Kamada .(KMDA) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for 2024 was $161 million, a 13$143 million in 2023, meeting the annual guidance [22][8] - Adjusted EBITDA reached a record $34.1 million, representing a 42$24.1 million in 2023 [27][8] - Net income for 2024 was $14.5 million, or$0.25 per diluted share, up 75% from $8.3 million, or$0.15 per diluted share in 2023 [26][22] - Cash generated from operations was $47.6 million, with a year-end cash balance of$78.4 million [9][8] Business Line Data and Key Metrics Changes - KEDRAB sales contributed $50 million in total sales during 2024, with a minimum commitment from Kedrion of$135 million for the remaining three years of the agreement [23][22] - CYTOGAM sales were $23 million, up 31$70 million, with gross margins improving to 43% from 39% in 2023 [24][22] Market Data and Key Metrics Changes - The company expanded its presence in the MENA region and secured a three-year contract for KAMRAB and VARIZIG in Latin America, expected to generate approximately 25 million in revenue [14][15] - The company launched its first biosimilar product in Israel in 2024, with plans for two additional launches in 2025 [15][12] Company Strategy and Development Direction - The growth strategy focuses on organic growth, business development and M&A, expansion of plasma collection operations, and advancing the inhaled AAT product trial [12][10] - The company aims to continue delivering double-digit profitable growth in 2025, with forecasted revenues of 178 million to $182 million [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's business prospects, citing strong financial results and a favorable outlook for 2025 [10][9] - The company is well-positioned to execute on its growth strategy with ample liquidity and a solid cash position [9][10] Other Important Information - A special cash dividend of$0.20 per share was declared, reflecting the company's strong financial performance and commitment to shareholder value [9][10] - The company opened a second plasma collection center in Houston and is set to open a third center in San Antonio, expected to contribute $8 million to$10 million in annual revenues each [18][17] Q&A Session Summary Question: Inquiry about the futility analysis for the inhaled AAT program - Management confirmed that the futility analysis will be blinded and conducted by an external group, focusing on conditional efficacy data [33][34] Question: Additional growth drivers for KEDRAB and CYTOGAM - Management indicated that KEDRAB's growth is driven by international expansion, while CYTOGAM will see advancements in clinical work and presentations at medical conferences [46][52] Question: Reason for declaring a special dividend - The decision was based on strong financial results and a solid cash position, allowing the company to pay dividends while pursuing business development activities [53][54] Question: Details on the third plasma collection center - The San Antonio center is expected to reach peak revenue in 24 to 30 months, collecting both specialty and normal source plasma [62][63] Question: Impact of internal plasma collection on gross margins - Management noted that using internally collected plasma will improve cost efficiencies, but it will take time to replace purchased plasma with collected plasma [82][83]