipeline, to be launched in the coming years.
Portfolio will become an increasingly important portion of our distribution business with annual sales or between 16 even dollar to 20 million within the next 5 years.
Moving to Business Development and m&a.
The accounting team is conducting active due diligence on several potential commercial targets.
During the balance of 2025 and into 2026, we expect to secure compelling in licensing, collaboration and all emanate transactions which will enrich our portfolio of marketed products and complement. Our existing commercial operations,
We anticipated that such transactions would generate operational and/or commercial synergies with our current commercial portfolio and support future profitable growth.
In addition we continue to ramp up plasma collection at our 3, Texas based plasma centers and we're happy to announce early this week. The US FDA approval of a state-of-the-art Center in Houston, Texas.
With specially efficient of the work of a dedicated team of plasma collection, experts who achieve inspection and lensure of its facility on schedule.
Steve stated that the center has an annual collection capacity of approximately 50,000 liters of plasma. Each of our two centers, in Houston and San Antonio, is expected to generate annual revenues of between $8 million and $10 million in sales of normal source plasma at full capacity.
turning now to our ongoing, pivotal phase 3, innovate clinical trial for inhaled Alpha 1 and the trips in therapy.
We continue to advance this program with its revised enrollment goal of approximately 180 subjects, and we are on track to conduct an interim fertility analysis by the end of this year, 2025.
With that, I turn the call over to Kimmy for a little discussion of our financial results for the first quarter, the second quarter of 2025, and the first six months of the year. Please go ahead. Hi, thank you.
thank you, Amir
stated at the top of the call are
Not for the second quarter, and 6 months and the June 30th 2025 were strong.
Although our revenues were $44.8 million in the first quarter of 2025, that represents an increase of 5%.
Compared to the 42.5 million in the second quarter of 2024.
Over revenue revenue is for the 6 months of 2025. We're 88.8 million and 11% increase from the 80.2 million generated in the first 6 months of 2024.
As I indicated earlier, the increase in revenue was driven by the diversity of the company's portfolio.
Gross profit and gross margins.
Were 18.9 million and 42% in the second quarter of 2025 compared to 19 million and 45% in the second quarter of 2024 gross profit and gross margins. For the first 6 months of 2025 or 39.7 million and 45%.
Compared to 35.7 million and 45 in the first half of 201. 244 the decrease in Gross profitability, and second quarter of 2025 was attributable. The change in product and period to resales mix. Whereas during this quarter, the increase in Revenue was generated by xus sales as compared to sales mix in the equivalent. For the last year,
Operating expenses including R&D as a marketing and GNA and other expenses total 11.9 million in the second quarter of 2024 as compared to 13.3 million in the second quarter of 20124.
the decrease in operating expenses which was also demonstrated in the first quarter of the year, is indicative of our ability to adequately manage our operational expenditure while continuing to generate meaningful Revenue growth,
Net income was 7.4 million or 13 cents per diluted share in the second quarter of 2025 as compared to 4.4 million or 8 cents per diluted share in the second quarter of 24.
Net income for the first six months of 2025 was $11.3 million, or 19 cents per diluted share, compared to net income of $6.8 million, or 12 cents per share, in the first six months of 2024.
Profits increased by 54% for the first half of the year and by 25% for the second quarter, along with changes in financial and tax expenses between the periods.
Adjusted EBITDA was $10.9 million in the second quarter of 2025, up 20%.
From the 9.1 million achieved in the second quarter of 24, adjusted DB that was 22.5 million in the first 6 months of 2025 at 35% increase compared to the 16.64%, 40 million and 44 million dollars.
As provided by operating activities, was 8 million in the second quarter of 2025.
And we continue to maintain a strong cash position even after the special dividend payment. And we ended the first half of with a cash balance of 66 million, that is planned to be used to fund new business development initiatives.
Before turning the call over for questions, I would like to indicate that we are continuing to monitor the evolving tariff situation closely based on present, presently available information. Our assessment is that the recently imposed tariffs are not applicable to drug products.
To date. We have not experienced.
Impact or interruptions of our operations or ability to maintain cost and pricing as a result of the tariffs.
With that, we would open the call to questions.
Thank you. We will 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 would 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 star keys.
1 moment, please while we pull for questions.
The first question is from Annabelle. Samini from Stifel. Please go ahead.
Hi everyone. Thanks for taking my question. Um, and congratulations on a good quarter. Um, so just a couple for me. Um, seems uh, like for the last 2 quarters glossy and ver ver have been the growth drivers. Um, I guess for reasons you've stated especially there is like, but can you give us an idea about Dynamics behind kedra inside again? Which I guess had been the growth drivers. Is it more difficult? Year-over-year, comps, um, are they performing as expected? Or maybe our physicians, just slowing down on adoption of cider gam until the next, um, batch of data. Um, just any color there would be great, um, and then I'll just follow up after that.
Hi Annabelle. Hey yes. We mentioned specifically glacia XU and royalties and biology because these are the products which has a significant contribution to our year-over-year growth
Uh, klab and the Saito bomb of Performing according to our expectations.
As you know, the kadra contract with Kadri on has is like a 4 year. It's an 80 with a 4 year, committed volumes scheduled, um, by the product we Supply them, according to the individual management. Uh, we we continue to see in Market, uh, growth, um, but in general, the numbers of similar to
20 phone numbers, uh, 5 to um, is going according to the plan. Uh, we expect that the growth will come. And once we have the additional clinical and medical data, which we are currently collecting, but I think in general, it's an opportunity to emphasize the strengths and diversity of the portfolio.
You know, we fix FDA approved products and marketing over 35 countries over 25 products, in our distribution business, the soon to be plasma cells. Uh, we have a very strong organic growth that's coming from a multiple products. And this year, it's been many glass and voicing previous years has been try to come and and K job, but all in all, it's a very strong diverse portfolio. That allows us to continue maintaining the growth year after year.
Sufficient for impactful, BD given its decline in the last couple quarters. How should we think about the balance of your internal Investments that you're making quite a few? And then the external BD and how that might be funded
So we plan for you to utilize to use our existing cash if needed, you know, we have additional sources for additional funding in multiple, you know, vehicles of funding that we can put to work. Uh, we are, um,
Looking and screening for the commercial stage assets, I think the fact that we're looking for commercial assets, gives us a lot of bandwidth. In terms of the ability to fund, you know, those transactions. We are mainly focused on plasma derived products as well as, you know, specialty Pharma and within the specialty farmer, the transportation field. And and as I mentioned during the call, we would like to leverage our supply chain capabilities, commercial infrastructure, take advantage of the synergies and we are actively streaming and doing due diligence on some multiple targets and hopeful that, you know, it will be, um, a, a mature over the next few months in the 2026 and have meaning, meaningful impact on our 2026 performance and funding, you know, to to the scale of the transaction. We're looking to do, we will have sufficient funding to
Um, to execute those transactions.
Okay, if I can just
squeeze in 1 more, um, on the inhaled a program. Obviously, we're, we're just waiting for the interim analysis right now, but, um, can you sort of describe the competitive landscape there? Have been. I guess some more developments, uh, whether it's gene therapy or other programs, anything that we should be watching for um, that might change the potential Market opportunity there
Yes, good question. So yes there is a lot of activity in the also 1 space. In general our in health program is the most advanced 1 in terms of efficacy study in a pivotal stage. So there's no other uh say 3 people to study, but all in stock to the round, you know, efficacy endpoint.
Um, you know, we we we, we are making progress and, you know, the other companies also making progress, I think you and other. And you know, people following the space know that the government maybe 2 or 3 additional Technologies, which are currently being developed. The market is growing growing, we see the growth through our loyalties from teda so the 678% annual growth is actually happening what used to be you know half a billion dollar market is like 1.3 1.4 billion dollar market. We believe that at the time that we are going to have the results from our study. This is going to be like a 2 billion dollar market.
So we believe that there is enough business and enough opportunity for multiple new technologies and multiple new players. We believe that our technology being um, like a a second generation augmentation therapy with, you know, batteries of use and quality of life with. Hopefully, if we are successful in this study efficacy data will be a very strong competitor and player in the alpha 1 space in general.
Great. Thank you for taking my questions.
Of course.
As a reminder to ask a question. Please press star 1
The next question is from James, sidoti from sidoti & Company. Please go ahead.
Hi uh, good afternoon. Thanks for taking the question. So um, yeah, you know, as you said the quarter, really demonstrated how diverse your, your different revenue streams are, um, you know, the 1 That Grew this quarter in particular with the distributed
Uh, Revenue segments, uh, I guess with the uh, the launch of the, the new products, the new biosimilar products, you know, we was, was there a 1-time sales in the quarter, or, you know, how, how should we view this? Uh,
This distribution Channel going forward.
Over the next few years.
Okay, so there was no, you know, stocking or Channel filling in the quarter. These these were, you think uh these these types of numbers you think will be uh going forward?
Correct.
Okay. And then a similar question on the, um, sgna expense. I mean, down pretty significantly from a year year over down significantly year-over-year. Um, you know, were there, 1 time things there, that helped that or do you think you'll stay around me 12?
So we were very conscious about our expenses. I think we've been very disciplined in the way that we deploy and investment and uh, and ongoing expenses. Um, there's been a, a slight and say, you know, kind of fluctuation between quarters and between the first 6 months of the year and the second 6 months of the year. So you know the second 6 months of you might be a little bit higher again insignificant a little bit higher in general. But I think what's very highly promising and I think all analysts and investors need to look at this our ability to generate you know a good and improved rate of ebda from Topline and we said in the past it's on it. When we were on the 20% EB golf Topline that we are targeting you know 25% and above. I think we've been able to demonstrate this over the last, you know, few quarters. And this is our goal to continue to be profitable and from every dollar we make that we will have a bigger portion all the way to
To the bottom line IA.
Okay and then the last question for me, something I asked uh 3 months ago and you said the tax rate would uh continue to be a little bit lumpy in uh, in 2025. You know what? What was responsible for the tax credit in the June quarter and where do you think tax the tax? It'll be in September and December.
Yeah, I'm in service question. Yeah, I'll take the this, this question. So, um, we anticipate the Israeli entity or the parent company is is reporting in uh, in uh, Israeli shekels. Uh, over the course of the last quarter. There's been fluctuations in the uh, currency exchange between the uh, shekel the Israeli shekel and, and US Dollars, uh, that affected our, um, our results for tax purposes, and and made the, uh, uh, the change overall, uh, we still of the opinion that by the end of 2025, the company will be utilizing all of its, um, uh, tax losses, carry forward and we will be moving into uh, uh,
Tax payments. Uh, right now, the changes that you see are mostly in the furtex either assets or liabilities which are causing the uh uh the bumpiness as you as you alluded to.
Okay, so, so when those those nols are used up, you know, as you look into 2026 and Beyond what, what do you think will be an effective tax rate?
Uh, well, we're looking at anywhere between 20 or 25%.
All right. Thank you.
There are no further questions at this time. I would like to turn the floor back over to Amir London for closing comments.
Thank you very much. In closing, we continue to invest in the full pilot growth strategy with continued progress made in organic growth of existing commercial portfolio. This is development and emanate transaction to support and expedite. Our growth expansion of our platform collection operation and the progression of a 80 Therapy Program.
We look forward to continuing to support clinicians and patients with this, those important life-saving products that we develop and affect and commercialize.
We thank you all for your interest in Commodore, and we are committed to creating long-term shareholder value.
We hope you all stay healthy and safe. Thank you for participating in today's call.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.