Israeli Biopharmaceutical Company Kamada Ltd. (Nasdaq: KMDA; Level:KMDA) announced today that it has entered into a share purchase agreement with Israeli private equity firm FIMI Opportunity Funds (FIMI) to purchase $60 million of its common shares in a private placement.
Before today’s stock purchase, FIMI, led by Ishay Davidi, already had a 21% stake in Kamada, and after the private placement was announced, the company’s share price jumped 10%, leaving FIMI with a huge profit on the investment so far. After the investment, FIMI owns 38% stake in Kamada and becomes the controlling shareholder. After the rise, Kamada has a market capitalization of NIS 875 million.
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FIMI first invested in Kamada in 2019, buying a 12% stake at $6 a share, 26% higher than the company’s current share price. In early 2020, FIMI increased its holding to 21% at the same share price.
Before its initial investment, FIMI knew Kamada was nearing a crossroads. The company was committed to transferring production rights to its flagship product for AAT deficiency, a condition that increases the risk of lung and other diseases, to its marketing partner Takeda. As a result, the company no longer records revenue from the product, but only a low profit, which requires it to generate revenue from other products.
Since 2021, together with FIMI, Kamada has acquired and developed a portfolio of promising products including six FDA-approved plasma-derived biopharmaceutical products and two types of equine-based snake venom (ASV) products. In recent years, Kamada has added 11 biosimilar products to the Israeli distribution portfolio, which, subject to approvals by the European Medicines Agency (EMA) and the Israeli Ministry of Health, are expected to be launched in Israel until 2028.
Published by Globes, Israel business news – en.globes.co.il – on May 24, 2023.
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