Israeli Biopharmaceutical Company Kamada Ltd. (Nasdaq: KMDA; TASE:KMDA) today announced that it has entered into a stock purchase agreement with Israeli private equity firm FIMI Opportunity Funds (FIMI) to purchase $60 million of its common stock in a private placement.
Prior to today’s share purchase, FIMI, led by Ishay Davidi, already held a 21% stake in Kamada, and following the announcement of the private placement, the company’s share price surged 10%, leaving FIMI with a nice profit on the investment so far. After the investment, FIMI holds a 38% stake in Kamada and becomes the majority shareholder. After the rise, Kamada has a market capitalization of NIS 875 million.
FIMI first invested in Kamada in 2019, buying a 12% stake at $6 per share, 26% above the company’s current share price. At the beginning of 2020, FIMI increased its stake to 21% at the same price per share.
Prior to its initial investments, FIMI knew that Kamada was approaching a crossroads. The company has agreed to transfer the production rights for its flagship product for AAT deficiency, a condition that increases the risk of lung and other diseases, to its business partner Takeda. As a result, the company would no longer register revenue from the product, but only a reduced profit, forcing it to generate revenue from other products.
Since 2021, in collaboration with FIMI, Kamada has acquired and developed a portfolio of promising products, including six FDA-approved plasma-derived biopharmaceuticals and two types of equine anti-snake venom (ASV) products. In recent years, Kamada has added 11 biosimilar products to its Israeli distribution portfolio, which, subject to approvals from 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 – May 24, 2023.
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