For those of you who do not know what ADMA does or how it operates its pipeline I will do my best to explain:
ADMA produces 3 FDA approved immunodeficiency drugs 2 of them are highly effective for treating even the most severely comorbidity conditioned immunodeficiency patients. These are people who are persistently hospitalized, have little hope in life for stability, and they have exhausted all other treatments which have not provided them immune support whatsoever to live a life worth enjoying. ADMA’s Ascentiv and Bivigam immunoglobulin drugs have quite literally been their life changing solution. They work by using donor blood plasma with the highest antibody count immune systems and the lowest genetic antibiotic resistances. ADMA’s Ascentiv and Bivigam are not comorbidity “cures”, what ADMA’s treatment allows is for patients to assume a normal healthy immune system from donors with genetically more resilient immune systems.
If these drugs work for the patients they are, as the CEO Adam Grossman reinstates “once it works for the patient they are taking the treatment for rest of their lives”. This treatment is required every 24-30 days, in turn, Ascentiv and Bivigam produce guaranteed future revenues and profit multiples as patients line up to receive this life changing treatment. Navi-B has also been great and effective for treating specifically Hepatitis, however it’s more niche in ADMA’s pipeline.
Productions and in house collections centres: ADMA’s achieves this by operating with their own in house blood plasma collections centres across the East Coast of the US which targets and pays bonuses to donors with the highest antibody hyper immune systems and the lowest genetic antibiotic resistance. Additionally, they also collect and supply regular blood and plasma to clinics, hospitals, other drug manufacturers. With this information you can start to see how ADMA has tapped into a high value drug with multi-channel exponential growth revenue streams.
Currently last Q they have just eclipsed $100M in a single Q. The CEO has repeatedly broken down the numbers into simple per gram input -> output for production capacity within drug revenues. They have capacity within their current Boca Raton FL manufacturing facility to produce peak drug manufacturing revenues of $1-$2B annually. Last Q reflected $100M, the worst problem that ADMA has is the best problem to have, they have more demand for their drug than they’re able to supply.
The best part last Q earnings call was the report on ADMAlytics, using their efficiency streamlining AI ADMAlytics they have been able to identify method of a production yield enhancement which will produce +20% yields with current plasma supply for Ascentiv. They are currently in process for BLA approval through FDA application for this by next year. Great news all across the board and I have been buying the stock hand over fist before last Q and currently as it pushes all time highs. This is a stock that you buy in your Roth and forget about, they quite literally have a patent to print money.
I have been calling buys on ADMA since last week when it jumped from 12-15 after earnings Thursday to Friday. Unfortunately these regarded mods want to filter out any good plays I post. If CPI reports are good like PPI was today, I am going to buy 10 $19.00 long calls like I did last Q with $11 short term calls at market open tomorrow. The statistic holds, only 1-70 biomed companies make it past FDA approval and achieve profitability. ADMA is certainly one of those companies and need not anymore proof of its product or success. The only complaining regret I’ve had from telling the multiple of friends family and colleagues to buy this stock is that they wish they could buy more.
Fundamentals analysis using discounted cash flows models, and liquidity ratios such as current ratios, quick ratios, cash conversion cycles, inventory turnover ratios and DuPont.