ADMA Biologics Stock Surges 23% as Asceniv Sales Climb 31% and Record Margins Drive Profit Jump of 37%

Shares of ADMA Biologics Inc. surged 23% on Thursday after the plasma-derived biologics maker reported sharply higher third-quarter profit, record gross margins and raised its full-year earnings guidance.

ADMA shares rose $2.41 to $12.89 in Thursday trading, with about 3.9 million shares changing hands. The gain lifted the company's market value to about $2.9 billion, though the stock remains about 25% lower than a year ago.

The shares had ended Wednesday's regular session at $10.48, down 5.67%, before jumping in after-hours trading.

Earnings beat

Revenue increased 5% to $141.1 million, and GAAP net income rose 37% to $49.9 million. Adjusted earnings of 23 cents a share beat the 20-cent forecast, and revenue topped the $138.12 million estimate.

Adjusted EBITDA increased 32% to $77.3 million.

Asceniv drives growth

ADMA's immune globulin therapy Asceniv was the standout. Asceniv revenue reached $124.7 million, up 31% year over year and 21% sequentially, driven by expanding physician adoption, new patient starts and growing utilization.

Chief Executive Adam Grossman said the results show ADMA's ability to "translate accelerating ASCENIV demand into substantial earnings growth."

The older product struggled. Bivigam revenue was $15.4 million, down from $19.4 million in the second quarter, reflecting competitive pricing and channel inventory pressures.

Record margins

Gross margin reached 71%, compared with 56% a year earlier, reflecting a favorable Asceniv mix and yield-enhanced manufacturing.

Outlook and buybacks

Momentum has carried into the current quarter. ADMA said favorable Asceniv utilization trends have continued into the fourth quarter, while Bivigam utilization has shown encouraging signs of stabilization.

The company repurchased 2.7 million shares in the third quarter, bringing year-to-date repurchases to 16.5 million shares.

Analyst caution

Not all analysts are convinced. Mizuho raised its price target to $18 from $17 but maintained an Underperform rating. Panabee noted high customer concentration, with three customers accounting for 81% of year-to-date revenue.