Kamada surges on Baxter agreement

Kamada Ltd. surged the most in 19 months after reaching a distribution and marketing agreement for its Glassia emphysema medicine with Deerfield-based Baxter International Inc.

The shares soared the most since January 2009, jumping 16 percent to 22.40 shekels at the 4:30 p.m. close in Tel Aviv. The company market value reached 603 million shekels ($157.6 million).

Kamada will receive an initial payment of $20 million dollars for the distribution rights, plus a possible $25 million more in milestone payments for the technology license rights, it said today in an e-mailed statement. Baxter will buy a minimum of $60 million, possibly reaching $100 million, of the Nes Ziona, Israel-based company's drug over a five-year period.

Baxter may pay minimum annual royalties of $5 million on sales of the drug manufactured by Baxter based on Kamada's technology beginning in 2015, it said.