Kamada Ltd ((IL:KMDA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Kamada Ltd’s recent earnings call conveyed a generally positive sentiment, underscoring the company’s robust revenue and EBITDA growth, alongside increased financial guidance. The call highlighted successful strategic initiatives, including biosimilar launches and plasma center expansion. However, challenges such as a decrease in gross profit margin and tax rate fluctuations were noted as areas requiring attention.
Strong Revenue and EBITDA Growth
Kamada Ltd reported impressive financial results for the first half of 2025, with total revenues reaching $88.8 million, marking an 11% increase year-over-year. The adjusted EBITDA for this period was $22.5 million, reflecting a 35% rise compared to the previous year. In the second quarter alone, revenues were $44.8 million, a 5% increase from the prior year, and adjusted EBITDA was $10.9 million, up 20% year-over-year.
Positive Outlook and Increased Guidance
The company expressed a positive outlook, increasing its adjusted EBITDA guidance to between $40 million and $44 million, while reiterating its annual revenue guidance of $178 million to $182 million. This updated guidance suggests a 12% increase in revenues and a 23% increase in adjusted EBITDA over 2024 results.
Innovative Post-Marketing Research Program for CYTOGAM
Kamada has initiated a comprehensive post-marketing research program for CYTOGAM, aimed at demonstrating its advantages in CMV disease management. This initiative is expected to drive additional organic growth for the company.
Successful Biosimilar Launches
Following a successful biosimilar launch in Israel last year, Kamada plans to launch two additional biosimilars later this year. The company aims for annual sales of $15 million to $20 million within the next five years from these launches.
FDA Approval for Plasma Collection Center
The U.S. FDA has approved a new plasma collection center in Houston, Texas, with an annual collection capacity of approximately 50,000 liters of plasma. This facility is expected to generate annual revenues of between $8 million and $10 million at full capacity.
Decrease in Gross Profit Margin
The company experienced a decrease in gross profit margins, which fell to 42% in the second quarter of 2025 from 45% in the same quarter of 2024. This decline was attributed to changes in product and territory sales mix.
Tax Rate Fluctuations
Kamada faced tax rate fluctuations due to currency exchange changes and anticipates moving into tax payments once tax loss carryforwards are utilized. The company projects a future tax rate of 20%-25%.
Forward-Looking Guidance
Kamada’s forward-looking guidance remains optimistic, with expectations of robust financial performance driven by increased sales of GLASSIA and VARIZIG, a diverse product portfolio, and disciplined expense management. The company also plans to enhance its portfolio through active business development and M&A strategies, exploring opportunities in the plasma collection and specialty pharma sectors.
In summary, Kamada Ltd’s earnings call reflected a positive outlook, with strong financial performance and strategic initiatives paving the way for future growth. While challenges such as decreasing gross profit margins and tax rate fluctuations exist, the company’s proactive measures and increased guidance highlight its commitment to continued success.