KAMADA ORD ILS1.00 (KMDA): Can This Small Pharma Company’s Investors Breathe Easy?

Looming breakthrough for inhaled AAT

Moving forward, prospects appear positive for Kamada, which generated 2012 total revenue of $73 million, up from $59 million in 2011 and sustaining growth for the past four years. EBITDA last year advanced to $9 million from the $1 million posted in 2011. From its extended partnership with Baxter alone, Kamada looks forward to reaping a total of $165 million in total revenue during the 2010–2016 contract lifetime. This year, Kamada expects to earn $4.5 million from this contract.

Kamada is also pinning its hopes for future growth on an inhaled AAT product, an innovation that is entering its phase II trial in the U.S. and already phase II/III in the European Union. Subject to regulatory approval, the company expects this innovation to hit the European market by 2015 and the U.S. by 2016.

Final take

To recap, KAMADA ORD ILS1.00 (NASDAQ:KMDA) looks a breed apart from the current crop of biotech IPOs as it has developed its own sound technology for AAT. Significantly, Glassia is but one of its 10 AAT-based offerings. The company has a strong intellectual property portfolio which was reaffirmed recently by the AAT patents it secured in Russia and Australia. Unlike most other pharma start-ups, this company already possesses a sound platform wherein resources expended on R&D stand a greater chance of delivering future dividends.

The article Can This Small Pharma Company’s Investors Breathe Easy? originally appeared on Fool.com and is written by Arturo Cuevas.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Arturo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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