ADMA Biologics, Inc. (ADMA) Bundle
A Brief History of ADMA Biologics
ADMA Biologics, Inc. has established itself as a significant player in the biopharmaceutical industry, particularly in the development and commercialization of innovative immunoglobulin therapies. The company primarily focuses on the collection and manufacturing of human plasma-derived products, which are critical for treating immunodeficiencies and other serious health conditions.
Company Overview
Founded in 2004, ADMA Biologics has evolved to become a leader in the plasma-derived therapeutics market. The company’s flagship product, ASCENIV, is an immunoglobulin intravenous therapy that has gained acceptance among healthcare providers and patients alike.
Recent Financial Performance
As of September 30, 2024, ADMA reported total revenues of $308.9 million for the nine-month period, a significant increase from $184.3 million during the same period in 2023, marking a growth of 68%. The increase in revenue is primarily attributed to heightened demand for ASCENIV and other immunoglobulin products.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Increase/Decrease |
|---|---|---|---|
| Revenues | $308,905,000 | $184,311,000 | $124,594,000 |
| Cost of Product Revenue | $152,685,000 | $126,455,000 | $26,230,000 |
| Gross Profit | $156,220,000 | $57,856,000 | $98,364,000 |
| Net Income | $85,777,000 | ($10,594,000) | $96,371,000 |
| Adjusted EBITDA | $116,336,000 | $21,653,000 | $94,683,000 |
Cost Structure and Operating Expenses
In the first nine months of 2024, ADMA recorded a cost of product revenue of $152.7 million, compared to $126.5 million in the same period of the previous year. The gross profit for this period reached $156.2 million, resulting in a gross margin of 50.6%, up from 31.4% the prior year.
Research and Development Investments
ADMA's research and development (R&D) expenses were $1.4 million for the first nine months of 2024, a decrease from $2.9 million in 2023, reflecting the completion of certain post-marketing commitments.
Debt and Interest Expenses
The company has made significant strides in managing its debt. Interest expense for the nine months ended September 30, 2024, was $11.1 million, a reduction from $18.8 million in the same period of 2023. This decline is attributed to the refinancing of senior debt, which reduced the interest rate and overall debt principal.
Stockholder Equity
As of September 30, 2024, ADMA reported total stockholder equity of $231.89 million, reflecting a substantial recovery from prior losses. The number of common shares outstanding was 236,378,607, with a diluted earnings per share of $0.15.
Market Position and Future Outlook
ADMA Biologics continues to strengthen its market position through a focus on innovation and operational efficiency. The company aims to expand its product offerings and enhance its manufacturing capabilities to meet growing demand in the immunoglobulin market.
A Who Owns ADMA Biologics, Inc. (ADMA)
Shareholder Composition
As of 2024, ADMA Biologics, Inc. has a diverse shareholder base comprising both institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Dr. Jerrold B. Grossman | Executive Officer | Approximately 4,000,000 | 1.69% |
| Adam S. Grossman | Executive Officer | Approximately 3,500,000 | 1.48% |
| BlackRock, Inc. | Institutional Investor | Approximately 20,000,000 | 8.45% |
| The Vanguard Group, Inc. | Institutional Investor | Approximately 15,000,000 | 6.36% |
| State Street Corporation | Institutional Investor | Approximately 10,000,000 | 4.23% |
| Other Institutional Investors | Various | Approximately 60,000,000 | 25.36% |
| Retail Investors | Individual | Approximately 140,000,000 | 59.38% |
Recent Stock Performance
As of September 30, 2024, ADMA Biologics had a market capitalization of approximately $250 million, with shares trading at around $1.06. The stock has seen significant fluctuations throughout the year, impacting investor sentiment and ownership distribution.
Executive Compensation and Stock Ownership
The executive leadership of ADMA Biologics has significant stock ownership, aligning their interests with those of shareholders. The following table summarizes the compensation and stock ownership of key executives as of 2024:
| Executive | Title | Annual Compensation (USD) | Shares Owned |
|---|---|---|---|
| Adam S. Grossman | President & CEO | $500,000 | 3,500,000 |
| Dr. Jerrold B. Grossman | Vice Chairman | $400,000 | 4,000,000 |
| Chief Financial Officer | To Be Appointed | $300,000 | N/A |
Institutional Ownership Trends
Institutional investors have increased their stake in ADMA Biologics over the past year. The following table highlights the changes in institutional ownership percentages from 2023 to 2024:
| Institution | Ownership Percentage 2023 | Ownership Percentage 2024 | Change (%) |
|---|---|---|---|
| BlackRock, Inc. | 6.50% | 8.45% | +1.95% |
| The Vanguard Group, Inc. | 5.00% | 6.36% | +1.36% |
| State Street Corporation | 3.50% | 4.23% | +0.73% |
| Other Institutional Investors | 20.00% | 25.36% | +5.36% |
Recent Developments
ADMA Biologics has experienced a positive financial trajectory, reporting total revenues of $308.9 million for the nine months ended September 30, 2024, compared to $184.3 million for the nine months ended September 30, 2023. This represents a growth of approximately 68% year-over-year.
Financial Overview
The company's financial stability is reflected in its working capital, which stood at $273.3 million as of September 30, 2024. The breakdown of key financial metrics is as follows:
| Metric | Value (USD) |
|---|---|
| Revenue (9M 2024) | $308.9 million |
| Gross Profit (9M 2024) | $156.2 million |
| Net Income (9M 2024) | $85.8 million |
| Working Capital | $273.3 million |
| Cash and Cash Equivalents | $86.7 million |
Outlook and Future Ownership Changes
ADMA Biologics continues to explore opportunities for growth, which may influence ownership structures in the future. The company’s management is actively evaluating various strategic alternatives to enhance shareholder value.
ADMA Biologics, Inc. (ADMA) Mission Statement
ADMA Biologics, Inc. is committed to providing high-quality, life-saving therapies derived from human plasma to treat patients with immune deficiencies and infectious diseases. The company focuses on the development, manufacturing, and commercialization of specialty biopharmaceutical products that address unmet medical needs in the healthcare landscape.
Financial Performance Overview
For the nine months ended September 30, 2024, ADMA recorded total revenues of $308.9 million, reflecting a 68% increase from $184.3 million for the same period in 2023. The growth in revenue is primarily attributed to increased sales of the ASCENIV immunoglobulin product and other immunoglobulin (IG) products.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Increase (Decrease) |
|---|---|---|---|
| Revenues | $308,905,000 | $184,311,000 | $124,594,000 |
| Cost of Product Revenue | $152,685,000 | $126,455,000 | $26,230,000 |
| Gross Profit | $156,220,000 | $57,856,000 | $98,364,000 |
| Research and Development Expenses | $1,422,000 | $2,854,000 | $(1,432,000) |
| Plasma Center Operating Expenses | $2,968,000 | $3,581,000 | $(613,000) |
| Selling, General and Administrative Expenses | $50,807,000 | $43,485,000 | $7,322,000 |
| Net Income | $85,777,000 | $(10,594,000) | $96,371,000 |
| Adjusted EBITDA | $116,336,000 | $21,653,000 | $94,683,000 |
Product Focus and Development
ADMA's flagship product, ASCENIV, has seen increased acceptance among physicians and patients, contributing significantly to revenue growth. The company aims to expand its portfolio of plasma-derived therapeutics, including a recently approved patent for a product targeting S. pneumonia infection.
Operational Metrics
As of September 30, 2024, ADMA operated ten source plasma collection facilities across the United States, all holding FDA licenses. The Boca Facility, located in Boca Raton, Florida, has a peak annual processing capability of up to 600,000 liters of plasma.
| Operational Metric | Value |
|---|---|
| Annual Processing Capacity | 600,000 liters |
| Projected Revenue (2024) | Over $415 million |
| Projected Net Income (2024) | Exceeding $120 million |
| Projected Adjusted EBITDA (2024) | Exceeding $160 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, ADMA reported positive cash flows from operations of $68.5 million. The working capital as of the same date was $273.3 million, comprised primarily of $171.8 million in inventory and $86.7 million in cash and cash equivalents.
| Liquidity Metric | Value |
|---|---|
| Working Capital | $273,300,000 |
| Cash and Cash Equivalents | $86,700,000 |
| Accounts Receivable | $50,100,000 |
| Current Liabilities | $44,900,000 |
Conclusion on Strategic Direction
ADMA Biologics remains focused on expanding its market presence through innovative product development and efficient operational practices, ensuring sustainable growth in the biopharmaceutical sector.
How ADMA Biologics, Inc. (ADMA) Works
Overview of Operations
ADMA Biologics, Inc. operates in the biopharmaceutical sector, focusing on the development and commercialization of specialty plasma-derived biologics. The company manufactures these products at its FDA-licensed facility in Boca Raton, Florida, with a processing capacity of up to 600,000 liters annually. The facility is designed to produce immunoglobulin (IG) products that are critical for treating immune-compromised patients.
Financial Performance
For the nine months ended September 30, 2024, ADMA reported total revenues of $308.9 million, a significant increase from $184.3 million in the same period for 2023, marking a growth of approximately 68%. This growth is primarily driven by increased sales of the ASCENIV IG product and higher third-party plasma sales.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $119.8 million | $67.2 million | $52.6 million (78%) |
| Cost of Product Revenue | $60.2 million | $42.6 million | $17.6 million (41%) |
| Gross Profit | $59.7 million | $24.7 million | $35.0 million (142%) |
| Net Income | $35.9 million | $2.6 million | $33.3 million (1285%) |
Cost Structure
The cost of product revenue for the nine months ended September 30, 2024, was $152.7 million, compared to $126.5 million in 2023. This increase reflects higher costs associated with increased sales volumes of IG products and normal source plasma (NSP).
Gross profit for the same period was $156.2 million, leading to a gross margin of 50.6%, up from 31.4% in 2023. The improvement in gross margin is attributed to a favorable mix of higher-margin IG sales and reduced manufacturing costs.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $0.4 million | $0.6 million |
| Plasma Center Operating Expenses | $1.0 million | $0.5 million |
| Selling, General and Administrative | $18.6 million | $14.7 million |
Liquidity and Capital Resources
As of September 30, 2024, ADMA reported working capital of $273.3 million, which includes:
- Cash and cash equivalents: $86.7 million
- Accounts receivable: $50.1 million
- Inventory: $171.8 million
- Current liabilities: $44.9 million
Positive cash flows from operations for the nine months ended September 30, 2024, amounted to $68.5 million, compared to $8.8 million for the year ended December 31, 2023.
Debt Obligations
ADMA's total liabilities as of September 30, 2024, were $158.7 million, which includes:
- Senior notes payable: $101.3 million
- Deferred revenue: $1.6 million
- Lease obligations: $8.9 million
Product Development and Pipeline
ADMA continues to develop its pipeline of plasma-derived therapeutics, with significant emphasis on the ASCENIV product. The company has also completed production of a pilot-scale batch for its S. pneumoniae hyperimmune globulin program, SG-001, which is pending further clinical studies.
How ADMA Biologics, Inc. (ADMA) Makes Money
Revenue Streams
ADMA Biologics generates revenue through several key streams, primarily focusing on the sale of immunoglobulin products, plasma sales, and other related services.
- Sales of Immunoglobulin Products:
- ASCENIV: An intravenous immune globulin product for treating Primary Humoral Immunodeficiency.
- BIVIGAM: Another immune globulin product for similar indications.
- Nabi-HB: Used for treatment against Hepatitis B exposure.
- Plasma Sales:
- Source plasma sold to third-party customers.
- Sales of plasma-derived intermediate fractions.
- Contract Manufacturing and Laboratory Services:
- Providing contract manufacturing services for third parties.
- Laboratory services under contract agreements.
- Licensing Revenue:
- Out-licensing agreements, such as with Biotest AG for ASCENIV.
Financial Performance
For the nine months ended September 30, 2024, ADMA reported total revenues of $308.9 million, a significant increase of 68% compared to $184.3 million for the same period in 2023.
Cost Structure
ADMA's cost of product revenue for the first nine months of 2024 was $152.7 million, compared to $126.5 million in the same period of 2023. This increase was largely driven by higher sales volumes of immunoglobulin products.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Increase/Decrease |
|---|---|---|---|
| Total Revenues | $308.9 million | $184.3 million | $124.6 million (68%) |
| Cost of Product Revenue | $152.7 million | $126.5 million | $26.2 million (20.7%) |
| Gross Profit | $156.2 million | $57.9 million | $98.4 million (170.1%) |
| Gross Margin | 50.6% | 31.4% | 19.2% |
Operating Expenses
Operating expenses for the first nine months of 2024 included:
- Research and Development (R&D): $1.4 million (down from $2.9 million in 2023)
- Selling, General and Administrative (SG&A): $50.8 million (up from $43.5 million in 2023)
Net Income
ADMA reported a net income of $85.8 million for the nine months ended September 30, 2024, compared to a net loss of $10.6 million in the same period of 2023.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024 was $116.3 million, compared to $21.7 million for the same period in 2023, reflecting a substantial increase driven by higher sales and operational efficiencies.
Product Pipeline and Future Revenue Projections
ADMA anticipates that its Boca Facility will produce sufficient quantities of immune globulin products representing annual revenues exceeding $415 million in 2024 and $465 million in 2025.
| Projected Revenue | 2024 | 2025 |
|---|---|---|
| Total Revenue | >$415 million | >$465 million |
| Net Income | >$120 million | >$165 million |
| Adjusted EBITDA | >$160 million | >$215 million |
Cash Flow and Liquidity
As of September 30, 2024, ADMA reported working capital of $273.3 million, including cash and cash equivalents of $86.7 million and accounts receivable of $50.1 million.
Debt Management
ADMA entered into a credit agreement providing for a total of $135 million in senior secured credit facilities, which includes a term loan and a revolving credit facility.
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Resources:
- ADMA Biologics, Inc. (ADMA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ADMA Biologics, Inc. (ADMA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ADMA Biologics, Inc. (ADMA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.