Kamada .(US:KMDA)2022-03-15 13:48Financial Data and Key Metrics Changes - Total revenues in 2021 were $103.6 million, a decrease from $133.2 million in 2020, primarily due to the transition of GLASSIA manufacturing to Takeda, resulting in a $38.7 million year-over-year decrease [32] - EBITDA in 2021 totaled $5.4 million, down from $25.1 million in 2020, attributed to changes in product sales mix [34] - Cash, cash equivalents, and short-term investments decreased to $18.6 million as of December 31, 2021, from $109.3 million at the end of 2020 [36] - Revenue guidance for 2022 is between $125 million to $135 million, representing a 20% to 30% growth compared to 2021, with expected EBITDA margins of 12% to 15% [10][38] Business Line Data and Key Metrics Changes - Revenues generated from the newly acquired portfolio amounted to $5.4 million for the period from November 22, 2021, through the end of the year [33] - The largest product in the acquired portfolio is Cytogam, which is expected to significantly contribute to revenue and gross margins once manufacturing is transferred to Kamada's facility [16][40] Market Data and Key Metrics Changes - KedRAB continues to gain market share in the $150 million U.S. market, with anticipated significant sales growth in the coming years [21][22] - The company plans to leverage its international distribution network to grow product revenues in new territories, primarily in Asia, Latin America, and the Middle East [13] Company Strategy and Development Direction - Kamada aims to become a fully integrated specialty plasma company with six FDA-approved products and strong commercial capabilities in the U.S. market [9] - The acquisition of a plasma collection facility in Texas supports the strategic goal of enhancing plasma collection capacity [18] - The company is focused on expanding its distribution business, including the planned distribution of a portfolio of 11 biosimilar products expected to launch between 2022 and 2028 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, expecting continued double-digit growth in the coming years [11][30] - The strategic acquisition of FDA-approved products is seen as a critical step for enhancing revenue and profitability [12] Other Important Information - The company incurred approximately $1.2 million in transaction-related expenses and $600,000 in excess severance costs due to downsizing after the transition of GLASSIA manufacturing [35] - A new Vice President for U.S. Commercial Operations has been appointed to lead commercial activities for the expanded product portfolio [14] Q&A Session Summary Question: How long will it take to transition the additional products to the Israeli manufacturing facility, and how will that enhance gross margins over time? - Management indicated that the tech transfer for Cytogam is already underway, with FDA approval expected by early 2023. The transfer for the other three products is expected to be completed within the next three to five years, which will significantly enhance gross margins [40][41]