Today, Kamada supplies alpha1-proteinase inhibitor Glassia to Takeda under a strategic agreement. Takeda extended the agreement earlier this year, tasking Kamada with producing the drug through 2021, but that merely deferred the time when the Japanese drugmaker will bring the work in-house.
Kamada responded to the anticipated loss of a key contract by scouting for projects to fill the capacity Takeda is set to vacate. This business development effort began to pay off earlier this month when Kamada revealed it has entered into a binding term sheet with a new partner.
Under the terms of the agreement, Kamada is set to provide commercial supplies of a hyper-immune globulin product for 12 years from 2023 onward. Kamada will start shipping the product once the technology transfer is complete and US Food and Drug Administration approvals are in place.
Management at Kamada expects the contract to add up to $10m (€9m) a year to annual revenues – this makes the deal far smaller than the agreement with Takeda, which Kamada noted will generate revenues of approximately $65m during 2019, but it will still go some way to offsetting the loss of business.
Kamada’s CEO, Amir London, has previously said no one product or contract will fully replace the loss of the Glassia business. Rather, London expects Kamada to grow sales of its other products and bring in contract business to fill the capacity.
Talking to investors before news of the hyper-immune globulin contract was made public, London expressed confidence in Kamada’s ability to land contract business to fill the facility.
London said, “We do have strong confidence in the ability to bring in additional products. We are proactively working in the direction and we very strongly believe that we can increase our plant utilization post Glassia transition to Takeda.”
The facility will also continue to produce Glassia for use outside of the US and make other products, such as Kamada’s anti-rabies immunoglobulin, Kedrab.
Total revenues, including from the Takeda contract for Glassia, over the first nine months of 2019 were up 44% at $95m, although sales in the prior year were negatively impacted by a labour strike at Kamada’s manufacturing plant.
