Kamada (KMDA)

[midastouch017]

Kamada Receives Additional Milestone Payment Under GLASSIA® Exclusive Supply and Distribution Agreement with Shire


REHOVOT, Israel, June 12, 2017 (GLOBE NEWSWIRE) -- Kamada Ltd. (KMDA) (KMDA), a plasma-derived protein therapeutics company focused on orphan indications, today announced the receipt of an undisclosed additional milestone payment under the supply and distribution agreement with Shire for GLASSIA®, Kamada’s intravenous (IV) alpha-1 antitrypsin (AAT). The milestone payment was triggered by Shire achieving a sales milestone for GLASSIA® in the U.S.

Shire is Kamada’s strategic partner for the exclusive supply and distribution of GLASSIA® for all intravenous (IV) indications in the U.S., Canada, Australia, and New Zealand. Kamada will record the milestone payment from Shire as deferred revenue and will recognize it through the end of 2018. The milestone reflects the achievement of Shire reaching a defined sales level, as specified in the supply and distribution agreement between the companies. The most recent contract extension, signed in October 2016, represented the fourth time the companies have extended the contract for the manufacturing and supply of GLASSIA®. Under the current agreement, Kamada’s minimum revenue for GLASSIA® for the years 2017 to 2020 will reach approximately $237 million, and may be expanded to up to $288 million during that period.

“We are pleased to receive this milestone payment,” said Amir London, Chief Executive Officer of Kamada. “Shire continues to achieve the sales milestones related to GLASSIA® under our agreement, indicating the growing demand for the product in the U.S. This trend continues to support our ability to achieve our forecast to grow Kamada's total revenue to $100 million this year out of which $76 to $78 million will come from our Proprietary Products segment representing at least 36% growth year-over-year compared to 2016.”

Separately, Kamada also announced that the Company recently shipped all of the Proprietary Products-related revenues, totaling approximately $11.5 million, which were previously delayed from the first quarter. As detailed by Kamada in its first quarter financial results, these revenues were shifted from the first quarter and will be recorded in the second quarter of this year.