ADMA Stock Gains 17% in Three Months: Buy, Sell or Hold?

Core Viewpoint - ADMA Biologics has shown strong market performance, with a 17.2% increase in shares over the past three months, outperforming the industry and the S&P 500 [1][3]. Company Overview - ADMA Biologics specializes in plasma-derived biologics aimed at treating immune deficiencies and preventing certain infectious diseases [4]. - The company's lead product, Asceniv, is an Intravenous Immune Globulin (IVIG) that contains polyclonal antibodies to help neutralize microbes [5]. Financial Performance - Despite lower-than-expected first-quarter results, ADMA raised its revenue guidance for 2025 to over $500 million and for 2026 to $625 million, up from previous estimates of over $490 million and $605 million respectively [10]. - Projected net income is expected to exceed $175 million in 2025 and increase to $245 million or more in 2026 [10]. Growth Prospects - Demand for Asceniv reached record highs in the first quarter, with expectations for revenue share to expand throughout 2025 and beyond [7]. - ADMA plans to file for a supplemental Biologics License Application in mid-2025 to expand Asceniv's label to include pediatric patients aged two years and older, which could increase the target patient population [8][9]. Valuation - Currently, ADMA's shares are considered expensive, trading at a price/sales ratio of 8.44x forward sales, significantly higher than its historical mean of 3.33x and the industry average of 1.69x [11]. Market Position - ADMA competes with Takeda and Grifols in the U.S. plasma-derived products market and is expected to maintain momentum in the upcoming quarters [15]. - The targeted market for ADMA's products has significant growth potential, particularly among underserved immune-compromised and co-morbid patient populations [16].