Kamada (KMDA) Q3 2026 Earnings Call Transcript

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DATE

Monday, Nov. 9, 2026

CALL PARTICIPANTS

• Chief Executive Officer - Amir London
• Chief Financial Officer - Chaime Orlev

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TAKEAWAYS

• Total Revenue -- $52 million for the third quarter, increasing 11% year over year driven by KEDRAB utilization and distribution segment growth.
• Adjusted EBITDA -- $15.2 million for the quarter, representing a 30% increase year over year and a 29% margin.
• Net Income -- $8 million for the third quarter, representing 51% growth year over year and $0.14 per diluted share.
• 2026 Revenue Guidance -- $205 million to $208 million, representing an increase from the previous range of $200 million to $205 million.
• 2026 Adjusted EBITDA Guidance -- $52 million to $54 million, up from the prior range of $50 million to $53 million.
• Distribution Segment Revenue -- $24.1 million for the first nine months, a 35% increase year over year supported by biosimilar launches in Israel.
• Operating Cash Flow -- $37.6 million for the first nine months, compared to $17.9 million in the prior-year period, reflecting the company's ability to convert profitability into cash.
• Cash and Short-Term Investments -- $75.3 million as of Sept. 30, following the payment of $24.2 million in dividends earlier in the year.
• KEDRAB Market Share -- At least 50% in the U.S. market, supported by manufacturing capacity and inventory prepared for increased demand following a CDC health advisory.
• Plasma Supply Agreement -- $50 million over three years to supply normal source plasma, with initial commercial sales starting in the current quarter.
• Biosimilar Revenue Guidance -- $10 million annually by 2028 and $20 million to $25 million by 2030, following the commercial launch of Ustekinumab-Kamada and Enoxaparin-Kamada.
• Dividend Payments -- $0.14 per share declared for the fourth quarter, bringing the total dividend payments in 2026 to $32.3 million.
• Gross Margins -- 45% for the third quarter, an increase from 42% last year due to improved product and market sales mix for proprietary products.
• Operating Expenses -- $13 million in the third quarter, rising from $11.9 million due to expanded commercial operations and higher administrative costs.
• Nine-Month Net Income -- $21.4 million, representing 29% year-over-year growth and $0.37 per diluted share.
• Nine-Month Adjusted EBITDA -- $40.9 million, up 20% year over year with a 27% revenue margin.
• Nine-Month Revenue -- $152.2 million, a 12% increase year over year driven by KEDRAB, VARIZIG, and HEPAGAM B.
• 2027 Financial Projections -- Double-digit growth projected for both revenues and profitability, according to management's preliminary multiyear growth plan.
• Biosimilar Pipeline -- At least two additional biosimilar products are scheduled for commercial launch in the Israeli market next year.
• Plasma Collection Centers -- Three FDA-approved centers operating in Beaumont, Houston, and San Antonio, Texas, to support vertical integration and hyper-immune plasma collection.

SUMMARY

Kamada Ltd. (NASDAQ:KMDA) reported record financial results for the first nine months of 2026, driven by increased demand for its specialty plasma portfolio and expansion in its distribution segment. Management raised full-year 2026 guidance and projected continued double-digit growth for 2027. The company's vertical integration strategy progressed with a new plasma supply agreement and the commercial launch of biosimilars in the Israeli market. Management stated that current growth is driven by the organic portfolio, while future mergers and acquisitions are expected to provide further acceleration.

• CEO London noted that end-user utilization of KEDRAB in the U.S. is "increasing significantly" and product supply to distributor Kedrion is currently exceeding minimum commitments.
• Management stated that the $50 million plasma agreement validates the company's "vertical integration strategy and multiyear revenue growth objectives" for its Texas-based collection centers.
• The company expects its biosimilar portfolio, which includes products from Alvotech, to reach $20 million to $25 million in annual revenue by 2030.
• Amir London indicated that financial benefits from vertical integration, such as the use of specialty plasma in proprietary manufacturing, will be realized in future periods following the completion of validation batches.
• The company is expanding its distribution segment beyond the Israeli market into the MENA region, with initial distribution agreements already signed and product registrations submitted to local health authorities.

INDUSTRY GLOSSARY

• AATD: Alpha-1 Antitrypsin Deficiency, a genetic condition that may result in serious lung or liver disease.
• Biosimilar: A biologic medical product highly similar to another already approved biological medicine.
• CYTOGAM: An anti-CMV immunoglobulin indicated for the prophylaxis of cytomegalovirus disease associated with solid organ transplants.
• GLASSIA: An intravenous treatment for adults with clinically evident emphysema due to severe hereditary deficiency of Alpha-1 antitrypsin.
• HEPAGAM B: A hepatitis B immune globulin used for the prevention of hepatitis B recurrence following liver transplantation.
• KEDRAB: A human rabies immune globulin indicated for post-exposure prophylaxis of rabies infection.
• MENA: Middle East and North Africa, a geographic region targeted for the company's distribution expansion.
• Normal Source Plasma: Human plasma used for fractionation into various protein-based therapies.
• VARIZIG: A varicella zoster immune globulin indicated for post-exposure prophylaxis of chickenpox in high-risk patients.
• WINRHO SDF: An immune globulin used for the treatment of immune thrombocytopenic purpura and suppression of Rhesus isoimmunization.

Full Conference Call Transcript

Operator: Greetings, and welcome to the Kamada Limited Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian Ritchie, Managing Director of LifeSci Advisors. You may begin.

Brian Ritchie: Thank you, Operator. This is Brian Ritchie with LifeSci Advisors. Thank you all for participating in today's call. Joining me from Kamada are Amir London, Chief Executive Officer, and Chaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the 3 and 9 months ended September 30, 2026. If you have not received this news release, please go to the Investors page of the company's website at kamada.com. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements that involve risks and uncertainties regarding the operations and future results of Kamada.

I encourage you to review the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Forms 20-F and 6-K, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, Monday, November 9, 2026. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that said, it is my pleasure to turn the call over to Amir London, CEO. Amir.

Amir London: Thank you, Brian. My thanks also to our investors and analysts for your interest in Kamada and for participating in today's call. During the third quarter of 2026, we continued with the strong operational and financial performance we demonstrated throughout the year, with double-digit growth in revenues and adjusted EBITDA for both the third quarter and the 9-month reporting period. Based on our excellent performance, we are increasing our 2026 annual guidance, and we are projecting continued double-digit profitable growth during 2027. Total revenues for the 9-month period were a record of $152.2 million, an increase of approximately 12% year-over-year.

Adjusted EBITDA was $40.9 million, up 20% year-over-year, and representing a 27% margin of revenues, and net income totaled $21.4 million, up 29% year-over-year. The underlying demand for our products, especially KEDRAB in the U.S. market, as well as VARIZIG and HEPAGAM, continues to expand. We are also pleased to announce another cash dividend of $0.14 per share for a total payment of approximately $8 million to be paid to our shareholders during the fourth quarter of this year. This is in addition to the $24.2 million dividend payments already made earlier this year, bringing the total dividend in 2026 to approximately $32.3 million.

Our ability to continue paying dividends while maintaining our strong cash position and continuing to invest in commercial growth is indicative of our excellent financial and operational performance. Based on our excellent performance, we are increasing our 2026 annual guidance to a range of $205 million to $208 million in revenues, and $52 million to $54 million of adjusted EBITDA, with the midpoints representing 14% and 26% growth, respectively, compared to our 2025 results. Importantly, the significant growth we are currently experiencing is driven solely by our existing commercial product portfolio. Once we execute acquisitions and M&A transactions we pursue as part of a strategic plan, we expect this growth to accelerate even further and enhance our financial performance.

As you know, Kamada's continued double-digit profitable annual growth is driven by our 4 strategic growth drivers. First, we are continuing to grow sales of our entire commercial portfolio, including our 6 FDA-approved specialty plasma-derived products. As said, the underlying demand for our products continues to increase. Our lead product continues to be our anti-rabies immunoglobulin, KEDRAB. End-user utilization of the product in the U.S. is continuing to increase significantly, and our product supply to our distributor, Kedrion, is increasing year-over-year and beyond Kedrion's minimum commitment.

During our third quarter, we confirmed that we are maintaining sufficient KEDRAB supply and manufacturing capacity to meet the increased demand for the product in the U.S. in response to a health advisory published by the CDC. We have both the inventory and the manufacturing capacity to support the increased demand for the product, which is 1 of only 2 FDA-approved anti-rabies immunoglobulins indicated for post-exposure prophylactic treatment. In addition to our significant market share in the U.S., we continue to grow sales of KAMRAB in leading international markets such as Canada, Latin America, and Israel.

GLASSIA, our Alpha-1 product, is also advancing well with revenue contribution driven by our growing product sales in ex-U.S. markets such as Argentina, Russia, Switzerland, and Israel, as well as additional markets mainly in Latin America, and income generated from sales of our products by Takeda in the U.S. and Canada. We continue to support the comprehensive post-marketing research program for CYTOGAM, our anti-CMV immunoglobulin, which we launched last year, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease.

With respect to VARIZIG, our anti-varicella zoster immunoglobulin, and HEPAGAM B, our hepatitis B immunoglobulin, we are experiencing strong market demand for these products, resulting, among other things, from our product awareness activities in the U.S. market. In our distribution segment, growth is supported by the launch of additional biosimilar products in the Israeli market, as well as expansion of the distribution business to the MENA region, which is already ongoing, with new distribution agreements being signed and product registrations submitted to local health authorities. In the third quarter, we announced expansion of our biosimilar portfolio with the commercial launch of 2 additional new products in Israel.

The 2 newly launched biosimilar products are Ustekinumab-Kamada, a biosimilar to Stelara, and Enoxaparin-Kamada, a biosimilar to Clexane. We expect our biosimilar portfolio to generate approximately $10 million in annual revenues in 2028, growing to approximately $20 million to $25 million in annual revenues by 2030. We also expect to launch at least 2 additional biosimilar products next year. Turning to our plasma collection operation. As you know, in July we announced a 3-year sales agreement of approximately $50 million to supply normal source plasma to a leading biopharmaceutical company focused on plasma-derived therapy.

This agreement validates our plasma collection strategy and the investment we made in our U.S.-based, state-of-the-art plasma collection centers, as well as our vertical integration strategy and multi-year revenue growth objectives. Initial commercial sales under this agreement will be recorded in the current quarter and have already been included in our current annual guidance. Lastly, securing new business development and M&A opportunities remains a core focus. And as already said, we are committed to expanding our current commercial portfolio and accelerating our current double-digit organic growth.

Before I turn the call over to Chaime for a detailed discussion of our financial results, I'd like to emphasize that for the remainder of 2026 and into 2027, our focus continues to be on the profitable growth of our entire commercial portfolio, leveraging our multiple growth engines. While the detailed financial guidance for 2027 will be provided in January, I can already share our projection that 2027 will be another year of double-digit growth in revenues and profitability. With that, I now turn the call over to Chaime.

Chaime Orlev: Thank you, Amir. As Amir stated at the top of the call, we continue our record year. Total revenues were $52 million for the third quarter of 2026, up 11% compared to the third quarter of 2025. For the first 9 months of '26, total revenues were $152.2 million, a 12% increase from the $135.8 million generated in the first 9 months of 2025. The increase in revenues was primarily attributable to increased sales of KEDRAB, VARIZIG, and HEPAGAM B, as well as growth in the distribution segment, where revenues increased 35% to a total of $24.1 million. Gross profit and gross margins were $23.3 million and 45% in the third quarter of 2026.

The increase in gross profit and gross margins was primarily attributable to higher gross margins of our proprietary products due to improved product and market sales mix. For the first 9 months of 2026, gross profit and gross margins were $64.9 million and 43% compared to $59.4 million and 44% in the first 9 months of 2025. Operating expenses including R&D, sales and marketing, G&A, and other expenses totaled $13 million in the third quarter of 2026 and $38.1 million for the first 9 months of 2026. The increase was primarily due to higher G&A and S&M expenses in support of the company's expanded commercial operations.

Net income was $8 million or $0.14 per diluted share in the third quarter of 2026, up 51% compared to the third quarter of 2025. Net income for the first 9 months was $21.4 million, or $0.37 per diluted share, up 29% year-over-year. Adjusted EBITDA was $15.2 million in the third quarter, up 30%, and indicative of a 29% margin of revenues. For the first 9 months of 2026, adjusted EBITDA was $40.9 million, a 20% increase year-over-year, and represents a 27% margin of revenue. The increase in adjusted EBITDA is the outcome of our continued commercial growth.

Cash provided by operating activities during the first 9 months of 2026 was approximately $37.6 million compared to $17.9 million during the first 9 months of 2025. The increase in operating cash flow is indicative of Kamada's ability to continue and convert its profitability into cash flows. As of September 30, 2026, cash and cash equivalents and short-term investments were $75.3 million compared to $75.5 million at the end of 2025. During the first 9 months of 2026, we made total dividend payments of $24.4 million (sic) [ $24.2 million ]. Our ability to maintain a strong cash position while making these dividend payments is another indication of our ability to convert increased profitability into cash flow.

With that, we will open the call for questions. Operator?

Operator: [Operator Instructions] The first question is from Annabel Samimy from Stifel.

Annabel Samimy: Congratulations on a strong quarter. I want to ask about KEDRAB first. Obviously, growth has been pretty solid based on the CDC reports and the recent trends. Is there any contemplation of expansion of the Kedrion agreement? Is this going to be -- is this rabies issue going to be a persistent problem, or are they comfortable with the level of manufacturing they have right now? Separately, on margin expansion, obviously that's been very solid too. Can you confirm whether this is with or without the benefit of your proprietary specialty plasma? And if it's not, is it primarily driven from improvement in distribution margins due to biosimilars? And I guess the last question is on business development.

Can you talk about the competitive landscape? Has it become more challenging, or is there just a lack of appropriate assets, in your opinion?

Amir London: Thank you, Annabel. I'll try to answer the questions one by one. So, KEDRAB, yes, there is a significant, solid growth of the product demand in the U.S. We believe that we are with at least 50% market share, and as the CDC have detailed earlier this year, there's been an overall growth in product -- anti-rabies immunoglobulin utilization in the U.S. market. We are equipped with sufficient inventory and capacity to support such growth, even if it continues to grow further. We have the capacity at our manufacturing plant to support this. And the current agreement with Kedrion goes until the end of 2031.

They are already ordering way above the minimum commitment in the agreement because of the need, because of the market demand. We believe this will continue. We do not think that 2026 was just like a one-time demand thing, but that this trend will continue into 2027 and hopefully beyond. So that's regarding KEDRAB. In regards to the next question was about the plasma contribution. So plasma, normal source plasma sales, or specialty plasma utilization in our own manufacturing is not yet part of our P&L, mainly because the normal source plasma sales start this quarter.

And in terms of the anti-rabies and other specialty plasma collection, we collect the plasma, it goes into what we call validation batches that need to be manufactured, only then we can start using it. This is a longer process. So any additional improvements in top-line and profitability as a result of our own vertical integration is yet to come, and yet to be demonstrated or part of our P&L. In regards to the distribution business, so we are seeing significant expansion as a result of a few multiple aspects. One is the fact that we launched the biosimilars in Israel.

Secondly, because we're starting to sell distributed products also in the MENA region, and thirdly, because we are simply growing our market share with our existing products in the Israeli market. We have a highly diverse portfolio of distributed products with a strong presence in the Israeli market. And we are taking a greater market share with existing products and new additional products that we launch.

We dont reportpublicly each and every product that we launch, but we focus on the biosimilars in terms of the public disclosures because some of the other products are immaterial if I kind of look at them one by one, but when I accumulate all of them together, it supports our growing distribution business. Did I answer all the questions?

Annabel Samimy: Yes. Just last one on business development. Has it become more competitive? Or are you just not finding the assets that you think would be good for your platform?

Amir London: So we've been -- we're doing our due diligence. We are screening opportunities. We do have opportunities, and we believe that, hopefully, in the near term, we already will have some good news to report.

Operator: [Operator Instructions] The next question is from James Sidoti from Sidoti & Company.

James Sidoti: So just a follow up on KAMRAB. Obviously, you're seeing strong demand in the U.S. because of the higher incidence of rabies. Is that something that's also happening internationally?

Amir London: Yes, we saw greater demand in other countries where KEDRAB or KAMRAB is being distributed. Primarily, we mentioned it on the call, Canada, Israel, and LatAm, Latin America. I would like to remind the listeners there are only 3, basically, products that are meeting either FDA or EMA standards. These are the Grifols product, CSL product, and our product. And there is, I think, greater awareness of the risks of rabies in general, greater use or greater utilization of post-exposure prophylaxis following the medical protocol of if someone has been exposed to a potentially rabid animal and they go to the ER, they need to get the vaccine, but also the immunoglobulin.

And we are there with a very competitive, good product that has some competitive advantage over the other products, such as the fact that we've done a pediatric study on-label, as well as additional benefits, and the fact that we have the capacity to support, and we've been very good in terms of our supply chain robustness, and now with the additional plasma that we are collecting, with Kamada Plasma, this vertical integration. This is a product that is here to stay, and we will continue to take significant market share and to grow its profitability in the years to come.

James Sidoti: And with regard to the distribution business, how should we think of the cadence of revenue when you launch these new products? Is there an initial pipe fill when these new products are launched? Or does it take a while for you to introduce the product and to build demand in the market?

Amir London: It depends on the product. In some cases, if it's part of like a public tender, so there is kind of inventory being acquired, purchased by the local authorities or the local wholesalers. If we sell directly kind of to consumers, to the pharmacies, then it's like a more gradual growth of the product. But I think what's good about the distribution business, the fact that it's a highly diverse portfolio. We are signing new agreements every quarter with companies to represent and distribute their products in the Israeli and the MENA region.

The fact that we are able to leverage our success in Israel to this additional much greater territory is indicative of the high collaboration that we've signed with many of the international manufacturers that would like to put their product in Kamada's hands in order to be successful in those territories. So that's a gradual growth that you will see over time. And specifically within that portfolio, we spoke about the biosimilar portfolio, or biosimilar business, which -- and we gave specific guidance that we'll be selling around $10 million in 2028, and then between $20 million to $25 million by 2030.

So this is just kind of a subset of the overall growth of the distribution business, which is part of our growth engine, 1 of the 4 growth engines, and we expect this to continue contributing to our top-line and bottom-line results.

James Sidoti: And how many products do you plan on launching in 2027?

Amir London: On the biosimilars, we are going to launch an additional 2 in Israel, but there's going to be additional launches that we have not disclosed publicly.

Operator: There are no further questions at this time. I would like to turn the floor back over to Amir London for closing comments.

Amir London: Thank you, Operator. So, as communicated at the opening of the call, we continue to execute on our strategic multi-year growth plan, delivering record-high operational and financial performance during 2026. We continue to reach new highs and deliver on our commitment to deliver double-digit profitable growth. We invest in our 4-pillar growth strategy with continuous progress made in organic growth of our existing commercial portfolio, expansion of our distribution and in-licensing business, growth of our plasma collection operation, and advancing business development and M&A transactions to support and expedite our growth. We look forward to continuing to support clinicians and patients with the important life-saving products that we develop, manufacture, and commercialize.

We thank you all for your support, and we remain committed to creating long-term shareholder value. We hope you all stay healthy and safe, and thank you for joining our call today.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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