exhibit_99-2.htm

CONSOLIDATED BALANCE SHEETS

	As of June 30,						As of December 31,
	2015			2014			2014
	Unaudited						Audited
	In thousands
Current Assets
Cash and cash equivalents	$	6,807		$	25,083		$	14,546
Short-term investments		37,511			42,603			37,350
Trade receivables, net		15,584			15,215			17,514
Other accounts receivables		4,408			2,299			2,359
Inventories		24,785			23,871			25,423

		89,095			109,071			97,192

Non-Current Assets
Property, plant and equipment, net		21,562			21,668			21,769
Other long-term assets		103			160			179

		21,665			21,828			21,948

		110,760			130,899			119,140
Current Liabilities
Short term credit and Current maturities of convertible debentures		7,924			8,798			7,492
Trade payables		14,808			15,942			16,530
Other accounts payables		3,385			4,510			4,045
Deferred revenues		1,792			5,264			2,919

		27,909			34,514			30,986

Non-Current Liabilities
Convertible debentures					8,039			-
Employee benefit liabilities, net		693			834			722
Deferred revenues		6,895			6,867			7,015

		7,588			15,740			7,737
Equity
Share capital		9,312			9,203			9,208
Share premium		160,927			157,212			158,417
Conversion option in convertible debentures		1,147			2,217			1,147
Capital reserve due to translation to presentation currency		(3,490	)		(3,490	)		(3,490	)
Capital reserve from hedges		134			54			(116	)
Capital reserve from available for sale financial assets		49			93			10
Capital reserve from share-based payments		8,362			7,217			8,783
Capital reserve from employee benefits		(81	)		(129	)		(81	)
Accumulated deficit		(101,097	)		(91,732	)		(93,461	)

		75,263			80,645			80,417

	$	110,760		$	130,899		$	119,140

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

KAMADA LTD.

Consolidated Statements of Comprehensive Income (loss)

	Six months period ended June 30,						Three months period ended June 30,						Year ended December 31
	2015			2014			2015			2014			2014
	Unaudited												Audited
	Thousands of US dollar (Except for per-share income (loss) data)

Revenues from proprietary products	$	15,881		$	16,142		$	12,708		$	8,721		$	44,389
Revenues from distribution		12,295			12,842			6,538			7,076			26,676

Total revenues		28,176			28,984			19,246			15,797			71,065

Cost of revenues from proprietary products		12,930			14,706			9,635			9,703			32,617
Cost of revenues from distribution		11,214			11,082			5,971			6,160			23,406

Total cost of revenues		24,144			25,788			15,606			15,863			56,023

Gross profit (loss)		4,032			3,196			3,640			(66	)		15,042

Research and development expenses		7,058			8,433			3,415			5,068			16,030
Selling and marketing expenses		1,743			1,366			944			719			2,898
General and administrative expenses		3,437			3,994			1,737			2,037			7,593

Operating loss		(8,206	)		(10,597	)		(2,456	)		(7,890	)		(11,479	)

Financial income		300			421			118			179			1,611
Income in respect of currency exchange and translation differences and derivatives instruments, net		761			136			248			97			-
Financial expense		(491	)		(1,410	)		(252	)		(737	)		(3,293	)
Income (loss) before taxes on income		(7,636	)		(11,450	)		(2,342	)		(8,351	)		(13,161	)
Taxes on income		-			34			-			11			52
Net loss		(7,636	)		(11,484	)		(2,342	)		(8,362	)		(13,213	)
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		39			120			(79	)		81			37
Net gain (loss) on cash flow hedge		250			(102	)		399			(33	)		(272	)
Items that will not be reclassified to profit or loss in subsequent periods:
Actuarial net gain of defined benefit plans					-						-			48
Total comprehensive loss	$	(7,347	)	$	(11,466	)	$	(2,022	)	$	(8,314	)	$	(13,400	)

Loss per share attributable to equity holders of the Company:
Basic loss per share	$	(0.21	)	$	(0.32	)	$	(0.06	)	$	(0.23	)	$	(0.37	)

Diluted loss per share	$	(0.21	)	$	(0.32	)	$	(0.06	)	$	(0.23	)	$	(0.37	)

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

KAMADA LTD.

	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, 2015	$	9,208	$	158,417	$	1,147	$	10	$	(3,490	)	$	(116	)	$	8,783		$	(81	)	$	(93,461	)	$	80,417
Net loss		-		-		-		-		-			-			-			-			(7,636	)		(7,636	)
Other comprehensive income (loss)		-		-		-		39		-			250			-			-			-			289
Total comprehensive income (loss)		-		-		-		39		-			250			-			-			(7,636	)		(7,636	)
Exercise of options into shares, net		104		2,510		-		-		-			-			(1,450	)		-			-			1,164
Cost of share-based payment		-		-		-		-		-			-			1,029			-			-			1,029
Balance as of June 30, 2015	$	9,312	$	160,927	$	1,147	$	49	$	(3,490	)	$	134		$	8,362		$	(81	)	$	(101,097	)	$	75,263

	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

*) Represents an amount lower than $ 1

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

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, 2015	$	9,227	$	158,893	$	1,147	$	128		$	(3,490	)	$	(265	)	$	9,009		$	(81	)	$	(98,755	)	$	75,813
Net loss		-		-		-		-			-			-			-			-			(2,342	)		(2,342	)
Other comprehensive income (loss)		-		-		-		(79	)		-			399			-			-			-			320
Total comprehensive income (loss)		-		-		-		(79	)		-			399			-			-			(2,342	)		(2,022	)
Exercise of options into shares, net		85		2,034		-		-			-			-			(1,171	)		-						948
Cost of share-based payment		-		-		-		-			-			-			524			-						524
Balance as of June 30, 2015	$	9,312	$	160,927	$	1,147	$	49		$	(3,490	)	$	134		$	8,362		$	(81	)	$	(101,097	)	$	75,263

	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

*) Represents an amount lower than $ 1

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

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Share Capital			Share premium		Warrants		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 December 31, 2013	$	9,201		$	157,100	$	-	$	2,218		$	(27	)	$	(3,490	)		156		$	5,189		$	(129	)	$	(80,248	)	$	89,970
Net loss		-			-		-		-			-			-			-			-			-			(13,213	)		(13,213	)
Other comprehensive income (loss)		-			-		-		-			37			-			(272	)		-			48			-			(187	)
Total comprehensive income (loss)		-			-		-		-			37			-			(272	)		-			48			(13,213	)		(13,400	)
Exercise of options into shares		7			238		-		-			-			-			-			(157	)		-			-			88
Conversion of convertible debentures into shares		*	)		9		-		(1	)		-			-			-			-			-			-			8
Expiration of conversion option on convertible debentures		-			1,070		-		(1,070	)		-			-			-			-			-			-			-
Cost of share-based payment		-			-		--		-			-			-			-			3,751			-			-			3,751
Balance as of December 31, 2014	$	9,208		$	158,417	$	-	$	1,147		$	10		$	(3,490	)	$	(116	)	$	8,783		$	(81	)	$	(93,461	)	$	80,417

*) Represents an amount lower than $ 1

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

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2015			2014			2015			2014			2014
	Unaudited												Audited
	Thousands of US dollar

Cash Flows from Operating Activities

Net loss	$	(7,636	)	$	(11,484	)	$	(2,342	)	$	(8,362	)	$	(13,213	)

Adjustments to reconcile loss to net cash provided by (used in) operating activities:

Adjustments to the profit or loss items:

Depreciation and amortization		1,572			1,315			801			652			2,788
Finance expenses (income), net		(570	)		853			(123	)		461			1,682
Cost of share-based payment		1,029			2,095			524			1,009			3,751
Loss from sale of fixed assets		-			-			-			-			52
Taxes on income		-			34			-			11			(2	)
Change in employee benefit liabilities, net		(29	)		7			(46	)		33			(57	)

		2,002			4,304			1,156			2,166			8,214
Changes in asset and liability items:

Decrease (increase) in trade receivables		2,211			2,764			(6,207	)		(2,472	)		(869	)
Decrease (increase) in other accounts receivables		(502	)		530			327			770			(50	)
Decrease (increase) in inventories and long-term inventories		638			(1,938	)		2,650			4,743			(3,490	)
Decrease (increase) in deferred expenses		(1,400	)		814			(1,471	)		255			1,209
Increase (decrease) in trade payables		(1,461	)		1,898			1,111			(342	)		3,261
Increase (decrease) in other accounts payables		(584	)		196			75			759			(344	)
Decrease in deferred revenues		(1,247	)		(1,829	)		(1,070	)		(983	)		(4,026	)

		(2,345	)		2,435			(4,585	)		2,730			(4,309	)

Cash paid and received during the period for:
Interest paid		(243	)		(602	)		(122	)		(301	)		(1,210	)
Interest received		594			132			244			38			758
Taxes paid		(47	)		(64	)		(18	)		(4	)		(158	)

		304			(534	)		104			(267	)		(610	)

Net cash used in operating activities	$	(7,675	)	$	(5,279	)	$	(5,667	)	$	(3,733	)	$	(9,918	)

KAMADA LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months period Ended June 30,						Three months period Ended June 30,						Year Ended December 31,
	2015			2014			2015			2014			2014
	Unaudited												Audited
	Thousands of US dollar

Cash Flows from Investing Activities
Short-term investments	$	25		$	(26,784	)	$	400		$	(3,352	)	$	(23,746	)
Purchase of property and equipment		(1,332	)		(1,535	)		(823	)		(919	)		(3,076	)
Proceeds from sale of property and equipment		-			-			-			-			3

Net cash used in investing activities		(1,307	)		(28,319	)		(1,223	)		(4,271	)		(26,819	)

Cash Flows from Financing Activities
Exercise of options into shares		1,165			39			1,165			39			88
Repayment of convertible debentures		-			-			-			-			(7,728	)

Net cash provided (used in) by financing activities		1,165			39			1,165			39			(7,640	)

Exchange differences on balances of cash and cash equivalent		78			(468	)		(479	)		(266	)		(187	)

Decrease in cash and cash equivalents		(7,739	)		(34,024	)		(6,204	)		(8,231	)		(44,564	)

Cash and cash equivalents at the beginning of the period		14,546			59,110			13,011			33,314		$	59,110

Cash and cash equivalents at the end of the period	$	6,807		$	25,083		$	6,807		$	25,083		$	14,546

Significant non-cash transactions
Exercise of convertible debentures into shares	$	-		$	7		$	-		$	-		$	-

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

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1:-

General

These Financial Statements have been prepared in a condensed format as of June 30, 2015 and for the three 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, 2014 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:- Operating Segments

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.

Reporting on operating segments:

	Proprietary Products		Distribution		Total
	Unaudited
Six months period ended June 30,2015

Revenues	$	15,881	$	12,295	$	28,176

Gross profit	$	2,951	$	1,081		4,032

Unallocated corporate expenses						(12,238	)
Finance income, net						570

Loss before taxes on income					$	(7,636	)

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4:-

Operating Segments (Cont.)

	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	)

	Proprietary Products		Distribution		Total
	Unaudited
Three months period ended June 30,2015

Revenues	$	12,708	$	6,538	$	19,246

Gross profit	$	3,073	$	567		3,640

Unallocated corporate expenses						(6,096	)
Finance income, net						114
Loss before taxes on income					$	(2,342	)

	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
	In thousands
	Audited

Year Ended December 31, 2014

Revenues	$	44,389	$	26,676	$	71,065

Gross profit	$	11,772	$	3,270	$	15,042

Unallocated corporate expenses						(26,521	)
Finance expenses, net						(1,682	)

Loss before taxes on income					$	(13,161	)

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4:-

Financial Instruments (Cont.)

Classification of financial instruments by fair value hierarchy

Financial assets measured at fair value

	Level 1		Level 2
	In thousands
June 30, 2015
Derivatives instruments qualified for hedging	$	-	$	105
Marketable securities at fair value through profit or loss:
Equity shares		584		-
Mutual funds		1,332		-
Exchange traded notes		25		-
Debt securities (corporate and government)		7,118		-

Available for sale debt securities (corporate and government)	$	-	$	28,452

	$	9,059	$	28,557

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

	$	4,262	$	28,413
Marketable securities at fair value through profit or loss:
Equity shares	$	587	$	-
Mutual funds		577		-
Exchange traded notes		46		-
Debt securities (corporate and government)		7,610		-

Available for sale debt securities (corporate and government)	$	-	$	28,530

	$	8,820	$	28,530

Financial liabilities measured at fair value:

	Level 1		Level 2
	In thousands
December 31, 2014
Derivatives instruments qualified for hedging	$	-	$	76

KAMADA LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4:-

Financial Instruments

Liabilities for which fair values are disclosed

	Level 1
	In thousands
June 30, 2015
Convertible debentures	$	8,185

June 30, 2014
Convertible debentures	$	18,528

December 31, 2014
Convertible debentures	$	8,275

During the six months ended on June 30, 2015 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 5:-

Significant Events during the period

On April 26, 2015 the Company's Compensation Committee approved an increase of the pool of shares allocated for grant under the 2011 option plan by 500,000 shares.

On April 27, 2015 the Company's Board of Directors approved the grant, for no consideration, of 504,075 options to employees, management and directors of the Company exercisable into ordinary shares at an exercise price of NIS 17.84 for employees and NIS 18.73 for management and directors (see also note 5.c below). The fair value of the options was $1.2 million.

On June 30, 2015, General Meeting of Shareholders of the Company approved the grant of 25,000 options to the Company’s directors and the grant of 120,000 options for the new Company’s Chief Executive Officer exercisable into 145,000 ordinary shares at an exercise price of NIS 18.73.The fair value of the options was estimated at $0.2 million. In addition, the General Meeting of Shareholders of the Company approved the terms of engagement of Mr. Amir London as the Chief Executive Officer, effective as of July 1, 2015 and the terms of engagement of Mr. David Tsur as our Active Deputy Chairman, effective as of July 1, 2015.

	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	9-12