Kamada 2026 Q3 Earnings Call

Thank you, operator. This is Brian Ritchie with LifeSci Advisors. Thank you all for participating in today's call. Joining me from Kamada are Amir London, Chief Executive Officer, and Chaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three and nine months ended September 30, 2026. If you have not received this news release, please go to the Investors page of the company's website at www.kamada.com. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements that involve risks and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Forms 20-F and six-K, which identify 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 this live broadcast, Monday, November 9, 2026. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that said, it is my pleasure to turn the call over to Amir London, CEO.

Amir? Thank you, Brian. My thanks also to our investors and analysts for your interest in Kamada and for participating in today's call.

During the third quarter of 2026, we continued with a strong operational and financial performance we demonstrated throughout the year, with double-digit growth in revenues and adjusted EBITDA for both the third quarter and the nine-month reporting periods. Based on our excellent performance, we are increasing our 2026 annual guidance, and we are projecting continued double-digit profitable growth during 2027. Total revenues for the nine-month period were a record of $152.2 million, an increase of approximately 12% year over year. Adjusted EBITDA was $40.9 million, up 20% year over year, and representing a 27% margin of revenues. Net income totaled $21.4 million, up 29% year over year.

The underlying demand for our products, especially KEDRAB in the U.S. market, as well as VARIZIG and HEPAGAM, continues to expand. We are also pleased to announce another cash dividend of $0.14 per share, for a total payment of approximately $8 million to be paid to our shareholders during the fourth quarter of this year. This is in addition to the $24.2 million dividend payments already made earlier this year, bringing the total dividend in 2026 to approximately $32.2 million. Our ability to continue paying dividends while maintaining our strong cash position and continuing to invest in commercial growth is indicative of our excellent financial and operational performance.

Based on our excellent performance, we are increasing our 2026 annual guidance to a range of $205 million-$208 million in revenues, and $52 million-$54 million of adjusted EBITDA, with the midpoint representing 14% and 26% growth respectively, compared to our 2025 results. Importantly, the significant growth we are currently experiencing is driven solely by our existing commercial product portfolio. Once we execute acquisitions and M&A transactions we pursue as part of a strategic plan, we expect this growth to accelerate even further and enhance our financial performance. As you know, Kamada's continued double-digit profitable annual growth is driven by our four strategic growth drivers. First, we are continuing to grow sales of our entire commercial portfolio, including our six FDA-approved specialty plasma-derived products. As said, the underlying demand for our products continues to increase.

Our lead product continues to be our anti-rabies immunoglobulin, KEDRAB. End-user utilization of the product in the U.S. is continuing to increase significantly, and our product supply to our distributor, Kedrion, is increasing year-over-year and beyond Kedrion's minimum commitment. During our third quarter, we confirmed that we are maintaining sufficient KEDRAB supply and manufacturing capacity to meet the increased demand for the product in the U.S. in response to a health advisory published by the CDC. We have both an inventory and the manufacturing capacity to support the increased demand for the product, which is one of only two FDA-approved anti-rabies immunoglobulin indicated for post-exposure prophylactic treatment. In addition to our significant market share in the U.S., we continue to grow sales of KAMRAB in leading international markets such as Canada, Latin America, and Israel.

GLASSIA, our Alpha-1 product, is also advancing well with revenue contribution driven by our growing product sales in ex-U.S. markets such as Argentina, Russia, Switzerland, and Israel, as well as additional markets mainly in Latin America, and the royalty income generated from several products by Takeda in the U.S. and Canada. We continue to support the comprehensive post-marketing research program for CYTOGAM, our anti-CMV immunoglobulin, which we launched last year, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. With respect to VARIZIG, our anti-varicella-zoster immunoglobulin, and HEPAGAM, our hepatitis B immunoglobulin, we are experiencing strong market demand for these products, resulting among other things from our product awareness activities in the U.S. market.

In our distribution segment, growth is supported by the launch of additional biosimilar products in the Israeli market, as well as the expansion of the distribution business to the MENA region, which is already ongoing with new distribution agreements being signed and product registrations submitted to local health authorities. During our third quarter, we announced the expansion of our biosimilar portfolio with the commercial launch of two additional new products in Israel. The two newly launched biosimilar products are Ustekinumab-Kamada, a biosimilar to Stelara, and Enoxaparin-Kamada, a biosimilar to Clexane. We expect our biosimilar product portfolio to generate approximately $10 million in annual revenues in 2028, growing to approximately $20 million-$25 million in annual revenues by 2030. We also expect to launch at least two additional biosimilar products next year. Turning to our plasma collection operation.

As you know, in July, we announced a three-year sales agreement of approximately $50 million to supply normal source plasma to a leading biopharmaceutical company focused on plasma-derived therapies. This agreement validates our plasma collection strategy and the investments we made in our U.S.-based state-of-the-art plasma collection centers, as well as our vertical integration strategy and multi-year revenue growth objectives. Initial commercial sales under this agreement will be recorded in the current quarter and have already been included in our current annual guidance. Lastly, securing new business development and M&A opportunities remains a core focus, and as already said, we are committed to expanding our current commercial portfolio and accelerating our current double-digit organic growth.

Before I turn the call over to Chaime for a detailed discussion of our financial results, I would like to emphasize that for the remainder of 2026 and into 2027, our focus continues to be on the profitable growth of our entire commercial portfolio, leveraging our multiple growth engines. While the detailed financial guidance for 2027 will be provided in January, I can already share our projection that 2027 will be another year of double-digit growth in revenues and profitability. With that, I now turn the call over to Chaime.

Thank you, Amir. As Amir stated at the top of the call, we continue our record year. Total revenues were $52 million for the third quarter of 2026, up 11% compared to the third quarter of 2025. For the first nine months of 2026, total revenues were $152.2 million, a 12% increase from the $135.8 million generated in the first nine months of 2025. The increase in revenues was primarily attributable to increased sales of KEDRAB, VARIZIG, and HEPAGAM, as well as growth in the distribution segment, where revenues increased 35% to a total of $24.1 million. Gross profit and gross margins were $23.3 million and 45% in the third quarter of 2026. The increase in gross profit and gross margins was primarily attributable to higher gross margins of our proprietary products due to improved product and market sales mix.

For the first nine months of 2026, gross profit and gross margins were $64.9 million and 43%, compared to $59.4 million and 44% in the first nine months of 2025. Operating expenses, including R&D, sales and marketing, G&A, and other expenses, totaled $13 million in the third quarter of 2026 and $38.1 million for the first nine months of 2026. The increase was primarily due to higher G&A and S&M expenses in support of the company's expanded commercial operations. Net income was $8 million or $0.14 per diluted share in the third quarter of 2026, up 51% compared to the third quarter of 2025. Net income for the first nine months was $21.4 million or $0.37 per diluted share, up 29% year-over-year. Adjusted EBITDA was $15.2 million in the third quarter, up 30%, and indicative of 29% margin of revenues.