Revenue in the third quarter of 2021 totaled $ 23.0 million, and revenue in the first nine months of 2021 totaled $ 72.2 million.
KamHada has acquired a portfolio of four FDA-approved commercial plasma-based antibodies from Saol Therapeutics. The acquisition promotes Kamhada’s strategy to become a vertical and unique plasma products company with strong commercial capabilities in the US, and is an important step in positioning Kamhada as a global leader in the development, production and commercialization of plasma-based antibody preparations.
The transfer of production of GLASSIA® to Takeda has been completed and the agreement between the companies is moving to the royalty stage starting in 2022; Completion of the transition frees up production capacity at the company’s plant that enables the absorption of new plasma products.
Continued expansion of plasma collection capacity recently acquired in the US; the company continues to advance its plan to open additional plasma collection centers in the US.
The Alpha-1 antitrypsin Phase 3 InnovAATe clinical trial inhalation treatment for alpha-1-antitrypsin deficiency disease continues to progress according to plan, including positive feedback recently received from the trial safety committee meeting.
“As our business continues to grow as expected during 2021, we look forward to the realization of the company’s significant potential growth engines,” said Amir London, CEO of KamaDa. Of a portfolio of four commercial plasma-based antibody preparations approved by the US Food and Drug Administration (FDA), from Saol Therapeutics. Following this acquisition, KamHada is strengthening its position as a world leader in the market for unique plasma-based antibody preparations. The global revenue for 2021 of the portfolio of products purchased is expected to be between $ 40 million and $ 45 million, with approximately 75% and 20% of revenue coming from sales in the US and Canada, respectively. Through this strategic and synergistic acquisition, Kamada Its, and we start the year 2022 as a vertical and unique plasma products company with strong US commercial capabilities. We look forward to leveraging our strong international distribution network to increase the revenue of the acquired portfolio in new international markets. “
“We have recently completed the transfer of GLASSIA® production to Takeda and we expect to start receiving royalties from 2022 at a rate of 12% of the product’s net sales until August 2025, and at a rate of 6% thereafter until 2040. We expect to receive royalties from Takeda in the range of $ 10 million by $ 20 million per year for the years 2022 to 2040. In addition, we continue to advance the program to expand plasma collection capacity at our existing collection center and to open additional U.S. plasma collection centers based on our FDA license. We see the opening of new US collection centers as an important step in our development as a vertical unique plasma products company. Finally, we continue to advance the Phase 3 InnovAATe clinical trial in the inhalation of alpha-1 antitrypsin to treat alpha-1-antitrypsin deficiency disease (AATD). We are pleased with the results of the meeting of the Safety Committee of the Experiment which supports its continued promotion without the need for changes, “Mr London concluded.
Financial highlights for the three months ended September 30, 2021
Total revenue was approximately $ 23.0 million in the third quarter of 2021, compared to approximately $ 35.3 million in the third quarter of 2020.
Gross profit was approximately $ 5.7 million in the third quarter of 2021, compared to approximately $ 14.8 million in the third quarter of 2020.
The net loss was about $ 0.8 million, or (0.02) $ per share, in the third quarter of 2021, compared to net income of about $ 6.8 million, or $ 0.15 per share, in the third quarter of 2020.
Adjusted EBITDA, as detailed in the tables below, amounted to approximately $ 0.6 million in the third quarter of 2021, compared to approximately $ 9.3 million in the third quarter of 2020.
Cash flow from operating activities amounted to approximately $ 2.7 million in the third quarter of 2021, compared to cash flow from operating activities of approximately $ 2.4 million in the third quarter of 2020.
Financial highlights for the nine months ended September 30, 2021
Total revenue was approximately $ 72.2 million in the first nine months of 2021, compared to approximately $ 101.7 million in the first nine months of 2020.
Gross profit was about $ 23.7 million in the first nine months of 2021, compared to about $ 37.4 million in the first nine months of 2020.
In connection with the transfer of GLASSIA’s production to Takeda, during the second and third quarters of 2021, Kamhada completed the workforce reduction move and recorded a one-time expense of approximately $ 0.6 million related to increased severance pay for employees fired as part of the process. The reduction process is expected to lead to a reduction in the company’s annual salary costs by about 10%.
Net income was approximately $ 2.8 million, or $ 0.06 per share, in the first nine months of 2021, compared to net income of approximately $ 15.2 million, or $ 0.35 per share, in the first nine months of 2020.
Adjusted EBITDA, as shown in the tables below, amounted to approximately $ 6.7 million in the first nine months of 2021, compared to approximately $ 21.1 million in the first nine months of 2020. Adjusted EBITDA in the first nine months of 2021, less one-time severance expenses, amounted to About $ 7.3 million.
Cash flow from operating activities amounted to approximately $ 3.9 million in the first nine months of 2021, compared to cash flow from operating activities of approximately $ 6.4 million in the first nine months of 2020.
Balances for balance
As of September 30, 2021, the Company had cash, cash equivalents and short-term investments of $ 99.8 million, compared to $ 109.3 million as of December 31, 2020. The Company’s working capital as of September 30, 2021 includes current assets (without cash, Value of cash and short-term investments), less current liabilities, increased by $ 8.1 million to $ 52.5 million.
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