Kamada stock surged 4.7% on September 8 even as the broader US market declined as the Israel-based plasma-derived biopharmaceutical company announced an update related to the development of its treatment for COVID-19.
Kamada (KMDA) is conducting a Phase 1/2 trial in Israel in collaboration with Kedrion Biopharma for the development, manufacturing, and distribution of a plasma-derived IgG hyperimmune immunoglobulin (or IgG) product as a potential treatment for COVID-19.
Yesterday, Kamada disclosed that the trial, which studies the effect of the IgG product in hospitalized, non-ventilated COVID-19 patients with pneumonia, enrolled 12 eligible patients and these patients received a single dose of 4 grams IgG within five to 10 days of initial symptoms. Patient follow-ups will occur for 84 days.
The company observed symptom improvement in 11 of the 12 patients within 24 to 48 hours from treatment. All of these 11 patients were subsequently discharged from the hospital within a median hospital stay of 4.5 days from treatment.
However, Kamada added that the medical condition of one patient, who completed the 14-day post-treatment follow-up, deteriorated and the patient is currently on mechanical ventilation. Also, another patient had a serious adverse event four days after treatment but this was categorized by the investigator as unrelated to the company’s IgG product administered to the patient during the trial.
With Kedrion’s support, Kamada submitted a pre-Investigational New Drug or IND information package to the US FDA, with its proposed U.S clinical development plan and the FDA’s response is expected next month.
On August 24, Kamada stock surged 17% as the US President Donald Trump announced that the FDA issued an emergency use authorization or EUA for convalescent plasma therapy as a treatment for hospitalized COVID-19 patients. (See KMDA stock analysis on TipRanks)
On August 14, Chardan analyst Keay Nakae increased his price target for Kamada stock to $11 from $7 and reiterated a Buy rating following second-quarter results and “multiple” stories in the Israeli press highlighting the initial positive response observed in the first three patients who were given the company’s IgG product as a potential treatment for SARS-CoV-2 disease.
The analyst said that the higher price target was backed by the potential of this product, which takes the concept of convalescent plasma therapy “a step further” by pooling plasma from several donors.
Based on two recent Buy ratings, Kamada stock has a Moderate Buy consensus. The stock has surged over 34% so far this year and the average analyst price target of $11 indicates a 20% upside potential ahead.
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