Shares of Kamada Ltd. (KMDA) climbed 6.92% to $7.73, gaining $0.50, after the specialty plasma manufacturer reported stronger business performance anchored by a new $50 million supply agreement and an increased full-year 2026 financial outlook. Higher demand for the company's key treatments and expanding distribution operations also supported its growth outlook, extending momentum across its commercial portfolio.

Three-Year, $50 Million Plasma Supply Agreement

Kamada has signed a three-year, $50 million agreement to supply normal source plasma through its U.S. collection operations. The company characterized the contract as an important commercial milestone in its strategy to expand plasma supply capabilities, noting that it establishes a revenue stream from operations that support the broader manufacturing and supply network. Plasma serves as the core raw material for plasma-derived therapies, which makes collection capacity and supply agreements directly relevant to how much finished product a manufacturer can bring to market.

The company continues to develop its U.S. plasma collection centers to strengthen control over its raw material supply. This vertical integration strategy is designed to improve production efficiency and support long-term growth across Kamada's specialty plasma portfolio. To date, the company has not incorporated the benefits of internally sourced specialty plasma into its reported margins, and management confirmed that validation batches remain underway as the company advances its internal plasma utilization plans. Validation batches are a standard step for confirming that a production process performs consistently before routine commercial use, and the pace at which this work moves toward commercial utilization is a detail that can be tracked in upcoming results.

Alongside its continued investment in collection infrastructure, Kamada is maintaining its commercial operations and product development activities. The company also regards acquisitions as an important part of its strategy to expand beyond existing organic growth opportunities.

Q3 Gross Margin Reaches 45% on Specialty Plasma Demand

Kamada reported a 45% gross margin for the third quarter, reflecting improvements in its product sales mix. Stronger demand for KEDRAB, the company's rabies immune globulin, in the United States contributed to performance across the company's core commercial portfolio, while VARIZIG, its varicella-zoster immune globulin, and HEPAGAM further supported sales growth as Kamada maintained its focus on specialty plasma treatments.

KEDRAB benefited from increased U.S. demand following a health advisory issued by the Centers for Disease Control and Prevention. Rabies is nearly always fatal once symptoms develop, and standard post-exposure treatment pairs rabies immune globulin with vaccination, placing KEDRAB within routine public-health response protocols for suspected exposure. Kamada maintained sufficient manufacturing capacity and product availability to meet the additional demand from healthcare providers, and the company continued to strengthen its market presence through existing commercial relationships and reliable product supply.

The distribution business recorded 35% revenue growth as Kamada expanded its product offerings and regional agreements. During the quarter, the company launched Ustekinumab-Kamada and Enoxaparin-Kamada in Israel to strengthen its biosimilar portfolio, and it expanded distribution agreements across the Middle East and North Africa, creating additional opportunities for future sales. Biosimilars are biological products designed to be highly similar to approved reference medicines, with no clinically meaningful differences, adding supply options in established treatment markets. The launches formed part of a broader push to deepen the company's distribution footprint across the region.

2026 Guidance Raised and Q4 Dividend Declared

Following its latest performance, Kamada increased its 2026 annual revenue forecast to between $205 million and $208 million. Management also raised its adjusted EBITDA guidance to a range of $52 million to $54 million, roughly a quarter of projected revenue at the midpoint of the outlook. According to the company, the revised outlook reflects stronger commercial demand, distribution growth, and improved profitability across the business.

Kamada expects double-digit revenue and profitability growth throughout 2027 as its business continues to expand. The company plans to introduce at least two additional biosimilar products during 2027 to strengthen distribution revenue, and management projects annual biosimilar sales of approximately $10 million by 2028, rising to a range of $20 million to $25 million by 2030.

Kamada also announced a fourth-quarter cash dividend of $0.14 per share, continuing its shareholder return program. According to management, the payment will bring total shareholder distributions for 2026 to approximately $32.3 million. The company plans to balance dividend payments with organic expansion, plasma collection investments, and potential acquisitions. Execution against the raised 2026 outlook, completion of the plasma validation batches, and delivery of the planned 2027 biosimilar launches are the milestones against which the company's stated growth plans can be measured in upcoming reporting periods.

Source: Blockonomi