ADMA Biologics, Inc. (Nasdaq: ADMA) (“ADMA” or the “Company”), an
end-to-end commercial biopharmaceutical company dedicated to
manufacturing, marketing and developing specialty plasma-derived
biologics, today reported financial results for the three months
ended September 30, 2021, its fiscal third quarter, and provided an
overview of recent progress and accomplishments.
“Achieving a positive gross profit and 101% year-over-year
revenue growth represents a key inflection point for the Company as
we continue our ongoing commercial and production ramp up. These
financial milestones and accomplishments would not have been
possible without the dedication and focus of ADMA’s staff,
leadership and advisors. We commend the entire team for their
extraordinary efforts focused on improving healthcare for U.S.
patients,” said Adam Grossman, President and Chief Executive
Officer of ADMA. “The investments we have made into our
manufacturing facility and our ADMA BioCenters plasma collection
operations are yielding positive results and we are encouraged by
the contributions from each segment to our overall operations.
Additionally, we strengthened our balance sheet with the recent
closing of an underwritten public equity offering of $57.5 million
in gross proceeds which, in combination with our active engagement
with prospective debt lenders to raise additional non-dilutive
capital has the potential to substantially fund our business to
profitability no later than the first quarter of 2024.”
Mr. Grossman continued, “During the third quarter, our inventory
and property and equipment balances continued to grow, which will
support the significant revenue growth we anticipate over the
coming quarters. We believe our organization, through its
operational execution, has clearly demonstrated strength and
resilience, and is well-positioned to meet or exceed all previously
disclosed financial targets and unlock significant value for
stockholders in the periods ahead. The ADMA BioCenters segment
continues to excel and remains on track to have 10 or more plasma
collection facilities FDA-licensed by year-end 2023. The rapid
expansion of our plasma collection center network, in addition to
the yield enhancements from the implementation of Haemonetics’
Persona® technology, will firm up internal plasma self-sufficiency,
help to insulate ADMA from the challenges presently impacting the
broader plasma collection industry and ensure continuity of product
supply for ADMA’s commercial immune globulin (IG) portfolio to
assist in meeting the increasing prescriber demands in the growing
U.S. IG market.”
“The commercial, regulatory and operational milestones achieved
during 2021 firmly establish ADMA as a vertically integrated,
cGMP-compliant fractionator capable of successfully competing in
the rapidly growing U.S. IG market. With the more substantive
investments now behind the Company, the pathway to profitability is
well-defined and rapidly approaching, and we continue to reiterate
all previously communicated strategic and financial objectives.
Looking forward, ADMA anticipates continued commercial execution
and remains committed to unlocking the yet-to-be-realized fair
value that this asset base now commands,” concluded Mr.
Grossman.
Select Third Quarter 2021 Achievements & Recent
Corporate Developments:
- Continued Commercial Execution:
- Achieved record third quarter 2021 total revenues of $20.7
million, compared to $10.3 million for the third quarter of 2020,
reflecting a 101% increase.
- Generated a positive gross profit for the first time in Company
history, and successfully narrowed sequential net quarterly
losses.
- Strengthened Cash Position. On October 25,
2021, ADMA closed an underwritten public offering, raising
approximately $53.9 million, net of all underwriting discounts and
expenses associated with the offering. ADMA continues to actively
engage prospective debt lenders to potentially raise additional,
non-dilutive capital, which if successful, has the potential to
fund the Company to profitability.
- Completed Multi-Year Supply Chain Robustness and
Remediation Processes. In addition to the significant
operating and cost efficiencies expected from the VanRx SA25
Workcell aseptic filling machine which was recently approved by the
U.S. Food and Drug Administration (FDA), ADMA’s in-house
fill-finish capabilities position the Company as the only
U.S.-domiciled fractionator of plasma-derived products with
complete end-to-end control of its critical manufacturing
functions. The VanRx approval will also enable ADMA to explore
potentially accretive contract manufacturing opportunities with
third parties not currently contemplated in ADMA’s financial
guidance. The Company will communicate contract manufacturing
developments as appropriate.
- Continued ADMA BioCenters Plasma Collection Network
Expansion. ADMA currently has nine plasma collection
facilities under its corporate umbrella at various stages of FDA
approval and development, including five facilities that are
currently operational and collecting plasma. The Company remains on
track to have 10 or more plasma collection centers FDA-licensed by
year-end 2023. The anticipated yield enhancement resulting from the
recent Persona® implementation, in combination with the Company’s
growing BioCenters network, has ADMA well-positioned to achieve
source plasma self-sufficiency and contribute to
quarter-over-quarter revenue and plasma collections growth
throughout 2021 and beyond. These activities will help ensure
continuity of commercial product supply to customers and patients
in the growing U.S. IG market.
- Strengthened Board of Directors. The
appointment of Young T. Kwon, Ph.D. to its Board of Directors
meaningfully strengthens ADMA’s ability to navigate the contours of
the commercial IG landscape and effectively evaluate strategic
business opportunities. Over the course of his career, Dr. Kwon has
held a variety of C-suite leadership positions, in which he played
pivotal roles involving multibillion-dollar mergers and
acquisitions. Dr. Kwon recently served as Chief Financial and
Business Officer of Momenta Pharmaceuticals, where he led the sale
to Johnson & Johnson for approximately $6.5 billion in
2020.
- Demonstrated Commitment to Stockholders. As
previously disclosed, ADMA has engaged Morgan Stanley as an advisor
to evaluate a variety of strategic and financing alternatives. The
evaluation of these alternatives as well as the formal engagement
with Morgan Stanley demonstrates ADMA’s management and Board of
Directors’ unwavering commitment to optimizing value for its
stockholders.
Third Quarter 2021 Financial Results
Total revenues for the quarter ended September 30, 2021 were
approximately $20.7 million, compared to approximately $10.3
million for the quarter ended September 30, 2020, representing an
increase of approximately $10.4 million, or 101%. The revenue
growth for the quarter ended September 30, 2021, compared to the
quarter ended September 30, 2020, was favorably impacted by the
continued commercial ramp-up of ADMA’s intravenous immune globulin
(IVIG) product portfolio and sale of intermediate fractions. Gross
profit during the third quarter of 2021 was approximately $0.4
million compared to a gross loss of approximately $1.6 million for
the three months ended September 30, 2020. The improved gross
profit year-over-year was primarily attributable to increased sales
of ADMA’s higher margin hyperimmune globulin product portfolio,
along with a portion of the sales generated from conformance
batches.
Consolidated net loss was $17.7 million, or $0.13 per basic and
diluted share, for the three months ended September 30, 2021, as
compared to $16.9 million, or $0.19 per basic and diluted share,
for the three months ended September 30, 2020. The $0.8 million
increase in net loss was primarily due to the increased operating
loss for the quarter of $0.6 million, as the improved revenues and
gross profit were more than offset by increases in plasma center
operating expenses and selling, general administrative expenses,
and to the increase in interest expense.
At September 30, 2021, ADMA had cash and cash equivalents of
approximately $34.4 million and accounts receivable of
approximately $20.4 million, compared to cash and cash equivalents
of approximately $55.9 million and accounts receivable of
approximately $13.2 million as of December 31, 2020. Subsequent to
the end of the third quarter, on October 25, 2021, the Company
closed an underwritten public offering whereby the Company received
gross proceeds of $57.5 million, amounting to net proceeds, after
deducting underwriting discounts and expenses associated with the
offering, of approximately $53.9 million.
Conference Call Information
ADMA will host a conference call today, November 10, 2021, at
4:30 p.m. Eastern Time, to discuss the fiscal third quarter 2021
financial results and recent corporate updates. To access the
conference call, please dial (855) 884-8773 (local) or (615)
622-8043 (international) at least 10 minutes prior to the start
time and refer to conference ID 4459844. A live audio webcast of
the call will be available under "Events & Webcasts" in the
Investor section of the Company's website,
https://ir.admabiologics.com/events-webcasts. An archived webcast
will be available on the Company's website approximately two hours
after the event.
About ADMA BioCenters
ADMA BioCenters operates FDA-licensed facilities
specializing in the collection of human plasma used to make special
medications for the treatment and prevention of certain infectious
diseases. Managed by a team of experts who have decades of
experience in the specialized field of plasma collection, ADMA
BioCenters provides a safe, professional and pleasant donation
environment. ADMA BioCenters strictly follows FDA regulations and
guidance and enforces current good manufacturing practices (cGMP)
in all of its facilities. For more information about ADMA
BioCenters, please visit www.admabiocenters.com.
About ADMA Biologics, Inc.
(ADMA)
ADMA is an end-to-end American commercial
biopharmaceutical company dedicated to manufacturing, marketing and
developing specialty plasma-derived biologics for the treatment of
immunodeficient patients at risk for infection and others at risk
for certain infectious diseases. ADMA currently manufactures and
markets three FDA-approved plasma-derived biologics for the
treatment of immune deficiencies and the prevention of certain
infectious diseases: BIVIGAM® (immune globulin intravenous, human)
for the treatment of primary humoral immunodeficiency (PI);
ASCENIV™ (immune globulin intravenous, human – slra 10% liquid) for
the treatment of PI; and NABI-HB® (hepatitis B immune globulin,
human) to provide enhanced immunity against the Hepatitis B virus.
ADMA manufactures its immune globulin products at its FDA-licensed
plasma fractionation and purification facility located in Boca
Raton, Florida. Through its ADMA BioCenters subsidiary, ADMA also
operates as an FDA-approved source plasma collector in the U.S.,
which provides a portion of its blood plasma for the manufacture of
its products. ADMA’s mission is to manufacture, market and develop
specialty plasma-derived, human immune globulins targeted to niche
patient populations for the treatment and prevention of certain
infectious diseases and management of immune compromised patient
populations who suffer from an underlying immune deficiency, or who
may be immune compromised for other medical reasons. ADMA has
received U.S. Patents 9,107,906, 9,714,283, 9,815,886, 9,969,793
and 10,259,865 related to certain aspects of its products and
product candidates. For more information, please visit
www.admabiologics.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 about ADMA Biologics, Inc.
and its subsidiaries (collectively, “we,” “our” or the “Company”).
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future
results, performance or achievements, and may contain such words as
“estimate,” “project,” “intend,” “forecast,” “target,”
“anticipate,” “plan,” “potential,” “planning,” “expect,” “believe,”
“will,” “should,” “could,” “would,” “may,” or, in each case, their
negative, or words or expressions of similar meaning. These
forward-looking statements also include, but are not limited to,
statements about ADMA’s future results of operations, including our
anticipated timing for reaching profitability; execution of the
Company’s commercial goals; the Company’s ability to refinance and
expand its senior credit facility; expected benefits from the VanRx
aseptic fill-finish machine, including operating and cost
efficiencies and contract manufacturing opportunities; the
anticipated benefits from the recent implementation of Haemonetics’
Persona® technology combined with our plasma collection center
network; the goal of having 10 or more FDA-licensed plasma
collection centers by year-end 2023; the Company’s plasma
collections and production; and our ability to maintain sufficient
plasma supply. Actual events or results may differ materially from
those described in this press release due to a number of important
factors. Current and prospective security holders are cautioned
that there also can be no assurance that the forward-looking
statements included in this press release will prove to be
accurate. Except to the extent required by applicable laws or
rules, ADMA does not undertake any obligation to update any
forward-looking statements or to announce revisions to any of the
forward-looking statements. Forward-looking statements are subject
to many risks, uncertainties and other factors that could cause our
actual results, and the timing of certain events, to differ
materially from any future results expressed or implied by the
forward-looking statements, including, but not limited to, the
risks and uncertainties described in our filings with the U.S.
Securities and Exchange Commission, including our most recent
reports on Form 10-K, 10-Q and 8-K, and any amendments thereto.
COMPANY CONTACT: Skyler Bloom Director,
Investor Relations and Corporate Strategy | 201-478-5552 |
sbloom@admabio.com
INVESTOR RELATIONS CONTACT:Michelle Pappanastos
Senior Managing Director, Argot Partners | 212-600-1902 |
michelle@argotpartners.com
ADMA BIOLOGICS, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Product revenue |
|
$ |
20,644,842 |
|
|
$ |
10,240,650 |
|
|
$ |
54,452,633 |
|
|
$ |
28,156,571 |
|
License revenue |
|
|
35,708 |
|
|
|
35,708 |
|
|
|
107,125 |
|
|
|
107,125 |
|
Total revenues |
|
|
20,680,550 |
|
|
|
10,276,358 |
|
|
|
54,559,758 |
|
|
|
28,263,696 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Cost of product revenue (exclusive of amortization expense shown
below) |
|
|
20,295,213 |
|
|
|
11,855,464 |
|
|
|
56,897,959 |
|
|
|
42,180,319 |
|
Research and development |
|
|
770,557 |
|
|
|
1,708,391 |
|
|
|
2,917,072 |
|
|
|
4,893,549 |
|
Plasma center operating expenses |
|
|
3,146,221 |
|
|
|
1,218,898 |
|
|
|
8,191,890 |
|
|
|
2,597,444 |
|
Amortization of intangible assets |
|
|
178,838 |
|
|
|
178,838 |
|
|
|
536,514 |
|
|
|
536,514 |
|
Selling, general and administrative |
|
|
10,726,797 |
|
|
|
9,115,744 |
|
|
|
31,198,880 |
|
|
|
25,750,458 |
|
Total operating expenses |
|
|
35,117,626 |
|
|
|
24,077,335 |
|
|
|
99,742,315 |
|
|
|
75,958,284 |
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(14,437,076 |
) |
|
|
(13,800,977 |
) |
|
|
(45,182,557 |
) |
|
|
(47,694,588 |
) |
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Interest income |
|
|
4,256 |
|
|
|
1,164 |
|
|
|
32,241 |
|
|
|
268,643 |
|
Interest expense |
|
|
(3,298,680 |
) |
|
|
(3,091,200 |
) |
|
|
(9,741,110 |
) |
|
|
(8,875,597 |
) |
Other expense |
|
|
18,546 |
|
|
|
(26,440 |
) |
|
|
(106,772 |
) |
|
|
(39,232 |
) |
Other expense, net |
|
|
(3,275,878 |
) |
|
|
(3,116,476 |
) |
|
|
(9,815,641 |
) |
|
|
(8,646,186 |
) |
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(17,712,954 |
) |
|
$ |
(16,917,453 |
) |
|
$ |
(54,998,198 |
) |
|
$ |
(56,340,774 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER COMMON SHARE |
|
$ |
(0.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
133,770,147 |
|
|
|
87,698,258 |
|
|
|
125,682,400 |
|
|
|
82,627,753 |
|
|
|
|
|
|
|
|
|
|
ADMA BIOLOGICS, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
September 30, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
34,410,570 |
|
|
$ |
55,921,152 |
|
Accounts receivable, net |
|
20,392,621 |
|
|
|
13,237,290 |
|
Inventories |
|
114,122,873 |
|
|
|
81,535,599 |
|
Prepaid expenses and other current assets |
|
5,859,046 |
|
|
|
3,046,466 |
|
Total current assets |
|
174,785,110 |
|
|
|
153,740,507 |
|
Property and equipment, net |
|
48,393,723 |
|
|
|
41,593,090 |
|
Intangible assets, net |
|
1,907,607 |
|
|
|
2,444,121 |
|
Goodwill |
|
3,529,509 |
|
|
|
3,529,509 |
|
Right to use assets |
|
6,690,943 |
|
|
|
4,259,191 |
|
Deposits and other assets |
|
3,333,514 |
|
|
|
2,106,976 |
|
TOTAL ASSETS |
$ |
238,640,406 |
|
|
$ |
207,673,394 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
17,282,841 |
|
|
$ |
11,073,708 |
|
Accrued expenses and other current liabilities |
|
14,410,329 |
|
|
|
8,365,143 |
|
Current portion of deferred revenue |
|
142,834 |
|
|
|
142,834 |
|
Current portion of lease obligations |
|
501,239 |
|
|
|
365,682 |
|
Total current liabilities |
|
32,337,243 |
|
|
|
19,947,367 |
|
Senior notes payable, net of discount |
|
94,363,008 |
|
|
|
92,968,866 |
|
Deferred revenue, net of current portion |
|
2,011,573 |
|
|
|
2,118,698 |
|
Lease obligations, net of current portion |
|
6,915,750 |
|
|
|
4,334,151 |
|
Other non-current liabilities |
|
232,665 |
|
|
|
54,886 |
|
TOTAL LIABILITIES |
|
135,860,239 |
|
|
|
119,423,968 |
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
Preferred Stock, $0.0001 par value, 10,000,000 shares
authorized, |
|
|
|
no shares issued and outstanding |
|
- |
|
|
|
- |
|
Common Stock - voting, $0.0001 par value, 300,000,000 and
150,000,000 shares authorized, |
|
|
|
131,872,026 and 104,902,888 shares issued and outstanding |
|
13,831 |
|
|
|
10,490 |
|
Additional paid-in capital |
|
498,229,637 |
|
|
|
428,704,039 |
|
Accumulated deficit |
|
(395,463,301 |
) |
|
|
(340,465,103 |
) |
TOTAL STOCKHOLDERS' EQUITY |
|
102,780,167 |
|
|
|
88,249,426 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
238,640,406 |
|
|
$ |
207,673,394 |
|
|
|
|
|
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