Adma Biologics (ADMA) Up 43.3% Since Last Earnings Report: Can It Continue?

Core Insights - Adma Biologics has seen a 43.3% increase in share price since its last earnings report, outperforming the S&P 500 [1] - The company reported Q3 2025 adjusted EPS of 16 cents, matching estimates, with revenues of $134.2 million, a 12% year-over-year increase, surpassing expectations [2] - Asceniv, the lead product, has driven growth with record utilization due to strong prescriber adoption and patient demand [6] Financial Performance - Revenues for Q3 2025 were $134.2 million, exceeding the Zacks Consensus Estimate of $130 million [2] - Gross margin improved to 56.3% from 49.8%, attributed to a favorable mix of higher-margin immunoglobulin sales and operational efficiencies [6] - Research & Development expenses rose significantly to $1.5 million from $0.4 million year-over-year, while selling, general, and administrative expenses increased by 17.3% to $21.8 million [6] Product and Market Developments - ADMA's product lineup includes three FDA-approved products: Bivigam, Asceniv, and Nabi-HB [4] - The company received FDA lot release authorization for yield-enhanced commercial batches, expected to improve manufacturing efficiency and gross margin starting Q4 2025 [7] - ADMA is negotiating to onboard additional distribution partners to expand the reach of Bivigam and Asceniv [9] Future Guidance - ADMA has updated its revenue guidance for 2025 to over $510 million and for 2026 to $630 million [8] - Net income projections for 2025 have been adjusted to exceed $158 million due to a higher effective tax rate, while 2026 projections have increased to exceed $255 million [8] Research and Development - ADMA is advancing SG-001, a hyperimmune globulin targeting S. pneumonia, with a potential market opportunity of $300-$500 million annually if successful [10][11] - A CNPV application has been submitted for SG-001, which could accelerate FDA review by two quarters or more [11] Industry Context - Adma Biologics operates within the Zacks Medical - Biomedical and Genetics industry, which includes other players like Vertex Pharmaceuticals [16] - Vertex reported revenues of $3.08 billion for the last quarter, reflecting an 11% year-over-year increase, and is expected to post earnings of $4.98 per share for the current quarter, a 25.1% increase year-over-year [16][17]