NASDAQ:KMDA Kamada Q1 2025 Earnings Report $6.68 -0.06 (-0.92%) As of 01:10 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Kamada EPS ResultsActual EPS$0.07Consensus EPS $0.07Beat/MissMet ExpectationsOne Year Ago EPSN/AKamada Revenue ResultsActual Revenue$44.02 millionExpected Revenue$154.06 millionBeat/MissMissed by -$110.05 millionYoY Revenue GrowthN/AKamada Announcement DetailsQuarterQ1 2025Date5/14/2025TimeBefore Market OpensConference Call DateWednesday, May 14, 2025Conference Call Time8:30AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by Kamada Q1 2025 Earnings Call TranscriptProvided by QuartrMay 14, 2025 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Greetings, and welcome to the Comida First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Brian Ritchie with LifeSci Advisors. Speaker 100:00:25Thank you. This is Brian Ritchie with LifeSci Advisors, and thank you all for participating in today's call. Joining me from Kamada are Amir London, Chief Executive Officer and Jaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three months ended 03/31/2025. If you have not received this news release, please go to the Investors page of the company's website at www.kamada.com. Speaker 100:00:56Before we begin, I would like to caution that comments made during this conference call by management will contain forward looking statements that involve risks and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company's filings with the Securities and Exchange Commission, including without limitation, the company's Forms 20 F and six ks, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of the live broadcast, Wednesday, 05/14/2025. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that said, it is my pleasure to turn the call over to Amir London, CEO. Speaker 100:01:56Amir? Speaker 200:01:59Thank you, Brian. My thanks also to our investors and analysts for your interest in Commodore and for participating in today's call. I'm pleased to report on our strong first quarter results, representing double digit profitable growth and a continuation of the operational performance we generated over the course of 2024. Total revenues for the first quarter were $44,000,000 an increase of approximately 17% year over year. Adjusted EBITDA was $11,600,000 an increase of approximately 54% year over year. Speaker 200:02:40Our growth compared to Q1 twenty twenty four was primarily as a result of an increase in sales of Glacia and Kamrab in Ex U. S. Markets, as well as Varezig sales and Glacier royalties income. We expect to continue to generate profitable growth throughout the diversity of our portfolio and disciplined management of operational expenses through the remainder of 2025. Based on our positive outlook for the year, we are reiterating our 2025 annual guidance of anticipated annual revenues of $178,000,000 to $182,000,000 and $38,000,000 to $42,000,000 of adjusted EBITDA. Speaker 200:03:29Importantly, the midpoints of our 2025 guidance represent increase of approximately 12% in revenues and approximately 17% in adjusted EBITDA, respectively, over our 2024 results. As our expectation for strong top and bottom line growth indicate, we are excited for the near term prospects of our business. We are even more excited about the longer term opportunities ahead of us as we continue to progress on our four pillar growth strategy consisting of organic commercial growth, business development and M and A transactions, our plasma collection operation, and advancement of our pivotal Phase III inhaled Alpha-one program. To this end, last week we announced initiation of a comprehensive post marketing research program for Cytogam, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. This program, which consists of 10 different studies, most of them as investigator initiated studies, was developed in collaboration with leading KOLs and is directed at advancing CMV disease management through novel strategies. Speaker 200:04:52Studies will focus on late onset CMV prevention and medication of active CMV disease, exploring alternative dosing strategies, and investigating potential new applications of CytoGram. Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation, for years no new up to date clinical data regarding the benefits of Cytogram were published. The data generated by this program will support further product utilization. As part of our activities to advance organic growth, I'm happy to update that following our first biosimilar product launch in Israel last year, which is expected to generate approximately $2,000,000 in revenue this year, we expect to launch two additional biosimilars later this year and have several others in the pipeline to be launched in the coming years. We expect this portfolio will become an increasingly important portion of our distribution business with annual sales of between $15,000,000 to $20,000,000 within the next five years. Speaker 200:06:02Moving to business development and M and A. During 2025, we expect to secure compelling new business development in licensing, collaboration and or M and A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operation. We anticipate that such agreements will generate operational and or commercial synergies with our current commercial portfolio and will support future profitable growth. Also, during the recently completed quarter, we expanded our plasma collection operation with the opening of our third location in San Antonio, Texas. The 11,000 square foot San Antonio Center will support over 50 donors' beds with an estimated total collection capacity of approximately 50,000 liters annually. Speaker 200:06:53Once they are at full collection capacity, we anticipate that our Houston and San Antonio collection centers will each contribute annual revenues of between $8,000,000 to $10,000,000 in the sales of normal source plasma. Turning now to ongoing pivotal Phase three INNO2VATE clinical trial for inhaled alpha-one antitrypsin therapy. We continue to advance this program with its revised enrollment goal of 180 subjects, and we are on track to conduct an interim futility analysis by the end of twenty twenty five. With that, I'll turn the call over to Jaime for a detailed discussion of our financial results for the first quarter of twenty twenty five. Jaime, please go ahead. Speaker 300:07:42Thank you, Amir. As Amir stated at the top of the call, our results for the first quarter of the year were strong. Total revenues were $44,000,000 in the first quarter compared to $37,700,000 in the first quarter of twenty twenty four. As Amir mentioned, the increase in revenues stemmed from the diversity of our portfolio and were primarily attributable to increased sales of GLASSIA and CAMRAP in ex U. S. Speaker 300:08:11Market as well as VaraZIG sales and GLASSIA royalties income. Gross profit and gross margins were 20,700,000 and 47% in the first quarter of twenty twenty five compared to sixteen point seven million and forty four percent in the first quarter of twenty twenty four. The increase in both matrices is attributable to improved product sales mix. Operating expenses including R and D, sales and marketing, G and A and other expenses totaled $13,000,000 in the first quarter of twenty twenty five as compared to $12,700,000 in the first quarter of twenty twenty four. The marginal increase in operating expenses is indicative of our ability to manage operational expenses while continuing to generate meaningful revenue growth. Speaker 300:09:07Net income was 4,000,000 or $07 per share in the first quarter of twenty twenty five, up 67% from the $2,400,000 or $04 per share in the first quarter of twenty twenty four. Adjusted EBITDA was $11,600,000 in the first quarter compared to $7,500,000 in the first quarter of twenty twenty four representing a 54% year over year increase. While the dividend payment declared in March was only paid after the end of the quarter, we continue to maintain a strong cash position that is planned to be used to fund new business development initiatives. With that, we will turn the call over to questions. Operator00:09:59Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. Operator00:10:29Our first question is from Annabel Samimy with Stifel. Speaker 400:10:35Hi, all. Thanks for taking my question. Great start of the year. I had some questions around the different growth contributors. I noticed that Cytogam is incited as a growth contributor this quarter. Speaker 400:10:51So, I was just wondering, with your expanded investment in clinical studies for CytoGam, should we read into anything that there's what prompted this? Has it reached a plateau right now? Or maybe does it signal anything for the potential to update guidelines based on the data that you have to date? Just wanted to understand the decision for making this investment. So I guess that's the first question. Speaker 400:11:19I have some follow ups. Speaker 200:11:23Thanks, Annabel. So, we emphasized the basically year over year growth. Basically, Q1 twenty twenty four was kind of similar to Q1 twenty twenty four in terms of the sales. As a reminder, end of twenty twenty three, we launched the new batches from our own production. So Q1 of twenty twenty four was strong with this fresh inventory that was basically shipped to the market. Speaker 200:11:56So we had a strong quarter back then. So when comparing the quarter to quarter year over year, Citroen didn't have a major contribution to the growth. The growth came from other products. We're very happy to see the strength of our portfolio, the diversity of our portfolio, including Glacia ex US, Kamrab ex US, Varianxing in The US market and the Glacier royalties had a significant contribution to the growth of the business. In general, we spoke about it in previous quarters, the fact that we have six FDA approved products and we're currently active in over 35 different countries, territories makes a very significant, a very strong portfolio that can continue growing organically in the next few years. Speaker 400:12:51Okay. Any thoughts on how the guidelines might be updated for Cytogam, for CMV rather? And is there anything to read into the fact that you're expanding these studies? Does that mean that you just need more data to update these guidelines? Speaker 200:13:14So, the idea to conduct multiple studies in order to basically present new, fresh clinical data, something we started working already in 2023. It took us time to work with the pool of KOLs, creating advisory boards, and basically work with each one of those to identify what is like the key set of data that will be important for the community to see. So it takes time, of course, to design, develop those clinical studies, and this has matured to a point that we were in a position that we could announce this comprehensive program. Between 2023 when it started, and now when we announced it, we already had like three different presentations, posters in industry conferences, and we are starting to see that there is positive impact on this work in the field working with the physicians. Changing guidelines takes time. Speaker 200:14:16Recently there was a meeting of the consortium, the KOLs, to work on CMV prevention, CMV management guidelines, and there is a modest change to the guideline. We expect that with new data, we are going to be able to prove that CMV, immunoglobulin has a significant advantage in the prevention and management of CMV and that it will be well reflected in future guidelines. Speaker 400:14:49Okay, got it. And just, I guess I can have a ton of questions, but I'll just cut it to one. Just have to ask the extent to which you're globally, you have a global business. Can you just sort of lay out how you think about the tariffs that are being posed right now? I know for right now, pharmaceuticals are excluded, but have you thought about the potential impact and how you might be protected just having plasma here or where you're sourcing your different products? Speaker 400:15:32Any kind of calculation that you've made on in a worst case scenario, what kind of impact that might have on on margins or or on the business overall? Speaker 200:15:41Okay. Jaime will answer this question. Jaime, please. Speaker 300:15:45Yes. So, we conducted an of of the issue. And our understanding based on currently available information is that there should be no direct impact on sales of our specific products. However, as as we know, this is an evolving situation, which we will keep on monitor and we'll advise in the future if our conclusion changes. I would also note that at present time, it is not possible to fully assess the potential indirect effect of the tariff discussions over global trade and how that might play in effect. Speaker 300:16:29But based on the analysis we made thus far, we do not think there is going to be a direct impact on our business. Speaker 400:16:40Okay, great. And just if I can squeeze in one more, any updates on what percent you are enrolled for INNO2VATE at this point? Speaker 200:16:52So we're at around 55% enrollment, and we are making good progress in working on the futility analysis. You know, we will have a cutoff of the data in the second part of the year. And soon after that, you know, the data will be available for the DSMB to run the statistical analysis for the futility analysis. Speaker 400:17:15Okay, great. Thank you. Speaker 200:17:18Thank you. Operator00:17:24Our next question is from James Sidoti with Sidoti and Company. Speaker 500:17:30Hi, good morning. Thanks for or good afternoon, actually. Thanks for taking the questions. Just a follow-up on the Cytogram post marketing study. Can you talk a little bit about the timing of that? Speaker 500:17:40When do you expect that to be completed? Speaker 200:17:44Because it's an array of 10 different studies, so each one of those has its own timeline. Some are things that are done quicker, especially the nonhuman clinical studies, but more of kind of the in in vitro analysis that we that we are doing. So some of it will be available already, you know, later this year into 2026, and some of the work will continue all the way to 2027, '20 '20 '8. In general, I'll say it's around a four year program that we have launched across multiple sites, multiple KOLs, and basically kind of covering the majority of the relevant CMV management and preventive in organ transplantation. Speaker 500:18:29Right. And then I know you addressed the tariffs, but one of the other changes in The US the past few months is the cutbacks in NIH spending. Do you expect those to have any impact on your business? Speaker 200:18:46No. Not not currently. No. No. So with our current understanding of the potential changes and regulations, we don't anticipate that this will have an impact on the business because of the nature of the business and the hospital, critical care type of treatment that we are doing, pretty unique type of medicines. Speaker 200:19:05Again, like Jaime mentioned about the tariffs, is there going to be any change in our understanding of situation, we will update on this. Speaker 500:19:13Okay. And then the last one for me, detail in the quarter, tax rate, you reported a 40% tax rate compared to a 3% tax rate a year ago. I guess two questions. What happened and are those real cash taxes or was that a non cash expense? Speaker 200:19:33Pardon me? Speaker 300:19:36The taxes changes in the fair tax liability. You can refer to our cash flow to see that it had no cash effect. Speaker 500:19:50Okay. Should we expect you to report some more tax rates going forward? Speaker 300:19:58Well, through 2025, I think we're going to be fluctuating a little bit in terms of our tax expenses mainly because of shifts between deferred tax assets and deferred tax liabilities. And I expect that by the end of this year it would smooth out and going forward you'll be able to see our effective tax rate more clearly. As of now, we have as of now, we have yet we're still using NOLs, so we're not paying taxes. We expect to be taxable income and start paying taxes at the end of twenty twenty five or beginning of twenty twenty six. Speaker 500:20:44Okay, great. That was my next question. Thank you very much. Operator00:20:52Thank you. I would like to hand the floor back over to Brian Ritchie for additional questions. Speaker 100:20:59Thank you. Just one question from the web, Amir. What does the strong start to Q1 mean for your annual guidance? Speaker 200:21:11Great question. So of course, we are going to so we had a strong We are going to monitor progress during the second quarter. And although we should be evaluated on an annual basis, we will definitely see if this strong performance continues. And if that's the case, we will update our guidance moving forward. Speaker 100:21:36Thanks, Tamir. I'll turn the floor back over to you for closing comments. Speaker 200:21:41Thank you. Thank you, Brian. So, in closing, we continue to invest in the four pillar growth strategy: continued progress made in all across our business, organic growth of our existing commercial portfolio, business development and M and A opportunities to support and expedite the growth, expansion of our plasma collection operation and progression of our AAT therapy program. We look forward to continue to support clinicians and patients with important life saving products that we develop, manufacture and commercialize, and we thank you all for your support, and we remain committed to creating long term shareholder value. We hope you all stay healthy and safe. Speaker 200:22:24Thank you for joining us today. Good luck. Operator00:22:31This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.Read morePowered by Key Takeaways Kamada reported robust Q1 2025 results with revenues of $44 million (up 17% YoY) and adjusted EBITDA of $11.6 million (up 54% YoY), and reiterated full-year guidance of $178–182 million in revenues and $38–42 million in adjusted EBITDA. The company launched a comprehensive post-marketing research program for Cytogam, comprising 10 investigator-initiated studies to generate new clinical data on CMV disease prevention and management and support future guideline updates. Following its first biosimilar launch in Israel (projected to generate ~$2 million this year), Kamada expects two additional biosimilar launches later in 2025 and targets a biosimilar portfolio generating $15–20 million annually within five years. Kamada expanded its plasma collection operations with a new 11,000 sq ft center in San Antonio, Texas, boosting capacity to 50,000 liters annually and anticipating each U.S. center to contribute $8–10 million in revenue per year. The pivotal Phase III INNO2VATE trial for inhaled alpha-one antitrypsin therapy is advancing on schedule with ~55% enrollment and an interim futility analysis planned by year-end 2025. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallKamada Q1 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) Kamada Earnings HeadlinesKamada (NASDAQ:KMDA) Rating Increased to Strong-Buy at StockNews.comMay 22 at 3:51 AM | americanbankingnews.comKamada's (KMDA) Buy Rating Reaffirmed at BenchmarkMay 17, 2025 | americanbankingnews.comJuly 2025 Rule Change to Impact Retirement InvestorsThere's a massive change from a new rule going into effect this July. And it's one the Big Banks are already using to their advantage… It allows them to treat this new asset like actual cash.May 23, 2025 | Premier Gold Co (Ad)Is Kamada (KMDA) Stock Undervalued Right Now?May 16, 2025 | msn.comWall Street Analysts Believe Kamada (KMDA) Could Rally 106.56%: Here's is How to TradeMay 16, 2025 | msn.comCompared to Estimates, Kamada (KMDA) Q1 Earnings: A Look at Key MetricsMay 15, 2025 | msn.comSee More Kamada Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Kamada? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Kamada and other key companies, straight to your email. Email Address About KamadaKamada (NASDAQ:KMDA) manufactures and sells plasma-derived protein therapeutics. Its commercial products include KAMRAB/KEDRAB for treating prophylaxis of rabies; CYTOGAM for Prophylaxis of Cytomegalovirus disease in kidney, lung, liver, pancreas, heart, and heart/lung transplants; VARIZIG for post exposure prophylaxis of varicella; WINRHO SDF for immune thrombocytopenic purpura and suppression of rhesus isoimmunization; HEPAGAM B for prevention of hepatitis B recurrence liver transplants and post-exposure prophylaxis; GLASSIA for intravenous AATD; KAMRHO (D) IM for prophylaxis of hemolytic disease of newborns; KAMRHO (D) IV for immune thermobocytopunic purpura; and Echis coloratus and Vipera palaestinae Antiserum for the treatment of snake bite. The company also distributes imported drug products in Israel, including BRAMITOB to manage chronic pulmonary infection; FOSTER to treat asthma; TRIMBOW for chronic obstructive pulmonary disease; PROVOCHOLINE for the diagnosis of bronchial airway hyperactivity; AEROBIKA, an OPEP device; RUPAFIN and RUPAFIN ORAL SOLUTION for allergic rhinitis and Urticaria; SINTREDIUS for rheumatoid arthritis, systemic lupus erythematosus, and mild-moderate juvenile dermatomyositis; IVIG for immunodeficiency-related conditions; VARITECT for chicken pox and zoster herpes; ZUTECTRA and HEPATECT CP for hepatitis B; MEGALOTECT CP for CMV virus; RUCONEST for angioedema attack; HEPARIN SODIUM INJECTION for thrombo-embolic disorders and prophylaxis of deep vein thrombosis and thromboembolic events; ALBUMIN and ALBUMIN for blood plasma; Factor VIII for hemophilia type A; and Factor IX for hemophilia type B. In addition, it distributes COAGADEX for hereditary factor X deficiency; IXIARO for Japanese encephalitis; VIVOTIF for Salmonella Typhi; PROCYSBI for nephropathic cystinosis; LAMZEDE for alpha-mannosidosis; ELIGARD for prostate cancer; and BEVACIZUMAB KAMADA for various cancers. The company was incorporated in 1990 and is headquartered in Rehovot, Israel.View Kamada ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Advance Auto Parts Jumps on Surprise Earnings BeatAlibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout?Can Shopify Stock Make a Comeback After an Earnings Sell-Off? 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There are 6 speakers on the call. Operator00:00:00Greetings, and welcome to the Comida First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Brian Ritchie with LifeSci Advisors. Speaker 100:00:25Thank you. This is Brian Ritchie with LifeSci Advisors, and thank you all for participating in today's call. Joining me from Kamada are Amir London, Chief Executive Officer and Jaime Orlev, Chief Financial Officer. Earlier today, Kamada announced its financial results for the three months ended 03/31/2025. If you have not received this news release, please go to the Investors page of the company's website at www.kamada.com. Speaker 100:00:56Before we begin, I would like to caution that comments made during this conference call by management will contain forward looking statements that involve risks and uncertainties regarding the operations and future results of Kamada. I encourage you to review the company's filings with the Securities and Exchange Commission, including without limitation, the company's Forms 20 F and six ks, which identify specific factors that may cause actual results or events to differ materially from those described in the forward looking statements. Furthermore, the content of this conference call contains time sensitive information that is accurate only as of the date of the live broadcast, Wednesday, 05/14/2025. Kamada undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that said, it is my pleasure to turn the call over to Amir London, CEO. Speaker 100:01:56Amir? Speaker 200:01:59Thank you, Brian. My thanks also to our investors and analysts for your interest in Commodore and for participating in today's call. I'm pleased to report on our strong first quarter results, representing double digit profitable growth and a continuation of the operational performance we generated over the course of 2024. Total revenues for the first quarter were $44,000,000 an increase of approximately 17% year over year. Adjusted EBITDA was $11,600,000 an increase of approximately 54% year over year. Speaker 200:02:40Our growth compared to Q1 twenty twenty four was primarily as a result of an increase in sales of Glacia and Kamrab in Ex U. S. Markets, as well as Varezig sales and Glacier royalties income. We expect to continue to generate profitable growth throughout the diversity of our portfolio and disciplined management of operational expenses through the remainder of 2025. Based on our positive outlook for the year, we are reiterating our 2025 annual guidance of anticipated annual revenues of $178,000,000 to $182,000,000 and $38,000,000 to $42,000,000 of adjusted EBITDA. Speaker 200:03:29Importantly, the midpoints of our 2025 guidance represent increase of approximately 12% in revenues and approximately 17% in adjusted EBITDA, respectively, over our 2024 results. As our expectation for strong top and bottom line growth indicate, we are excited for the near term prospects of our business. We are even more excited about the longer term opportunities ahead of us as we continue to progress on our four pillar growth strategy consisting of organic commercial growth, business development and M and A transactions, our plasma collection operation, and advancement of our pivotal Phase III inhaled Alpha-one program. To this end, last week we announced initiation of a comprehensive post marketing research program for Cytogam, which we believe will help demonstrate the advantages of the product in the prevention and management of CMV disease. This program, which consists of 10 different studies, most of them as investigator initiated studies, was developed in collaboration with leading KOLs and is directed at advancing CMV disease management through novel strategies. Speaker 200:04:52Studies will focus on late onset CMV prevention and medication of active CMV disease, exploring alternative dosing strategies, and investigating potential new applications of CytoGram. Although CMV disease continues to be a significant risk factor for organ rejection and mortality in transplantation, for years no new up to date clinical data regarding the benefits of Cytogram were published. The data generated by this program will support further product utilization. As part of our activities to advance organic growth, I'm happy to update that following our first biosimilar product launch in Israel last year, which is expected to generate approximately $2,000,000 in revenue this year, we expect to launch two additional biosimilars later this year and have several others in the pipeline to be launched in the coming years. We expect this portfolio will become an increasingly important portion of our distribution business with annual sales of between $15,000,000 to $20,000,000 within the next five years. Speaker 200:06:02Moving to business development and M and A. During 2025, we expect to secure compelling new business development in licensing, collaboration and or M and A transactions, which will enrich our portfolio of marketed products and complement our existing commercial operation. We anticipate that such agreements will generate operational and or commercial synergies with our current commercial portfolio and will support future profitable growth. Also, during the recently completed quarter, we expanded our plasma collection operation with the opening of our third location in San Antonio, Texas. The 11,000 square foot San Antonio Center will support over 50 donors' beds with an estimated total collection capacity of approximately 50,000 liters annually. Speaker 200:06:53Once they are at full collection capacity, we anticipate that our Houston and San Antonio collection centers will each contribute annual revenues of between $8,000,000 to $10,000,000 in the sales of normal source plasma. Turning now to ongoing pivotal Phase three INNO2VATE clinical trial for inhaled alpha-one antitrypsin therapy. We continue to advance this program with its revised enrollment goal of 180 subjects, and we are on track to conduct an interim futility analysis by the end of twenty twenty five. With that, I'll turn the call over to Jaime for a detailed discussion of our financial results for the first quarter of twenty twenty five. Jaime, please go ahead. Speaker 300:07:42Thank you, Amir. As Amir stated at the top of the call, our results for the first quarter of the year were strong. Total revenues were $44,000,000 in the first quarter compared to $37,700,000 in the first quarter of twenty twenty four. As Amir mentioned, the increase in revenues stemmed from the diversity of our portfolio and were primarily attributable to increased sales of GLASSIA and CAMRAP in ex U. S. Speaker 300:08:11Market as well as VaraZIG sales and GLASSIA royalties income. Gross profit and gross margins were 20,700,000 and 47% in the first quarter of twenty twenty five compared to sixteen point seven million and forty four percent in the first quarter of twenty twenty four. The increase in both matrices is attributable to improved product sales mix. Operating expenses including R and D, sales and marketing, G and A and other expenses totaled $13,000,000 in the first quarter of twenty twenty five as compared to $12,700,000 in the first quarter of twenty twenty four. The marginal increase in operating expenses is indicative of our ability to manage operational expenses while continuing to generate meaningful revenue growth. Speaker 300:09:07Net income was 4,000,000 or $07 per share in the first quarter of twenty twenty five, up 67% from the $2,400,000 or $04 per share in the first quarter of twenty twenty four. Adjusted EBITDA was $11,600,000 in the first quarter compared to $7,500,000 in the first quarter of twenty twenty four representing a 54% year over year increase. While the dividend payment declared in March was only paid after the end of the quarter, we continue to maintain a strong cash position that is planned to be used to fund new business development initiatives. With that, we will turn the call over to questions. Operator00:09:59Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. Operator00:10:29Our first question is from Annabel Samimy with Stifel. Speaker 400:10:35Hi, all. Thanks for taking my question. Great start of the year. I had some questions around the different growth contributors. I noticed that Cytogam is incited as a growth contributor this quarter. Speaker 400:10:51So, I was just wondering, with your expanded investment in clinical studies for CytoGam, should we read into anything that there's what prompted this? Has it reached a plateau right now? Or maybe does it signal anything for the potential to update guidelines based on the data that you have to date? Just wanted to understand the decision for making this investment. So I guess that's the first question. Speaker 400:11:19I have some follow ups. Speaker 200:11:23Thanks, Annabel. So, we emphasized the basically year over year growth. Basically, Q1 twenty twenty four was kind of similar to Q1 twenty twenty four in terms of the sales. As a reminder, end of twenty twenty three, we launched the new batches from our own production. So Q1 of twenty twenty four was strong with this fresh inventory that was basically shipped to the market. Speaker 200:11:56So we had a strong quarter back then. So when comparing the quarter to quarter year over year, Citroen didn't have a major contribution to the growth. The growth came from other products. We're very happy to see the strength of our portfolio, the diversity of our portfolio, including Glacia ex US, Kamrab ex US, Varianxing in The US market and the Glacier royalties had a significant contribution to the growth of the business. In general, we spoke about it in previous quarters, the fact that we have six FDA approved products and we're currently active in over 35 different countries, territories makes a very significant, a very strong portfolio that can continue growing organically in the next few years. Speaker 400:12:51Okay. Any thoughts on how the guidelines might be updated for Cytogam, for CMV rather? And is there anything to read into the fact that you're expanding these studies? Does that mean that you just need more data to update these guidelines? Speaker 200:13:14So, the idea to conduct multiple studies in order to basically present new, fresh clinical data, something we started working already in 2023. It took us time to work with the pool of KOLs, creating advisory boards, and basically work with each one of those to identify what is like the key set of data that will be important for the community to see. So it takes time, of course, to design, develop those clinical studies, and this has matured to a point that we were in a position that we could announce this comprehensive program. Between 2023 when it started, and now when we announced it, we already had like three different presentations, posters in industry conferences, and we are starting to see that there is positive impact on this work in the field working with the physicians. Changing guidelines takes time. Speaker 200:14:16Recently there was a meeting of the consortium, the KOLs, to work on CMV prevention, CMV management guidelines, and there is a modest change to the guideline. We expect that with new data, we are going to be able to prove that CMV, immunoglobulin has a significant advantage in the prevention and management of CMV and that it will be well reflected in future guidelines. Speaker 400:14:49Okay, got it. And just, I guess I can have a ton of questions, but I'll just cut it to one. Just have to ask the extent to which you're globally, you have a global business. Can you just sort of lay out how you think about the tariffs that are being posed right now? I know for right now, pharmaceuticals are excluded, but have you thought about the potential impact and how you might be protected just having plasma here or where you're sourcing your different products? Speaker 400:15:32Any kind of calculation that you've made on in a worst case scenario, what kind of impact that might have on on margins or or on the business overall? Speaker 200:15:41Okay. Jaime will answer this question. Jaime, please. Speaker 300:15:45Yes. So, we conducted an of of the issue. And our understanding based on currently available information is that there should be no direct impact on sales of our specific products. However, as as we know, this is an evolving situation, which we will keep on monitor and we'll advise in the future if our conclusion changes. I would also note that at present time, it is not possible to fully assess the potential indirect effect of the tariff discussions over global trade and how that might play in effect. Speaker 300:16:29But based on the analysis we made thus far, we do not think there is going to be a direct impact on our business. Speaker 400:16:40Okay, great. And just if I can squeeze in one more, any updates on what percent you are enrolled for INNO2VATE at this point? Speaker 200:16:52So we're at around 55% enrollment, and we are making good progress in working on the futility analysis. You know, we will have a cutoff of the data in the second part of the year. And soon after that, you know, the data will be available for the DSMB to run the statistical analysis for the futility analysis. Speaker 400:17:15Okay, great. Thank you. Speaker 200:17:18Thank you. Operator00:17:24Our next question is from James Sidoti with Sidoti and Company. Speaker 500:17:30Hi, good morning. Thanks for or good afternoon, actually. Thanks for taking the questions. Just a follow-up on the Cytogram post marketing study. Can you talk a little bit about the timing of that? Speaker 500:17:40When do you expect that to be completed? Speaker 200:17:44Because it's an array of 10 different studies, so each one of those has its own timeline. Some are things that are done quicker, especially the nonhuman clinical studies, but more of kind of the in in vitro analysis that we that we are doing. So some of it will be available already, you know, later this year into 2026, and some of the work will continue all the way to 2027, '20 '20 '8. In general, I'll say it's around a four year program that we have launched across multiple sites, multiple KOLs, and basically kind of covering the majority of the relevant CMV management and preventive in organ transplantation. Speaker 500:18:29Right. And then I know you addressed the tariffs, but one of the other changes in The US the past few months is the cutbacks in NIH spending. Do you expect those to have any impact on your business? Speaker 200:18:46No. Not not currently. No. No. So with our current understanding of the potential changes and regulations, we don't anticipate that this will have an impact on the business because of the nature of the business and the hospital, critical care type of treatment that we are doing, pretty unique type of medicines. Speaker 200:19:05Again, like Jaime mentioned about the tariffs, is there going to be any change in our understanding of situation, we will update on this. Speaker 500:19:13Okay. And then the last one for me, detail in the quarter, tax rate, you reported a 40% tax rate compared to a 3% tax rate a year ago. I guess two questions. What happened and are those real cash taxes or was that a non cash expense? Speaker 200:19:33Pardon me? Speaker 300:19:36The taxes changes in the fair tax liability. You can refer to our cash flow to see that it had no cash effect. Speaker 500:19:50Okay. Should we expect you to report some more tax rates going forward? Speaker 300:19:58Well, through 2025, I think we're going to be fluctuating a little bit in terms of our tax expenses mainly because of shifts between deferred tax assets and deferred tax liabilities. And I expect that by the end of this year it would smooth out and going forward you'll be able to see our effective tax rate more clearly. As of now, we have as of now, we have yet we're still using NOLs, so we're not paying taxes. We expect to be taxable income and start paying taxes at the end of twenty twenty five or beginning of twenty twenty six. Speaker 500:20:44Okay, great. That was my next question. Thank you very much. Operator00:20:52Thank you. I would like to hand the floor back over to Brian Ritchie for additional questions. Speaker 100:20:59Thank you. Just one question from the web, Amir. What does the strong start to Q1 mean for your annual guidance? Speaker 200:21:11Great question. So of course, we are going to so we had a strong We are going to monitor progress during the second quarter. And although we should be evaluated on an annual basis, we will definitely see if this strong performance continues. And if that's the case, we will update our guidance moving forward. Speaker 100:21:36Thanks, Tamir. I'll turn the floor back over to you for closing comments. Speaker 200:21:41Thank you. Thank you, Brian. So, in closing, we continue to invest in the four pillar growth strategy: continued progress made in all across our business, organic growth of our existing commercial portfolio, business development and M and A opportunities to support and expedite the growth, expansion of our plasma collection operation and progression of our AAT therapy program. We look forward to continue to support clinicians and patients with important life saving products that we develop, manufacture and commercialize, and we thank you all for your support, and we remain committed to creating long term shareholder value. We hope you all stay healthy and safe. Speaker 200:22:24Thank you for joining us today. Good luck. Operator00:22:31This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.Read morePowered by