Shares of Kamada jumped 5.9% on Monday as the biopharma firm entered into an agreement with the Israeli Ministry of Health to supply its anti-SARS-CoV-2 plasma-derived hyperimmune immunoglobulin (or IgG) treatment to Covid-19 patients in Israel. The company said that the use of this investigational product will be regulated by the Ministry of Health.
Kamada (KMDA) expects to supply the initial order, which will be sufficient to treat about 500 hospitalized patients, in early 2021. This initial supply is expected to generate revenue of about $3.4 million in 1Q21.
The company’s Covid-19 treatment is in the Phase 1/2 trial in Israel. The company is conducting the trial in collaboration with Kedrion Biopharma and recently completed enrollment for the trial.
Amir London, Kamada’s CEO commented, “The execution of this supply agreement with the MoH [Ministry of Health] is an important milestone in our development program, and to our knowledge represents the first such contract globally for the supply of a plasma-derived IgG product for COVID-19.”
“We are encouraged by the interim results of the ongoing Phase 1/2 clinical trial in Israel, in which our product demonstrated a favorable safety profile and showed symptoms improvement in hospitalized, non-ventilated COVID-19 patients with pneumonia, and we will continue to ramp up the production and supply of the product during the next few months.” (See KMDA stock analysis on TipRanks)
Meanwhile, the US clinical development of Kamada’s plasma-derived IgG potential COVID-19 treatment is expected to begin in early 2021 pending IND (Investigational New Drug) acceptance.
In August, Chardan analyst Keay Nakae increased his price target for Kamada to $11 from $7 and reiterated a Buy rating following the company’s 2Q results and “multiple” stories in the Israeli press highlighting the initial favorable response observed in the first three patients who were given the company’s convalescent plasma-derived potential COVID-19 treatment.
The Street’s Moderate Buy consensus for Kamada is based on 2 recent Buys. Shares have surged 23% year-to-date and the average analyst price target of $11 indicates further upside potential of 30.8% in the months ahead.