Kamada in distribution deal with Chiesi for Europe, Turkey and former CIS countries

Israeli biopharma company Kamada (KMDA: TA) has entered into an exclusive agreement with privately-owned Italian drugmaker Chiesi Farmaceutici for the distribution of its breakthrough inhaled alpha-1 antitrypsin for treatment of alpha-1 antitrypsin deficiency (AATD-IH), a genetic disorder.

Under the terms of the accord, Kamada will receive milestone payments of $60 million, subject to achievement of certain regulatory and sales targets. In addition, Chiesi is committed to minimum purchases tens of millions US dollars during the first five years following the acceptance of the required regulatory approvals.

The agreement is for 12 years and Kamada estimates that the sales potential from the distribution agreement, if and as long as its AATD-IH product, which has orphan drug designation, completes its Phase II/III clinical trials successfully and receives European Medicines Agency approval, may reach hundreds of millions of dollars in the coming years. The results of Phase II/III clinical trials of AATD-IH in Europe are expected in 2013 and Kamada estimates to complete the drug registration and begin sales no earlier than 2015.