The pharmaceutical company Kamhada The Tel Aviv and NASDAQ trading company will acquire the manufacturing and marketing rights to four products from the American company Saol. These products are expected to sell for about $ 40-45 million a year, thus filling the void left by Kamhada’s leading product, Glasa, which passed to Takeda under a partnership agreement. The action between the companies.
Kamhada is traded at a value of NIS 771 million.
Kamhada You will pay Seoul $ 95 million immediately, $ 50 million in milestone payments by 2034, and you will also purchase from Seoul $ 15 million in inventory to be paid over about two and a half years. Kamhada has about $ 100 million in cash and $ 40 million in credit from Bank Leumi.
Kamhada manufactures and markets products derived from human plasma. The new products are also like this – they are antibodies produced from plasma and are designed to prevent infectious diseases such as CMV, chickenpox and hepatitis B in patients with immunodeficiency or after transplantation. KamHada has already begun transferring to create in its plant at Kama, the production of the most significant product in the agreement, the antibody against CMV.
Kamhada markets its products around the world independently, but in the US and Europe most often compare through distributors. Now it intends to set up an independent marketing system in the US. “This deal will change the face of the company,” says Kamhada CEO Amir London. Significantly.
This year, Kamahda lost its leading product, Galicia, to its marketing partner, Takeda, which exercised an option that was in the agreement between the companies, to produce the product itself and pay Kamahda only royalties. As a result, the company’s revenue declined. In the first nine months of 2021, revenue was $ 72.2 million compared to $ 102 million in the same period last year. The decrease in revenues was recorded despite an increase in Kamhada’s revenues from its rabies product and from the marketing of products of other companies in the Israeli market.
“With the addition of $ 40-45 million in expected revenue from the new products, we will cover the decline that resulted from the transfer of the Galicia product to Tacada, even with a surplus,” says London. “In addition, at the beginning of the year we acquired a company for the production of plasma, so now we intend to become a company with full vertical integration, from the production stage to the marketing stage.
The projected gross profit margin of the product portfolio for 2021 is between 50% -55%, so if Kamhada correctly estimates the revenue it can generate from them, then they will also have a positive contribution to the bottom line as well. In the first nine months of 2021, the company posted a profit of $ 2.4 million, compared to $ 15.5 million in the same period last year.
The future growth engine on which KamHada is building is its product for the treatment of inhaled emphysema that can be inhaled. The product is undergoing a long and tedious regulatory trajectory, having previously not achieved satisfactory results in a clinical trial, and Kamhada is once again trying to conduct a trial of the product, this time in a slightly different protocol. In addition, the Ministry of Health is conducting experiments with the company’s antibodies to treat corona.
The law firms of Nashitz Brands, Amir & Co. and DLA Piper LLP served as the legal advisers of Kamhada in connection with this acquisition, and the law firm of Agmon & Co. served as the legal advisers of the company in connection with the raising of the credit facility. Investment Bank SVB Leerink served as the sole financial advisor to Saol and the law firm Mayer Brown LLP served as Saol’s legal advisor in connection with this acquisition.