Earnings call transcript: ADMA Biologics Q2 2025 misses earnings expectations

ADMA Biologics Inc (ADMA) reported its second-quarter 2025 earnings on August 6, revealing a slight miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $0.14, falling short of the expected $0.15, and reported revenues of $122 million, below the anticipated $124.13 million. The stock reacted with a 2.22% decline during regular trading hours. According to InvestingPro data, ADMA maintains an "EXCELLENT" financial health score of 3.83, with particularly strong growth and profitability metrics. The stock has delivered an impressive 62% return over the past year.

Key Takeaways

• ADMA Biologics reported a 14% year-over-year revenue growth.
• Earnings and revenue fell short of analyst expectations.
• The company successfully implemented an FDA-approved yield enhancement process.
• The stock declined by 2.22% post-earnings announcement.

Company Performance

ADMA Biologics showed robust operational performance with a 14% increase in revenue year-over-year, bolstered by improvements in gross margins and successful process enhancements. InvestingPro data reveals the company’s strong liquidity position with a current ratio of 6.58 and moderate debt levels, supporting operational stability. Despite these gains, the company faced challenges meeting analyst expectations, which influenced market reactions. InvestingPro subscribers have access to 8 additional key financial tips and comprehensive analysis for ADMA.

Financial Highlights

• Revenue: $122 million (14% YoY growth)
• Earnings per share: $0.14 (missed forecast by 6.67%)
• Gross profit: $67.2 million
• Gross margins: 55.1% (up from 53.6% last year)
• Adjusted net income: $36 million (85% growth)

Earnings vs. Forecast

ADMA Biologics reported an EPS of $0.14, missing the forecast by 6.67%, and revenue of $122 million, 1.73% below expectations. This marks a notable deviation from forecasts but aligns with typical quarterly variations.

Market Reaction

Following the earnings announcement, ADMA Biologics’ stock fell by 2.22% during regular trading hours, closing at $18.54. The decline reflects investor disappointment over the earnings miss, despite the company’s operational improvements.

Outlook & Guidance

For 2025, ADMA expects total revenue to reach $500 million or more, with an adjusted EBITDA of at least $235 million. The company aims for a long-term revenue target of $1.1 billion before 2030, indicating confidence in sustained growth. InvestingPro analysis shows analyst targets ranging from $19.24 to $35 per share, with a strong consensus recommendation of 1.67 (Buy). Subscribers can access detailed valuation metrics and the comprehensive Pro Research Report, which provides deep-dive analysis of ADMA’s growth trajectory and market position.

Executive Commentary

CEO Adam Grossman stated, "We are seeing the anticipated gains of 20% or more from every batch of product that we are producing," highlighting the success of their yield enhancement process. CFO Brad Tade added, "We are preparing our supply chain and our manufacturing processes to meet and exceed that reaccelerated growth."

Risks and Challenges

• Potential macroeconomic pressures could impact future performance.
• Meeting aggressive revenue targets may pose challenges.
• Continued reliance on FDA processes requires regulatory compliance.

Q&A

During the earnings call, analysts inquired about the yield enhancement process and the demand for Ascentive. Executives confirmed strong adoption and are preparing for accelerated growth in the coming quarters.

Full transcript - ADMA Biologics Inc (ADMA) Q2 2025:

Conference Operator: Good afternoon, and welcome to the Adma Biologics Second Quarter twenty twenty five Financial Results and Business Update Conference Call on Wednesday, 08/06/2025. At this time, all participants are in a listen only mode. There will be a question and answer session to follow. Please be advised that this call is being recorded at the company’s request and will be available on the company’s website approximately two hours following the end of the call. At this time, I would like to introduce the company.

Please go ahead.

Skyler, Unspecified Corporate Representative, ADMA Biologics: Welcome, everyone, and thank you for joining us this afternoon to discuss Asthma Biologics’ financial results for the 2025 and Recent Corporate Updates. I’m joined today by Adam Grossman, President and Chief Executive Officer Brad Tade, Chief Financial Officer and Treasurer. During today’s call, Adam will provide some introductory comments and provide an update on corporate progress, and then Brad will provide an overview of the company’s second quarter twenty twenty five financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the second quarter twenty twenty five financial results and summarized certain achievements and recent corporate updates.

The release is available on our website at www.admabiologics.com. Before we begin our formal comments, I’ll remind you that we will be making forward looking assertions during today’s call that represent the company’s intentions, expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward looking statements are subject to factors, risks and uncertainties, such as those detailed in today’s press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligations to update any such statements except as required by the federal securities laws.

We refer you to the disclosure notice section in our earnings release we issued today, in the Risk Factors section in our SEC filings, in our quarterly report on Form 10 Q for the quarter ended 06/30/2025, for a discussion of important factors that could cause actual results to differ materially from these forward looking statements. Please note that the discussion on today’s call includes certain non GAAP financial measures, including adjusted EBITDA and adjusted net income. A reconciliation of these non GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release. With that, I would now like to turn

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: the call over to Adam Grossman. Adam, go ahead. Thank you, Skyler. Good afternoon, everyone. ADMA’s second quarter twenty twenty five performance underscores the strength of our operating model, the success of our strategic execution, and our unwavering commitment to innovation.

During the quarter, we advanced key growth initiatives, enhanced our supply chain infrastructure, and further solidified ADMA’s leadership position in the specialty biologics market. We are pleased to report that commercial scale production utilizing our FDA approved yield enhancement process is now successfully underway. Initial production has achieved the expected 20% or greater increase in bulk IG output, validating this proprietary manufacturing advancement. We expect this efficiency gain to drive meaningful gross margin expansion and improved production throughput beginning in early twenty twenty six, with continued benefits expected in the years ahead. On the commercial front, Ascentive continues to gain momentum with utilization reaching record highs in the second quarter.

With expanded availability of high titer plasma and strong forward demand indicators, we believe we are well positioned to deepen market penetration and broaden patient access. Medical community feedback remains positive, and the recent acceleration in new patient starts further highlights Ascentive’s differentiated clinical value. Our financial results for the second quarter reflect substantial growth and operational achievements. Total revenues reached 122,000,000 on a reported basis. On an underlying basis, excluding the nonrecurring $12,600,000 Medicaid rebate accrual reversal that benefited the 2024, total revenue grew by approximately 29%.

On the same underlying basis, second quarter twenty twenty five adjusted net income and adjusted EBITDA grew approximately 8559% year over year, respectively. We are constantly reaffirming all previously issued financial guidance, with growth rates anticipated to accelerate significantly in the 2025 and beyond. These results underscore the efficacy of our biologic therapies for immunocompromised patients across The US, as well as the dedication and expertise of our leadership team and exceptional staff. Importantly, this week we completed a JPMorgan led debt refinancing, replacing our prior term loan and meaningfully reducing our borrowing costs. The new credit agreement totaling $300,000,000 and comprised of a $75,000,000 term loan to refinance the previously held debt with Ares, as well as a $225,000,000 revolving credit facility features leverage based pricing tiers with revolving credit facility spreads ranging from 1.5 to 2% and term loan spreads from 2.5% to 3%.

This refinancing, which is effective as of 08/05/2025, and therefore not yet reflected in the second quarter financial statements, is expected to lower ADMA’s weighted average cost of debt, enhance liquidity, and provide additional financial flexibility to support our long term strategic growth initiatives. Operationally, in July, we expanded our operating infrastructure with the acquisition of a facility and adjacent land near our Boca Raton campus. This investment is expected to provide additional operating flexibility to support our growth trajectory through expanded cold storage, warehousing and inventory management, in house testing, and potential new distribution opportunities, as well as could enable up to a 30% expansion of CGMP manufacturing space over time. Importantly, this acquisition further entrenches our fully US based supply chain and should enhance our scalability and resilience in alignment with rising demand for American made healthcare solutions. We expect go forward capital expenditures supporting this infrastructure expansion to remain modest and ultimately expected to deliver a highly compelling return on investment.

In the second quarter, we also activated our authorized $500,000,000 share repurchase program, and repurchased approximately $15,000,000 of ADMA common stock. Supported by strong free cash flow, we view these repurchases as a highly value accretive use of capital and intend to remain opportunistic in future periods. Including a proactive $19,300,000 increase in inventories, primarily consisting of raw material to support accelerating incentive production, we generated meaningfully positive free cash flow during the quarter, ending the period with $90,300,000 in total cash. Internal and external plasma collection volumes reached new highs, positioning us well to support ongoing commercial expansion. These achievements reinforce our confidence in delivering on our long term growth targets, including reaching $1,100,000,000 or more in annual revenue prior to 02/1930, while continuing to expand access to our differentiated IG therapies.

Beginning in the 2025, and continuing on our pathway to this intermediate term revenue target, we anticipate significant margin expansion on a go forward basis. Our R and D pipeline continues to progress. We initiated studies in a first of its kind animal model designed to evaluate S. Pneumonia infection in both normal and immunocompromised hosts. In initial pilot testing, SG-one treated animals exhibited no clinical signs of pneumonia twenty four hours post bacterial challenge, while placebo treated animals developed observable symptoms.

Establishing this model is expected to accelerate ADMA’s preclinical research and development of SG-one. If successful, the product could represent a potential 300,000,000 to $500,000,000 annual revenue opportunity supported by strong gross margins and patent protection through at least 02/1937. Following the initial data readout, we expect to be in a position to rapidly advance SG-one into clinical and registrational studies, leveraging our existing commercial platform to drive a potentially accelerated path to peak sales. Before turning over the call to Brad, I’d like to express my sincere appreciation to our exceptional team at ADMA. Your continued dedication, ingenuity, and mission driven focus continue to power our momentum.

The progress we are reporting today is a direct reflection of your hard work and passion, and together we are shaping a stronger future for patients and the broader healthcare ecosystem. With that, I’ll now hand it over to Brad to walk through our second quarter financials in more detail.

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: Thank you, Adam. Earlier today, we issued a press release outlining our second quarter twenty twenty five financial results. I’ll now summarize key highlights from the quarter. Total revenue was $122,000,000 up 14% year over year or approximately 29% when adjusting for the nonrecurring 12,600,000 Medicaid rebate accrual reversal that benefited the 2024. This growth was driven primarily by continued strong adoption and utilization of Ascentive across physicians, payers, and patients.

Gross profit increased to $67,200,000 with gross margins improving to 55.1 percent from 53.6% a year ago. Adjusted for the prior year Medicaid rebate accrual, underlying gross margin expanded by 7.7%, reflecting a favorable mix of higher margin IG sales and improved manufacturing efficiencies. GAAP net income was $34,200,000 while adjusted net income increased to $36,000,000 representing an 85% underlying growth year over year when normalizing for the prior year Medicaid rebate accrual. Adjusted EBITDA grew to $50,800,000 up 59% on an underlying basis after adjusting for the Medicaid rebate accrual benefit. Including a strategic step up in inventory of $19,300,000 quarter over quarter to support Ascentive demand, we delivered robust free cash flow, ending the quarter with $90,300,000 in cash.

Continued EBITDA growth and cash generation are expected to further strengthen our balance sheet in the 2025, positioning ADMA to weather broader credit and equity market volatility. Reflecting this financial strength, we repurchased approximately $15,000,000 of common stock under our $500,000,000 program during the second quarter. We continue to view buybacks as a value enhancing capital allocation strategy, supported by our growth trajectory and our earnings outlook. As Adam mentioned, this week, we executed a new $300,000,000 senior secured credit facility led by JPMorgan, consisting of a $75,000,000 term loan drawn at closing to replace previously held debt, as well as an undrawn $225,000,000 revolving credit facility. The facility features a three year tenor and is secured by a blanket lien on all assets and stock, consistent with customary market terms.

Pricing is based on total leverage with drawn spreads ranging from adjusted SOFR plus two fifty basis points to 300 basis points and commitment fees of 30 to 35 basis points. We intend to utilize the revolving credit facility opportunistically, primarily to support share repurchases, working capital needs, and other general corporate purposes, while maintaining flexibility in our capital structure. Importantly, the refinancing replaces our prior indebtedness, lowers our overall cost of capital and enhances liquidity to support long term growth initiatives. These terms combined with anticipated strong cash generation provide ADMA with meaningful flexibility and capacity to execute on our strategy and priorities. Building on our strong year to date performance, we are reaffirming our previously provided financial guidance for both 2025 and 2026.

For 2025, we continue to expect total revenue of $500,000,000 or more, adjusted EBITDA of at least $235,000,000 and adjusted net income of $175,000,000 or more. This guidance does not include any potential accretion from the monetization of products sold using our now approved enhanced yield process, reflecting conservative assumptions regarding the timing of production ramp up and lot releases. Looking ahead to 2026, we are reaffirming our financial outlook underpinned by the recent FDA approval of our enhanced yield production process and continued commercial momentum. For 2026, we reaffirm our expectation of at least $625,000,000 in total revenue, adjusted EBITDA of $340,000,000 or more, and adjusted net income of at least $245,000,000 This outlook remains consistent with our historical financial targets and reflects anticipated margin expansion driven by our growing incentive revenue mix. Additionally, we reaffirm our expectation that annual revenue prior to 2030 will exceed $1,100,000,000 compared to our previously communicated expectation of $1,000,000,000 with meaningful margin expansion expected over the same periods.

Looking

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: ahead,

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: we believe we are well positioned to accelerate our revenue and growth and earnings growth rates in the back 2025, grow free cash flow and continue to reduce our weighted average cost of capital, all of which we are confidently executing on while concurrently advancing all our growth initiatives. With that, I’ll turn the call back over to Adam for closing remarks.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thank you, Brad. ADMA is executing across all fronts, commercially, operationally, and strategically. The success of our yield enhancement production process, record, incentive utilization, debt refinancing and infrastructure investments, provide clear visibility into anticipated sustained margin expansion and earnings growth in the immediate quarters ahead. As we scale toward both our near term and long range financial goals, our focus remains centered on operational excellence, disciplined capital allocation, and innovation that puts patients first. We believe our full U.

S. Domestic vertically integrated model continues to provide us with unique supply chain control and long term resilience. We remain unwavering in our mission to deliver high quality, differentiated IG therapies to those who need them most. Every investment we make, whether advancing SG-one, expanding U. S.-based operations, or strategically repurchasing shares, is guided by a long term growth mindset focused on maximizing value for stockholders and patients alike.

With strong stakeholder partnerships, a growing base of treated patients, and a passionate team driving us forward, we believe ADMA is uniquely situated to be one of the most durable and compelling growth stories in all of biopharma. We’re proud of what we achieved and are energized for what lies ahead. With that, I’d now like to open up the call for questions. Thank you.

Conference Operator: Thank you. Today’s question and answer session will be conducted electronically. We’ll pause just a moment to assemble the roster. First question comes from the line of Rick Miller at Cantor Fitzgerald. Please go ahead.

Your line is open.

Rick Miller, Analyst, Cantor Fitzgerald: Hey, this is Rick on for Christine Kluska. Hey, good. Thanks for taking the questions. We’ve a couple here. You mentioned seeing record high incentive utilization.

Are you seeing any changes in trends and how physicians are deploying the specialized product and prioritizing different cases for Ascentive?

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thanks, Rick. We’re seeing the same thing that we’ve been seeing throughout Ascentive’s growth period, and we’re seeing it into the third quarter. We’ve defined appropriate use. Again, it’s this refractive, highly comorbid PI patient that has been on IG and we’re seeing new patient starts, patients switching off of standard IG therapies moving on to Ascentiv, and we’re seeing the same trends continuing. Same store utilization looks great.

We’re adding new docs all the time. We’ve got more product coming off the line. And everything we said, Rick, is happening right now. All the guidance that we provided previously is coming to fruition. And we’re seeing really good utilization uptake in the market and expanding into new clinics.

So it’s pretty much the same as it has been, and we expect it to continue to compound as we progress throughout the second half of this year and into 2026.

Rick Miller, Analyst, Cantor Fitzgerald: Okay. Hoping to ask a question also on the science behind yield enhancement. Does the actual process here for the yield enhancement process look like? Is your team basically working with different purification columns to sort of get back some of the IVIG that was previously lost? Anything to kind of help us understand what’s going on sort of under the hood?

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Sure, as we’ve explained previously, so when you produce IG, there are certain waste streams that are separated out of the final product. These waste streams contain some IgG, they also contain different aggregates and impurities that you want to remove. So the team here at ADMA developed a methodology where we can take one of the waste streams where we lose the largest portion of IG in the manufacturing process, resuspend that paste, purify it, put it over some chromatography columns, some filtration steps, and then blend it back together with the original part of the process. So really what it’s doing is it’s taking something that was waste, and really bringing it back into the downstream purification part of our process. And we are seeing the anticipated gains of 20% or more from every batch of product that we are producing.

We’ve been producing at this yield enhanced scale since I believe it’s the May. And we’re seeing great results as expected. So taking something that was trash and turning it into 20% more bulk IG yield. Again, this is going to enhance gross margins for our IG portfolio, BIVIGAN and Ascentiv, and ultimately provide more product to patients that still seem to be in an undersupply situation in a growing IG market in The US.

Rick Miller, Analyst, Cantor Fitzgerald: Great, thank you. And I’ll hop back in the queue.

Conference Operator: One moment for our next question.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thanks, Rick.

Conference Operator: Our next question comes from Anthony Petrone with Mizuho Americas. Go ahead. Your line is open.

Anthony Petrone, Analyst, Mizuho Americas: Thanks and good afternoon everyone. Hey, Anthony. How are you, Adam? Maybe Adam and Brad want to just kind of go through moving parts on the reaffirmed guidance and the outlook through ’twenty six. You are getting the record RSV collections from, I would assume, the external supply contracts signed earlier in the year.

Yield enhancement is now here. You’re not baking it Just curious the calculus there, it sounds like there’s more visibility on the supply front. What is going to be the trigger to sort of seeing that come through to fruition in the guidance as we look into the second half of the year and the start of next year?

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Sure, I mean, I’ll just start off by saying Anthony, our guidance was strong as we ended last year and entered this year. We’re conservative as always. The approach that we take to guidance construction has not changed. We are aiming to beat the guidance that we currently have out there, but we feel really, really good about where we are from a raw material perspective. Manufacturing has been going extremely well, especially with yield enhancement now.

We’re seeing that step up in inventory valuation. And we’re working expeditiously to work through all the previous process produced product that we would be selling at a lower margin and trying to accelerate to where we can realize revenue from the new FDA approved yield enhancement process. It’s not in 2025 guidance, it’s heavily risk adjusted for ’26. And as we continue to progress, mean, we do expect to see accelerating margin expansion and obviously top line sales in the back half of this year. And that’s the guidance that we’ve been given since January.

So again, conservative approach. We always said the beginning 2025, we are going to see growth, but it’s going be modest growth. And where you’re going to see that acceleration is in the back half of this year. We’ve been making more incentive. We made more incentive at the end of last year, beginning of this year, working down some of our inventories.

Our third party suppliers, as you mentioned, have been delivering really, really well for us. Really very, very pleased with the relationship between Ripple’s and Kedrion. We’re getting more plasma than we anticipated and we feel really good about the inventory levels. And we’re turning it into finished goods and the finished goods are moving off the shelf. So everything is coming together as we planned.

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: Exactly. And I mean, you saw the strategic $19,300,000 RSP investment. And obviously, we’re doing that as we anticipate accelerated growth in the back 2025 and to support 2026 as well.

Anthony Petrone, Analyst, Mizuho Americas: No, I know that’s helpful. A couple of follow ups here. One would be just looking at how it’s set now. If you take your first half and look at the second half of the year with the guidance unchanged, it’s a little bit of a deceleration. So again, you don’t have yield enhancement in there or the benefit of supply, but I would assume you’re not signaling any major change in sort of the demand picture in the back half of the year.

And the last one, if I could just sneak it in. Can you give just a high level overview, Adam, of the cost benefit analysis to hospitals specifically here with an incentive patient? These patients are typically hospitalized for quite a bit. It does appear there’s literature out there that you get a sooner discharge. I’m just wondering if there’s any numbers you can put around that.

Thanks again.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Is Anthony. Can you repeat that part again? This is with respect to Asenov in the hospital.

Anthony Petrone, Analyst, Mizuho Americas: Yeah, so first is on the guide, just again, there’s an implied decel in the second half. Just want to make that the demand picture is steady. And then just the cost benefit of using Asenov. You’re certainly getting the benefit with these patients. Just wondering when you compare that head up to standard therapy, whether it’s IG or combination therapy, how that stacks up?

Sure.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thanks. Understood. So first half of the year total revenues are I’m just doing the math like $2.36. Back half of the year will be growing at least, call it February. So there is growth that baked into our current guidance.

Again, as I’ve said, we take a conservative approach and we are expecting to beat. The way it looks from my vantage point is we’ve got the inventory in work in process and coming off the line and we should have more product to deliver to the market. As I stated with Rick’s question, the demand indicators are still very, very strong. We’re still working through our health economics outcomes work Anthony. So we’ll have information on that hopefully later this year.

But I can tell you from a clinical perspective, patients that are on standard IG and that continue to suffer chronic and persistent infections costing the healthcare system money, taking up time at their physician’s offices in and out of the ER that are getting hospitalized for serious bacterial and viral infections. When these patients are switched from standard IG to incentive, they don’t go to the hospital. They don’t suffer from these chronic and persistent infections that they have been experiencing for sometimes years. So the value proposition is still there. You’re taking these problematic patients that are causing tremendous problems for their treaters, for their families that are not living a normal quality of life.

And we’re giving them a renewed chance to live a productive and normal life while keeping them out of the hospital. So from my view, remodeling, a reacceleration of growth starting in the third quarter, that’s what our guidance outlook

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: tends to. Anthony, I would say it similar to how Adam is saying it is our guidance implies we are confidently reiterating a growth reacceleration in the third quarter and beyond. We are preparing our supply chain and our manufacturing processes to meet and exceed that reaccelerated growth.

Anthony Petrone, Analyst, Mizuho Americas: Fair enough. Thank you.

Gary Nachman, Analyst, Raymond James: I’ll get

Anthony Petrone, Analyst, Mizuho Americas: back in queue. Thanks.

Conference Operator: One moment for the next question. Next question comes from Gary Nachman with Raymond James. Please go ahead. Your line is open.

Gary Nachman, Analyst, Raymond James: Thanks. Good afternoon. Hey, Okay. So first, Adam, you noted more physicians are using Ascentive. So maybe talk about some of the initiatives that you have to expand physician use of Ascentive.

If it’s currently about 100 physicians or so, that’s a number you’ve said in the past, that are using it and maybe the target group is about 300, how do you bridge that gap? And when can you be more aggressive promoting to the docs? I mean, do you need to have the supply in a certain place before you do that? And as they’re putting new patients on, are they getting any pushback at all from the payers? So just give us an update also on the whole reimbursement situation.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Sure. So Gary, new docs are coming online all the time. From an aggressive standpoint, I mean, look, we’ve alleviated what we believe have been the bottlenecks in producing product. And for the forward looking periods, we believe that we’ve got product on the shelf, ready to go to start these patients aggressively. And you’re going to see that again, what we believe is this period in the third quarter throughout the back half of this year into 2026.

Nothing is easy with payers, but again, in appropriate use cases, we’re seeing limited payer pushback. We do have to jump through hurdles like all IGs do. Again, 70% of IG requires prior authorization. And we built out our team from a field reimbursement perspective. And we’re working hand in hand with these clinicians, providing them with data from the literature and helping them to alleviate any reimbursement hurdles that they may find.

Patients who should be on Asenov are getting onto the product. It may take a couple of weeks, may take a couple of months, but ultimately, these patients, their doctors are advocating for it, they’re getting therapy. Again, about half of our business for the immunoglobulin portfolio is through Medicare. The other half is through commercial payers. It’s spread across 60 to 100 different commercial payers.

So there isn’t one payer bearing the burden. But things look very good. Medical education is really what triggers the light bulb in these patients, in these doctors’ minds, targeting the IG infusion nurses, the nurses that are dealing with the patients directly or their families. And we’re seeing no decline in level of interest or excitement about the product. And certainly the experiences that have been reported to me from new clinics and new clinicians in the field when they’ve started with Ascentive have nothing but been positive feedback to me.

Gary Nachman, Analyst, Raymond James: Okay. And then just on that point regarding medical education and what you just responded before to Anthony regarding the HEOR data. You said you should have that later this year. Can you put a little bit of a timeframe around that and what maybe we hope to see with that data and how important you think that might be going out to the physicians and the payers, so they have a little bit more data and evidence about the benefit with incentives?

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Sure. We’re continuing to generate data all the time through investigator initiated grant studies and investigations. A number of publications have been coming out, poster presentations at various conferences around. We are calling the database and looking at claims data. And you look, what I’m hoping to see is exactly what I’ve been explaining over the last couple of years is that you’re going to see a large clinical benefit when you take an appropriate use patient who’s been receiving IG and is in and out of the hospital.

When you put them on Ascended, you’re keeping them out of the hospital, you’re reducing all total healthcare expenditures. And obviously, we believe that the clinical outcomes for Ascentive in this patient population are certainly going to be great data. So later this year is all I can tell you. I’m not the statisticians, and I’m not the one digging in there, but we will keep you and the street abreast of data as it comes available, and we’ll make appropriate publications and presentations at medical conferences throughout the rest of this year and into next year.

Gary Nachman, Analyst, Raymond James: Okay, great. And then just on the gross margins, which obviously are expected to improve, just as we’re thinking about the pace of this improvement, are there any headwinds maybe just in terms of I don’t know if just the cost of the ensuring that you have appropriate plasma supply or rebates that you’re offering your customers and things like that. So is there anything going in the other direction that might be holding back gross margin a little bit? I don’t know if maybe you could book in, you know, so we we have a sense of how to think about gross margin expansion this year and maybe the magnitude of of how that could improve next year.

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: Gary, right now we are not seeing any headwinds to gross margins. We have secured RSV plasma supply which allows us to make the incentive and products that we need. We will start monetizing yield enhanced production batches hopefully at the end of this year, certainly all of 2026. You’ll continue to see margin accretion with yield enhancement and with mix shift. But again, now we are not seeing anything in our way from expanding and accreting gross margins.

And we are expecting as we continue to accelerate our growth in Q3 and beyond, we will continue to expect and you will see margin accretion in a meaningful way.

Gary Nachman, Analyst, Raymond James: Okay. And then just last question regarding the new facility that you acquired, which I think is sort of a bullish statement that you think potentially there’s a lot more to grow here. When you talk about expanding capacity by 30% potentially and you’re only going to have modest level of CapEx behind that, what’s a realistic timeframe for you to be able to achieve that level of capacity expansion? Just so we could also think of how much you’re going to be allocating in terms of your cash flow towards that capacity expansion. Thanks.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thank you, Gary. So you’re obviously referring to the real estate that we announced that we purchased in July, a five acre piece of land. There’s a building on it. In the near term, our focus is scalability. This building is gonna provide us the ability to enhance supply chain, cold storage, testing distribution.

There was a reasonable purchase price. And the capacity expansion is really because we’re looking at the future here. We are operating in a market that continues to grow rapidly. IG utilization is not slowing down. The demand for our products in that is growing at a very rapid clip.

You see with yield enhancement, we’re reporting that we are experiencing the 20% plus increase in both drug as well as finished goods. We need a place to keep it while it’s finishing its testing and a place to distribute it from. So we’re looking at this as it’s really going to help support and sustain the durable growth outlook that we’re looking for. With regard to capacity expansion, we figured someone would ask this question. We’re thinking about the future.

And the press release today talks about some encouraging developments with SGO-one. That’s our follow on high titer hyper immune product with high levels of neutralizing antibodies targeting strep pneumonia. The data is very encouraging there. And we want folks to understand that our board and the management here is looking at building a highly durable cash generating business into the future. And I think everyone understands this, at least those that are following ADMA.

We’ve got multiple buildings on our existing campus, and I’m speaking to you today from an office in the building that houses our GMP manufacturing area. Well, the best thing to do is to get rid of all the offices at some point in time and move those offices and turn what is office space today into GMP production space. So we don’t have any plans to start it today, Gary. So from a CapEx perspective, we’re not looking at expanding capacity today. But what this infrastructure enhancement has done by acquiring this building adjacent to our campus here is allowing us to plan for the future, allowing us to really think about, we don’t wanna take away capacity from one of our existing products if and when SGO-one comes on board.

If a Senate continues to outperform like it has been our current capacity, we now can look at investors and other constituents straight in the face and say, we’ve got the ability to really expand here in a meaningful way. So we’ve given top line guidance of $1,100,000,000 That doesn’t bake in anything from this. So this is going to help us to support a multi billion dollar revenue entity.

Brad Tade, Chief Financial Officer and Treasurer, ADMA Biologics: Gary, just to further Adam’s point. So we mentioned a $1,100,000,000 top line prior to 2,030. We do not need this building or additional capacity to achieve that $1,100,000,000 and I’ll call it a milestone because it’s a milestone. What this additional capacity does is it turns that milestone certainly not into a ceiling. This is part of our journey.

This is part of what Adam is talking about our future growth. So again, I just wanna reiterate that that $1,100,000,000 top line is not dependent on this additional capacity. This additional capacity will continue to help and grow our future.

Gary Nachman, Analyst, Raymond James: Okay. Thanks for all that color, guys. Appreciate it.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thank you, Gary. This

Conference Operator: will conclude our question and answer portion of the call. Like to turn it back over to Adam for additional closing remarks.

Adam Grossman, President and Chief Executive Officer, ADMA Biologics: Thanks again, everyone. Thanks for dialing into our call. Again, really excited about the performance. I want to take my hat off to the ADMA team. Yield enhancement is a tremendous achievement, and now we’ve got more product to treat more patients.

So thank you to everybody. Donate PLASMa, and we look forward to speaking to you next quarter. Take care.

Conference Operator: Ladies and gentlemen, this does conclude the conference call for today. We appreciate your participation, and you may now disconnect.

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