ADMA Biologics (ADMA, Financial) has secured approval from the U.S. Food and Drug Administration for its advanced yield enhancement production process. This new method is designed to boost production yields by approximately 20% from the same volume of starting plasma.
The approval marks a significant milestone for ADMA, offering potential for a notable increase in the company's revenue and earnings, projected to begin in late 2025 and gain momentum into 2026 and beyond. As the pioneering U.S. firm in achieving regulatory clearance for this type of yield enhancement, ADMA showcases its leadership in the modernization and advancement of plasma fractionation through innovative scientific development.
Looking forward, ADMA plans to further refine its research and development platform, enhancing production efficiency and advancing its product pipeline. Notably, this includes the pre-clinical development of SG-001, an investigative hyperimmune globulin aimed at combating S. pneumonia, underscoring the company's ongoing commitment to innovation in both product and process.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for ADMA Biologics Inc (ADMA, Financial) is $25.27 with a high estimate of $32.00 and a low estimate of $19.09. The average target implies an upside of 15.61% from the current price of $21.86. More detailed estimate data can be found on the ADMA Biologics Inc (ADMA) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, ADMA Biologics Inc's (ADMA, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ADMA Biologics Inc (ADMA, Financial) in one year is $9.96, suggesting a downside of 54.44% from the current price of $21.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ADMA Biologics Inc (ADMA) Summary page.
ADMA Key Business Developments
Release Date: March 03, 2025
- Total Revenue (Q4 2024): $117.5 million, up 59% from Q4 2023.
- Total Revenue (FY 2024): $426.5 million, up 65% from FY 2023.
- Gross Profit (FY 2024): $219.6 million.
- Gross Margin (FY 2024): 51.5%, up from 34.4% in FY 2023.
- Adjusted EBITDA (Q4 2024): $48.3 million, up from $18.6 million in Q4 2023.
- Adjusted EBITDA (FY 2024): $164.6 million, up from $40.2 million in FY 2023.
- GAAP Net Income (Q4 2024): $111.9 million, compared to a net loss of $17.6 million in Q4 2023.
- GAAP Net Income (FY 2024): $197.7 million, compared to a net loss of $28.2 million in FY 2023.
- Adjusted Net Income (Q4 2024): $33.4 million, up from $8.5 million in Q4 2023.
- Adjusted Net Income (FY 2024): $119.2 million, up from $0.7 million in FY 2023.
- Total Cash Holdings (End of 2024): Exceeded $103 million.
- Total Debt: $75 million with Aries Capital.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ADMA Biologics Inc (ADMA, Financial) reported a significant revenue increase of 65% year-over-year, reaching $426.5 million in 2024.
- The company achieved a 309% growth in adjusted EBITDA, reaching $164.6 million, showcasing strong operational performance.
- ADMA Biologics Inc (ADMA) raised its financial guidance, expecting total revenue to exceed $490 million in 2025 and $605 million in 2026.
- The company has secured long-term third-party plasma supply contracts, increasing its collection capacity fivefold, which supports future growth.
- ADMA Biologics Inc (ADMA) anticipates a potential mid-year regulatory approval for its enhanced yield production process, which could increase production output by 20%.
Negative Points
- The company faces risks and uncertainties related to forward-looking statements, which could impact actual results.
- There is a growing queue of new patients waiting to start treatment with incentives, indicating potential supply constraints.
- The company is reliant on regulatory approval for its enhanced yield production process, which is not guaranteed.
- ADMA Biologics Inc (ADMA) has a net cash surplus but still carries $75 million in total debt, which could impact financial flexibility.
- The company is experiencing a delay in filing its Form 10K due to the need for additional time to test and document controls, which may raise concerns about internal processes.
