Has the market lost faith in Kamhada’s treatment? The stock completes a drop of 40% from the peak – the capital market


In late August, President Trump solemnly announced a “significant development in corona care” – giving corona patients permission to receive emergency plasma treatment. It is basically about using patients’ antibodies to create treatment for critically ill patients. While this was not a medical breakthrough, Trump’s announcement brought to the fore the companies that specialize in treatment. One of them is Israeli science. The company’s stock (NYSE: KMDA) soared 33% to $ 550 million.

A little over a month after that event, optimism around the company seems to have waned completely. The company’s stock is currently trading at a price lower than 40% of the high set after Trump’s announcement on August 24. And in general – the company’s share did not provide an impressive return. In February, before the eruption of the corona, it traded in the region of $ 7. The Corona (initially) dropped it along with the entire market to $ 4.6-4.7, and the high in August was about $ 12. It is now at $ 8.14 when in September it loses close to 20%.

Kamahada’s market value in recent months: a sharp decline in the last month

Although the decline comes without any special announcement from the company in recent weeks, there are more shares of Corona companies that have cooled. The race for the drug seems to be making investors realize that there will eventually be competition between the companies. Plasma is currently intended for critically ill patients and at the same time there are a number of companies developing treatment for critically ill patients. What’s more – a corona vaccine developed by Pfizer, Moderna, J&J, Novax and a vaccine means less serious patients later on. So plasma is a solution. It is of course also very important at this point in time this is one of the only solutions. But business is not clear if this will be significant for KamHada.

In theory, the second wave of Corona virus in the world and in Israel in particular should have given society a boost. The number of patients in Israel continues to climb rapidly and KamaDa, as far as is known, is the only company today that already offers emergency treatment for the corona virus through plasma.

Earlier this month, Kamhada announced the end of the recruitment and preliminary interim results in the Phase 1/2 trial of the company’s treatment of corona patients in Israel. This is an experiment carried out at a number of medical centers in Israel and examines the product (anti-SARS-CoV-2) enriched antibody (IgG) based on Kamhada’s plasma as a therapeutic option for corona disease (COVID-19). The study was designed to examine the safety, pharmacokinetics (PK) and pharmacodynamics (PD) of the company’s plasma-based antibody preparation (IgG) in coronary patients hospitalized with non-respiratory pneumonia. Twelve patients aged 34-69 were recruited for the study, and were treated with a single dose of 4 g of the product within 5 to 10 days of the onset of symptoms of the disease. Patient follow-up will last 84 days.

In an interview with BizPortal at the time, CEO Amir London claimed “We expect these preliminary interim results and final research results, which are expected to be available in January 2021, to support our plan to promote Kamhada’s IgG product as a possible treatment for hospitalized corona patients.” American to inject plasma into U.S. treatment.

It should be noted that in parallel with the recent decline in Kamhada, competing U.S. companies engaged in plasma therapy have also declined since Trump’s announcement: IDMA Biolights (NYSE: ADMA) SonnetPiotics (NYSE: SONN) shares traded Now at a price tens of percent lower than the price with Trump’s announcement.

So the reasons for Kamhada’s weakness are clear. The market points out that corona treatment by providing plasma as good as it is, is in competition with other treatments and of course with the vaccine. The market needs to gamble – whether there will be a vaccine or not, and meanwhile the market seems to believe the vaccine is close. This does not mean that there will be no serious patients, it means that in the future they will decrease significantly.

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