Kamada follow-up: San Antonio shifts the plasma test to customers and price
San Antonio FDA approval removes an important regulatory checkpoint, but it does not yet prove the NSP economics. The test now moves to customer contracts, collection pricing and whether the new centers can generate revenue with real margin.
The FDA approval for the San Antonio center closes the first checkpoint in Kamada's plasma test, but it also sharpens the next one: the move can no longer be judged mainly by site openings or regulatory inspection progress. The company now has three FDA-approved collection centers in Texas, and its May 2026 presentation assigns Houston and San Antonio annual revenue potential of $8 million to $10 million per center from NSP sales after a full ramp. That is large enough to matter for the growth profile, but it still says little about profitability because commercialization is expected to start only in the second half of 2026 and the disclosure still does not give price, customer identity, collection volume or margin. The first quarter shows a company with enough underlying demand to keep annual guidance intact, but not one that has already proven the NSP economics: revenue rose only 3%, operating cash flow was slightly negative, and the increase in receivables absorbed much of the accounting profit. The approval is positive, but it changes the nature of the test more than it completes it. In the coming quarters, the market will need to see NSP contracts, economic pricing and collections that do not turn the ramp into another working-capital layer.
The Approval Removes One Constraint And Leaves Two Harder Ones
In the prior plasma analysis, San Antonio was the near-term bottleneck: the site was operational, the FDA inspection had been completed in February 2026, but final approval had not yet arrived. That checkpoint is now closed. The center is cleared for commercial sales of normal source plasma, and the company now describes Beaumont, Houston and San Antonio as FDA-approved collection centers.
The economic meaning is not that the platform has already proved itself. It means the execution test has moved to the next stage. Until now, the key question was whether San Antonio could move from an operating site to an approved commercial site. From here, the harder questions are who buys the NSP, at what price, and how quickly the company can collect and sell it without loading the model with donor payments, direct costs and expensive inventory.
The number in the presentation naturally draws attention: each of the two newer centers, Houston and San Antonio, is expected to generate $8 million to $10 million of annual revenue from NSP sales once fully ramped. Together, that implies $16 million to $20 million of annual revenue potential. But those revenues are not yet a contract, cash collection or margin. They size the opportunity, not its quality.
The First Quarter Still Does Not Prove NSP Economics
The first quarter of 2026 matters precisely because it is not a clean plasma-commercialization quarter. NSP sales are expected to begin only in the second half of 2026, so there is no reason to expect a meaningful contribution in the first quarter. What does appear is a mix that explains why total revenue growth should not be confused with higher earnings quality.
| Metric | Q1 2026 | Q1 2025 | What It Means |
|---|---|---|---|
| Proprietary products revenue | $36.2 million | $40.0 million | Down about 9.5%, even as the company highlights increasing demand for key products |
| Proprietary products gross profit | $18.0 million | $20.3 million | Gross margin of about 49.8%, close to 50.7% last year |
| Distribution revenue | $9.0 million | $4.0 million | Distribution more than doubled and became a larger part of revenue |
| Total gross margin | 42% | 47% | The overall mix pulled margin down, even though proprietary products remained relatively profitable |
The table shows the analytical problem. Proprietary products, where NSP also sits, still generate most of the gross profit, but the current quarter does not break out third-party plasma sales. At the same time, distribution grew very quickly but at a much lower gross margin. Total revenue growth therefore does not prove that the economic model of the new plasma centers is already working.
For Kamada, that distinction matters because NSP is supposed to do two different jobs: create a new revenue stream from sales to other manufacturers, and strengthen vertical integration by supporting the plasma needs of proprietary products. San Antonio approval helps both goals only if the company can sell at the right price or actually reduce external sourcing dependence for the relevant products. Without disclosure on customers, pricing terms and collection pace, the quarter gives regulatory progress but not unit-economics proof.
Cash Gives Time, Not Exemption From The Customer Test
The balance sheet still gives the company time to execute the ramp. At the end of March 2026, Kamada held $73.1 million of cash and short-term investments, before the roughly $14.4 million dividend paid in April. That is not an immediate stress picture. But the quarter's all-in liquidity picture is a reminder that the ramp has to start paying back in money received, not only in potential.
Operating cash flow was negative by $0.3 million, mainly after a $9.8 million increase in receivables. Capital expenditure and intangible assets used another roughly $1.0 million, lease repayments used $0.4 million, and repayment of other long-term liabilities used another $0.5 million. On an all-in basis before the dividend and excluding the transfer of funds into short-term investments, the quarter used a little more than $2 million. That is manageable for a company with this liquidity balance, but it does not indicate a ramp that is already self-funding.
This is where the customer test matters. If Houston and San Antonio begin NSP sales in the second half of 2026, initial revenue alone will not be enough. The relevant proof is whether sales are collected on time, whether payment terms avoid another receivables stretch, and whether pricing covers donor costs and direct collection costs. Otherwise, the sites can show revenue without improving cash quality.
The Next Proof Point Is A Contract, Not Another Approval
San Antonio approval improves the starting point for the plasma ramp, but the current read remains cautious: Kamada has moved from a regulatory hurdle into a commercial path where price, customer identity and collection terms matter more than approval itself. If the next quarters bring NSP contracts with real sales, while proprietary products hold margin without inflating receivables and inventory, the approval will start to look like an economic change. If sales are delayed, priced weakly or tied to heavier working capital, San Antonio will remain an approved site with potential, not proof that the model has improved. The next checkpoint is therefore not another regulatory headline, but a commercial deal that shows price, pace and collections entering the business.
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