ADMA Biologics, Inc. (ADMA) Earnings

Management highlights

We had a strong start to the year with earnings growth and margin expansion, despite total revenue being essentially flat. We grew adjusted net income by 22% year-over-year, expanded corporate gross margins to 71%, and generated approximately $58 million of operating cash flow during the quarter. We completed the monetization of three plasma centers, enhancing liquidity while further diversifying our plasma sourcing by adding a new third-party plasma supplier. We are also actively reducing expenses in a targeted manner to improve profitability without adversely impacting our core operations. Incentive end market demand reached record levels in the first quarter, with revenue growth of approximately 28% year over year. We saw continued strength in record metrics across new patient starts, prescriber adoption, product pull-through, and patient adherence. We believe we still benefit from record new patient ads, a growing prescriber base, expanding distribution network, strong payer access, and increasing physician confidence driven by Ascentive's differentiated clinical profile and favorable real-world outcomes. We expect this SG-001 preclinical data presentation, including oral and poster sessions, to further illuminate the product's novel profile and market as we advance our capital efficient development pathway. Our yield enhancement manufacturing process allows us to maximize the high-titer RSV plasma we collect required to meet incentives increasing demand. ADMA remains on track to submit its pre-IND package for SG-001 to the FDA later this year.

Guidance

For full year 2026, we now expect total revenue in the range of $530 million to $560 million. Full year 2026 expectations for adjusted EBITDA are now $265 million to $300 million, and adjusted net income is expected to be between $170 million and $200 million. Given the uncertainty in the competitive landscape, we are withdrawing longer term guidance at this time.

Segment performance

Total revenue for the first quarter was $114.5 million, compared to $114.8 million in the prior year period, representing flat trends year over year. Ascent of revenue was $97.5 million, representing 28% growth year over year, while VIVIGAM revenue was $15.4 million, down 54%, and disproportionately impacted by the competitive market dynamics discussed. Revenue from the sale of intermediates and other products also declined year over year by $3 million. Gross profit for the quarter was $80.8 million, resulting in gross margin of 71% compared to 53% in the prior year period. Adjusted EBITDA was $59.7 million, representing 24% year over year growth, and adjusted net income was $40.7 million.

Risks & headwinds

Competitive dynamics in the first quarter, as well as the variability in ordering patterns, created a challenging commercial backdrop. There are risks related to supply chain, manufacturing, testing, or regulatory disruptions. There are also risks associated with aggressive pricing tactics including discounting and rebating from newer entrants which can impact our pricing strategy. Working capital management risks such as DSOs are also a consideration.

Analyst Q&A

• Q: XXX,

  A: XXX;

• Q: Good afternoon, everyone. So maybe, you know, the standard IG backdrop comments, Adam, you know, different pressure in that segment. Wholesalers and distributors are changing their ordering patterns. We have competitive dynamics. It appears certainly supply, you know, has built up in the channel. And then you have price pressure, you know, being triggered by some of the competitors out there. So, you know, I guess at what point did this really start to build, you know, within the channel? When did you sort of see it on the radar screen?

  A: As you know, the new entrance launched in the back half of 2025, but we really started to see the competitive nature of some of the rebating and discounting. It was really towards the end of February, beginning of March. Distributors were informing us that they were preparing to place orders, and then the market just grew into a state of intense dislocation. ...

• Q: Hi. Good afternoon. A few questions for me. So, what is factored in your revised guidance with respect to both Ascentis and Vivigam for 2026? If you could break that out separately. And then, Adam, maybe just describe a bit more how much pricing pressure are you seeing with Vivigam, if you can quantify that? How are you adjusting your plans for manufacturing of that product versus Ascentive? And, I mean, do you think it pays to still compete in the standard IG space going forward? And then just a bit more on what the demand queue looks like for Ascentive. So, you know, describe the key metrics. that you're seeing on that, and how soon you think new patients will be coming off that queue and getting treated with incentives, if you're confident that you're going to see this sequential growth going forward for it.

  A: With respect to guidance, you know, this updated framework is really based on the recent dislocation and the competitive pressures. So, this assumes that there's going to be some sustained pressures in the standard IG space, which should persist. Really, we're thinking for the remainder of 2026. Again, it could be a little shorter. It could be a little longer. Again, we just don't have the visibility right now. We've certainly taken a conservative approach here. ...