Kamada Ltd. Q4 FY2025 earnings call

• Middle East situation: operations proceeding, cargo flights resuming, no material disruption to supply.
• 2025 performance: excellent, profitable growth, revenues $180.5M, adjusted EBITDA $42M, operating cash flow $25.5M, cash $75.5M. Declared dividend of 25 cents per share.
• 2026 guidance: affirmed based on organic growth, revenues $200M-$205M, adjusted EBITDA $50M-$53M.
• Strategy: expand product portfolio, support organic growth in US and ex-US, expand distribution segment, ramp plasma collection, pursue business dev and M&A.
• CytoGAM: initiated post-marketing research program, SHIELD study for kidney transplant recipients.
• Distribution: launch 2 more biosimilars in Israel, expand to MENA region.
• Plasma centers: Houston approved, San Antonio expected H1 2026 approval, full capacity to generate $8M-$10M annual normal source plasma sales

Total revenues for 2025 were $180.5 million, a 12% year-over-year increase. Adjusted EBITDA was $42 million, up 23% year-over-year. Operating cash flow was $25.5 million. Cash at year end 2025 was $75.5 million. 2026 guidance: revenues $200 million to $205 million, adjusted EBITDA $50 million to $53 million. Kedrub: 2025 sales to Kedrion ~$54 million, firm commitment $90 million from 2026-2027. Glacia: total revenue contribution $35 million. CytoGAM: 2025 revenue decline due to increased antivirals access. Distribution: launching 2 more biosimilars in Israel, biosimilars sales $15M-$20M in 4-5 years. Plasma centers: Houston FDA approved, San Antonio expected FDA approval H1 2026, full capacity annual normal source plasma sales $8M-$10M

• Affirmed 2026 annual guidance of $200 million to $205 million in revenues and $50 million to $53 million of adjusted EBITDA, based solely on organic growth.
• Anticipates business development and M&A transactions to accelerate growth

• Middle East situation may temporarily impact Israeli exports, but no material disruption to product supply expected.
• Uncertainty regarding clinical study results for CytoGAM.
• Market competition and regulatory approval risks for new products and expansions

Q: Hi, everyone, and thanks for taking my question. Great end to the year. I want to ask a few questions. I guess the first one I want to ask about the CMV market and whether you mentioned that the reduction cytogamm was due to increased access of antivirals. Is there any change in the protocols for CMV or is there any improvement in the actual efficacy of CMV? the antivirals that would change your opportunity at all? Or is it status quo and this is just a matter of increased access and same protocols?

A: We are not aware of any change in the protocol of CMV management. We do know and we did follow some of the antivirals providers announcement that they had a strong 2025 as a result of better market access. We believe that there might be some insurers that have not covered, you know, the antivirus in the past, and now they are covering it, and this might have some effect on cytogram usage during 2025. Having said that, I would like to emphasize that we still have strongly believe in the need for Cytogram as an additional protection for the high-risk organ transplant recipients. And the work that we started doing in 2025, we believe that that medical and clinical work will show the unique properties of Cytogram and the advantages to administrate Cytogram in addition to the antivirals kind of doubling the protection against CMV infection. With that regard, I'd like also to mention that while cytogram usage during recent years was primarily for lung and heart recipients, the clinical work we are currently doing, and specifically the SHIELD study, is performed on kidney transplantation, which, as everyone knows, consists of the majority of solid organ transplant in the U.S. is over 50% of such procedures. As such, we are confident that successful results from these studies can yield a significant increase in cytogram usage.

Q: No, you're absolutely correct. The dividend payment reinforces our confidence in our business prospects, and we believe that we have sufficient funds and liquidity to continue investing in the commercial growth as well as M&A transactions while also paying dividends. We are progressing in our pursuit of M&As, and we are optimistic that we'll be able to secure such a transaction already in 2026. I'd like to remind everyone that the guidance we gave for 2026 is based on organic growth, and any potential transaction will accelerate the growth for this year.

A: Okay, and one last question, if I may. Just as far as the plasma collection, at what point should we expect gross margin benefit from the proprietary plasma collection for specialty plasma specifically? I know that the plasma centers are still in the process of getting approved by FDA, but do you have a timing on when we can expect gross margin impact?

A: Yes. So as you said, Beaumont and Houston already have been approved. San Antonio is expected to be approved within the next few months during H1 2026. We expect to start selling normal source plasma the second part of this year once the centers are approved. And in terms of specialty plasma, we expect to continue ramping up our collection, and this will start to have an effect on our gross profit starting 2027 and beyond.

Q: All right. Good afternoon. Thanks for taking the questions. Just following up on the plasma collection centers, you know, can you give us a sense on, how quickly they have been ramping up? Are they at, you know, you'd say 25% production levels right now, or 30? And how quickly do you get up to 100%?

A: We're at around between 30% to 40% ramped up. Right now, we believe it will be at full ramp by end of 2027. But, of course, during that period, we'll also start selling products normal source plasma to external parties and use our own specialty plasma for our own use.

Q: And on the distribution business, I think you indicated you have two more biosimilars that you'll introduce in 2026. Can you give us a sense on the timing? Is that a second half of the year event, or do you think those will be on the market a little bit sooner?

A: They're expected to be launched around mid-year, maybe end of Q2. So the impact will be during the second part of the year.

Q: And when those products are launched, is there initial stocking orders, or does it take a little longer for those to ramp up, sales of those products to ramp up?

A: Not material stocking. So it goes by market demand. You know, the hospitals, sick funds might buy, you know, kind of initial quantity, but, you know, it's going to be based on actual consumption in the market.

Q: And then, you know, the double-digit growth you're projecting for 2026, can you just give us a sense, is that primarily expanding into new geographies, or do you expect... that rate of growth in the U.S. as well.

A: Including in the U.S. We expected this across our entire portfolio and entire kind of geographies.

Q: Oh, and one last one. The dividend, will that be the 25 cents, the entire 25 cents be paid out in the first quarter, or will that be spread out over the year?

A: Everything will be paid one time in the second quarter.