Kamada Ltd 2026 Q2 Earnings Call

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 six months ended June 30, 2026. If you have not received this news release, please go to the investor's 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 6-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 the live broadcast, Wednesday, August 12, 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's my pleasure to turn the call over to Amir London, CEO.

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

I'm pleased to report that we continue to execute on our strategic multi-year growth plan, delivering record high operational and financial performance during the first half of 2026, with strong double-digit growth in revenues and adjusted EBITDA for both the six months and second quarter reporting periods. Before proceeding to the specifics, I'd like to point out that when examining and analyzing the company performance during recent months and without future binary events, it's clear that the company growth strategy model, based on our well-defined four growth pillars, is working effectively. We are seeing growth and improvement across all financial metrics, including expanded sales and revenues, operational synergies and disciplined management of expenses, enhanced profitability and EBITDA, and a strengthened ability to generate cash from operation.

It's important to note that the significant growth we are currently experiencing is driven solely by our existing commercial product portfolio, organic growth, and that once we execute the acquisitions and M&A transactions that are also part of our strategic plan, this growth will accelerate even further, resulting in enhanced financial metrics. With that said, let's move on now to our first six months performance. Total revenues were a record high of $100.2 million for the first half, an increase of approximately 13% year-over-year. Adjusted EBITDA was a record high of $25.7 million, up 14% year-over-year, and representing a notable 26% margin of revenues. For the second quarter of the year, total revenues were $54.9 million, the strongest in our history, and representing a 23% year-over-year increase. Adjusted EBITDA was $14.1 million, up 29% year-over-year, and representing a 26% margin of revenues.

Net income for the first half was $13.4 million and 18% up year-over-year, and second quarter net income was $9.3 million, up 26% year-over-year. Our revenues and adjusted EBITDA for the first six months of the year represent approximately 50% of our 2026 annual guidance. Based on our first half performance, we are reiterating our 2026 annual guidance of $200 million to $205 million in revenues and $50 million to $53 million of adjusted EBITDA, respectively representing 12% and 23% growth when comparing 2026 guidance midpoints to 2025 results. As described on previous calls, we continue to be focused on our four growth drivers on a path for delivering continuous double-digit profitable annual growth. We are focused on continuing sales growth of our entire commercial portfolio, including our six FDA-approved specialty plasma-derived products.

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 ongoing with new distribution agreements being signed. We continue to ramp up plasma collection at our Texas-based facilities in support of our new three-year, $50 million supply agreement and expect to commence plasma sales by year-end. Lastly, securing new business development and M&A opportunities remains a core focus. As already said, we are committed to expanding our current commercial portfolio and accelerating our current double-digit organic growth. The underlying demand for our products, including for KEDRAB in the U.S. market, as well as VARIZIG and HepaGam B, continues to increase. Our lead product continues to be our anti-rabies immunoglobulin, KEDRAB, which is being distributed in the U.S. through our collaboration with Kedrion.

End-user utilization of the product in the U.S. is continuing to increase significantly, and our product supply to Kedrion is increasing year-over-year and beyond Kedrion contractual minimum commitment. In addition to a 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 represents our second-leading franchise, with revenue contribution driven by our growing product sales in ex-U.S. markets such as Argentina, Russia, Israel, Switzerland, as well as additional markets, mainly in Latin America, as well as royalty income generated from sale of the product by Takeda in the U.S. and Canada. We continue to support the comprehensive post-marketing research program for CYTOGAM, which we launched last year, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease.

This program was developed in collaboration with leading key opinion leaders to explore advancement of novel CMV disease management. The benefits of this program were recently highlighted by the presentation of data by Dr. Daniel Calabrese, Assistant Professor of Medicine at the UCSF Lung Transplant Programs at the 2026 International Society for Heart and Lung Transplantation Annual Meeting. Findings presented by Dr. Calabrese, based on analysis of CMV high-risk lung transplant recipients, suggest CYTOGAM use is associated with improved clinical outcomes, supporting increased CYTOGAM utilization. In addition, patients continue to be enrolled in the investigator-initiated trial titled the SHIELD study, which is a prospective randomized controlled multi-center study in CMV high-risk kidney transplant recipients.

The trial is investigating the benefit of CYTOGAM administered at the conclusion of antiviral prophylaxis to reduce the risk of clinically significant late CMV in kidney transplant recipients who are CMV seronegative and have a CMV seropositive donor. We believe that the data generated by this study will support increased product utilization for CYTOGAM in the large population of kidney transplant recipients. With respect to VARIZIG, our anti-varicella zoster immunoglobulin, and HepaGam B, 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. As for our distribution operation, as part of activities to advance organic growth, we already have two biosimilar products launched in the Israeli market, and we are on track to launch two other products during this quarter.

We have other biosimilar products in the pipeline to be launched in the coming years, and additional in-licensing agreements are in process. We believe that this portfolio will become an increasingly important portion of our distribution business, with biosimilar annual sales of between $15 million to $20 million within the next few years. We are also continuing to advance expansion of our distribution activity to the MENA region. We have recently entered into several distribution agreements and initiated activities to register the underlying product with local authorities. We continue to engage in discussion with additional international companies, offering them full service from registration all the way to commercialization. In July, we were very pleased to announce our three-year, $50 million sales agreement, the first of its kind, to supply normal source plasma to a leading biopharmaceutical company focused on plasma-derived therapies.

This agreement validates our plasma collection strategy and the investment 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. We expect that initial commercial sales under this agreement will be recorded in the fourth quarter of this year and have included these projected revenues in our current annual guidance. Moving to business development and M&A. We continue to evaluate opportunities to enrich our portfolio of marketed products and complement our existing commercial operation. This remains a core focus, and we are committed to expanding our current commercial portfolio, accelerating our long-term profitable growth. With that, I turn the call over to Chaime for a detailed discussion of our financial results. Chaime, please go ahead. Thank you, Amir.

As Amir stated at the top of the call, we're recording record-high financial results for the first six months and second quarter of 2026. Total revenues for the first six months of 2026 was $100.2 million, a 13% increase from the $88.8 million generated in the first six months of 2025. The increase in revenues primarily attributable to increased sales of KEDRAB in the U.S. market, as well as VARIZIG and HepaGam B. Total revenues for the first six months of 2026 are at approximately 50% of the midpoint of our 2026 annual guidance. As an anecdote, approximately five years ago, we reported $103 million in total revenues for the full year ended December 31, 2021. Now we're reporting a similar revenue figure for the first six months. This is a strong indication of the company's significant growth track.