Kamada Ltd. Q1 FY2026 earnings call

• Core Commercial Specialty Products Portfolio Expansion

• Kedrub (anti-REBIS immunoglobulin, lead product): End-user utilization in the U.S. continues to increase significantly, with product supply expected to exceed Kedrion's minimum $90 million sales commitment for 2026-2027 under the agreement running through 2031. Sales are also growing in Canada, Latin America, Australia, and Israel.
• Glassia (second leading franchise): Revenue growth comes from expanding ex-U.S. sales and royalty income from Takeda's U.S. and Canadian sales. Growth is driven by growing patient outreach for underdiagnosed AAT deficiency, with new international registration and launch opportunities being explored.
• CytoGum (anti-CMV immunoglobulin): A comprehensive post-marketing research program led by key opinion leaders is underway to demonstrate product benefits. The SHIELD study is enrolling patients to test late CMV risk reduction in high-risk kidney transplant recipients, and recent retrospective data presented at ISHLT 2026 links CytoGum prophylaxis to better outcomes for high-risk lung transplant recipients, with all generated data expected to drive increased utilization.
• Varizig (anti-Varicella zoster immunoglobulin): Strong demand is being experienced across the U.S. and Latin America, driven by awareness campaigns and increased chickenpox outbreaks.

• Distribution Business Expansion

• The segment is targeting growth via new biosimilar launches in Israel and expansion into the MENA region. Two additional biosimilars will launch by early Q3 2026, following three already launched, bringing the total biosimilar portfolio to five by end-2026. Management projects annual biosimilar sales will reach $15 million to $20 million within 4-5 years, making the segment an increasingly large revenue contributor. The company currently distributes ~40 total products in Israel, with that number expected to reach ~45 by end-2026. Multiple distribution agreements have been signed for MENA, with product registration ongoing and the first launches expected in H2 2026 to 2027.

• Plasma Collection Operations

• The company's new San Antonio, Texas plasma collection center received FDA approval in March 2026 and is cleared for commercial normal source plasma sales. The company will now seek EMA approval for both the Houston and San Antonio centers. Each center is expected to generate $8 million to $10 million in annual normal source plasma revenue at full capacity, with commercial sales expected to begin in H2 2026. Full capacity for both centers is expected by end-2027 to early 2028. The Beaumont center already collects specialty plasma, and normal source and specialty collection programs run in parallel at new centers to support vertical integration, lower plasma costs, and add new revenue.

• Business Development & M&A

• Management continues to actively evaluate compelling M&A and new business development opportunities that can expand the existing marketed product portfolio, create synergies with current commercial operations, and support long-term profitable growth. Management is hopeful a transaction will be secured in the near term.

• Capital Return

• A $0.25 per share dividend totaling ~$14.4 million was paid in April 2026, in line with the board's policy to distribute at least 50% of annual net income as dividend, subject to board discretion and regulatory requirements.

Total Q1 2026 revenues came in at $42.5 million, a 3% decrease year-over-year from $44 million in Q1 2025, impacted by a temporary delayed $2.4 million shipment delivered in April 2026. Gross profit was $19.1 million (42% gross margin), down from $20.7 million (47% gross margin) in Q1 2025, with the margin decline driven by product and market sales mix. Operating expenses totaled $12.1 million, down from $13 million in the prior year period, as lower R&D expenses (from the terminated Phase III Innovate trial) offset higher sales, marketing and G&A investments. Net income was $4.1 million (7 cents per diluted share), a 4% increase from $4 million (7 cents per diluted share) in Q1 2025. Adjusted EBITDA was $11.6 million, flat year-over-year. Revenue growth was primarily driven by increased sales of Kedrion and growth in the distribution segment, with underlying product demand continuing to increase overall.

• Management reaffirmed its full-year 2026 guidance, maintaining the prior revenue range of $200 million to $205 million and adjusted EBITDA range of $50 million to $53 million. This guidance represents 12% revenue growth and 23% adjusted EBITDA growth at the midpoint compared to 2025 full-year results, and is based solely on organic growth excluding any potential M&A contributions.

• Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from expectations, with specific risk factors detailed in the company's SEC filings (Forms 20F and 6K). • Geopolitical instability in the Middle East caused a temporary shipment delay that reduced Q1 2026 revenue by ~$2.4 million, highlighting ongoing supply chain disruption risk from regional conflict.

Q: What was the revenue impact of the delayed shipment, what product was it, and is there meaningful seasonality for Kedrub and Varizig that investors should expect? / A: The delayed shipment was a $2.4 million order for a proprietary product bound for an ex-U.S. territory, delayed by limited flights to the region caused by Middle East conflict; the order was delivered in April 2026. There is minor seasonality for Kedrub, as rabies exposure demand rises in summer, but as a B2B supplier to Kedrion which holds inventory, Kamada sees very little seasonality impact. Varizig has minimal seasonality, with demand driven primarily by chickenpox outbreaks rather than consistent seasonal fluctuations. (281 characters)

Q: How many distribution products does Kamada currently have approved in Israel, how much of Q1 distribution growth came from new product additions, and when will normal source plasma sales start? / A: Kamada currently has ~40 approved products distributed in Israel, serving over 20 international partners, and that number will reach ~45 by end-2026 after two new biosimilar launches. Three biosimilars are already on market, with two more launching in the coming weeks. Q1 distribution growth came across the entire existing portfolio, not just new products. Normal source plasma sales will start in H2 2026, after FDA approval; new centers start with normal source collection before adding specialty collection programs, which run in parallel. (367 characters)

Q: When will the Houston and San Antonio plasma collection centers reach full planned capacity? / A: Both centers are expected to reach their full planned collection capacity by the end of 2027 to early 2028. Normal source plasma will hit full capacity around this time, and specialty plasma collection will continue to scale up gradually by adding new donors over this period. (168 characters)

Q: What current trends are impacting CytoGum performance right now? / A: The main challenge CytoGum has faced since acquisition is a lack of recent clinical data to support its use for high-risk transplant patients. Kamada is investing in a post-marketing clinical program to generate new data highlighting the product's clinical benefits, with positive recent data presented at the 2026 ISHLT conference. Management expects this new clinical data will drive increased product utilization over time. (224 characters)