Kamhada signed a deal that could change the path of its decline in revenue and profitability

Kamhada, a company controlled by the Phimie Fund, has signed a deal that could change the path of its decline in revenue and profitability. As part of this, it will pay the American private company Saol Therapeutics $ 95 million in cash and up to $ 50 million subject to meeting sales milestones between 2022-2034 for a portfolio of four products approved by the FDA (US Food and Drug Administration) and plasma-based.
Revenue from the four products - designed to treat viruses in high-risk patient groups, such as patients with weakened immune systems, transplant patients or pregnant women - is estimated at $ 40-45 million in 2021. The current deal was signed eight months after Kamhada (+ 11.59% 1925), managed by Amir London, completed the acquisition of a plasma collection center in Texas for $ 1.7 million. Following the two acquisitions, it will become a company with vertical integration in the field of unique plasma products, including plasma collection, production, marketing and sale of six plasma-based antibodies for niche diseases, and eight new international markets will be added - mainly in the Middle East and North Africa.
Seoul Therapeutics has so far focused almost exclusively on North America. U.S. drug sales accounted for 75% of its turnover, and sales in Canada accounted for 20% of turnover. It is estimated that the current gross profit margin of the product portfolio is 55% and Kamahda is expected to improve it by transferring production from North America to its plant at Kama.
The product portfolio purchased by KamHada is protected from generic competition because there is no approval procedure for generic plasma-based products. The main competition of the drugs in the acquired portfolio are antiviral drugs. The acquisition of the product portfolio is expected to change the trajectory of a decline in sales and profitability as a result of an agreement under which Kamhada transferred to the Japanese company Takeda the technology for the production of its flagship drug, GLASSIA.
The product portfolio includes the CYTOGAM product, which provides more than 50% of the portfolio's revenue. It is a plasma-based antibody preparation designed to prevent the outbreak of cytomegalovirus (CMV) in patients who have undergone organ transplants such as kidney, lung and liver. The product that KamaDa will purchase is the only one of its kind approved by the FDA. CMV is found in 40% -80% of the population and its outbreak in patients whose immune systems are not functioning, such as organ transplants, can cause kiss disease. In 2019, KamaDa signed an agreement to manufacture the product as a subcontractor. The transfer of production of the product to Kama is in advanced procedures and KamaDa estimates that FDA approval for its production in Israel will be obtained by the end of 2022.
Another product is WINRHO SDF. It is a plasma-based antibody preparation approved for use in clinical situations requiring an increase in platelet counts to prevent increased bleeding in children with RH-positive patients with thrombocytopenia - an autoimmune disease manifested by antibody production by the body against platelets - and in adults with chronic low blood platelet counts. WINRHO SDF is also intended for the treatment of azoimmunization, which is a condition in which the pregnant mother's blood protein does not match the fetus 'blood protein and causes her immune system to react and destroy the fetus' blood cells.
The third product is HEPAGAM B - a plasma-based antibody preparation approved for the prevention of recurrence of viral hepatitis B after liver transplantation in patients whose blood has been identified as the envelope protein of hepatitis B virus, as a preventive treatment after exposure to the virus. The fourth product is VARIZIG - a plasma-based antibacterial drug against the virus and ricella-zoster, which is approved for the treatment of high-risk patients such as children with suppressed immune systems, infants and pregnant women, to reduce the severity of chickenpox in these patients. A second outbreak of varicella zoster virus causes shingles disease and a unique pain similar to burning, which appears in seizures and is characterized by aggravation of the pain intensity in response to stimuli such as touching the pain area. This product is also the only one of its kind approved by the FDA.
Kamhada's flagship drug, GLASSIA, is given as an infusion for hereditary emphysema, which results from a congenital deficiency in alpha1 protein, which protects the lung tissue from overactive enzyme elastase. The phenomenon causes damage to the lung tissue, the formation of cavities that fill with air and a decrease in the patient's life expectancy. It is estimated that there are 115,000 patients with the disease in the United States and 75,000 people in Europe, but only 7,300 patients in the United States and 1,800 patients outside the United States.