Kamada (KMDA) 6-K 22 Nov 22 Kamada Reports Strong Third Quarter Financial Results Demonstrating Successful Strategic Transition and Reiterates 2022 Financial Guidance Financial data

Document And Entity Information

Document And Entity Information	9 Months Ended
	Sep. 30, 2022
Document Information Line Items
Entity Registrant Name	Kamada Ltd
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001567529
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity File Number	001-35948

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Current Assets
Cash and cash equivalents	$ 31,252	$ 18,587	$ 99,840
Trade receivables, net	23,997	35,162	26,548
Other accounts receivables	6,884	8,872	4,392
Inventories	73,029	67,423	48,163
Total Current Assets	135,162	130,044	178,943
Non-Current Assets
Property, plant and equipment, net	25,898	26,307	25,856
Right-of-use assets	2,793	3,092	3,361
Intangible assets, Goodwill and other long-term assets	148,620	153,663	3,380
Contract assets	7,164	5,561	4,987
Total Non-Current Assets	184,475	188,623	37,584
Total Assets	319,637	318,667	216,527
Current Liabilities
Current maturities of bank loans	4,444	2,631	52
Current maturities of lease liabilities	1,004	1,154	1,181
Current maturities of other long term liabilities	25,095	17,986
Trade payables	30,619	25,104	19,010
Other accounts payables	7,948	7,142	6,346
Deferred revenues	40	40
Total Current Liabilities	69,150	54,057	26,589
Non-Current Liabilities
Bank loans	14,074	17,407
Lease liabilities	2,414	3,160	3,283
Contingent consideration	20,705	21,995
Other long-term liabilities	39,915	43,929
Deferred revenues	15	15	3,575
Employee benefit liabilities, net	813	1,280	1,467
Total Non-Current Liabilities	77,936	87,786	8,325
Shareholder’s Equity
Ordinary shares	11,732	11,725	11,720
Additional paid in capital net	210,355	210,204	210,005
Capital reserve due to translation to presentation currency	(3,490)	(3,490)	(3,490)
Capital reserve from hedges	(257)	54	35
Capital reserve from share-based payments	5,427	4,643	4,817
Capital reserve from employee benefits	212	(149)	(320)
Accumulated deficit	(51,428)	(46,163)	(41,154)
Total Shareholder’s Equity	172,551	176,824	181,613
Total Liabilities and Shareholder’s Equity	$ 319,637	$ 318,667	$ 216,527

Consolidated Statements of Prof

Consolidated Statements of Profit or Loss and Other Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Consolidated Statements Of Profit Or Loss And Other Comprehensive Income Abstract
Revenues from proprietary products	$ 25,580	$ 17,123	$ 67,198	$ 57,316	$ 75,521
Revenues from distribution	6,637	5,911	16,702	14,857	28,121
Total revenues	32,217	23,034	83,900	72,173	103,642
Cost of revenues from proprietary products	13,151	12,078	37,856	35,605	48,194
Cost of revenues from distribution	6,196	5,226	14,632	12,835	25,120
Total cost of revenues	19,347	17,304	52,488	48,440	73,314
Gross profit	12,870	5,730	31,412	23,733	30,328
Research and development expenses	3,118	2,545	10,181	7,909	11,357
Selling and marketing expenses	3,843	1,256	10,435	3,803	6,278
General and administrative expenses	3,165	2,691	9,481	8,803	12,636
Other expenses	182	42	801	612	753
Operating income (loss)	2,562	(804)	514	2,606	(696)
Financial income	29	68	32	277	295
Income (expenses) in respect of currency exchange differences and derivatives instruments, net	163	(48)	756	74	(207)
Financial Income (expense) in respect of contingent consideration and other long- term liabilities.	(2,049)		(5,924)		(947)
Financial expenses	(211)	(61)	(583)	(178)	(330)
Income before tax on income	494	(845)	(5,205)	2,779	(1,885)
Taxes on income	10		60		345
Net Income (loss)	484	(845)	(5,265)	2,779	(2,230)
Gain (loss) on cash flow hedges	(46)	68	(830)	25	185
Net amounts transferred to the statement of profit or loss for cash flow hedges	231	(91)	519	(347)	(488)
Remeasurement gain (loss) from defined benefit plan	(59)		361		171
Total comprehensive income (loss)	$ 610	$ (868)	$ (5,215)	$ 2,457	$ (2,362)
Basic net earnings per share (in Dollars per share)	$ 0.01	$ (0.02)	$ (0.12)	$ 0.06	$ (0.05)
Diluted net earnings per share (in Dollars per share)	$ 0.01	$ (0.02)	$ (0.12)	$ 0.06	$ (0.05)

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Share capital	Additional paid in capital	Capital reserve due to translation to presentation currency	Capital reserve from hedges	Capital reserve from sharebased payments	Capital reserve from employee benefits	Accumulated deficit	Total
Balance at Dec. 31, 2020	$ 11,706	$ 209,760	$ (3,490)	$ 357	$ 4,558	$ (320)	$ (43,933)	$ 178,638
Net income							2,779	2,779
Other comprehensive income (loss)				(322)				(322)
Tax effect
Total comprehensive income (loss)				(322)			2,779	2,457
Exercise and forfeiture of share-based payment into shares	14	245			(245)			14
Cost of share-based payment					504			504
Balance at Sep. 30, 2021	11,720	210,005	(3,490)	35	4,817	(320)	(41,154)	181,613
Balance at Dec. 31, 2020	11,706	209,760	(3,490)	357	4,558	(320)	(43,933)	178,638
Net income							(2,230)	(2,230)
Other comprehensive income (loss)				(303)		171		(132)
Total comprehensive income (loss)				(303)		171	(2,230)	(2,362)
Exercise and forfeiture of share-based payment into shares	19	444			(444)			19
Cost of share-based payment					529			529
Balance at Dec. 31, 2021	11,725	210,204	(3,490)	54	4,643	(149)	(46,163)	176,824
Balance at Jun. 30, 2021	11,716	209,942	(3,490)	58	4,746	(320)	(40,309)	182,343
Net income							(845)	(845)
Other comprehensive income (loss)				(23)				(23)
Tax effect
Total comprehensive income (loss)				(23)			(845)	(868)
Exercise and forfeiture of share-based payment into shares	4	63			(63)			4
Cost of share-based payment					134			134
Balance at Sep. 30, 2021	11,720	210,005	(3,490)	35	4,817	(320)	(41,154)	181,613
Balance at Dec. 31, 2021	11,725	210,204	(3,490)	54	4,643	(149)	(46,163)	176,824
Net income							(5,265)	(5,265)
Other comprehensive income (loss)				(311)		361		50
Tax effect
Total comprehensive income (loss)				(311)		361	(5,265)	(5,215)
Exercise and forfeiture of share-based payment into shares	7	151			(151)			7
Cost of share-based payment					935			935
Balance at Sep. 30, 2022	11,732	210,355	(3,490)	(257)	5,427	212	(51,428)	172,551
Balance at Jun. 30, 2022	11,731	210,319	(3,490)	(442)	5,097	271	(51,912)	171,574
Net income							484	484
Other comprehensive income (loss)				185		(59)		126
Tax effect
Total comprehensive income (loss)				185		(59)	484	610
Exercise and forfeiture of share-based payment into shares	1	36			(36)			1
Cost of share-based payment					366			366
Balance at Sep. 30, 2022	$ 11,732	$ 210,355	$ (3,490)	$ (257)	$ 5,427	$ 212	$ (51,428)	$ 172,551

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash Flows from Operating Activities
Net income (loss)	$ 484	$ (845)	$ (5,265)	$ 2,779	$ (2,230)
Adjustments to the profit or loss items:
Depreciation and impairment	3,055	1,240	9,143	3,612	5,609
Financial expenses (income), net	2,068	41	5,719	(173)	1,189
Cost of share-based payment	366	134	935	504	529
Taxes on income	10		60		345
Change in employee benefit liabilities, net	(10)	38	(106)	61	45
Adjustments to the profit or loss items	5,489	1,453	15,751	4,004	7,717
Changes in asset and liability items:
Decrease (increase) in trade receivables, net	(6,358)	1,200	10,744	(4,446)	(12,861)
Decrease (increase) in other accounts receivables	844	(73)	2,917	1,556	(1,634)
Decrease (increase) in inventories	(8,509)	(3,562)	(5,606)	(5,963)	(2,373)
Decrease (increase) in deferred expenses	(2,112)	(2,397)	(2,596)	(4,759)	(6,883)
Increase (decrease) in trade payables	13,738	1,586	5,895	2,725	7,917
Increase (decrease) in other accounts payables	2,083	(683)	566	(1,482)	(392)
Decrease in deferred revenues		550		1,550	1,815
Total Changes in asset and liability	(314)	(3,379)	11,920	(10,819)	(14,411)
Cash received (paid) during the period for:
Interest paid	(170)	(32)	(550)	(139)	(228)
Interest received	12	140	15	357	375
Taxes paid	(9)	(9)	(27)	(32)	(42)
Cash received (paid) during the year	(167)	99	(562)	186	105
Net cash provided by (used in) operating activities	5,492	(2,672)	21,844	(3,850)	(8,819)
Cash Flows from Investing Activities
Investment in short term investments, net		36,116		39,083	39,083
Purchase of property and equipment and intangible assets	(1,616)	(1,523)	(2,807)	(2,986)	(3,730)
Business combination				(1,404)	(96,403)
Net cash provided by (used in) investing activities	(1,616)	34,593	(2,807)	34,693	(61,050)
Cash Flows from Financing Activities
Proceeds from exercise of share base payments	1	4	7	14	19
Receipt of long-term loans					20,000
Repayment of lease liabilities	(269)	(308)	(842)	(903)	(1,221)
Repayment of long-term loans	(1,116)	(15)	(1,517)	(221)	(205)
Repayment of other long-term liabilities	(877)		(4,120)
Net cash provided by (used in) financing activities	(2,261)	(319)	(6,472)	(1,110)	18,593
Exchange differences on balances of cash and cash equivalent	(296)	(178)	100	(90)	(334)
Increase (decrease) in cash and cash equivalents	1,319	31,424	12,665	29,643	(51,610)
Cash and cash equivalents at the beginning of the period	29,933	68,416	18,587	70,197	70,197
Cash and cash equivalents at the end of the period	31,252	99,840	31,252	99,840	18,587
Significant non-cash transactions
Right-of-use asset recognized with corresponding lease liability	230	181	526	769	845
Purchase of property and equipment and Intangible assets	$ 134	$ 352	$ 134	$ 352	$ 1,001

General

General	9 Months Ended
	Sep. 30, 2022
General [Abstract]
General	Note 1:- General General description of the Company and its activity Kamada Ltd. (the “Company”) is a vertically integrated global biopharmaceutical company, focused on specialty plasma-derived therapeutics, with a diverse portfolio of marketed products, a robust development pipeline and industry-leading manufacturing capabilities. The Company’s strategy is focused on driving profitable growth from our current commercial activities as well as our manufacturing and development expertise in the plasma-derived biopharmaceutical market. The Company’s commercial products portfolio includes its developed and FDA approved products GLASSIA® and KEDRRAB® as well as its recently acquired FDA approved plasma-derived hyperimmune products CYTOGAM®, HEPAGAM B®, VARIZIG® and WINRHO®SDF. The Company has additional four plasma-derived products which are registered in markets outside the U.S. The Company distributes its commercial products portfolio directly, and through strategic partners or third party distributors in more than 30 countries, including the U.S., Canada, Israel, Russia, Brazil, Argentina, India and other countries in Latin America and Asia. The Company has a diverse portfolio of development pipeline products including an inhaled AAT for the treatment of AAT deficiency for which the Company is currently conducting the InnovAATe clinical trial, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial. The Company leverages its expertise and presence in the Israeli pharmaceutical market to distribute in Israel more than 20 products that are manufactured by third parties and have recently added eleven biosimilar products to its Israeli distribution portfolio, which, subject to EMA and the Israeli MOH approvals, are expected to be launched in Israel between the years 2022 and 2028. In November 2021, the Company acquired a portfolio of four FDA approved plasma-derived hyperimmune commercial products from Saol Therapeutics (“Saol”). The acquisition of this portfolio furthers the Company’s core objective to become a fully integrated specialty plasma company with strong commercial capabilities in the U.S. market, as well as to expand to new markets, mainly in the Middle East/North Africa region, and to broaden the Company’s portfolio offering in existing markets. The Company’s wholly owned U.S. subsidiary, Kamada Inc., will be responsible for the commercialization of the four products in the U.S. market, including direct sales to wholesalers and local distributers. Refer to Note 5 of the Company’s annual financial statements as of December 31, 2021. The Company markets GLASSIA in the U.S. through a strategic partnership with Takeda Pharmaceuticals Company Limited (“Takeda”). Pursuant to an agreement with Takeda, the Company terminated the production and sale of GLASSIA to Takeda during 2021 resulting in a significant reduction in revenues. Takeda initiated its own production of GLASSIA for the U.S. market. Commencing 2022, Takeda pays royalties to the Company at a rate of 12% on GLASSIA’s net sales through August 2025, and at a rate of 6% thereafter until 2040, with a minimum of $5 million annually. Refer to Note 19 of the Company’s annual financial statements as of December 31, 2021.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Significant Accounting Policies [Abstract]
Significant Accounting Policies	Note 2:- Significant Accounting Policies a. Basis of preparation of the interim consolidated financial statements: The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, “Interim Financial Reporting”. b. Implementation of new accounting standards: i. Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” (“IAS 1 Amendment”) regarding the criteria for determining the classification of liabilities as current or non-current. IAS 1 Amendment replaces certain requirements for classifying liabilities as current or non-current. Thus, for example, according to the IAS 1 Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period, this instead of the requirement that there be an “unconditional” right. According to the IAS 1 Amendment, a right is in existence at the reporting date only if the entity complies with conditions for deferring settlement at that date. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The IAS 1 Amendment is effective for reporting periods beginning on or after January 1, 2023 with earlier application being permitted. IAS 1 Amendment is applicable retrospectively, including an amendment to comparative data. The Company believes that the adoption of IAS 1 Amendment will not have an effect on its financial statements. ii. Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (“IAS 12 Amendment”) IAS 12 Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. IAS 12 Amendment is effective for annual periods beginning on or after January 1, 2023, by amending the opening balance of the retained earnings or adjusting a different component of equity in the period the Amendment was first adopted. Earlier application is permitted. The Company has not yet commenced examining the effects of applying IAS 12 Amendment on the financial statements.

Significant Events in the Repor

Significant Events in the Reporting Period	9 Months Ended
	Sep. 30, 2022
Significant Events in the Reporting Period [Abstract]
Significant events in the reporting period	N ote 3:- Significant events in the reporting period i Grant of options to the purchase ordinary shares of the Company to employees, executive officers, CEO and Board of Directors members On February 28, 2022, the Company’s Board of Directors approved the grant of options to purchase up to 1,327,500, 400,000 and 270,000 ordinary shares of the Company to employees and executive officers, CEO and Board of Directors members, respectively. As of September 30, 2022, the Company granted, out the above mentioned, to employees and executive officers total of: - Under the Israeli Share Option Plan: On February 28, 2022, 1,105,100 options to purchase the ordinary shares of the Company, at an exercise price of NIS 19.36 (USD 5.97) per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $2,222 thousands. On March 01, 2022, 10,000 options to purchase the ordinary shares of the Company, at an exercise price of NIS 19.54 (USD 6.04) per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $21 thousands. On March 13, 2022, 15,000 options to purchase the ordinary shares of the Company, at an exercise price of NIS 18.92 (USD 5.80) per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $29 thousands. On May 01, 2022, 18,100 options to purchase the ordinary shares of the Company, at an exercise price of USD 5.64 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $40 thousands The grant of options to the CEO and the Board of Directors members are subject to the approval of the General Meeting of Shareholders that is expected to take place during December 2022 - Under the US Share Option Plan: On February 28, 2022, 23,100 options to purchase the ordinary shares of the Company, at an exercise price of USD 6.10 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $49 thousands. On March 01, 2022, 18,100 options to purchase the ordinary shares of the Company, at an exercise price of USD 6.06 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $41 thousands. On March 15, 2022, 60,000 options to purchase the ordinary shares of the Company, at an exercise price of USD 5.88 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $135 thousands. On July 16, 2022, 60,000 options to purchase the ordinary shares of the Company, at an exercise price of USD 5.04 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $119 thousands. On September 01, 2022, 18,100 options to purchase the ordinary shares of the Company, at an exercise price of USD 5.16 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $36 thousands. - On August 23, 2022, the Company’s Board of Directors approved the grant of 79,300 options to purchase the ordinary shares of the Company: Under the Israeli Share Option Plan 51,200 options to purchase the ordinary shares of the Company, at an exercise price of NIS 17.18-17.41 (USD 5.27-5.31) per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $89 thousands. Under the US Share Option Plan: 28,100 options to purchase the ordinary shares of the Company, at an exercise price of USD 5.36 per share. The fair value of the options calculated on the date of grant using the binomial option valuation model was estimated at $59 thousands. ii Labor strike at the Company’s manufacturing plant at Beit Kama, Israel - On April 26, 2022, during the course of the Company’s negotiations with the Histadrut - General Federation of Labor in Israel (the “Histadrut”) and the Employees’ Committee of Kamada’s Beit Kama production facility in Israel (the “Employee’s Committee”), on the extension of a collective bargaining agreement, the Employee’s Committee elected to declare a labor strike in the Beit Kama plant. On July 15, 2022, the Company, the Employees’s Committee, and the Histadrut, signed a new collective agreement detailing the understandings reached between the parties. The agreement will be effective through the end of 2029, while certain economic terms may be renegotiated by the parties following the lapse of the first four years of the term of the agreement. As a result of execution of the agreement the labor strike ended, and the unionized employees returned to work at the Beit Kama production facility. As a result of the labor strike, the Company recorded, during the second quarter and the Third quarter of 2022, a loss of $3,342 and $917 thousand respectively recorded in the cost of revenues from proprietary products and was comprised of $3,082 and $917 thousands of overhead cost charges due to lower than standard production level in the second quarter and the third quarter respectively and $260 thousands in the second quarter due to loss of in-process materials. iii Increase in the yield of high-quality corporate bonds As of September 30, 2022, there was an increase, compared to December 31, 2021, in the yield of high-quality corporate bonds which effect the discount rate of defined benefit obligations. The effect of the changes in the aforementioned discount rate resulted in a reduction in the employee benefit liability, net as of September 30, 2022, in relation to December 31, 2021, in the amount of $361 thousand which were recognized against other comprehensive income in the Nine-month period that ended on September 30, 2022. iv During May 2022, the Company terminated a distribution agreement with a third-party engaged to distribute the Company’s proprietary products in Russia and Ukraine (the “Distributor”), and a power of attorney granted, in connection with such distribution agreement, to an affiliate of the Distributor (the “Affiliate). On July 18, 2022, the Affiliate notified the Company of the filing of a request for a conciliation hearing with the Court in Geneva relying on the terminated power of attorney and seeking damages for the alleged inability to sell the remaining product inventory previously acquired from the Company and compensation for the lost customer base. The purpose of a conciliation hearing is to explore the possibility of an out-of-court settlement and not to address the merits of the claims. The outcome of such hearing is not binding. Nonetheless, the conciliation request has not yet been formally served upon the Company, which is a procedural request to proceed with the hearing. At this stage, it is not possible to assess the prospects and scope of any claims against the Company and any potential liabilities as such conciliation request is an initial procedure and the claims are not fully substantiated. The Company intends to vigorously defend itself against any claims if and when they arise from these matters.

Operating Segments

Operating Segments	9 Months Ended
	Sep. 30, 2022
Operating Segments [Abstract]
Operating Segments	Note 4:- Operating Segments a. General: The company has two operating segments, as follows: Proprietary Products - Development, manufacturing, lessening sales and distribution of plasma-derived protein therapeutics Distribution - Distribute imported drug products in Israel, which are manufactured by third parties. b. Reporting on operating segments: Proprietary Distribution Total U.S Dollars in thousands Unaudited Nine months period ended September 30, 2022 Revenues $ 67,198 $ 16,702 $ 83,900 Gross profit $ 29,342 $ 2,070 $ 31,412 Unallocated corporate expenses (30,898 ) Finance expenses, net (5,719 ) Income before taxes on income $ (5,205 ) Proprietary Distribution Total U.S Dollars in thousands Unaudited Nine months period ended September 30, 2021 Revenues $ 57,316 $ 14,857 $ 72,173 Gross profit $ 21,711 $ 2,022 $ 23,733 Unallocated corporate expenses (21,127 ) Finance expenses, net 173 Income before taxes on income $ 2,779 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended September 30, 2022 Revenues $ 25,580 $ 6,637 $ 32,217 Gross profit $ 12,429 $ 441 $ 12,870 Unallocated corporate expenses (10,308 ) Finance expenses, net (2,068 ) Income before taxes on income $ 494 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended September 30, 2021 Revenues $ 17,123 $ 5,911 $ 23,034 Gross profit $ 5,045 $ 685 $ 5,730 Unallocated corporate expenses (6,534 ) Finance expenses, net (41 ) Income before taxes on income $ (845 ) b. Reporting on operating segments: Proprietary Distribution Total U.S Dollars in thousands Audited Year Ended December 31, 2021 Revenues $ 75,521 $ 28,121 $ 103,642 Gross profit $ 27,327 $ 3,001 $ 30,328 Unallocated corporate expenses (31,024 ) Finance expenses, net (1,189 ) Income before taxes on income $ (1,885 ) c. Reporting on operating segments by geographic region: Nine months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 52,866 $ - $ 52,866 Israel 3,631 16,702 20,333 Europe 2,192 - 2,192 Latin America 5,301 - 5,301 Asia 2,665 - 2,665 Others 543 - 543 $ 67,198 $ 16,702 $ 83,900 Nine months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 39,265 - $ 39,265 Israel 6,437 14,857 21,294 Europe 4,491 - 4,491 Latin America 5,255 - 5,255 Asia 1,753 - 1,753 Others 115 - 115 $ 57,316 $ 14,857 $ 72,173 c. Reporting on operating segments by geographic region: Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 20,597 $ - $ 20,597 Israel 1,377 6,637 8,014 Europe 750 - 750 Latin America 1,775 - 1,775 Asia 767 - 767 Others 314 - 314 $ 25,580 $ 6,637 $ 32,217 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 12,710 - $ 12,710 Israel 849 5,911 6,760 Europe 1,097 1,097 Latin America 1,652 1,652 Asia 734 734 Others 81 82 $ 17,123 $ 5,911 $ 23,034 Year ended December 31, 2021 Proprietary Distribution Total U.S Dollars in thousands Audited Geographical markets U.S.A and North America $ 49,763 $ - $ 49,763 Israel 7,653 28,121 35,774 Europe 5,677 - 5,677 Latin America 9,127 - 9,127 Asia 3,167 - 3,167 Others 134 - 134 $ 75,521 $ 28,121 $ 103,642

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2022
Financial Instruments [Abstract]
Financial Instruments	Note 5:- Financial Instruments a. Classification of financial instruments by fair value hierarchy Financial assets (liabilities) measured at fair value Level 1 Level 2 Level 3 U.S Dollars in thousands September 30, 2022 Derivatives instruments $ - $ (180 ) - Contingent consideration - - $ (23,705 ) September 30, 2021 Derivatives instruments $ - $ (40 ) $ - December 31, 2021 Derivatives instruments $ - $ 73 $ - Contingent consideration $ - $ - $ (21,995 ) During the Nine months ended on September 30, 2022 there were no transfers due to the fair value measurement of any financial instrument from Level 1 to Level 2, and furthermore, there were no transfers to or from Level 3 due to the fair value measurement of any financial instrument.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of preparation of the interim consolidated financial statements	a. Basis of preparation of the interim consolidated financial statements: The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, “Interim Financial Reporting”.
Implementation of new accounting standards	b. Implementation of new accounting standards: i. Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” (“IAS 1 Amendment”) regarding the criteria for determining the classification of liabilities as current or non-current. IAS 1 Amendment replaces certain requirements for classifying liabilities as current or non-current. Thus, for example, according to the IAS 1 Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period, this instead of the requirement that there be an “unconditional” right. According to the IAS 1 Amendment, a right is in existence at the reporting date only if the entity complies with conditions for deferring settlement at that date. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The IAS 1 Amendment is effective for reporting periods beginning on or after January 1, 2023 with earlier application being permitted. IAS 1 Amendment is applicable retrospectively, including an amendment to comparative data. The Company believes that the adoption of IAS 1 Amendment will not have an effect on its financial statements. ii. Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (“IAS 12 Amendment”) IAS 12 Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. IAS 12 Amendment is effective for annual periods beginning on or after January 1, 2023, by amending the opening balance of the retained earnings or adjusting a different component of equity in the period the Amendment was first adopted. Earlier application is permitted. The Company has not yet commenced examining the effects of applying IAS 12 Amendment on the financial statements.

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Sep. 30, 2022
Operating Segments [Abstract]
Schedule of reporting on operating segments	Proprietary Distribution Total U.S Dollars in thousands Unaudited Nine months period ended September 30, 2022 Revenues $ 67,198 $ 16,702 $ 83,900 Gross profit $ 29,342 $ 2,070 $ 31,412 Unallocated corporate expenses (30,898 ) Finance expenses, net (5,719 ) Income before taxes on income $ (5,205 ) Proprietary Distribution Total U.S Dollars in thousands Unaudited Nine months period ended September 30, 2021 Revenues $ 57,316 $ 14,857 $ 72,173 Gross profit $ 21,711 $ 2,022 $ 23,733 Unallocated corporate expenses (21,127 ) Finance expenses, net 173 Income before taxes on income $ 2,779 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended September 30, 2022 Revenues $ 25,580 $ 6,637 $ 32,217 Gross profit $ 12,429 $ 441 $ 12,870 Unallocated corporate expenses (10,308 ) Finance expenses, net (2,068 ) Income before taxes on income $ 494 Proprietary Products Distribution Total U.S Dollars in thousands Unaudited Three months period ended September 30, 2021 Revenues $ 17,123 $ 5,911 $ 23,034 Gross profit $ 5,045 $ 685 $ 5,730 Unallocated corporate expenses (6,534 ) Finance expenses, net (41 ) Income before taxes on income $ (845 ) Proprietary Distribution Total U.S Dollars in thousands Audited Year Ended December 31, 2021 Revenues $ 75,521 $ 28,121 $ 103,642 Gross profit $ 27,327 $ 3,001 $ 30,328 Unallocated corporate expenses (31,024 ) Finance expenses, net (1,189 ) Income before taxes on income $ (1,885 )
Schedule of reporting on operating segments geographic region	Nine months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 52,866 $ - $ 52,866 Israel 3,631 16,702 20,333 Europe 2,192 - 2,192 Latin America 5,301 - 5,301 Asia 2,665 - 2,665 Others 543 - 543 $ 67,198 $ 16,702 $ 83,900 Nine months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America $ 39,265 - $ 39,265 Israel 6,437 14,857 21,294 Europe 4,491 - 4,491 Latin America 5,255 - 5,255 Asia 1,753 - 1,753 Others 115 - 115 $ 57,316 $ 14,857 $ 72,173 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 20,597 $ - $ 20,597 Israel 1,377 6,637 8,014 Europe 750 - 750 Latin America 1,775 - 1,775 Asia 767 - 767 Others 314 - 314 $ 25,580 $ 6,637 $ 32,217 Three months period ended Proprietary Distribution Total U.S Dollars in thousands Unaudited Geographical markets U.S.A and North America. $ 12,710 - $ 12,710 Israel 849 5,911 6,760 Europe 1,097 1,097 Latin America 1,652 1,652 Asia 734 734 Others 81 82 $ 17,123 $ 5,911 $ 23,034 Year ended December 31, 2021 Proprietary Distribution Total U.S Dollars in thousands Audited Geographical markets U.S.A and North America $ 49,763 $ - $ 49,763 Israel 7,653 28,121 35,774 Europe 5,677 - 5,677 Latin America 9,127 - 9,127 Asia 3,167 - 3,167 Others 134 - 134 $ 75,521 $ 28,121 $ 103,642

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Financial Instruments [Abstract]
Schedule of financial assets (liabilities) measured at fair value	Level 1 Level 2 Level 3 U.S Dollars in thousands September 30, 2022 Derivatives instruments $ - $ (180 ) - Contingent consideration - - $ (23,705 ) September 30, 2021 Derivatives instruments $ - $ (40 ) $ - December 31, 2021 Derivatives instruments $ - $ 73 $ - Contingent consideration $ - $ - $ (21,995 )

General (Details)

General (Details)	9 Months Ended
	Sep. 30, 2022
General [Abstract]
Pursuant agreement, description	Commencing 2022, Takeda pays royalties to the Company at a rate of 12% on GLASSIA’s net sales through August 2025, and at a rate of 6% thereafter until 2040, with a minimum of $5 million annually.

Significant Events in the Rep_2

Significant Events in the Reporting Period (Details) $ / shares in Units, $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2022 ₪ / shares	Sep. 01, 2022 USD ($) $ / shares shares	Aug. 23, 2022 shares	Jul. 16, 2022 USD ($) $ / shares shares	May 01, 2022 USD ($) $ / shares shares	May 01, 2022 ₪ / shares	Mar. 13, 2022 USD ($) $ / shares shares	Mar. 13, 2022 ₪ / shares	Mar. 01, 2022 USD ($) $ / shares shares	Mar. 01, 2022 ₪ / shares	Feb. 28, 2022 USD ($) $ / shares shares	Feb. 28, 2022 ₪ / shares
Significant Events in the Reporting Period (Details) [Line Items]
Cost of revenues from proprietary products	$ 3,342	$ 917
Cost charges	3,082	917
Loss of in-process materials	$ 260
Employee benefit liability		$ 361
Under the Israeli Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares		51,200					18,100		15,000		10,000		1,105,100
Exercise prices for share option | (per share)							$ 5.64		$ 5.8	₪ 18.92	$ 6.04	₪ 54	$ 5.97	₪ 19.36
Fair value of options		$ 89					$ 40		$ 29		$ 21		$ 2,222
US Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares		28,100		18,100	79,300				18,100				23,100
Exercise prices for share option | $ / shares				$ 5.16									$ 6.1
Fair value of options				$ 36					$ 41				$ 49
US Share Option Plan [Member] | Ordinary Shares [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares						60,000	60,000
Fair value of options						$ 119	$ 135
Employees [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares													1,327,500
Chief Executive Officer [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares													400,000
Board of Directors [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Option granted (in Shares) | shares													270,000
Bottom of range [member] | Under the Israeli Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Exercise prices for share option | (per share)		$ 5.27	₪ 17.18
Bottom of range [member] | US Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Exercise prices for share option | (per share)			5.36						$ 6.06
Bottom of range [member] | US Share Option Plan [Member] | Ordinary Shares [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Exercise prices for share option | (per share)						$ 5.04		₪ 5.88
Top of range [member] | Under the Israeli Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Exercise prices for share option | (per share)		5.27	17.41
Top of range [member] | US Share Option Plan [Member]
Significant Events in the Reporting Period (Details) [Line Items]
Exercise prices for share option | (per share)		$ 5.31	₪ 59

Operating Segments (Details) -

Operating Segments (Details) - Schedule of reporting on operating segments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items]
Revenues	$ 32,217	$ 23,034	$ 83,900	$ 72,173	$ 103,642
Gross profit	12,870	5,730	31,412	23,733	30,328
Unallocated corporate expenses	(10,308)	(6,534)	(30,898)	(21,127)	(31,024)
Finance expenses, net	(2,068)	(41)	(5,719)	173	(1,189)
Income before taxes on income	494	(845)	(5,205)	2,779	(1,885)
Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items]
Revenues	25,580	17,123	67,198	57,316	75,521
Gross profit	12,429	5,045	29,342	21,711	27,327
Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments [Line Items]
Revenues	6,637	5,911	16,702	14,857	28,121
Gross profit	$ 441	$ 685	$ 2,070	$ 2,022	$ 3,001

Operating Segments (Details) _2

Operating Segments (Details) - Schedule of reporting on operating segments geographic region - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	$ 32,217	$ 23,034	$ 83,900	$ 72,173	$ 103,642
Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	25,580	17,123	67,198	57,316	75,521
Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution	6,637	5,911	16,702	14,857	28,121
U.S.A and North America [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	20,597	12,710	52,866	39,265	49,763
U.S.A and North America [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	20,597	12,710	52,866	39,265	49,763
U.S.A and North America [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution
Israel [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	8,014	6,760	20,333	21,294	35,774
Israel [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	1,377	849	3,631	6,437	7,653
Israel [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution	6,637	5,911	16,702	14,857	28,121
Europe [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	750	1,097	2,192	4,491	5,677
Europe [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	750	1,097	2,192	4,491	5,677
Europe [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution
Latin America [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	1,775	1,652	5,301	5,255	9,127
Latin America [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	1,775	1,652	5,301	5,255	9,127
Latin America [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution
Asia [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	767	734	2,665	1,753	3,167
Asia [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	767	734	2,665	1,753	3,167
Asia [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution
Others [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Total	314	82	543	115	134
Others [Member] | Proprietary Products [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Proprietary Products	314	$ 81	543	115	134
Others [Member] | Distribution [Member]
Operating Segments (Details) - Schedule of reporting on operating segments geographic region [Line Items]
Distribution

Financial Instruments (Details)

Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Level 1 [Member]
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items]
Derivatives instruments
Contingent consideration
Level 2 [Member]
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items]
Derivatives instruments	(180)	73	(40)
Contingent consideration
Level 3 [Member]
Financial Instruments (Details) - Schedule of financial assets (liabilities) measured at fair value [Line Items]
Derivatives instruments
Contingent consideration	$ (23,705)	$ (21,995)