Kamada Stock Jumps After Acquisition Of Four Plasma-Derived Products

Kamada Ltd KMDA has acquired four FDA-approved plasma-derived hyperimmune commercial products from Saol Therapeutics. Kamada will pay Saol a $95 million upfront payment and an additional $50 million in sales milestones during 2022-2034. 

• The combined annual global revenue of the acquired portfolio in 2021 is expected to be $40 million - $45 million, with a gross margin of 50%-55%.
• In addition, Kamada will acquire from Saol's existing inventory at approximately $15 million, which will be paid over ten equal quarterly installments. 
• Kamada has secured a $40 million credit facility from Bank Hapoalim to fund the acquisition costs partially. 
• The company says that the transaction is an important step in advancing its core objective of entering 2022 as a fully-integrated specialty plasma company.
• Kamada reported Q3 sales of $23.0 million, -35% Y/Y, missing the consensus of $25.63 million.
• EPS loss of $(0.02) also missed the consensus for EPS of $0.02.
• The company held cash, cash equivalents, and short-term investments of $99.8 million at the end of Q3.
• Price Action: KMDA shares are up 8.96% at $6.10 during the market session on the last check Monday.