Drug development company Kamada Ltd. (TASE: KMDA) has signed a distribution agreement in the US worth a minimum of $15 million for the company's Alpha-1 Antitrypsin (AAT) protein for the treatment of congenital emphysema. The agreement applies only to the injectable version of the drug, while Kamada has reserved distribution rights to the inhalable version.
The five-year distribution agreement is with a large US company, whose identity Kamada did not disclose. Injectable AAT has already passed its Phase III clinical trial, and the agreement will come into effect when the US Food and Drug Administration (FDA) gives the drug marketing clearance. The company expects approval in the second half of 2010.
Kamada said that the distributor committed to a minimum of $15 million in orders for AAT as a condition for exclusivity. The company added that it expects actual sales to be higher.
Kamada CEO David Tsur told "Globes", "The distributor we signed the deal is not currently in the AAT market, but we strongly believe in its capabilities, in view of its success in marketing products for similar diseases. We had a lot of offers, including from companies in this field, but we did chose this company." The distributor undertook to obtain insurance indemnification for AAT.
"Globes": With the entry into the US, is this a good time to consider an offering on Nasdaq?
Tsur: "Maybe. We're monitoring the US capital market, and we're seeing a revival. Life sciences companies are the first to raise capital. We have no specific plans right now, but maybe in 2010 we'll consider doing what we thought to do in 2009. Maybe we'll hold an offering next year."
Kamada's share rose 1.6% today to NIS 31.51.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2009
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