Analyst Andrew Fein of H.C. Wainwright reiterated a Buy rating on Kamada (KMDA – Research Report), retaining the price target of $11.00.
Andrew Fein has given his Buy rating due to a combination of factors influencing Kamada’s prospects. The potential for an expedited Phase 3 InnovAATe trial for inhaled AAT therapy, contingent on FDA feedback, is a primary driver. The proposed adjustment to the trial’s statistical plan could lead to faster patient enrollment and a decreased sample size, which would be advantageous for the company. Additionally, the company’s search for a partnership is seen as a positive step that may enhance commercial capabilities for their AATD treatment. Fein also notes prior positive guidance from the EMA, the encouraging safety profile of the therapy, and the FDA’s acceptance of an open-label extension study, underlining the significance of AATD treatment as a key driver for growth, which supports the Buy rating and a $11 price target.
Kamada’s near-term growth is further supported by key products, Cytogam and Kedrab, and their impressive financial performance, including a 23% year-over-year increase in total revenues and a 96% increase in adjusted EBITDA in the first quarter. The growth is attributed to factors such as heightened demand for Cytogam due to its demonstrated survival benefits, increased sales of Kedrab following a revised distribution agreement, and the expansion of Kamada’s Israeli distribution business with the launch of its first biosimilar. The expectation of continued double-digit revenue growth, the launch of additional biosimilars, and contributions from the Israeli distribution business and international product sales further support the positive outlook for Kamada, substantiating Fein’s Buy recommendation.
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Kamada (KMDA) Company Description:
Kamada Ltd. engages in the development and production of pharmaceutical products. It operates through the Proprietary Products segment and the Distribution segment. The Proprietary Products segment covers the development, manufacture, and sale of plasma-derived protein therapeutics products. The Distribution segment covers the supply of plasma-based products for clinical use. The company was founded by David Tsur and Ralf Hahn on December 13, 1990 and is headquartered in Rehovot, Israel.
