Kamada Ltd. Q3 FY2024 earnings call

• Four pillars of profitable growth strategy are successfully reflected in financial results. - Organic growth of existing commercial portfolio of 6 FDA-approved products. - Business development and M&A transactions expected to support growth. - Opened new plasma collection center in Houston, Texas; construction of third center in San Antonio, Texas to open in first half of 2025. - Ongoing Phase 3 InnovAATe trial for inhaled AAT product; enrollment at around 50%, partnering discussions ongoing. - Launched first biosimilar product in Israel, expect next biosimilar launch in a few weeks, with biosimilars expected to be an increasingly important portion of distribution business with peak potential annual sales of $30 million to $34 million. - Strong balance sheet with $72 million in cash as of September 30, 2024, to accelerate growth and pursue business development opportunities. - Progress on preclinical pipeline, including plasma eye drops program.

For the third quarter of 2024, total revenues were $41.7 million, a 10% increase compared to the same period in 2023. Adjusted EBITDA for the third quarter was $8.8 million, an 11% increase compared to the third quarter of 2023. For the first 9 months of 2024, total revenues were $121.9 million, up 15% over the prior year period, and adjusted EBITDA was $25.4 million, up 43% over the prior year 9 months, representing a 21% margin of revenue. Approximately 60% of revenues during the first 9 months of 2024 were generated by sales in the U.S. market. The increase in revenues was primarily attributable to increased sales of KEDRAB and CYTOGAM due to increased demand in the market, and gross profitability improved due to the improved product sales mix through these two most profitable products.

• Increased adjusted EBITDA guidance to between $32 million to $35 million, a 12% increase of the midpoint from previous guidance. - Reiterated full year revenue guidance of $158 million to $162 million. - Generated $37.2 million of cash provided by operating activities in the first 9 months of 2024, demonstrating ability to convert adjusted EBITDA to operational cash flow. - Expect continued double-digit growth beyond 2024.

Q: Can you provide a breakdown of KEDRAB and CYTOGAM? What is your expectation now for max share of KEDRAB? What is driving EBITDA expansion?

A: Both KEDRAB and CYTOGAM are growing significantly. Believe KEDRAB market share is between 40% to 50% with room to grow. EBITDA is driven by economy of scales, efficiency in operation, and sales mix with more sales of higher profitable products like KEDRAB and CYTOGAM.

Q: Any update on the percent of enrollment for InnovAATe trial? Any progress on a partnership discussion?

A: Around 50% of enrollment. FDA discussion ongoing regarding p-value and sample size. Partnering discussions are ongoing, looking for the right transaction or partner for Kamada.

Q: Is there any progress on the preclinical pipeline and building that out to get some more programs into the clinic?

A: Yes, on the preclinical pipeline. Making progress on the plasma eye drops program.

Q: Talk about your sort of ultimate goal with the plasma collection business now that we've got a couple of months of the Houston center open.

A: Highly satisfied with Houston center's opening and plasma collection growth. On track with San Antonio center opening in early 2025. Centers will collect specialty plasma for internal use and normal source plasma to be sold to third parties. Plan to complete these centers and then decide on additional centers in the future.

Q: Can you provide a high-level outlook for 2025?

A: Expect double-digit top line and bottom line growth to continue next year and beyond, as executing to plan and even beyond, with support from profitable growth strategy and business development opportunities.