Kamada will receive up to US$45 million of milestone payments of which US$20 million will be paid up-front
Baxter committed for minimum purchases estimated at approximately US$60 million and minimum annual royalties of US$5 million
NESS ZIONA, Israel--(BUSINESS WIRE)-- Kamada, Ltd. (TASE: KMDA), a biopharmaceutical company engaged in development, production and marketing of specialty life-saving therapeutics (“Kamada”) and Baxter International Inc., a global, diversified healthcare company (“Baxter”) announced today that they have entered into an exclusive distribution and manufacturing agreement for Kamada’s liquid, ready to use, intravenous Alpha-1 Antitrypsin Product for the treatment of hereditary Alpha-1 Antitrypsin Deficiency approved by the USFDA on July 1st, 2010 for marketing under the trade name “Glassia™”. The companies have also entered into a Technology Sharing agreement for the manufacturing of liquid AAT at Baxter facility using Kamada’s proprietary and patented technology.
Under the terms of the agreements, Baxter will be responsible for marketing and distribution of Glassia™ in the US, Canada, Australia and New Zealand. Within the scope of the agreements, Kamada will receive milestone payments of $45 million including an upfront payment of $20 million. Furthermore, Kamada will also be eligible to receive up to $25 million in aggregate payments upon the achievement of certain milestones. Baxter has a commitment to purchase minimum quantities of Glassia™ in the range of $60 million that could reach $110 million during the first five years of the agreements. Kamada will also be eligible to receive significant royalty payments on net sales of the product produced by Baxter.
The distribution rights and the licensing agreement do not include the Inhaled version of Kamada’s AAT product, currently in phase 2-3 clinical trial in Europe. Nevertheless, under the terms of the agreements, both sides will examine additional cooperation opportunities for the inhaled product.
Under this engagement, Baxter will serve as Kamada’s exclusive distributor for Glassia™ in the US.
David Tsur, Chief Executive Officer of Kamada Ltd., stated, "This is a great achievement for Kamada. Baxter is one of the world's largest biopharmaceuticals companies and has a strong history of creating and establishing market-leading brands, a track record that makes Baxter our ideal commercial partner for Glassia™. The strategic cooperation with Baxter is expected to enable Kamada to reach significantly larger sales volume in the US market with greater profitability margins. The cooperation with Baxter will enable Kamada financial independence and firmness needed for facilitating the development of the next generation product, the Inhaled AAT."
Kamada is a public biopharmaceutical company (TASE: KMDA) developing, producing and marketing a line of specialty life-saving biopharmaceuticals. Licensed and marketed worldwide, several of these specialty therapeutics are currently undergoing advanced clinical trials. Kamada is currently in the process of conducting a clinical trial with its second generation AAT product - an inhaled version which is currently in a phase 2-3 for the indication of Alpha-1 Antitrypsin Deficiency. Additional information is available at www.kamada.com and on www.myglassia.com.
KEYWORDS: United States North America New York Middle East Israel
INDUSTRY KEYWORDS: Health Biotechnology Pharmaceutical