Kamada Rises to 18 Month High on Nasdaq Report: Tel Aviv Mover
Kamada Ltd. (KMDA), the biopharmaceuticals producer, soared to the highest level in almost 18 months after a newspaper reported the company is in talks with underwriters for a share sale in the U.S.
The shares of the company that makes treatments for hereditary lung diseases gained 6.3 percent to 30.81 shekels at the close in Tel Aviv, the highest level since May 2011. The Nes Ziona, Israel-based business may raise “tens of millions of dollars” in the sale on the Nasdaq stock exchange, the Globes reported without saying where it obtained the information.
“We don’t comment on rumors,” Chief Executive Officer David Tsur said in a telephone interview. “The company has been approached by investment bankers numerous times in the past and once a decision is made we will update the market.”
The stock has gained 50 percent this year, giving the company a market value of 879 million shekels ($226 million). Volume today was 752,168 shares, compared with the three-month daily average of 78,324.
The company announced on Aug. 5 an agreement with Chiesi Farmaceutici SpA for the exclusive distribution of the inhaled version of its AAT medicine. Kamada said at the time it could get $60 million if regulatory conditions and sales targets are met and estimates sales potential of “hundreds of millions of dollars.” The inhaled version is undergoing Phase II-III testing in Europe and results are expected in 2013.
The company already sells an intravenous version of the compound, used to treat patients with a genetic condition called Alpha-1 Antitrypsin deficiency that can lead to liver and lung damage, with Baxter International Inc. (BAX) Kamada expects 2012 sales to rise to about 257 million shekels from 213 million shekels last year, the company said on April 1.
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