6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the Month of August, 2014

Commission File Number 001-35948

Kamada Ltd.

(Translation of registrant’s name into English)

7 Sapir St.

Kiryat Weizmann Science Park

P.O Box 4081

Ness Ziona 74140

Israel

 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F T   Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨    No T

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____

This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statement File No. 333-192720.

The following exhibits are attached:

99.1 Press Release: Kamada Reports Second Quarter 2014 Financial Results

99.2 Kamada Ltd.’s Consolidated Financial Statements as of June 30, 2014 (Unaudited)

99.3 Disclosure for Debenture Holders as of June 30, 2014

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 14, 2014	KAMADA LTD.
	By:	/s/ Gil Efron
		Gil Efron
		Chief Financial Officer

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Press Release: Kamada Reports Second Quarter 2014 Financial Results
99.2	Kamada Ltd.’s Consolidated Financial Statements as of June 30, 2014 (Unaudited)
99.3	Disclosure for Debenture Holders as of June 30, 2014

EX-99

Exhibit 99.1

News Release  

AUGUST 14, 2014

Kamada Reports Second Quarter Financial Results

Introduces 2014 Revenue Guidance

Conference Call Begins Today at 8:30 a.m. Eastern Time

NESS ZIONA, Israel (August 14, 2014) – Kamada Ltd. (NASDAQ and TASE: KMDA), a plasma-derived protein therapeutics company focused on orphan indications, announces financial results for the three and six months ended June 30, 2014.

Financial highlights of the second quarter of 2014 and recent weeks include:

· Revenues for the quarter were $15.8 million compared with $16.1 million for the second quarter of 2013; the second quarter of 2013 included a one-time payment of $4.5 million received from Baxter International Inc. (Baxter) related to a technology transfer milestone

· Gross loss for the quarter of $0.10 million compared with gross profit of $7.4 million in the year-ago second quarter; excluding a one-time $3.0 million write-off of inventory in the current quarter and the one-time payment from Baxter in the prior-year quarter, gross profit for the second quarter of 2014 was $3.0 million, compared with $2.9 million in the second quarter of 2013

· Introducing 2014 revenue guidance, with total revenue for the year ending December 31, 2014 expected to be between $70 million and $72 million

Clinical highlights of the second quarter of 2014 and recent weeks include:

· Received approval from the U.S. Food and Drug Administration (FDA) for enhancements to the Company’s manufacturing process that significantly improve capacity for the production of its Alpha-1 Antitrypsin (AAT) therapeutics

· Announced preliminary top-line results from the Phase 2/3 pivotal clinical trial in Europe and Canada of the Company’s proprietary inhaled AAT therapy for the treatment of Alpha-1 Antitrypsin Deficiency (AATD or inherited emphysema), with final results expected in September 2014

· Received FDA approval for a significantly improved infusion rate for Glassia® (Alpha-1-Proteinase Inhibitor - Human), the first and only ready-to-use liquid alpha-1-proteinase inhibitor indicated as a chronic augmentation and maintenance therapy in adults with AATD, marketed in the U.S. by Baxter

· Announced a proof-of-concept study with Glassia to treat graft-versus-host disease (GVHD) in cooperation with Baxter; the study is being conducted at the Fred Hutchinson Cancer Research Center in Seattle

Management Commentary

“Building upon the launch in the first quarter of a Phase 2/3 trial with Glassia to treat newly diagnosed pediatric patients with type 1 diabetes and a U.S. Phase 2 trial with inhaled AAT for treating AATD, during the second quarter we further expanded and advanced our clinical development programs with the initiation of a study with Glassia in GVHD, an orphan indication.  In addition, we were particularly pleased to receive FDA approval for our significantly enhanced infusion rate for Glassia, as it represents another competitive distinction for our intravenous AAT therapy. These unique features are key to Glassia’s continually increasing market share in a greater than $750 million global market that is growing at about 10% per year.  The recent FDA approval of our enhanced manufacturing process provides improved efficiencies and capacity that will serve us well as we increase sales of our proprietary protein plasma therapeutics,” stated David Tsur, Co-founder and Chief Executive Officer of Kamada.

“We reported preliminary, top-line results from the European Phase 2/3 clinical trial of our proprietary inhaled AAT therapy for the treatment of AATD. We are continuing to review the full data set and expect to complete the final analysis and to report those data in September.  We are looking forward to presenting the clinical findings that may support our efforts to bring the first inhaled therapy to patients suffering from this debilitating, life-threatening, orphan lung disease. Subject to the final results, we are preparing to submit for review for regulatory approval with the European Medicines Agency during the fourth quarter of this year.

“Revenues for the second quarter of 2014 increased from the first quarter of this year, and the full-year revenue guidance we are introducing today reflects our expectations for significant growth in the second half of the year compared with the first half.

“We are pleased with our recent progress and look forward to a productive second half of the year as we prepare to report final data from our inhaled AAT program and advance other clinical programs.  We have a number of milestones in the coming months and expect that these, along with growing revenues, will support our commitment to enhance shareholder value,” added Mr. Tsur.

Second Quarter Financial Results

Total revenue for the second quarter of 2014 of $15.8 million compared with $16.1 million for the second quarter of 2013.  Revenue from the Proprietary Products Segment was $8.7 million compared with $11.9 million in the year-ago quarter, which included a one-time payment of $4.5 million received from Baxter related to a technology transfer milestone.  Excluding this one-time payment, our revenues this quarter increased 18% compared with the second quarter of 2013 and increased 18% compared with the first quarter of 2014. Revenue from the Distribution Segment of $7.1 million increased from $4.2 million in the second quarter of 2013, primarily due to higher IVIG sales in the Israeli market.

Research and development (R&D) expenses in the second quarter of 2014 of $5.1 million increased from $2.6 million in the second quarter of 2013 and from $3.4 million in the first quarter of 2014, due to increased activity in support of various clinical studies including the launch of three important clinical trials, the closing and analysis of the European Phase 2/3 study of inhaled AAT, as well as by facility costs allocated to research and development use.

Selling, general and administrative (SG&A) expenses in the second quarter of 2014 of $2.8 million decreased from $3.2 million in the second quarter of 2013, largely due to one-time costs in the prior-year quarter associated with our U.S. IPO.

Gross loss for the second quarter of 2014 was $0.10 million compared with gross profit of $7.4 million in the second quarter of 2013.  Gross loss in the second quarter of 2014 included a one-time write-off of inventory of $3.0 million, and gross profit in the second quarter of 2013 was favorably impacted by the $4.5 million milestone payment.  Excluding these one-time events, gross profit for the second quarter of 2014 increased to $3.0 million from $2.9 million in the second quarter of 2013, reflecting the level of revenue and product mix within the Proprietary Segment as well as the increase in revenue in the Distributed Products segment.

Gross margin decreased to 0% from 46% in the second quarter of 2013 due to product mix as the Distribution Segment revenues increased during the quarter and to the product write-off described above.   Gross margin in the second quarter of 2013 benefitted from milestone revenue received under the technology transfer agreement with Baxter.

For the second quarter of 2014, the Company reported an operating loss of $7.9 million compared with operating income of $1.7 million for the second quarter of 2013.  Net loss for the second quarter of 2014 was $8.4 million or $0.23 per share, compared with net income of $0.89 million or $0.03 per diluted share for the same period in 2013.  Adjusted net loss for the second quarter of 2014 was $7.4 million compared with adjusted net income of $2.7 million for the same period in 2013.

Adjusted EBITDA for the second quarter of 2014 was negative $6.2 million compared with positive $4.2 million for the second quarter of 2013.

Six Month Financial Results

Total revenue for the first half of 2014 of $29.0 million compared with $28.7 million for the first half of 2013.  Revenue in the Proprietary Products Segment was $16.1 million, compared with $20.0 million for the same period in 2013, which included a $4.5 milestone payment.  Excluding this payment, Proprietary Products revenues in the first half of 2014 increased by 4% to $16.1 million compared with $15.5 million in the first half of 2013.  Revenue in the Distribution Segment increased 45% to $12.8 million from $8.8 million in the first half of 2013. 

Gross profit for the first half of 2014 decreased to $3.2 million from $11.6 million in the first half of 2013, with gross margin declining to 11% from 40% in the comparable prior-year period.  Excluding the inventory write-off in the 2014 period and the milestone payment in the 2013 period, gross profit for the first half of 2014 decreased to $6.2 million from $7.1 million in the first half of 2013.

Operating loss for the first six months of 2014 of $10.6 million compared with operating income of $0.35 million for the first six months of 2013.  Net loss for the first half of 2014 was $11.5 million or $0.32 per share, compared with a net loss of $1.1million or $0.04 per share for the same period in 2013. 

Adjusted EBITDA for the first six months of 2014 was negative $7.2 million, compared with positive $3.9 million for the same period last year.

Balance Sheet Highlights

As of June 30, 2014, Kamada had cash, cash equivalents and short-term investments of $67.7 million, compared with $74.2 million as of December 31, 2013. During the first half of 2014, the Company used $5.3 million in cash to fund operations and $1.5 million for capital expenditures.

Financial Guidance

For the year ending December 31, 2014, Kamada expects total revenue to be between $70 million and $72 million, with revenue from its Distribution Segment projected to be between $25 million to $26 million and revenue from its Proprietary Products Segment to be between $45 million and $47 million.  The Company notes that U.S. revenues from the agreement with Baxter remain on track.

Conference Call

Kamada management will host an investment community conference call today beginning at 8:30 a.m. Eastern time to discuss these results and answer questions.  Shareholders and other interested parties may participate in the conference call by dialing 888-803-5993 (from within the U.S.), 706-634-5454 (from outside the U.S.) or 1-809-457-877 (toll-free from Israel) and entering the conference identification number: 76337212.

A replay of the call will be accessible two hours after its completion through August 20, 2014 by dialing 855-859-2056 (from within the U.S.) or 404-537-3406 (from outside the U.S.) and entering the conference identification number: 76337212. The call will also be archived for 90 days at www.streetevents.com and www.kamada.com.

About Kamada

Kamada Ltd. is focused on plasma-derived protein therapeutics for orphan indications, and has a commercial product portfolio and a robust late-stage product pipeline.  The Company uses its proprietary platform technology and know-how for the extraction and purification of proteins from human plasma to produce Alpha-1 Antitrypsin (AAT) in a highly-purified, liquid form, as well as other plasma-derived proteins.   AAT is a protein derived from human plasma with known and newly-discovered therapeutic roles given its immunomodulatory, anti-inflammatory, tissue-protective and antimicrobial properties. The Company’s flagship product is Glassia®, the first and only liquid, ready-to-use, intravenous plasma-derived AAT product approved by the U.S. Food and Drug Administration. Kamada markets Glassia in the U.S. through a strategic partnership with Baxter International.  In addition to Glassia, Kamada has a product line of nine other injectable pharmaceutical products that are marketed through distributors in more than 15 countries, including Israel, Russia, Brazil, India and other countries in Latin America, Eastern Europe and Asia.  Kamada has five late-stage plasma-derived protein products in development, including an inhaled formulation of AAT for the treatment of AAT deficiency that completed pivotal Phase 2/3 clinical trials in Europe and entered Phase 2 clinical trials in the U.S.   Kamada also leverages its expertise and presence in the plasma-derived protein therapeutics market by distributing 10 complementary products in Israel that are manufactured by third parties.

Cautionary Note Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that are not historical facts, such as statements regarding assumptions and results related to financial results forecast, commercial results, timing and results of clinical trials and EMA and U.S. FDA authorizations.  Forward-looking statements are based on Kamada’s current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions.  Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, unexpected results of clinical trials, delays or denial in the U.S. FDA or the EMA approval process, additional competition in the AATD market or further regulatory delays.  The forward-looking statements made herein speak only as of the date of this announcement and Kamada undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law.

Contacts: Gil Efron   CFO ir@kamada.com Anne Marie Fields LHA 212-838-3777 afields@lhai.com

-Tables to Follow-

CONSOLIDATED BALANCE SHEETS

	As of June 30,						As of December 31,
	2014			2013			2013
	Unaudited						Audited
	In thousands
Current Assets
Cash and cash equivalents	$	25,083		$	73,403		$	59,110
Short-term investments		42,603			9,152			15,067
Trade receivables, net		15,215			12,340			17,882
Other accounts  receivables		2,299			1,400			3,694
Inventories		23,871			23,901			21,933
		109,071			120,196			117,686
Non-Current Assets
Long-term inventories		-			165			-
Property, plant and equipment, net		21,668			19,993			21,443
Other long-term assets		160			193			250
		21,828			20,351			21,693
		130,899			140,547			139,379
Current Liabilities
Short term credit and Current maturities of convertible debentures		8,798			5,534			8,718
Trade payables		15,942			9,098			14,093
Other accounts payables		4,510			5,481			4,313
Deferred revenues		5,264			8,596			5,454
		34,514			28,709			32,578
Non-Current Liabilities
Convertible debentures		8,039			19,930			7,498
Employee benefit liabilities, net		834			770			827
Deferred revenues		6,867			10,149			8,506
		15,740			30,849			16,831
Equity
Share capital		9,203			8,983			9,201
Share premium		157,212			148,655			157,100
Conversion option in convertible debentures		2,217			3,794			2,218
Capital reserve due to translation to presentation currency		(3,490	)		(3,490	)		(3,490	)
Capital reserve from hedges		54			121			156
Capital reserve from available for sale  financial assets		93			-			(27	)
Capital reserve from share-based payments		7,217			4,903			5,189
Capital reserve from employee benefits		(129	)		(141	)		(129	)
Accumulated deficit		(91,732	)		(81,836	)		(80,248	)
		80,645			80,989			89,970
	$	130,899		$	140,547		$	139,379

Consolidated Statements of Comprehensive Income (loss)

	Six months period ended June 30,						Three months period ended  June 30,						Year ended December 31
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar (Except for per-share income (loss) data)
Revenues from proprietary products	$	16,142		$	19,957		$	8,721		$	11,897		$	50,658
Revenues from distribution		12,842			8,754			7,076			4,218			19,965
Total revenues		28,984			28,711			15,797			16,115			70,623
Cost of revenues from proprietary products		14,706			9,682			9,703			5,121			27,104
Cost of revenues from distribution		11,082			7,412			6,160			3,573			17,112
Total cost of revenues		25,788			17,094			15,863			8,694			44,216
Gross profit (loss)		3,196			11,617			(66	)		7,421			26,407
Research and development expenses		8,433			6,334			5,068			2,604			12,745
Selling and marketing expenses		1,366			963			719			450			2,100
General and administrative expenses		3,994			3,975			2,037			2,719			7,862
Operating income (loss)		(10,597	)		345			(7,890	)		1,648			3,700
Financial income		421			165			179			79			289
Income (expense) in respect of currency exchange and translation differences and derivatives instruments, net		136			(70	)		97			(132	)		(369	)
Financial expense		(1,410	)		(1,549	)		(737	)		(693	)		(3,153	)
Income (loss) before  taxes on income		(11,450	)		(1,109	)		(8,351	)		902			467
Taxes on income		34			36			11			12			24
Net Income (loss)		(11,484	)		(1,145	)		(8,362	)		890			443
Other Comprehensive Income (loss):
Items that may be reclassified to profit or loss in subsequent periods:
Net gain (loss) on available for sale financial assets		120			-			81			-			(27	)
Net loss on cash flow hedge		(102	)		(108	)		(33	)		(67	)		(73	)
Items that will not be reclassified to profit or loss in subsequent periods:
Actuarial net gain of defined benefit plans		-			-			-			-			12
Total comprehensive income (loss)	$	(11,466	)	$	(1,253	)	$	(8,314	)	$	823		$	355
Income (loss) per share attributable to equity holders of the Company:
Basic income (loss) per share	$	(0.32	)	$	(0.04	)	$	(0.23	)	$	(0.03	)	$	0.01
Diluted income (loss) per share	$	(0.32	)	$	(0.04	)	$	(0.23	)	$	(0.03	)	$	0.01

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar
Cash Flows from Operating Activities
Net income (loss)	$	(11,484	)	$	(1,145	)	$	(8,362	)	$	890		$	443
Adjustments to reconcile loss to net cash provided by (used in) operating activities:
Adjustments to the profit or loss items:
Depreciation and amortization		1,315			1,515			652			692			3,001
Finance expenses, net		853			1,454			461			747			3,233
Cost of share-based payment		2,095			649			1,009			436			1,327
Loss from sale of fixed assets		-			67			-			67			24
Taxes on income		34			36			11			12			73
Change in employee benefit liabilities, net		7			52			33			32			121
		4,304			3,773			2,166			1,986			7,779
Changes in asset and liability items:
Decrease (increase) in trade receivables		2,764			1,743			(2,472	)		(3,097	)		(3,445	)
Decrease  (increase) in other accounts receivables		530			207			770			649			(444	)
Decrease (increase) in inventories and long-term inventories		(1,938	)		(3,315	)		4,743			(85	)		(1,182	)
Decrease (increase) in deferred expenses		814			28			255			139			(1,231	)
Increase (decrease)  in trade payables		1,898			(3,178	)		(342	)		(3,716	)		1,579
Increase (decrease) in other accounts payables		196			960			759			1,190			264
Decrease  in deferred revenues		(1,829	)		(1,485	)		(983	)		(1,351	)		(6,270	)
		2,435			(5,040	)		2,730			(6,271	)		(10,729	)
Cash paid and received during the period for:
Interest paid		(602	)		(1,062	)		(301	)		(527	)		(1,968	)
Interest received		132			195			38			112			663
Taxes paid		(64	)		(54	)		(4	)		(23	)		(42	)
		(534	)		(921	)		(267	)		(438	)		(1,347	)
Net cash used in operating activities	$	(5,279	)	$	(3,333	)	$	(3,733	)	$	(3,833	)	$	(3,854	)

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar
Cash Flows from Investing Activities
Short-term investments	$	(26,784	)	$	7,848		$	(3,352	)	$	1,279		$	1,732
Purchase of property and equipment		(1,535	)		(2,747	)		(919	)		(1,473	)		(5,643	)
Proceeds from sale of equipment		-			3			-			3			8
Net cash provided by (used in) investing activities		(28,319	)		5,104			(4,271	)		(191	)		(3,903	)
Cash Flows from Financing Activities
Exercise of options into shares		39			309			39			136			562
Proceeds from issuance of ordinary shares, net		-			53,958			-			54,479			52,953
Short term credit from bank and others, net		-			(6	)		-			(6	)		(12	)
Repayment of convertible debentures		-			-			-			-			(4,295	)
Net cash provided by financing activities		39			54,261			39			54,609			49,208
Exchange differences on balances of cash and cash equivalent		(468	)		505			(266	)		177			793
Increase (decrease) in cash and cash equivalents		(34,024	)		56,537			(8,231	)		50,762			42,244
Cash and cash equivalents at the beginning of the period		59,110			16,866			33,314			22,641			16,866
Cash and cash equivalents at the end of the period	$	25,083		$	73,403		$	25,083		$	73,403		$	59,110
Significant non-cash transactions
Purchase of property, equipment  and intangible assets on credit	$	-		$	-		$	-		$	-		$	151
Exercise of options presented as liability	$	-		$	23		$	-		$	-		$	23
Exercise of convertible debentures into shares	$	7		$	-		$	-		$	-		$	6,508
Issuance expenses accrued in other accounts payables	$	-		$	1,094		$	-		$	994		$	-

Adjusted EBITDA

	Six months period Ended June 30						Three months period Ended June 30					Year ended December 31
	2014			2013			2014			2013		2013
	Thousands of US dollar
Net Income (loss)	$	(11,484	)	$	(1,145	)	$	(8,362	)	$	890	$	443
Income tax expense		34			36			11			12		24
Financial expense, net		853			1,384			461			614		2,864
Depreciation and amortization expense		1,315			1,515			652			692		3,001
Share-based compensation charges		2,095			649			1,009			436		1,327
Expense (income) in respect of translation differences and derivatives instruments, net		-			70			-			132		369
one-time management compensation					1,386						1,386		1,386
Adjusted EBITDA	$	(7,187	)	$	3,895		$	(6,229	)	$	4,162	$	9,414

Adjusted net income

	Six months period Ended June 30						Three months period Ended June 30					Year ended December 31
	2014			2013			2014			2013		2013
	Thousands of US dollar
Net income (loss)	$	(11,484	)	$	(1,145	)	$	(8,362	)	$	890	$	443
Share-based compensation charges		2,095			649			1,009			436		1,327
One time management compensation					1,386						1,386		1,386
Adjusted net income	$	(9,389	)	$	890		$	(7,353	)	$	2,712	$	3,156

EX-99

Exhibit 99.2

KAMADA LTD.

CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2014

TABLE OF CONTENTS

	Page
Consolidated Balance Sheets	2
Consolidated Statements of Comprehensive Income (loss)	3
Consolidated Statements of Changes in Equity	4-6
Consolidated Statements of Cash Flows	7-8
Notes to the Consolidated Financial Statements	9-13

KAMADA LTD.

CONSOLIDATED BALANCE SHEETS

	As of June 30,						As of December 31,
	2014			2013			2013
	Unaudited						Audited
	In thousands
Current Assets
Cash and cash equivalents	$	25,083		$	73,403		$	59,110
Short-term investments		42,603			9,152			15,067
Trade receivables, net		15,215			12,340			17,882
Other accounts  receivables		2,299			1,400			3,694
Inventories		23,871			23,901			21,933
		109,071			120,196			117,686
Non-Current Assets
Long-term inventories		-			165			-
Property, plant and equipment, net		21,668			19,993			21,443
Other long-term assets		160			193			250
		21,828			20,351			21,693
		130,899			140,547			139,379
Current Liabilities
Short term credit and Current maturities of convertible debentures		8,798			5,534			8,718
Trade payables		15,942			9,098			14,093
Other accounts payables		4,510			5,481			4,313
Deferred revenues		5,264			8,596			5,454
		34,514			28,709			32,578
Non-Current Liabilities
Convertible debentures		8,039			19,930			7,498
Employee benefit liabilities, net		834			770			827
Deferred revenues		6,867			10,149			8,506
		15,740			30,849			16,831
Equity
Share capital		9,203			8,983			9,201
Share premium		157,212			148,655			157,100
Conversion option in convertible debentures		2,217			3,794			2,218
Capital reserve due to translation to presentation currency		(3,490	)		(3,490	)		(3,490	)
Capital reserve from hedges		54			121			156
Capital reserve from available for sale  financial assets		93			-			(27	)
Capital reserve from share-based payments		7,217			4,903			5,189
Capital reserve from employee benefits		(129	)		(141	)		(129	)
Accumulated deficit		(91,732	)		(81,836	)		(80,248	)
		80,645			80,989			89,970
	$	130,899		$	140,547		$	139,379

The accompanying Notes are an integral part of the Consolidated Financial Statements.

2

KAMADA LTD.

Consolidated Statements of Comprehensive Income (loss)

	Six months period ended June 30,						Three months period ended  June 30,						Year ended December 31
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar (Except for per-share income (loss) data)
Revenues from proprietary products	$	16,142		$	19,957		$	8,721		$	11,897		$	50,658
Revenues from distribution		12,842			8,754			7,076			4,218			19,965
Total revenues		28,984			28,711			15,797			16,115			70,623
Cost of revenues from proprietary products		14,706			9,682			9,703			5,121			27,104
Cost of revenues from distribution		11,082			7,412			6,160			3,573			17,112
Total cost of revenues		25,788			17,094			15,863			8,694			44,216
Gross profit (loss)		3,196			11,617			(66	)		7,421			26,407
Research and development expenses		8,433			6,334			5,068			2,604			12,745
Selling and marketing expenses		1,366			963			719			450			2,100
General and administrative expenses		3,994			3,975			2,037			2,719			7,862
Operating income (loss)		(10,597	)		345			(7,890	)		1,648			3,700
Financial income		421			165			179			79			289
Income (expense) in respect of currency exchange and translation differences and derivatives instruments, net		136			(70	)		97			(132	)		(369	)
Financial expense		(1,410	)		(1,549	)		(737	)		(693	)		(3,153	)
Income (loss) before  taxes on income		(11,450	)		(1,109	)		(8,351	)		902			467
Taxes on income		34			36			11			12			24
Net Income (loss)		(11,484	)		(1,145	)		(8,362	)		890			443
Other Comprehensive Income (loss):
Items that may be reclassified to profit or loss in subsequent periods:
Net gain (loss) on available for sale financial assets		120			-			81			-			(27	)
Net loss on cash flow hedge		(102	)		(108	)		(33	)		(67	)		(73	)
Items that will not be reclassified to profit or loss in subsequent periods:
Actuarial net gain of defined benefit plans		-			-			-			-			12
Total comprehensive income (loss)	$	(11,466	)	$	(1,253	)	$	(8,314	)	$	823		$	355
Income (loss) per share attributable to equity holders of the Company:
Basic income (loss) per share	$	(0.32	)	$	(0.04	)	$	(0.23	)	$	(0.03	)	$	0.01
Diluted income (loss) per share	$	(0.32	)	$	(0.04	)	$	(0.23	)	$	(0.03	)	$	0.01

The accompanying Notes are an integral part of the Consolidated Financial Statements.

3

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital			Share premium		Conversion option in convertible debentures			Capital reserve from available for sale financial assets			Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of January 1, 2014	$	9,201		$	157,100	$	2,218		$	(27	)	$	(3,490	)	$	156		$	5,189		$	(129	)	$	(80,248	)	$	89,970
Net loss		-			-		-			-			-			-			-			-			(11,484	)		(11,484	)
Other comprehensive income (loss)		-			-		-			120			-			(102	)		-			-			-			18
Total comprehensive income (loss)		-			-		-			120			-			(102	)		-			-			(11,484	)		(11,466	)
Exercise of options into shares, net		2			104		-			-			-			-			(67	)		-			-			39
Conversion of convertible debentures into shares		*	)		8		(1	)		-			-			-			-			-			-			7
Cost of share-based payment		-			-		-			-			-			-			2,095			-			-			2,095
Balance as of  June  30, 2014	$	9,203		$	157,212	$	2,217		$	93		$	(3,490	)	$	54		$	7,217		$	(129	)	$	(91,732	)	$	80,645

	Share Capital		Share premium			Conversion option in convertible debentures		Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of January 1, 2013	$	7,204	$	96,874		$	3,794	$	(3,490	)	$	229		$	4,614		$	(141	)	$	(80,691	)	$	28,393
Net loss		-		-			-		-			-			-			-			(1,145	)		(1,145	)
Other comprehensive loss		-		-			-		-			(108	)		-			-			-			(108	)
Total comprehensive loss		-		-			-		-			(108	)		-			-			(1,145	)		(1,253	)
Issuance of ordinary shares, net of issuance costs		1,749		51,115			-		-			-			-			-			-			52,864
Exercise of options into shares, net		30		662			-		-			-			(360	)		-			-			332
Conversion of convertible debentures into shares		4		*	)		-		-			-			-			-			-			4
Cost of share-based payment		-		-			-		-			-			649			-			-			649
Balance as of  June  30, 2013	$	8,983	$	148,655		$	3,794	$	(3,490	)	$	121		$	4,903		$	(141	)	$	(81,836	)	$	80,989

*) Represents an amount lower than $ 1

The accompanying Notes are an integral part of the Consolidated Financial Statements.

4

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital		Share premium		Conversion option in convertible debentures		Capital reserve from available for sale financial assets		Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of  April 1, 2014	$	9,201	$	157,117	$	2,217	$	12	$	(3,490	)	$	87		$	6,266		$	(129	)	$	(83,370	)	$	87,911
Net loss		-		-		-		-		-			-			-			-			(8,362	)		(8,362	)
Other comprehensive income (loss)		-		-		-		81		-			(33	)		-			-			-			48
Total comprehensive income (loss)		-		-		-		81		-			(33	)		-			-			(8,362	)		(8,314	)
Exercise of options into shares, net		2		95		-		-		-			-			(58	)		-			-			39
Cost of share-based payment		-		-		-		-		-			-			1,009			-			-			1,009
Balance as of  June  30, 2014	$	9,203	$	157,212	$	2,217	$	93	$	(3,490	)	$	54		$	7,217		$	(129	)	$	(91,732	)	$	80,645

	Share Capital			Share premium		Conversion option in convertible debentures			Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Unaudited
	In thousands
Balance as of April 1, 2013	$	7,220		$	97,185	$	3,794		$	(3,490	)	$	188		$	4,696		$	(141	)	$	(82,726	)	$	26,726
Net income		-			-		-			-			-			-			-			890			890
Other comprehensive income (loss)		-			-		-			-			(67	)		-			-			-			(67	)
Total comprehensive income (loss)		-			-		-			-			(67	)		-			-			890			823
Issuance of ordinary shares, net of issuance costs		1,749			51,115		-		­-				-			-			-			-			52,864
Exercise of options into shares, net		14			351		-			-			-			(229	)		-			-			136
Conversion of convertible debentures into shares		*	)		4		*	)		-			-			-			-			-			4
Cost of share-based payment		-			-		-			-			-			436			-			-			436
Balance as of  June  30, 2013	$	8,983		$	148,655	$	3,794		$	(3,490	)	$	121		$	4,903		$	(141	)	$	(81,836	)	$	80,989

*) Represents an amount lower than $ 1

The accompanying Notes are an integral part of the Consolidated Financial Statements.

5

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital		Share premium		Conversion option in convertible debentures			Capital reserve from available for sale financial assets			Capital reserve due to translation to presentation currency			Capital reserve from hedges			Capital reserve from share-based payments			Capital reserve from employee benefits			Accumulated deficit			Total equity
	Audited
	In thousands
Balance as of January 1, 2013	$	7,204	$	96,874	$	3,794		$	-		$	(3,490	)	$	229		$	4,614		$	(141	)	$	(80,691	)	$	28,393
Net income		-		-		-			-			-			-			-			-			443			443
Other comprehensive income (loss)		-		-		-			(27	)		-			(73	)		-			12			-			(88	)
Total comprehensive income (loss)		-		-		-			(27	)		-			(73	)		-			12			443			355
Exercise of warrants and options into shares		62		1,275		-			-			-			-			(752	)		-			-			585
Issuance of ordinary shares, net of issuance costs		1,749		51,053		-			-			-			-			-			-			-			52,802
Conversion of convertible debentures into shares		186		7,898		(1,576	)		-			-			-			-			-			-			6,508
Cost of share-based payment		-		-		-			-			-			-			1,327			-			-			1,327
Balance as of December 31, 2013	$	9,201	$	157,100	$	2,218		$	(27	)	$	(3,490	)	$	156		$	5,189		$	(129	)	$	(80,248	)	$	89,970

The accompanying Notes are an integral part of the Consolidated Financial Statements.

6

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar
Cash Flows from Operating Activities
Net income (loss)	$	(11,484	)	$	(1,145	)	$	(8,362	)	$	890		$	443
Adjustments to reconcile loss to net cash provided by (used in) operating activities:
Adjustments to the profit or loss items:
Depreciation and amortization		1,315			1,515			652			692			3,001
Finance expenses, net		853			1,454			461			747			3,233
Cost of share-based payment		2,095			649			1,009			436			1,327
Loss from sale of fixed assets		-			67			-			67			24
Taxes on income		34			36			11			12			73
Change in employee benefit liabilities, net		7			52			33			32			121
		4,304			3,773			2,166			1,986			7,779
Changes in asset and liability items:
Decrease (increase) in trade receivables		2,764			1,743			(2,472	)		(3,097	)		(3,445	)
Decrease  (increase) in other accounts receivables		530			207			770			649			(444	)
Decrease (increase) in inventories and long-term inventories		(1,938	)		(3,315	)		4,743			(85	)		(1,182	)
Decrease (increase) in deferred expenses		814			28			255			139			(1,231	)
Increase (decrease)  in trade payables		1,898			(3,178	)		(342	)		(3,716	)		1,579
Increase (decrease) in other accounts payables		196			960			759			1,190			264
Decrease  in deferred revenues		(1,829	)		(1,485	)		(983	)		(1,351	)		(6,270	)
		2,435			(5,040	)		2,730			(6,271	)		(10,729	)
Cash paid and received during the period for:
Interest paid		(602	)		(1,062	)		(301	)		(527	)		(1,968	)
Interest received		132			195			38			112			663
Taxes paid		(64	)		(54	)		(4	)		(23	)		(42	)
		(534	)		(921	)		(267	)		(438	)		(1,347	)
Net cash used in operating activities	$	(5,279	)	$	(3,333	)	$	(3,733	)	$	(3,833	)	$	(3,854	)

7

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2014			2013			2014			2013			2013
	Unaudited												Audited
	Thousands of US dollar
Cash Flows from Investing Activities
Short-term investments	$	(26,784	)	$	7,848		$	(3,352	)	$	1,279		$	1,732
Purchase of property and equipment		(1,535	)		(2,747	)		(919	)		(1,473	)		(5,643	)
Proceeds from sale of equipment		-			3			-			3			8
Net cash provided by (used in) investing activities		(28,319	)		5,104			(4,271	)		(191	)		(3,903	)
Cash Flows from Financing Activities
Exercise of options into shares		39			309			39			136			562
Proceeds from issuance of ordinary shares, net		-			53,958			-			54,479			52,953
Short term credit from bank and others, net		-			(6	)		-			(6	)		(12	)
Repayment of convertible debentures		-			-			-			-			(4,295	)
Net cash provided by financing activities		39			54,261			39			54,609			49,208
Exchange differences on balances of cash and cash equivalent		(468	)		505			(266	)		177			793
Increase (decrease) in cash and cash equivalents		(34,024	)		56,537			(8,231	)		50,762			42,244
Cash and cash equivalents at the beginning of the period		59,110			16,866			33,314			22,641			16,866
Cash and cash equivalents at the end of the period	$	25,083		$	73,403		$	25,083		$	73,403		$	59,110
Significant non-cash transactions
Purchase of property, equipment  and intangible assets on credit	$	-		$	-		$	-		$	-		$	151
Exercise of options presented as liability	$	-		$	23		$	-		$	-		$	23
Exercise of convertible debentures into shares	$	7		$	-		$	-		$	-		$	6,508
Issuance expenses accrued in other accounts payables	$	-		$	1,094		$	-		$	994		$	-

The accompanying Notes are an integral part of the Consolidated Financial Statements.

8

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1:- General

These Financial Statements have been prepared in a condensed format as of June 30, 2014 and for the six months then ended ("interim consolidated financial statements").

These financial statements should be read in conjunction with the Company's annual financial statements as of December 31, 2013 and for the year then ended and the accompanying notes ("annual consolidated financial statements").

Note 2:-             Significant Accounting Policies

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".

Note 3:-             Disclosure of new standards in the period prior to their adoption

a.         IFRS 15 – Revenues from contracts with customers   IFRS 15 ("the Standard") was issued by the IASB in May 2014.

The Standard replaces IAS 18 Revenue, IAS 11 Construction Contracts, IFRIC 13 Customer Loyalty Programs, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue - Barter Transactions Involving Advertising Services.

The Standard establishes a five-step model that will apply to revenues earned from contracts with customers:

Step 1 - Identifying the contract(s) with a customer, including treatment for combining contracts and contract modifications.

Step 2 - Identifying the separate performance obligations in the contract.

Step 3 - Determining the transaction price, including treatment for variable consideration, significant finance component, non-cash consideration and consideration payable to the customer.

Step 4 - Allocating the transaction price to the separate performance obligations, on a relative stand-alone selling price basis by using observable information if available or estimates.

Step 5 - Recognizing revenue when the entity satisfies a performance obligation, distinguishing between satisfying a performance obligation at a point in time or over time.

In addition the Standard specifies how to account for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract.

The Standard will apply to annual periods beginning on or after 1 January 2017. Early adoption is permitted. The Standard permits a modified retrospective approach according to which the Standard will be applied to existing contracts beginning with the current period and no restatement of the comparative periods will be required, as long as comparative disclosures under the Standard are included.

9

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3:-Disclosure of new standards in the period prior to their adoption (Cont.)

The Company is evaluating the possible effects of the Standard but currently in unable to assess its impact, if any, on the financial statements.

b.           Amendments to IAS 16 and IAS 38 - Acceptable Methods of Depreciation and Amortisation

On May 2014 the IASB issued amendments to IAS 16 and IAS 38 ("the Amendments") that relate to revenue-based depreciation and amortization.

The Amendments determine that revenue-based depreciation of an asset is inappropriate, because such revenues usually represent more factors than just the economic benefits that are consumed through use of the asset.

Revenue-based amortization of intangible assets can be implemented when the rights embodied in that intangible asset are expressed as a measure of revenue or when it can be demonstrated that revenue and the consumption of economic benefits are highly correlated.

The amendments will apply prospectively from January 1, 2016. Early adoption is permitted.

Note 4:-           Operating Segments

 a. General:   The Company has two operating segments, as follows:

Proprietary Products	-	Medicine development, manufacture and sale of plasma-derived therapeutics products.
Distribution	-	Distribution of drugs in Israel manufacture by other companies for clinical uses, most of which are produced from plasma or its derivatives products.

 b. Reporting on operating segments:

	Proprietary Products		Distribution		Total
	Unaudited
Six months period ended June 30, 2014
Revenues	$	16,142	$	12,842	$	28,984
Gross profit	$	1,436	$	1,760		3,196
Unallocated corporate expenses						(13,793	)
Finance expenses, net						(853	)
Loss before taxes on income					$	(11,450	)

10

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4:- Operating Segments (Cont.)

	Proprietary Products		Distribution		Total
	Unaudited
Six months period ended June 30, 2013
Revenues	$	19,957	$	8,754	$	28,711
Gross profit	$	10,275	$	1,342		11,617
Unallocated corporate expenses						(11,272	)
Finance expenses, net						(1,454	)
Loss before taxes on income					$	(1,109	)

	Proprietary Products			Distribution		Total
	Unaudited
Three months period ended June 30, 2014
Revenues	$	8,721		$	7,076	$	15,797
Gross profit (loss)	$	(982	)	$	916		(66	)
Unallocated corporate expenses							(7,824	)
Finance expenses, net							(461	)
Loss before taxes on income						$	(8,351	)

	Proprietary Products		Distribution		Total
	Unaudited
Three months period ended June 30, 2013
Revenues	$	11,897	$	4,218	$	16,115
Gross profit	$	6,776	$	645		7,421
Unallocated corporate expenses						(5,773	)
Finance expenses, net						(746	)
Profit before taxes on income					$	902

	Proprietary Products		Distribution		Total
	In thousands
	Audited
Year Ended December 31, 2013
Revenues	$	50,658	$	19,965	$	70,623
Gross profit	$	23,554	$	2,853	$	26,407
Unallocated corporate expenses						(22,707	)
Finance expenses, net						(3,233	)
Income before taxes on income					$	467

11

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note  5:- Financial Instruments

  a. Classification of financial instruments by fair value hierarchy Financial assets measured at fair value

	Level 1		Level 2
	In thousands
June 30, 2014
Derivatives instruments qualified for hedging	$	-	$	72
Marketable securities at fair value through profit or loss:
Equity shares		833		-
Mutual funds		2,379		-
Exchange traded notes		78		-
Debt securities (corporate and government)		10,972		-
		14,262		72
Available for sale debt securities (corporate and government)	$	-	$	28,341
	$	14,262	$	28,413

	Level 1		Level 2
	In thousands
June 30, 2013
Derivatives instruments qualified for hedging	$	-	$	183
Marketable Securities (Mutual funds) at fair value through profit or loss		4,294		-
	$	4,294	$	183
December 31, 2013
Derivatives instruments qualified for hedging	$	-	$	208
Marketable securities at fair value through profit or loss:
Equity shares		237		-
Mutual funds		469		-
Exchange traded notes		308		-
Debt securities (corporate and government)		4,678		-
		5,692		208
Available for sale debt securities (corporate and government)	$	-	$	9,375
	$	5,692	$	9,583

12

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 5:- Financial Instruments (Cont.)

Liabilities for which fair values are disclosed

	Level 1
	In thousands
June 30, 2014
Convertible debentures	$	18,528
June 30, 2013
Convertible debentures	$	35,235
December 31, 2013
Convertible debentures	$	24,637

 b. During the six months ended on June 30, 2014 there was no transfer 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.

Note 6:- Significant events during the period

 a. The Company has undertaken certain activities to increase the production capacity of its manufacturing facility in Beit Kama. A request for approval of these adjustments from the FDA was filed. In March 2013 the FDA responded to this request by requesting additional data prior to its approval of the new manufacturing process. The Company received the approval by the FDA on July 23, 2014 .During the second quarter of 2014 an inventory in the amount of $3.0 million, produced using the improved manufacturing process, was written off due to a short shelf life of the inventory and reevaluation by the Company of the fair value of such inventory.

 b. On January 28, 2014, General Meeting of Shareholders of the Company approved the grant of 180,000 options to the Company’s directors and the grant of 150,000 options for the Company’s chief executive officer exercisable into 330,000 ordinary shares at an exercise price of NIS 56.94. The fair value of the options was estimated at $1.8 million. The Shareholders also approved an increase in CEO monthly fixed salary to NIS 93,000 or $26,793.

 c. On January 29, 2014 the company incorporated a subsidiary registered under the laws of England and Wales named "Kamada Biopharma Limited".

13

EX-99

Exhibit 99.3

Disclosure for debenture holders as of June 30, 2014

1. Summary of Financial Undertakings (according to repayment dates) as of June 30, 2014

Israeli Securities Law Regulations (Periodic and Immediate Reports) 38e

a. Convertible debentures issued to the public by the Company and held by the public.

	Principal payments		Gross interest payments (without deduction of tax)		Total
	ILS
First year		30,247,270		3,035,822		33,283,092
Second year		30,247,269		1,011,941		31,259,210
Total		60,494,539		4,047,763		64,542,302

b. Bank guarantees as of June 30, 2014, totaling US $255 thousand

2. Details with Regard to Company Debentures

Israeli Securities Law Regulations (Periodic and Immediate Reports) 10(b)13 and 48c(12)

Issue Date	Par value at issuance (US Dollar)	Accumulated interest (US Dollar)	Book value (US Dollar) as of  June 30, 2014	Market Value (US Dollar) as of    June   30, 2014	Interest payment dates	Principal payment schedule	Type of interest	Converted to another security
10/18/2009	29,086,678	98,113	18,528,505	25,762,659	Quarterly paymentson   the outstanding debt, on December 1st, 2009 and on  March 1st, June 1st, September 1st  and  December 1st  of each of the years 2010 to 2015.	Two equal installments: of 40% each on December 1, 2014 and December 1, 2015.	Bears annual interest at a variable rate, plus annual margin of 6.1% above the annual interest rate for Israeli Government Debentures (Series 817) for each interest period.	Yes

3. Details with Regard to the Trustee

MISHMERET TRUST COMPANY LTD, No. Corporate 51-377133-7, Address: 46-48 Menachem Begin, Tel Aviv, Israel

Contact information: Rami Sebty, Vice President, Telephone No.: 972-3-6374355, Fax No.: 972-3-6374344, e-mail ramis@bdo.co.il

4. Conversion of convertible debentures

Security Details	Conversion ratio	Major Conversion Details
Ordinary shares of NIS 1 par value	From December 2nd, 2012 to November 15th, 2015, each NIS 37.12 par value debentures (Series C) may be convertible into one ordinary share of NIS 1 par value of the company.	Debentures may be converted each trading day from registration of the Debentures until November 15th, 2015 except during November 16th to December 1st of each of the years 2013 and 2014.

5. At the end of the reporting period and during such reporting period the Company has complied with all the conditions and obligations under the trust deed.