Kamada (KMDA) Buy Rating Maintained at RBC Capital

RBC Capital maintained an Outperform rating on Kamada Ltd. (NASDAQ: KMDA) with a price target of $8. Earlier Kamada announced encouraging talks regarding the company’s Marketing Authorization Application (MAA) with the European Medicines Agency (EMA) for its inhaled alpha-1 antitrypsin (AAT) for the treatment of alpha-1 antitrypsin deficiency (AATD).

Commenting analyst Adnan Butt said, "The potential for inhaled AAT to see an ex US approval remains like we anticipated but full investor confidence in approvability could take longer to build as more data and analyses are reported over the course of 2015. Shares still appear fundamentally inexpensive (cash per share ~ $1.60) with no value for the pipeline and even the commercial Glassia relationship with Baxter heavily discounted."

"The pivotal Phase II/ III study did not meet the primary endpoint. However, with initial pre-MAA meetings concluded, the EMA noted that it would not reject the application outright simply because the primary endpoint was not met. While this is not unexpected, unlike the FDA’s narrower outlook we expect the EMA to review the totality of data, including posthoc analyses, it is nevertheless a favorable outcome as it leaves open the possibility that inhaled AAT could be approved," continued the analyst.

"KMDA has previously mentioned that Glassia sales growth exceeds market growth and that partner BAX highlights Glassia over its own i.v. AAT at medical meetings, both of which point to a relationship that is ongoing. Our base and downside scenarios value the relatively stable intravenous AAT franchise alone between $5 and $2 respectively so there is room for upside should the EMA approve inhaled AAT by mid-2017 ($14 per share; 30% probability in the upside case)," he added.

For an analyst ratings summary and ratings history on Kamada Ltd. click here. For more ratings news on Kamada Ltd. click here.

Shares of Kamada Ltd. closed at $4.49 yesterday.

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