BST Trade Alert – March 13, 2015
Recommendation:
Buy Kamada $KMDA up to $5.00 per share.
About the Company:
Kamada became the first publicly traded biopharmaceutical company based in Israel back in 2005.
They specialize in plasma-derived protein therapeutics with a focus on developing specialized treatments and developing strategic partnerships.
The company has done a great job of developing partnerships and generating cash flow to support the cost of developing new treatments.
Their partnership with Baxter for the distribution of Glassia is a great example of the strong financial position.
Kamada had $25.8 million in revenue last quarter… a record high for the company. They even turned a profit of $2.4 million. And they are on pace to reach their goal of $100 million in revenue by 2017.
Their clinical program includes many promising treatments like intravenous AAT to treat newly diagnosed type 1 diabetes and to treat GvHD. They’re both orphan indications with significant unmet medical need.
They also have an anti-rabies immunuoglobulin in Phase 2 and 3 testing for the treatment of rabies.
Right now, they have about $52 million in cash. And they don’t need to raise more capital to continue operations.
About the Drug:
Rabies is a deadly virus spread to humans from the saliva of an animal infected with the virus. This usually happens when the infected animal bites a human.
The worst thing about rabies is that it’s almost always fatal if someone hasn’t been vaccinated and it isn’t treated immediately.
If you wait for symptoms to appear to receive treatment then it almost always results in death.
KAMRAB is an anti-rabies immunoglobulin currently in Phase 2/3 clinical trials in the US for the post-exposure prophylactic treatment of rabies.
About the Market for This Drug:
Kamada has a strategic partnership for the clinical development, sales, and marketing of this product in the US with Kedrion Biopharma.
According to the company, there’s an ‘exciting market opportunity’ for the commercialization of this product.
About the Potential Catalyst:
Result for the phase 2 and 3 testing of KAMRAB are expected by mid-year. And they are expected to file a Biologics License Application (BLA) with the FDA in the second half of 2015.
About the Shares:
KMDA is currently trading for $4.29. It’s up 12.9% this year. It recently crossed above the 50-day moving average… a sign that bullish momentum is building.
What’s more, the stock is up 42% from the 52-week low last November. Since then, the stock has set three higher highs and three higher lows.
In short, that’s a new uptrend. And one we expect will continue.
Key Facts:
Company: Kamada
Ticker: KMDA
Recent Price: $4.29
Market Cap: $154 million
Average Daily Volume: 48.26K shares
Chart:
Category: BST Trade Alert
