Kamada Ltd. (NASDAQ:KMDA) Q4 2022 Earnings Call Transcript

David Bautz: Okay. And my last question is about gross margins that reported 36% for 2022. Do you foresee those being similar in future quarters and for this year ahead?

Amir London: If you look at our projection for 2023, and you compare the growth of the top line versus the better growth or the enhanced growth of the bottom line, you see that our overall mix of products is continuing to transition into the more profitable products in our portfolio. So, this will generate, over time, better GP, better gross profitability. We are able to translate a significant portion of the top line increase next year also into a bottom line EBITDA increase. So I think these — for itself in our ability to become a more profitable company with a strong product mix in multiple territories.

David Bautz: All right. Sounds good. Appreciate your taking the questions this morning.

Amir London: Thank you very much.

Troy Williams: Hey, Ross, so, while we wait for some additional questions to queue up, been e-mailed a few throughout the call. So could we just address those right now, this first question is for you, Amir. Why do we believe that the inhaled AAT is uniquely positioned in the current AATD development land?

Amir London: So the current standard-of-care — were the standard-of-care for the last 30 years almost. So, Alpha-1 deficiency has been a weekly infusion, which means that patients need to go to the clinic or have a nurse come to the home. And this is, of course, an invasive type of treatment. What we are developing, what we are proposing is a noninvasive at-home treatment. So, the ease of use and the quality of life for those patients will improve significantly if and when and how AAT will be approved. So, we also get this feedback from any survey that we are doing with the patients. They all prefer to have the option — or majority of them prefer to have the option of having the treatment by nebulizing Inhaled AAT instead of IV treatment.

Secondly, we have shown people studies that inhaled AAT is the most effective motor treatment for delivering sufficient levels of AAT into the deep lungs, directly into the lungs. This allows us to dose the patients with one-eighth quantity compared to the IV. So this also provides lower cost of goods per treatment, which could translate into attractive competitive reimbursement costs for the payers. Product has been studied for quite some time with multiple patients around 250 patients to-date. And we have seen a very strong safety data. This has been demonstrated in the current study that we are doing. I spoke about it throughout the call. So we believe we are developing a game changer in over $1 billion market that hopefully will be proven in the current study to be effective and allow us to register the product, both in the US and the EU.

Troy Williams: Great. Appreciate the color, Amir. And then just on to our final submitted question. Can you please bring out the opportunity with the plasma collection centers? And in addition to that, can you provide us with some timing of when they may be going to contribute to the top line?

Amir London: Yes. So, as I described in the call, we have expanded in 2022 our collection in the existing center in Beaumont, Texas. We are moving forward with the opening of additional centers. So we have a team working on identifying locations for additional centers and advancing lease agreements so we can move into the construction of those centers. In general, if fully loaded, if I may, a center, a mature center usually collects between 40,000 to 50,000 liters a year, and this translates into top line contribution of close to $10 million. So that will be contribution of the mature centers is to expect to see the first impact, of the first center in that regard, starting basically to ramp up in the second part of next year or second part of 2024, first center should be up and running and starting to expand in its collection capacity.