Kamada .(US:KMDA)2023-03-15 20:07Financial Data and Key Metrics Changes - Total revenue for 2022 was approximately $129 million, representing a 25% increase from $104 million in 2021 [33][8] - EBITDA for 2022 was approximately $18 million, with a margin of 14%, a significant increase from $5.4 million and 5% margin in 2021 [53][9] - Operating cash flow reached a record $28.6 million in 2022, increasing the cash position to $34 million as of December 31, 2022, nearly double from $18.6 million at the end of 2021 [9][54] Business Line Data and Key Metrics Changes - Revenue from acquired products increased by 24% in 2022, generating gross margins over 50% [15][8] - KEDRAB, the rabies immunoglobulin, gained significant market share in the US, contributing to the overall revenue growth [19][20] - GLASSIA royalty income from Takeda was $12.2 million for 2022, with expectations of $10 million to $20 million annually through 2040 [27] Market Data and Key Metrics Changes - The US market for KEDRAB is estimated at $150 million annually, with expectations for continued growth [19] - The company is expanding its international distribution network, particularly in Latin America and the Middle East, with significant contracts secured [24][25] Company Strategy and Development Direction - The company has transitioned from dependence on GLASSIA sales to a diversified specialty plasma company with a global footprint in over 30 countries [7] - Plans to manufacture CYTOGAM at its facility in Israel are underway, with FDA approval expected by mid-2023 [18] - The company aims to leverage its strong international distribution network to grow product revenues in new territories [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and profitability for 2023, with guidance of $138 million to $146 million in revenue and EBITDA of $22 million to $26 million [10][38] - The company anticipates annual double-digit growth in revenues and profitability in the foreseeable future [47] Other Important Information - Research and development investments increased to $13.2 million in 2022, primarily due to the ongoing Phase 3 InnovAATe trial [51] - The company expects overall expenses, including R&D and marketing, to increase by 15% to 20% in 2023 compared to 2022 [66] Q&A Session Summary Question: Will the company remain cash flow positive? - Management confirmed that the company expects to remain cash-positive and profitable, with strong cash flow generation correlated with EBITDA [40] Question: What are the biggest drivers behind the growth of the acquired products? - Growth was attributed to strong sales in the US and Canada, including significant contracts for VARIZIG and ongoing marketing efforts [57] Question: Is the company working on additional supply contracts? - Management stated that they are actively pursuing additional marketing and registration opportunities for their portfolio in new territories [59] Question: What are the expectations for gross margins in the future? - Management indicated that gross margins are expected to improve as the product mix transitions to more profitable products [60] Question: What is the opportunity with plasma collection centers? - Each mature plasma collection center is expected to contribute approximately $10 million to the top line annually, with plans for additional centers underway [80]