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Kamada Ltd. (KMDA - Snapshot Report) announced that it has extended the strategic partnership with Shire plc (SHPG - Analyst Report) for Glassia for the fourth time since 2010.

Glassia, a ready-to-infuse liquid alpha1-proteinase inhibitor, was approved in the U.S. in 2010 for the treatment of adults with clinically evident emphysema due to severe congenital alpha-1 antitrypsin (AAT) deficiency. In Jun 2016, Glassia’s label was expanded in the U.S. to allow self-infusion at home for adults with emphysema caused by severe AAT deficiency.

As per the terms of the extended agreement, Kamada will continue producing Glassia for Shire through 2020, after which Shire may produce it by paying Kamada a royalty. Kamada expects to recognize Glassia revenues of approximately $237 million between 2017 and 2020, which may increase to $288 million.

In 2016, Kamada expects Glassia sales in the range of $75–$80 million and for 2017, the company targets sales of $100 million.

Shire had gained rights to Glassia following the acquisition of Baxalta Incorporated in Jun 2016. Under the terms of the agreement, Shire distributes Glassia in the U.S., Canada, Australia and New Zealand. Shire also has license to manufacture the product using Kamada’s technology for sales in these countries.

Note that in 2010, Kamada and Baxter International Inc. (BAX - Analyst Report) had entered into an exclusive strategic cooperation agreement for the distribution and license of Glassia. Baxalta was later spun off from Baxter in Jul 2015.

We remind investors Alnylam Pharmaceuticals, Inc. (ALNY - Analyst Report) is also developing an AAT deficiency candidate, ALN-AAT, in a phase I/II study.

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