Yesterday, Kamada announced the discontinuation of its clinical trial for its inhalable treatment of Alpha-1 antitrypsin deficiency (AATD) after interim results showed the drug was unlikely to demonstrate a statistically significant benefit. The company also reiterated its 2025 revenue and adjusted EBITDA guidance and provided preliminary 2026 guidance for double-digit revenue and profitability growth. KMDA will continue to generate revenue from its already approved intravenous treatment of AATD due to royalties from its partner, Takeda (NYSE: TAK, NC). On the conference call, management indicated that the cost of the clinical trial was about $5-$6 million annually. Our prior 2026 and 2027 estimates did not include any revenue from the inhalable version of the AATD treatment, so we maintain our respective revenue estimates of $198 million and $210 million. As a result of the lower R&D costs, we increase our 2026 and 2027 EPS estimates to $0.41 (from $0.36) and $0.49 (from $0.42), respectively. At the end of September, Kamada had $72 million in cash and no debt, or $1.24 per share in net cash. We maintain our $13 price target, now based on 25x our 2027 EPS estimate of $0.49. (Previously, our price target was based on 30x our prior 2027 EPS estimate of $0.42.)