Kamada Ltd ((IL:KMDA)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Kamada Ltd’s recent earnings call painted a largely positive picture, underscored by strong revenue growth and a significant increase in adjusted EBITDA. The company has successfully diversified its portfolio, which has contributed to its financial achievements. However, there were some concerns regarding flat sales of CYTOGAM and potential indirect impacts from tariffs and global trade changes. Despite these challenges, the overall outlook remains optimistic with reiterated guidance and ongoing expansion efforts.
Strong Revenue Growth
Kamada Ltd reported total revenues of $44 million for Q1 2025, marking a substantial 17% increase year-over-year. This growth reflects the company’s robust performance and strategic initiatives in expanding its market reach.
Significant Increase in Adjusted EBITDA
The company achieved an impressive 54% increase in adjusted EBITDA, reaching $11.6 million. This significant rise highlights Kamada’s operational efficiency and effective cost management strategies.
Diversified Portfolio Performance
Kamada’s growth was driven by increased sales of GLASSIA and KAMRAB in ex-U.S. markets, along with VARIZIG sales and GLASSIA royalties income. This diversification has been pivotal in enhancing the company’s revenue streams.
Successful Launch of Biosimilars
Following the successful launch of its first biosimilar product in Israel, Kamada plans to launch two additional biosimilars later this year, further strengthening its distribution business.
Expansion of Plasma Collection
The opening of a new plasma collection center in San Antonio, Texas, is expected to significantly contribute to Kamada’s annual revenues. The center supports over 50 donor beds, enhancing the company’s plasma collection capabilities.
Ongoing Phase 3 Clinical Trial
Kamada is making progress in its pivotal Phase 3 InnovAATe clinical trial for inhaled Alpha-1 Antitrypsin therapy. An interim futility analysis is expected by the end of 2025, marking a critical milestone in the trial.
Flat Sales of CYTOGAM
CYTOGAM sales remained flat compared to the previous year, not contributing significantly to the overall year-over-year growth. This remains an area of concern for the company.
Uncertain Impact of Tariffs and Global Trade Changes
While no direct effects are currently expected, the potential indirect impacts of evolving tariff discussions and global trade changes could affect Kamada’s business operations.
High Tax Rate in Q1
The reported tax rate for Q1 was notably high at 40%, compared to 3% a year ago. This increase was influenced by changes in deferred tax liabilities, raising questions about future tax implications.
Guidance for 2025
Kamada has reiterated its annual guidance for 2025, anticipating revenues between $178 million and $182 million, and adjusted EBITDA between $38 million and $42 million. This reflects a growth of 12% and 17% respectively over 2024, aligning with the company’s strategic growth initiatives.
In conclusion, Kamada Ltd’s earnings call conveyed a positive sentiment, driven by strong financial performance and strategic growth initiatives. While challenges such as flat CYTOGAM sales and potential global trade impacts exist, the company’s diversified portfolio and expansion efforts provide a solid foundation for future growth.