NASDAQ:ADMA ADMA Biologics Q1 2024 Earnings Report $22.33 +0.60 (+2.76%) As of 04/24/2025 04:00 PM Eastern Earnings HistoryForecast ADMA Biologics EPS ResultsActual EPS$0.08Consensus EPS $0.05Beat/MissBeat by +$0.03One Year Ago EPS-$0.03ADMA Biologics Revenue ResultsActual Revenue$81.90 millionExpected Revenue$77.28 millionBeat/MissBeat by +$4.62 millionYoY Revenue Growth+43.90%ADMA Biologics Announcement DetailsQuarterQ1 2024Date5/9/2024TimeAfter Market ClosesConference Call DateThursday, May 9, 2024Conference Call Time4:30PM ETUpcoming EarningsADMA Biologics' Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled on Friday, May 9, 2025 at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by ADMA Biologics Q1 2024 Earnings Call TranscriptProvided by QuartrMay 9, 2024 ShareLink copied to clipboard.There are 7 speakers on the call. Operator00:00:00Good afternoon, and welcome to the ADMA Biologics First Quarter 2024 Financial Results and Business Update Conference Call on Thursday, May 9, 2024. At this time, all participants are in a listen only mode. There will be a question and answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately 2 hours following the end of the call. At this time, I would like to introduce Skyler Blum. Operator00:00:28Please go ahead. Speaker 100:00:33Welcome everyone and thank you for joining us this afternoon to discuss ADNOB Biologics financial results for the Q1 of 2024 and recent corporate updates. I'm joined today by Adam Grossman, President, Chief Executive Officer and Interim Financial Officer and Brad Tade, Vice President of Financial Operations. During today's call, Adam will provide some summary introductory comments and provide an update on corporate progress, and then Brad will provide an overview of the company's Q1 2024 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the Q1 2024 financial results and summarized certain achievements and recent corporate updates. Speaker 100:01:20The release is available on our website, www.admabiologics.com. Before we begin our formal comments, I'll remind you that we will be making forward looking assertions during today's call that represent the company's intentions, expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward looking statements are subject to factors, risks and uncertainties such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update any such statements, except as required by the federal securities laws. Speaker 100:02:25We refer you to the disclosure notice section in our earnings release we issued today in the Risk Factors section of our quarterly report on Form 10 Q for the quarter ended March 31, 2024, for a discussion of the important risk factors that could cause actual results to differ materially from these forward looking statements. Please note that the discussion on today's call includes certain non GAAP financial measures, including adjusted EBITDA. A reconciliation of these non GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release. With that, I would now like to turn the call over to Adam Grossman. Adam, go ahead. Speaker 200:03:06Thank you, and welcome, everyone. The beginning of 2024 has been a transformative period for us at ADMA Biologics. We believe the future has never been brighter and our commercial success story continues to unfold with great momentum. During the Q1, we continued to execute on our growth strategy and exceeded our financial forecasts. Compounding revenue growth and management's cost containment measures have enabled us to once again raise our financial guidance for both top and bottom line projections, underscoring the strength of our innovative business model, which we believe has proven to be distinctly durable and resilient through various operating conditions. Speaker 200:03:52Total revenues for the Q1 of 2024 grew by 44% year over year to $81,900,000 This rapid revenue growth combined with a tightly managed cost structure resulted in adjusted EBITDA of $26,400,000 during the Q1 of 2024. This represents a 9 70% year over year growth rate compared to the Q1 of 2023. GAAP net income grew to $17,800,000 during the Q1 of 2024, compared to a GAAP net loss of $6,800,000 during the Q1 of 2023. We anticipate continued revenue growth leading to increased operating leverage and increased earnings across near term periods, which would further solidify ADNUS position as one of the fastest growing and profitable biopharma companies in the United States. With net leverage approaching 0, we continue to believe that we are achieving significant new milestones for our financial performance. Speaker 200:05:02As Advent's forward looking business trends build momentum, we're revising financial guidance upwards for both 2024 and 2025, increasing both top and bottom line projections. Based on current market factors, we now anticipate generating revenues during these periods of more than $355,000,000 $410,000,000 respectively. At these revenue levels, we estimate adjusted EBITDA will exceed $110,000,000 $160,000,000 for 2024 2025 respectively, representing a 45% year over year growth rate. Similarly, we are increasing net income guidance to more than $85,000,000 $135,000,000 for 2024 2025 respectively, representing an approximately 60% year over year increase. In addition to the significant increases to near term guidance, we expect to continue to favorably reassess the terminal earnings power beyond 2025 for our business and plan to communicate more detail around forecasted revenue and earnings growth post 2025 as internal developments and projects progress. Speaker 200:06:26The underlying drivers of our revenue and earnings growth continue to strengthen with Ascentive reaching new highs across nearly all utilization KPIs and BIVVIGAN deepening its entrenchment in the growing U. S. Immunoglobulin market. We believe the continued growth of our commercial portfolio is largely attributable to our focus on the immune deficient patient segment, particularly those with complex comorbidities. We believe this specialized focus combined with our innovative business model, diverse product portfolio and targeted medical education, marketing and market access initiatives have differentiated Aetna within the U. Speaker 200:07:08S. Immunoglobulin landscape, establishing what we are confident is an enduring and growing foothold. Specifically regarding ASCENIS, we see real growth potential within the product's targeted addressable market, especially among immune deficient patients with complex comorbidities. Launch metrics remain supported with Ascenet's unique product profile resonating in clinical practice and real world settings. As demand trends accelerate, we are reassessing the product's peak potential. Speaker 200:07:41We believe that we are still in the early stages of tapping into the product's full market opportunity. We expect these continuous improvements in both top and bottom line results will sustain over the near and longer terms. We are confident the ongoing strengthening of our balance sheet will position us well to pursue new growth opportunities in a capital efficient manner, including but not limited to advancing our preclinical R and D pipeline programs and otherwise opportunistically utilizing our cash flows to maximize shareholder value. Moving to our longer term growth initiatives. We continue to make progress with all programs consistent with our prior communications. Speaker 200:08:27Our efforts to enhance immunoglobulin production yield through innovations to our manufacturing processes have continued to advance in 2024 year to date. We believe if successful, these initiatives can provide transformative accretion to our revenue and earnings objectives beginning potentially in the second half of next year. Furthermore, we believe that our preclinical hyperimmunoglobulin program targeting strep pneumonia aligns with unmet medical needs and leverages our expertise in clinical development, specialty biologics manufacturing and commercial product launches. On the plasma supply front, our collection centers continue to perform well, positioning us to meet increased production forecast for our IG portfolio. We are seeing increased hyperimmune plasma collections to support the growing demand and utilization of incentives and collection volumes across the network on a same center basis are reaching new highs. Speaker 200:09:29Overall, we believe ADMET is well positioned for continued growth and innovation with a strong foundation for success in the years ahead. In the spirit of continuing to innovate across our business and operational functions, during the Q1, we expanded the implementation of our Admalytics generative AI and machine learning platform to optimize and streamline certain production processes. We anticipate that Admelytics will provide far reaching improvements and efficiencies across our operations, which would support the company's rapid earnings growth trajectory and reinforce our position as a thought leader in the specialty biologics market. Upon reflecting on the journey of ADMOC, we believe that our achievements reflect the unwavering commitment and hard work demonstrated by our outstanding and knowledgeable team members. The evolution from a young virtual biotech startup company to now operating a compliant end to end controlled supply chain. Speaker 200:10:33We are advancing our position as one of the fastest growing and profitable biopharma companies in the United States. This is truly rare and remarkable. To our employees, we extend our heartfelt gratitude for your tenacity, perseverance and tireless dedication, which not only fuels our progress, but also leaves a significant impact on those we serve. It's the collaborative ethos and collective effort that truly distinguish our workplace. We deeply value the dedication, enthusiasm and diligence exhibited by each member of our team. Speaker 200:11:10It's this steadfast devotion that drives our successes and enables us to maintain firm control over our operations in line with our fundamental vision. We firmly believe that the strong foundation paves the way for even greater accomplishments in the periods ahead. With that, I'd now like to turn the call over to Brad for a review of the Q1 2024 financials. Speaker 300:11:33Thank you, Adam. We issued a press release earlier today outlining our Q1 2024 financial results. And we will also be issuing our Q1 10 Q report later this afternoon, which we would encourage you to read in conjunction with our comments and discussion points we will make during today's call. I will now discuss some of the key financial highlights from the Q1. Total revenues were $81,900,000 for the quarter ended March 31, 2024, as compared to $56,900,000 for the Q1 ended March 31, 2023, an increase of $25,000,000 or approximately 44%. Speaker 300:12:16The increase is primarily related to increased sales of our immunoglobulin products, partially offset by a planned decrease in sales of plasma to third parties due to the increasing retention of plasma for ADEMO's internal IVIG production. The decline in external plasma sales is consistent with our prior messaging and forecast as we are utilizing a greater percentage of our internally sourced plasma from our collection network for our manufacturing of ASCENTIVE and BIVVIGANT. Gross profit for the 3 months ended March 31, 2024 was $39,100,000 as compared to $16,500,000 for the same period of a year ago, which represents an increase of $22,600,000 As a result, Aetna achieved a corporate gross margin of approximately 48% in the Q1 of 2024 as compared to approximately 29% in the Q1 of 2023. We believe the pathway is well paved to continue to grow gross profits over future periods. As we progress further into 2024, we believe we are just now beginning to generate financial results that demonstrate the distinct operating leverage the business is capable of realizing as our revenue growth rate improves and fixed expenses are tightly managed. Speaker 300:13:44During the Q1, we grew adjusted EBITDA to $26,400,000 as compared to $2,500,000 for the Q1 of 2023. Additionally, during the Q1, we generated $17,800,000 of GAAP net income as compared to a GAAP net loss of $6,800,000 for the Q1 of 2023. The significant improvement in financial performance is driven primarily by increased sales, gross profit and continued fiscal operating management of our business. Based on Atmos 4th quarter annualized adjusted EBITDA growth and cash and cash equivalents, the company's current net leverage ratio has organically improved to approximately 0.85. We anticipate the balance sheet will continue to strengthen over the coming periods, enabled by forecasted free cash flow and growing adjusted EBITDA. Speaker 300:14:44Specifically bracketing the 2nd quarter, we anticipate a significant step up in free cash flow, which we expect will continue to grow thereafter over the balance of 2024 and beyond. With that, I will now turn the call back over to Adam for closing remarks. Speaker 200:15:02Thank you, Brad. Our strong commitment to innovation and performance has yielded tangible results driving significant growth and value creation, which we believe has set our company up for enduring success for years to come. Looking ahead to the remainder of 2024, we anticipate top tier revenue and earnings growth fueled by transformative initiatives, all underpinned by our strong foundation of scientific, manufacturing and commercial excellence. In the periods ahead, we look forward to leveraging both our R and D know how and innovative commercial model to unlock an even greater than anticipated terminal value for our business. With our upwardly revised financial guidance and forecasted increases to free cash flows in the 2nd quarter and all foreseeable periods thereafter, we are extremely proud of the business we are building. Speaker 200:15:56The market opportunity for ADMEA's innovative specialty biologics has continued to grow and evolve and we are excited to expand upon the strong partnerships and inroads we've developed. I extend our heartfelt gratitude to all who have supported us on this journey. Your trust and partnership are invaluable as we continue to make a difference in the lives of patients. As we move forward, I encourage you to join us in our mission, donate plasma, help save lives and make a meaningful impact on our communities. Thank you for your support and dedication. Speaker 200:16:29Together, we continue to write the story of ADMA's success. And with that, we'll now open up the call for your questions. Thank you, operator. Operator00:16:45Our first question comes from Anthony Petrone from Mizuho Group. Please go ahead. Your line is open. Speaker 400:16:51Thank you. Hey, Anthony. Hi, Adam, and congratulations to the team. And the first thought in my head is, are they paying attention yet to the performance here? But in looking ahead, I think one of the questions that we get from folks out there and it seems like you touched on it is where we are and I think the capacity utilization today of the business with the Senip growing much faster than expected and Vivigam certainly looking like it's gaining steady market share in the traditional IG market. Speaker 400:17:28So maybe just a little bit on where capacity utilization is today and you spoke a little bit about the peak potential of this business. You look at the guidance you put out there for 2024 and 2025. When we do our math, there's a lot of room for variability, but we get to a number that's quite a bit higher than your 2025 number. But how should we be thinking about capacity utilization today and bracketing where the peak potential is for this business? And I'll have a couple of follow ups. Speaker 200:18:01Always good questions, Anthony. Thank you for the kind words. I definitely think my team is paying attention. And maybe before I jump in, I just want to take my hat off to the folks here at ADMA. I mean, it's everybody working together. Speaker 200:18:15I think this is what happens when you have a business that look, obviously, we have a great product. It meets the unmet needs of these immune compromised patients with complex comorbidities with Ascentiv and with BIVVIGAM, it's a durable, growing high quality product out there. And I take my hat off to everyone that makes this possible because you can't do it. You can't have a great idea without a lot of people who are going to give 100% effort every single day and that's the admin team. With that said, I mean, look, we're probably I think I've said this before, it's about 70% to 80% capacity. Speaker 200:18:55That's where we're running now with production. Obviously, we're looking at ways to expand that. The more we can push in, the more we're going to get out. Yield enhancement, we have not even given guidance yet. All these revised upward numbers do not include any accretion from yield enhancement. Speaker 200:19:17But what I can tell you is that, look, we're certainly penetrating stronger, harder, faster than we ever thought we would with Ascentive right now. It's the calendar slip was great. I said this at the Raymond James conference, I guess it's a couple of months ago now. Gary asked a similar question. And if you look at our plant, 600,000 liter peak capacity, you just do the plasma economics, 4 grams per liter yield on average, somewhere between, call it, 1,800,000 to 2,200,000 grams come out of this plan, 2,400,000 grams at peak. Speaker 200:19:59If all of that was incentive, Anthony, you'd be looking at $1,500,000,000 to $2,000,000,000 plus in total top line revenue annually. Do I think that's possible? No, I don't. But anything is possible. I think being able to secure that much hyper immune plasma to make a Seniv, I think would be a challenge. Speaker 200:20:23But I think somewhere the terminal value for this business or the terminal revenue generation opportunity with what we have today is somewhere between the near term forward guidance of $410,000,000,000 $2,000,000,000 I don't know the exact number. My team is working very, very expeditiously with respect to ramping up our ability to test for these hyper immune high titer RSV plasma donors. We've seen increased collections. Again, we're producing more product than ever. But, I really think that the terminal earnings and the terminal revenue generation from this business, we're really in the early innings here. Speaker 200:21:09But I do think that there is significant and sustained growth beyond 2025 with Ascentive and BIVVIGAM. Again, this is stage 1 of yield improvement. Hopefully, in the middle term of this year, we'll be able to give some more details on timeline and guidance. But we do think that we could be accretive with revenue generation as early as the second half of next year. But again, that's not in our revised guidance that we've given today. Speaker 200:21:43So hopefully that answers your question. Speaker 400:21:47Very helpful. I'm going to let others jump in. I got a bunch, but I just want to maybe ask one on the supply chain and I'll hop in. You talk about the donor side of the equation for RSV, high a vaccination strategy that you can leverage now that we have RSV vaccines out there? Congratulations again to the team. Speaker 400:22:10Thanks. Speaker 200:22:11Thanks, Anthony. The answer is no. We do not want to use the vaccine. The special sauce here is not just the RSV. And I have talked about this before and I don't mean to bore folks by saying the same thing. Speaker 200:22:28But RSV is the marker that we use to test to identify which donors have high levels of antibodies to this panel of different respiratory viruses. And on the website in the publication section, we talk about this. Our donors are not just high titer to RSV, they're high tighter to a panel of different infectious pathogens. So, it's the naturally occurring antibody we feel. It's really identifying who these high responders are. Speaker 200:22:58And look, they're out there. They're out there. The hit rates are what we've seen historically. The post pandemic return of the plasma donor is here. We're working on very unique and good strategies with our plasma centers and our 3rd party collectors who provide us with the hyper immune plasma on paying these donors bonuses, bringing them back in more frequently. Speaker 200:23:26And we're seeing the fruits of our labor. I mean, we have more material, we have more raw material collected, than ever before, and we feel very, very confident about our ability to deliver sustained quarter over quarter growth for the foreseeable future. Speaker 400:23:42Thanks, Sam. Speaker 200:23:44Thanks, Anthony. Operator00:23:46Our next question comes from Kristin Kluska from Cantor Fitzgerald. Please go ahead. Your line is open. Speaker 200:23:52Hey, Kristin. Speaker 500:23:53Hi, everyone. Hey, congrats on the quarter and starting to sound like a broken record here, but once again, really impressive numbers and kind of beating all of our expectations, so well done. As you have a very unique position giving you insight into forecasting revenues, I wanted to ask at what point you might consider reinvesting some of this capital to either expand the business or improve things on the manufacturing front or if there's anything else you're looking at? I know you've also guided on looking at other indications as well. Speaker 200:24:35All great questions. And I will say, Kristen, you made us work hard this quarter. I think you were the top revenue estimate out there. So we had to work hard to beat your projections. But regarding the cash flow and what are we going to do, I mean, look, we are positioned very favorably. Speaker 200:24:57I think as we generate cash and we certainly think the Q2 is going to be a very large quarter from cash flow perspective. But if the interest rate backdrop continues and it remains elevated, so for remains where it is, we've got the ability to pay down 50% of the revolving line that is attached to this Ares deal that we did this past December. But as cash builds on the balance sheet, we can pay that down, reduce our interest expense, reduce cash going out. I mean, I've said this before and I don't mind saying these things like a broken record, but we are hyper focused on shareholder returns. We're hyper focused on creating shareholder value. Speaker 200:25:49I mean, a lot of the investors have been with us since the beginning and we can't thank them enough. And look, we've got great product that helps people. So with all of this coming together, I think the stock is undervalued. I think our Board feels the stock is undervalued. We're seeing other companies in this backdrop paying down their debt. Speaker 200:26:13You see where our net leverage ratio is coming down at 0.85x. And if there's an opportunity to redeploy the capital, buy back some stock, look at other ways to enhance shareholder value, I mean, these are all things that we're considering and we're talking at the Board level. No decisions have been made yet. Let's see how we continue to progress. But with the way that we're forecasting cash flows, we certainly are going to be optimistic. Speaker 200:26:47We are not looking to onboard assets, Kristen. I don't know if that's something that you were asking. That's not really something that we're looking at here. But investing in Admelytics, investing in our IT infrastructure, investing in new systems to help streamline and enhance efficiencies. I think something with Brad coming on board and his, I guess, financial operational experience has been a great value creator for us here internally at the company, looking at all types of ways to extract more margin and more value out of the business. Speaker 200:27:26So we're very excited about the opportunities ahead. Speaker 100:27:30Kristen, it's Skyler. I would add that in the event that we don't have the revolving credit facility fully drawn in the back half of this year, that represents upside to the net income guidance we provided today. We contemplate a fully drawn debt piece. So in the event that we continue to stack cash on the balance sheet, yet another lever for upside to currently provided net income guidance. Operator00:27:52Absolutely. Okay. Speaker 500:27:53Thanks. Appreciate that color. And then just my last question is, obviously, this is a great business where people can donate plasma very often a couple of times a week. So I know you've talked before about different incentives and ways to get the specialty plasma and but have you looked to further find ways to Operator00:28:16get more donations from those patients Speaker 500:28:16that you've identified? And if from those patients that you've identified? And if so, has any of this worked for increased Speaker 200:28:27So the answer is, yes, Kristen. Once we spent the money and done the testing and identify which donor either from 1 of our third parties or in one of our 10 wholly owned and operated centers. Once we know who the donor is, we've deployed strategies this year where we're paying bonuses for frequency and we're increasing some of our donor fees on the incentive plasma because obviously we've got margin there. I don't like to say we've got margin to spare, but certainly more is better. And we've seen these programs work in our existing centers. Speaker 200:29:11We're we're starting to roll them out to our 3rd party. So we wouldn't be as confident in our guidance. We wouldn't be increasing top and bottom line guidance if we did not think that we were able to meet these forecasted targets. So as we've been demonstrating to the Street for the last 10 plus calendar quarters, we feel really good about our positioning. Everything seems to be working well. Speaker 200:29:42And at the end of the day, patients do well on the products that ADMO Biologics produces, full stop. Patients are doing very well on BIVVIGAN. I've seen and heard and been told some very, very heartwarming stories as the medical conference season starts to unfold. It was the Clinical Immunology Society meeting. I think it was last week and I had a number of inbounds from some of our field force on just stories that physicians are sharing with us about patients who were just not doing well on their other IG and they would switch to Ascentive and they've improved. Speaker 200:30:25It's what drives us, it's what fuels us and we're going to keep investing into this business, we're going to keep we produce more and we will sell more. Speaker 300:30:44And just to add, right, I mean those programs are taking traction. We're starting to see the results of it. And as we stated, right, we're retaining our internally sourced plasma to meet our manufacturing needs. But it's good to see that the traction is starting to gain. Speaker 500:31:01Great. Thanks. Congrats again. Well done. Speaker 200:31:04Thanks, Kristen. Operator00:31:06Our next question comes from Gary Nachman from Raymond James. Please go ahead. Your line is open. Speaker 600:31:13Hi, good afternoon. And my congrats as well on the quarter and all the progress and thanks for that plug before on our conference, Adam. Appreciate that. Speaker 200:31:22Gary, it was great. I got to tell you, we had a lot of great meetings at that conference. And I really think that that was a look, it was the start of the year and look at where we are. I mean, it takes a village to get all this done. So I appreciate all of our analysts and all of our banks. Speaker 600:31:39Yes, for sure. So I mean, when you say you're assessing the company's potential beyond 2025, a little more on how you're doing that and the types of analyses you're doing and how do you expect to communicate that and in what timeframe and form? So that would be the first question. And then I guess when you talk about the durability of Ascentiv longer term, the payer question immediately comes to mind. So making sure you won't get any surprising, And then also that no other competitors out there And then also that no other competitors out there can do these hyperimmune products, and that you think you'll be differentiated in that space for a Speaker 200:32:25long time? All great questions. I think I wrote them down. So the first thing that I'll touch on are the types of analyses. I mean, there's the Brad Tade, Skyler Blum models and then there's the Grossman math. Speaker 200:32:46But what I can tell you is that look, we're at a point right now where I think it's really the market is asking for more product. The clinicians have seen the product work well. So really it comes down to can we produce more. We're selling everything we make, both products, Seniv and Vivigant. And honestly, Navi has been doing very well this year for us as well. Speaker 200:33:15And that's a decent margin product. So really, this has been a hell of a start to the year. I mean, we're sitting here May 9th and things just look great. But as far as the analyses, I mean, look, we have a good handle on the number of patients that could benefit from Ascentiv. And if you recall, the math is roughly, call it 250,000 to 500,000 PI patients. Speaker 200:33:43About half of them are on IG and we estimate somewhere between, call it 15% to 30% of those have some chronic lung condition, have some significant comorbidity that they've got a challenging course of treatment just on IG, standard IG alone. Most patients do very well, but we think that there could be in the order of 10000 to 30,000 people that can benefit from RECENTIVE. We haven't even scratched the surface. So I think that we've demonstrated proof of concept. I think with some of the notes that I've been getting from investors this afternoon, very, very congratulatory. Speaker 200:34:23Thank you all very much. It's better than the alternatives that you guys used to send me years ago. But what I'll say is that the demand is there. And I think I may have said this, Gary, at your conference. If not, maybe someone's going to shoot me, but it's like Rolex demand. Speaker 200:34:42I have no idea if it's fabricated or not, but you can't walk into a store and buy 1. I mean, incentive is all allocated out there. New patient starts are scheduled. We just have to make more product. I think the more we can make and with our 7 to 12 month production cycle time, that is shortening. Speaker 200:35:01But we've got the ability to and we said it all the time, we have tomorrow's newspaper. We know how much we're making. We know what we can forecast. And we would not be increasing guidance the way that we are as strong as we are if we did not think that we can meet these targets. So that's that piece. Speaker 200:35:21What I'll say about the payers, someone's breathing heavy on my line, if they could just go on mute if you're not me. Thanks. The payers, we've identified what good looks like. I think that we have identified to entry right now. Coverage and access is good. Speaker 200:35:48It's ongoing. Our Advantage IG program, which is our patient assistance program is being utilized and it's helping people with their co pays. But I really think that when you look at the pharmacoeconomic value proposition, it resonates with the prescribers, it resonates with the payers. And I think that we really characterize appropriate use very, very well. Ascentive Web site has been updated. Speaker 200:36:15If you haven't taken a look, you should look at ascentive.com. And I just truly believe that we're out there and we're saying no, don't use this product and everyone. It's not for everybody. It's just not. It's for a patient that we believe that is immune compromised, has PI, has secondary immune deficiency and then has complex comorbidities that are hard to manage. Speaker 200:36:42And I think that in this right patient population, we're not seeing a lot of barriers to getting patients on therapy. And then I think the last part of your question was still no competitors, no one that we see. Some of the competitors out there who have announced programs with specialty hyperimmunes, they're not doing well with their programs. They're not doing well in general. So I just think that we're standing alone with our portfolio of products. Speaker 200:37:21We've got a unique share of voice, if you will, within the immune compromised patient space. That's where we focus specifically. And our IP is solid. And we feel very, very good that with respect to incentive and how it's made and how we market it, there is no competition that we are aware of in the United States for the foreseeable term. So hopefully that answers the three parts of the question. Speaker 200:37:54Yes. Speaker 600:37:54That was great. But just on the outlook beyond 2025, I mean you guys do a great job of even going out that far. But since you're talking about it, when do you think you're going to have enough visibility? It can be later this year into next year once you start to see that as we kick in. Speaker 200:38:10In June 4, Tyler, but what Speaker 400:38:11I would say, what I Speaker 200:38:12Go ahead, Adam. No, Gary. I mean, look, we have ideas obviously, but look, I need to see it's all about timing. When in my yield enhancement conformance flops going to be made? How do I get it on file? Speaker 200:38:27What's the FDA going to say? I could sit here and predict, but I don't need to. I've got enough growth coming that I hope to keep everyone happy for the near term. I mean, I think as we progress to the back half of this year, I mean, obviously, we'll be thinking about 2026 guidance. And look, in due course, as Skyler was saying, we should be in a position. Speaker 200:38:55But again, I think the sky is the limit. I mean, and if the sky is that $2,000,000,000 peak revenue opportunity, I mean, look, I've got staff here that say to me, I hate the term, but they say, boss, we're going to get you as much plasma as we possibly can. And I say, don't call me boss, but let's get as much plasma as we could possibly get. I mean, what we're focusing on here. Everyone is working together. Speaker 200:39:19Yield enhancement every single day, that's what's driving everybody's excitement in and around the production campus here. At the plasma centers, I mean, it's buzzing. I mean, the donors are coming in the doors, our new donor promotions, our promotions for the hyper immune donors are really taking off as Brad was mentioning. And Brad hit on a key point, which is, we're retaining more donors than ever before. And that's a key to win the battle. Speaker 200:39:54So keep your pants on. We'll get you the numbers, Gary. We'll get them for you. But look, I think that you can hear the confidence in our prepared remarks. I think you hear the confidence in our tone with the Q and A. Speaker 200:40:10We've really built a great business. And again, I take my hat off to my team because, it was my father and my vision. We knew that the patients were out there. We knew that the docs needed a product like this, but I have no idea how many employees we have today, 700 plus or minus, but it is 699 of them that are making this happen. And I'm just very, very happy to be along for the ride. Speaker 100:40:35What we can say qualitatively today about the post 2025 growth story, right, It's going to be one defined by outsized operating leverage in the way that we've said time and time again that the current operating expenditure structure that you're seeing in the Q1 numbers that have remained relatively stable over the last few quarters. Our commercial organization is right sized. Our spend base is right sized. So as you think about post 2025 revenue growth, again, you're going to see operating leverage materialize that we believe we haven't yet realized. So stay tuned. Speaker 100:41:08In due course, we'll provide quantitative framework, but we're really excited about what the back half of the decade brings. Speaker 600:41:15Yes. No, that's great. I'm only asking because you guys are bringing it up. So I think that's all fair in your assessment. So appreciate all that. Speaker 600:41:22And then just quickly, where are you currently with your penetration of incentive? If you're still in the $500,000 to $1,000 range, are you now at the higher end of that? Just give us a sense when you talk about the addressable market, which is 10,000 to 30,000. Then how much of the use is in secondary immuno deficiency versus primary? It feels like that's something that's evolving out there. Speaker 600:41:46And then I'll get back in kick. Thanks. Speaker 200:41:49Thanks, Gary. The majority of the utilization is in primary immune deficiency. At least that's what our data suggests. We are very, very excited about the penetration with where Ascentive is. I mean, it's still in that range. Speaker 200:42:11I mean, it's growing. But you're not just going to see overnight all of a sudden we're going to put 1,000 more patients on the product. I think you're going to see steady growth. I think you're going to see periods where there's going to be bigger chunks of growth than you've seen historically. But I think all of that is to be determined, but we're going to continue to penetrate. Speaker 200:42:36We're going to continue to provide more drug quarter over quarter BIVVIGAM and Eseniv. And it's an exciting time for all of us here at ADMA. ADMA. Operator00:42:54We have no further questions in queue. I would like to turn the call back over to Adam Grossman for closing remarks. Speaker 200:43:00No. Thank you, everybody. Thank you again to the ADMA team. Thank you again to all of our investors. We can't do it without your support and we appreciate you. Speaker 200:43:10So donate plasma, it's the summertime season. Donate blood also. In summertime, there's usually blood shortages, but donate blood and blood components help save lives. We appreciate you all. Thank you for your time and have a great afternoon. Operator00:43:27This concludes today's conference call. Thank you for your participation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallADMA Biologics Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) ADMA Biologics Earnings HeadlinesADMA Biologics, Inc. (ADMA): Among Takeover Rumors Hedge Funds Are BuyingApril 23 at 10:25 PM | insidermonkey.comIs ADMA Biologics, Inc. 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Email Address About ADMA BiologicsADMA Biologics (NASDAQ:ADMA), a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. The company offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. It develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, drug wholesalers, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.View ADMA Biologics ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? 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There are 7 speakers on the call. Operator00:00:00Good afternoon, and welcome to the ADMA Biologics First Quarter 2024 Financial Results and Business Update Conference Call on Thursday, May 9, 2024. At this time, all participants are in a listen only mode. There will be a question and answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately 2 hours following the end of the call. At this time, I would like to introduce Skyler Blum. Operator00:00:28Please go ahead. Speaker 100:00:33Welcome everyone and thank you for joining us this afternoon to discuss ADNOB Biologics financial results for the Q1 of 2024 and recent corporate updates. I'm joined today by Adam Grossman, President, Chief Executive Officer and Interim Financial Officer and Brad Tade, Vice President of Financial Operations. During today's call, Adam will provide some summary introductory comments and provide an update on corporate progress, and then Brad will provide an overview of the company's Q1 2024 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the Q1 2024 financial results and summarized certain achievements and recent corporate updates. Speaker 100:01:20The release is available on our website, www.admabiologics.com. Before we begin our formal comments, I'll remind you that we will be making forward looking assertions during today's call that represent the company's intentions, expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward looking statements are subject to factors, risks and uncertainties such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update any such statements, except as required by the federal securities laws. Speaker 100:02:25We refer you to the disclosure notice section in our earnings release we issued today in the Risk Factors section of our quarterly report on Form 10 Q for the quarter ended March 31, 2024, for a discussion of the important risk factors that could cause actual results to differ materially from these forward looking statements. Please note that the discussion on today's call includes certain non GAAP financial measures, including adjusted EBITDA. A reconciliation of these non GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release. With that, I would now like to turn the call over to Adam Grossman. Adam, go ahead. Speaker 200:03:06Thank you, and welcome, everyone. The beginning of 2024 has been a transformative period for us at ADMA Biologics. We believe the future has never been brighter and our commercial success story continues to unfold with great momentum. During the Q1, we continued to execute on our growth strategy and exceeded our financial forecasts. Compounding revenue growth and management's cost containment measures have enabled us to once again raise our financial guidance for both top and bottom line projections, underscoring the strength of our innovative business model, which we believe has proven to be distinctly durable and resilient through various operating conditions. Speaker 200:03:52Total revenues for the Q1 of 2024 grew by 44% year over year to $81,900,000 This rapid revenue growth combined with a tightly managed cost structure resulted in adjusted EBITDA of $26,400,000 during the Q1 of 2024. This represents a 9 70% year over year growth rate compared to the Q1 of 2023. GAAP net income grew to $17,800,000 during the Q1 of 2024, compared to a GAAP net loss of $6,800,000 during the Q1 of 2023. We anticipate continued revenue growth leading to increased operating leverage and increased earnings across near term periods, which would further solidify ADNUS position as one of the fastest growing and profitable biopharma companies in the United States. With net leverage approaching 0, we continue to believe that we are achieving significant new milestones for our financial performance. Speaker 200:05:02As Advent's forward looking business trends build momentum, we're revising financial guidance upwards for both 2024 and 2025, increasing both top and bottom line projections. Based on current market factors, we now anticipate generating revenues during these periods of more than $355,000,000 $410,000,000 respectively. At these revenue levels, we estimate adjusted EBITDA will exceed $110,000,000 $160,000,000 for 2024 2025 respectively, representing a 45% year over year growth rate. Similarly, we are increasing net income guidance to more than $85,000,000 $135,000,000 for 2024 2025 respectively, representing an approximately 60% year over year increase. In addition to the significant increases to near term guidance, we expect to continue to favorably reassess the terminal earnings power beyond 2025 for our business and plan to communicate more detail around forecasted revenue and earnings growth post 2025 as internal developments and projects progress. Speaker 200:06:26The underlying drivers of our revenue and earnings growth continue to strengthen with Ascentive reaching new highs across nearly all utilization KPIs and BIVVIGAN deepening its entrenchment in the growing U. S. Immunoglobulin market. We believe the continued growth of our commercial portfolio is largely attributable to our focus on the immune deficient patient segment, particularly those with complex comorbidities. We believe this specialized focus combined with our innovative business model, diverse product portfolio and targeted medical education, marketing and market access initiatives have differentiated Aetna within the U. Speaker 200:07:08S. Immunoglobulin landscape, establishing what we are confident is an enduring and growing foothold. Specifically regarding ASCENIS, we see real growth potential within the product's targeted addressable market, especially among immune deficient patients with complex comorbidities. Launch metrics remain supported with Ascenet's unique product profile resonating in clinical practice and real world settings. As demand trends accelerate, we are reassessing the product's peak potential. Speaker 200:07:41We believe that we are still in the early stages of tapping into the product's full market opportunity. We expect these continuous improvements in both top and bottom line results will sustain over the near and longer terms. We are confident the ongoing strengthening of our balance sheet will position us well to pursue new growth opportunities in a capital efficient manner, including but not limited to advancing our preclinical R and D pipeline programs and otherwise opportunistically utilizing our cash flows to maximize shareholder value. Moving to our longer term growth initiatives. We continue to make progress with all programs consistent with our prior communications. Speaker 200:08:27Our efforts to enhance immunoglobulin production yield through innovations to our manufacturing processes have continued to advance in 2024 year to date. We believe if successful, these initiatives can provide transformative accretion to our revenue and earnings objectives beginning potentially in the second half of next year. Furthermore, we believe that our preclinical hyperimmunoglobulin program targeting strep pneumonia aligns with unmet medical needs and leverages our expertise in clinical development, specialty biologics manufacturing and commercial product launches. On the plasma supply front, our collection centers continue to perform well, positioning us to meet increased production forecast for our IG portfolio. We are seeing increased hyperimmune plasma collections to support the growing demand and utilization of incentives and collection volumes across the network on a same center basis are reaching new highs. Speaker 200:09:29Overall, we believe ADMET is well positioned for continued growth and innovation with a strong foundation for success in the years ahead. In the spirit of continuing to innovate across our business and operational functions, during the Q1, we expanded the implementation of our Admalytics generative AI and machine learning platform to optimize and streamline certain production processes. We anticipate that Admelytics will provide far reaching improvements and efficiencies across our operations, which would support the company's rapid earnings growth trajectory and reinforce our position as a thought leader in the specialty biologics market. Upon reflecting on the journey of ADMOC, we believe that our achievements reflect the unwavering commitment and hard work demonstrated by our outstanding and knowledgeable team members. The evolution from a young virtual biotech startup company to now operating a compliant end to end controlled supply chain. Speaker 200:10:33We are advancing our position as one of the fastest growing and profitable biopharma companies in the United States. This is truly rare and remarkable. To our employees, we extend our heartfelt gratitude for your tenacity, perseverance and tireless dedication, which not only fuels our progress, but also leaves a significant impact on those we serve. It's the collaborative ethos and collective effort that truly distinguish our workplace. We deeply value the dedication, enthusiasm and diligence exhibited by each member of our team. Speaker 200:11:10It's this steadfast devotion that drives our successes and enables us to maintain firm control over our operations in line with our fundamental vision. We firmly believe that the strong foundation paves the way for even greater accomplishments in the periods ahead. With that, I'd now like to turn the call over to Brad for a review of the Q1 2024 financials. Speaker 300:11:33Thank you, Adam. We issued a press release earlier today outlining our Q1 2024 financial results. And we will also be issuing our Q1 10 Q report later this afternoon, which we would encourage you to read in conjunction with our comments and discussion points we will make during today's call. I will now discuss some of the key financial highlights from the Q1. Total revenues were $81,900,000 for the quarter ended March 31, 2024, as compared to $56,900,000 for the Q1 ended March 31, 2023, an increase of $25,000,000 or approximately 44%. Speaker 300:12:16The increase is primarily related to increased sales of our immunoglobulin products, partially offset by a planned decrease in sales of plasma to third parties due to the increasing retention of plasma for ADEMO's internal IVIG production. The decline in external plasma sales is consistent with our prior messaging and forecast as we are utilizing a greater percentage of our internally sourced plasma from our collection network for our manufacturing of ASCENTIVE and BIVVIGANT. Gross profit for the 3 months ended March 31, 2024 was $39,100,000 as compared to $16,500,000 for the same period of a year ago, which represents an increase of $22,600,000 As a result, Aetna achieved a corporate gross margin of approximately 48% in the Q1 of 2024 as compared to approximately 29% in the Q1 of 2023. We believe the pathway is well paved to continue to grow gross profits over future periods. As we progress further into 2024, we believe we are just now beginning to generate financial results that demonstrate the distinct operating leverage the business is capable of realizing as our revenue growth rate improves and fixed expenses are tightly managed. Speaker 300:13:44During the Q1, we grew adjusted EBITDA to $26,400,000 as compared to $2,500,000 for the Q1 of 2023. Additionally, during the Q1, we generated $17,800,000 of GAAP net income as compared to a GAAP net loss of $6,800,000 for the Q1 of 2023. The significant improvement in financial performance is driven primarily by increased sales, gross profit and continued fiscal operating management of our business. Based on Atmos 4th quarter annualized adjusted EBITDA growth and cash and cash equivalents, the company's current net leverage ratio has organically improved to approximately 0.85. We anticipate the balance sheet will continue to strengthen over the coming periods, enabled by forecasted free cash flow and growing adjusted EBITDA. Speaker 300:14:44Specifically bracketing the 2nd quarter, we anticipate a significant step up in free cash flow, which we expect will continue to grow thereafter over the balance of 2024 and beyond. With that, I will now turn the call back over to Adam for closing remarks. Speaker 200:15:02Thank you, Brad. Our strong commitment to innovation and performance has yielded tangible results driving significant growth and value creation, which we believe has set our company up for enduring success for years to come. Looking ahead to the remainder of 2024, we anticipate top tier revenue and earnings growth fueled by transformative initiatives, all underpinned by our strong foundation of scientific, manufacturing and commercial excellence. In the periods ahead, we look forward to leveraging both our R and D know how and innovative commercial model to unlock an even greater than anticipated terminal value for our business. With our upwardly revised financial guidance and forecasted increases to free cash flows in the 2nd quarter and all foreseeable periods thereafter, we are extremely proud of the business we are building. Speaker 200:15:56The market opportunity for ADMEA's innovative specialty biologics has continued to grow and evolve and we are excited to expand upon the strong partnerships and inroads we've developed. I extend our heartfelt gratitude to all who have supported us on this journey. Your trust and partnership are invaluable as we continue to make a difference in the lives of patients. As we move forward, I encourage you to join us in our mission, donate plasma, help save lives and make a meaningful impact on our communities. Thank you for your support and dedication. Speaker 200:16:29Together, we continue to write the story of ADMA's success. And with that, we'll now open up the call for your questions. Thank you, operator. Operator00:16:45Our first question comes from Anthony Petrone from Mizuho Group. Please go ahead. Your line is open. Speaker 400:16:51Thank you. Hey, Anthony. Hi, Adam, and congratulations to the team. And the first thought in my head is, are they paying attention yet to the performance here? But in looking ahead, I think one of the questions that we get from folks out there and it seems like you touched on it is where we are and I think the capacity utilization today of the business with the Senip growing much faster than expected and Vivigam certainly looking like it's gaining steady market share in the traditional IG market. Speaker 400:17:28So maybe just a little bit on where capacity utilization is today and you spoke a little bit about the peak potential of this business. You look at the guidance you put out there for 2024 and 2025. When we do our math, there's a lot of room for variability, but we get to a number that's quite a bit higher than your 2025 number. But how should we be thinking about capacity utilization today and bracketing where the peak potential is for this business? And I'll have a couple of follow ups. Speaker 200:18:01Always good questions, Anthony. Thank you for the kind words. I definitely think my team is paying attention. And maybe before I jump in, I just want to take my hat off to the folks here at ADMA. I mean, it's everybody working together. Speaker 200:18:15I think this is what happens when you have a business that look, obviously, we have a great product. It meets the unmet needs of these immune compromised patients with complex comorbidities with Ascentiv and with BIVVIGAM, it's a durable, growing high quality product out there. And I take my hat off to everyone that makes this possible because you can't do it. You can't have a great idea without a lot of people who are going to give 100% effort every single day and that's the admin team. With that said, I mean, look, we're probably I think I've said this before, it's about 70% to 80% capacity. Speaker 200:18:55That's where we're running now with production. Obviously, we're looking at ways to expand that. The more we can push in, the more we're going to get out. Yield enhancement, we have not even given guidance yet. All these revised upward numbers do not include any accretion from yield enhancement. Speaker 200:19:17But what I can tell you is that, look, we're certainly penetrating stronger, harder, faster than we ever thought we would with Ascentive right now. It's the calendar slip was great. I said this at the Raymond James conference, I guess it's a couple of months ago now. Gary asked a similar question. And if you look at our plant, 600,000 liter peak capacity, you just do the plasma economics, 4 grams per liter yield on average, somewhere between, call it, 1,800,000 to 2,200,000 grams come out of this plan, 2,400,000 grams at peak. Speaker 200:19:59If all of that was incentive, Anthony, you'd be looking at $1,500,000,000 to $2,000,000,000 plus in total top line revenue annually. Do I think that's possible? No, I don't. But anything is possible. I think being able to secure that much hyper immune plasma to make a Seniv, I think would be a challenge. Speaker 200:20:23But I think somewhere the terminal value for this business or the terminal revenue generation opportunity with what we have today is somewhere between the near term forward guidance of $410,000,000,000 $2,000,000,000 I don't know the exact number. My team is working very, very expeditiously with respect to ramping up our ability to test for these hyper immune high titer RSV plasma donors. We've seen increased collections. Again, we're producing more product than ever. But, I really think that the terminal earnings and the terminal revenue generation from this business, we're really in the early innings here. Speaker 200:21:09But I do think that there is significant and sustained growth beyond 2025 with Ascentive and BIVVIGAM. Again, this is stage 1 of yield improvement. Hopefully, in the middle term of this year, we'll be able to give some more details on timeline and guidance. But we do think that we could be accretive with revenue generation as early as the second half of next year. But again, that's not in our revised guidance that we've given today. Speaker 200:21:43So hopefully that answers your question. Speaker 400:21:47Very helpful. I'm going to let others jump in. I got a bunch, but I just want to maybe ask one on the supply chain and I'll hop in. You talk about the donor side of the equation for RSV, high a vaccination strategy that you can leverage now that we have RSV vaccines out there? Congratulations again to the team. Speaker 400:22:10Thanks. Speaker 200:22:11Thanks, Anthony. The answer is no. We do not want to use the vaccine. The special sauce here is not just the RSV. And I have talked about this before and I don't mean to bore folks by saying the same thing. Speaker 200:22:28But RSV is the marker that we use to test to identify which donors have high levels of antibodies to this panel of different respiratory viruses. And on the website in the publication section, we talk about this. Our donors are not just high titer to RSV, they're high tighter to a panel of different infectious pathogens. So, it's the naturally occurring antibody we feel. It's really identifying who these high responders are. Speaker 200:22:58And look, they're out there. They're out there. The hit rates are what we've seen historically. The post pandemic return of the plasma donor is here. We're working on very unique and good strategies with our plasma centers and our 3rd party collectors who provide us with the hyper immune plasma on paying these donors bonuses, bringing them back in more frequently. Speaker 200:23:26And we're seeing the fruits of our labor. I mean, we have more material, we have more raw material collected, than ever before, and we feel very, very confident about our ability to deliver sustained quarter over quarter growth for the foreseeable future. Speaker 400:23:42Thanks, Sam. Speaker 200:23:44Thanks, Anthony. Operator00:23:46Our next question comes from Kristin Kluska from Cantor Fitzgerald. Please go ahead. Your line is open. Speaker 200:23:52Hey, Kristin. Speaker 500:23:53Hi, everyone. Hey, congrats on the quarter and starting to sound like a broken record here, but once again, really impressive numbers and kind of beating all of our expectations, so well done. As you have a very unique position giving you insight into forecasting revenues, I wanted to ask at what point you might consider reinvesting some of this capital to either expand the business or improve things on the manufacturing front or if there's anything else you're looking at? I know you've also guided on looking at other indications as well. Speaker 200:24:35All great questions. And I will say, Kristen, you made us work hard this quarter. I think you were the top revenue estimate out there. So we had to work hard to beat your projections. But regarding the cash flow and what are we going to do, I mean, look, we are positioned very favorably. Speaker 200:24:57I think as we generate cash and we certainly think the Q2 is going to be a very large quarter from cash flow perspective. But if the interest rate backdrop continues and it remains elevated, so for remains where it is, we've got the ability to pay down 50% of the revolving line that is attached to this Ares deal that we did this past December. But as cash builds on the balance sheet, we can pay that down, reduce our interest expense, reduce cash going out. I mean, I've said this before and I don't mind saying these things like a broken record, but we are hyper focused on shareholder returns. We're hyper focused on creating shareholder value. Speaker 200:25:49I mean, a lot of the investors have been with us since the beginning and we can't thank them enough. And look, we've got great product that helps people. So with all of this coming together, I think the stock is undervalued. I think our Board feels the stock is undervalued. We're seeing other companies in this backdrop paying down their debt. Speaker 200:26:13You see where our net leverage ratio is coming down at 0.85x. And if there's an opportunity to redeploy the capital, buy back some stock, look at other ways to enhance shareholder value, I mean, these are all things that we're considering and we're talking at the Board level. No decisions have been made yet. Let's see how we continue to progress. But with the way that we're forecasting cash flows, we certainly are going to be optimistic. Speaker 200:26:47We are not looking to onboard assets, Kristen. I don't know if that's something that you were asking. That's not really something that we're looking at here. But investing in Admelytics, investing in our IT infrastructure, investing in new systems to help streamline and enhance efficiencies. I think something with Brad coming on board and his, I guess, financial operational experience has been a great value creator for us here internally at the company, looking at all types of ways to extract more margin and more value out of the business. Speaker 200:27:26So we're very excited about the opportunities ahead. Speaker 100:27:30Kristen, it's Skyler. I would add that in the event that we don't have the revolving credit facility fully drawn in the back half of this year, that represents upside to the net income guidance we provided today. We contemplate a fully drawn debt piece. So in the event that we continue to stack cash on the balance sheet, yet another lever for upside to currently provided net income guidance. Operator00:27:52Absolutely. Okay. Speaker 500:27:53Thanks. Appreciate that color. And then just my last question is, obviously, this is a great business where people can donate plasma very often a couple of times a week. So I know you've talked before about different incentives and ways to get the specialty plasma and but have you looked to further find ways to Operator00:28:16get more donations from those patients Speaker 500:28:16that you've identified? And if from those patients that you've identified? And if so, has any of this worked for increased Speaker 200:28:27So the answer is, yes, Kristen. Once we spent the money and done the testing and identify which donor either from 1 of our third parties or in one of our 10 wholly owned and operated centers. Once we know who the donor is, we've deployed strategies this year where we're paying bonuses for frequency and we're increasing some of our donor fees on the incentive plasma because obviously we've got margin there. I don't like to say we've got margin to spare, but certainly more is better. And we've seen these programs work in our existing centers. Speaker 200:29:11We're we're starting to roll them out to our 3rd party. So we wouldn't be as confident in our guidance. We wouldn't be increasing top and bottom line guidance if we did not think that we were able to meet these forecasted targets. So as we've been demonstrating to the Street for the last 10 plus calendar quarters, we feel really good about our positioning. Everything seems to be working well. Speaker 200:29:42And at the end of the day, patients do well on the products that ADMO Biologics produces, full stop. Patients are doing very well on BIVVIGAN. I've seen and heard and been told some very, very heartwarming stories as the medical conference season starts to unfold. It was the Clinical Immunology Society meeting. I think it was last week and I had a number of inbounds from some of our field force on just stories that physicians are sharing with us about patients who were just not doing well on their other IG and they would switch to Ascentive and they've improved. Speaker 200:30:25It's what drives us, it's what fuels us and we're going to keep investing into this business, we're going to keep we produce more and we will sell more. Speaker 300:30:44And just to add, right, I mean those programs are taking traction. We're starting to see the results of it. And as we stated, right, we're retaining our internally sourced plasma to meet our manufacturing needs. But it's good to see that the traction is starting to gain. Speaker 500:31:01Great. Thanks. Congrats again. Well done. Speaker 200:31:04Thanks, Kristen. Operator00:31:06Our next question comes from Gary Nachman from Raymond James. Please go ahead. Your line is open. Speaker 600:31:13Hi, good afternoon. And my congrats as well on the quarter and all the progress and thanks for that plug before on our conference, Adam. Appreciate that. Speaker 200:31:22Gary, it was great. I got to tell you, we had a lot of great meetings at that conference. And I really think that that was a look, it was the start of the year and look at where we are. I mean, it takes a village to get all this done. So I appreciate all of our analysts and all of our banks. Speaker 600:31:39Yes, for sure. So I mean, when you say you're assessing the company's potential beyond 2025, a little more on how you're doing that and the types of analyses you're doing and how do you expect to communicate that and in what timeframe and form? So that would be the first question. And then I guess when you talk about the durability of Ascentiv longer term, the payer question immediately comes to mind. So making sure you won't get any surprising, And then also that no other competitors out there And then also that no other competitors out there can do these hyperimmune products, and that you think you'll be differentiated in that space for a Speaker 200:32:25long time? All great questions. I think I wrote them down. So the first thing that I'll touch on are the types of analyses. I mean, there's the Brad Tade, Skyler Blum models and then there's the Grossman math. Speaker 200:32:46But what I can tell you is that look, we're at a point right now where I think it's really the market is asking for more product. The clinicians have seen the product work well. So really it comes down to can we produce more. We're selling everything we make, both products, Seniv and Vivigant. And honestly, Navi has been doing very well this year for us as well. Speaker 200:33:15And that's a decent margin product. So really, this has been a hell of a start to the year. I mean, we're sitting here May 9th and things just look great. But as far as the analyses, I mean, look, we have a good handle on the number of patients that could benefit from Ascentiv. And if you recall, the math is roughly, call it 250,000 to 500,000 PI patients. Speaker 200:33:43About half of them are on IG and we estimate somewhere between, call it 15% to 30% of those have some chronic lung condition, have some significant comorbidity that they've got a challenging course of treatment just on IG, standard IG alone. Most patients do very well, but we think that there could be in the order of 10000 to 30,000 people that can benefit from RECENTIVE. We haven't even scratched the surface. So I think that we've demonstrated proof of concept. I think with some of the notes that I've been getting from investors this afternoon, very, very congratulatory. Speaker 200:34:23Thank you all very much. It's better than the alternatives that you guys used to send me years ago. But what I'll say is that the demand is there. And I think I may have said this, Gary, at your conference. If not, maybe someone's going to shoot me, but it's like Rolex demand. Speaker 200:34:42I have no idea if it's fabricated or not, but you can't walk into a store and buy 1. I mean, incentive is all allocated out there. New patient starts are scheduled. We just have to make more product. I think the more we can make and with our 7 to 12 month production cycle time, that is shortening. Speaker 200:35:01But we've got the ability to and we said it all the time, we have tomorrow's newspaper. We know how much we're making. We know what we can forecast. And we would not be increasing guidance the way that we are as strong as we are if we did not think that we can meet these targets. So that's that piece. Speaker 200:35:21What I'll say about the payers, someone's breathing heavy on my line, if they could just go on mute if you're not me. Thanks. The payers, we've identified what good looks like. I think that we have identified to entry right now. Coverage and access is good. Speaker 200:35:48It's ongoing. Our Advantage IG program, which is our patient assistance program is being utilized and it's helping people with their co pays. But I really think that when you look at the pharmacoeconomic value proposition, it resonates with the prescribers, it resonates with the payers. And I think that we really characterize appropriate use very, very well. Ascentive Web site has been updated. Speaker 200:36:15If you haven't taken a look, you should look at ascentive.com. And I just truly believe that we're out there and we're saying no, don't use this product and everyone. It's not for everybody. It's just not. It's for a patient that we believe that is immune compromised, has PI, has secondary immune deficiency and then has complex comorbidities that are hard to manage. Speaker 200:36:42And I think that in this right patient population, we're not seeing a lot of barriers to getting patients on therapy. And then I think the last part of your question was still no competitors, no one that we see. Some of the competitors out there who have announced programs with specialty hyperimmunes, they're not doing well with their programs. They're not doing well in general. So I just think that we're standing alone with our portfolio of products. Speaker 200:37:21We've got a unique share of voice, if you will, within the immune compromised patient space. That's where we focus specifically. And our IP is solid. And we feel very, very good that with respect to incentive and how it's made and how we market it, there is no competition that we are aware of in the United States for the foreseeable term. So hopefully that answers the three parts of the question. Speaker 200:37:54Yes. Speaker 600:37:54That was great. But just on the outlook beyond 2025, I mean you guys do a great job of even going out that far. But since you're talking about it, when do you think you're going to have enough visibility? It can be later this year into next year once you start to see that as we kick in. Speaker 200:38:10In June 4, Tyler, but what Speaker 400:38:11I would say, what I Speaker 200:38:12Go ahead, Adam. No, Gary. I mean, look, we have ideas obviously, but look, I need to see it's all about timing. When in my yield enhancement conformance flops going to be made? How do I get it on file? Speaker 200:38:27What's the FDA going to say? I could sit here and predict, but I don't need to. I've got enough growth coming that I hope to keep everyone happy for the near term. I mean, I think as we progress to the back half of this year, I mean, obviously, we'll be thinking about 2026 guidance. And look, in due course, as Skyler was saying, we should be in a position. Speaker 200:38:55But again, I think the sky is the limit. I mean, and if the sky is that $2,000,000,000 peak revenue opportunity, I mean, look, I've got staff here that say to me, I hate the term, but they say, boss, we're going to get you as much plasma as we possibly can. And I say, don't call me boss, but let's get as much plasma as we could possibly get. I mean, what we're focusing on here. Everyone is working together. Speaker 200:39:19Yield enhancement every single day, that's what's driving everybody's excitement in and around the production campus here. At the plasma centers, I mean, it's buzzing. I mean, the donors are coming in the doors, our new donor promotions, our promotions for the hyper immune donors are really taking off as Brad was mentioning. And Brad hit on a key point, which is, we're retaining more donors than ever before. And that's a key to win the battle. Speaker 200:39:54So keep your pants on. We'll get you the numbers, Gary. We'll get them for you. But look, I think that you can hear the confidence in our prepared remarks. I think you hear the confidence in our tone with the Q and A. Speaker 200:40:10We've really built a great business. And again, I take my hat off to my team because, it was my father and my vision. We knew that the patients were out there. We knew that the docs needed a product like this, but I have no idea how many employees we have today, 700 plus or minus, but it is 699 of them that are making this happen. And I'm just very, very happy to be along for the ride. Speaker 100:40:35What we can say qualitatively today about the post 2025 growth story, right, It's going to be one defined by outsized operating leverage in the way that we've said time and time again that the current operating expenditure structure that you're seeing in the Q1 numbers that have remained relatively stable over the last few quarters. Our commercial organization is right sized. Our spend base is right sized. So as you think about post 2025 revenue growth, again, you're going to see operating leverage materialize that we believe we haven't yet realized. So stay tuned. Speaker 100:41:08In due course, we'll provide quantitative framework, but we're really excited about what the back half of the decade brings. Speaker 600:41:15Yes. No, that's great. I'm only asking because you guys are bringing it up. So I think that's all fair in your assessment. So appreciate all that. Speaker 600:41:22And then just quickly, where are you currently with your penetration of incentive? If you're still in the $500,000 to $1,000 range, are you now at the higher end of that? Just give us a sense when you talk about the addressable market, which is 10,000 to 30,000. Then how much of the use is in secondary immuno deficiency versus primary? It feels like that's something that's evolving out there. Speaker 600:41:46And then I'll get back in kick. Thanks. Speaker 200:41:49Thanks, Gary. The majority of the utilization is in primary immune deficiency. At least that's what our data suggests. We are very, very excited about the penetration with where Ascentive is. I mean, it's still in that range. Speaker 200:42:11I mean, it's growing. But you're not just going to see overnight all of a sudden we're going to put 1,000 more patients on the product. I think you're going to see steady growth. I think you're going to see periods where there's going to be bigger chunks of growth than you've seen historically. But I think all of that is to be determined, but we're going to continue to penetrate. Speaker 200:42:36We're going to continue to provide more drug quarter over quarter BIVVIGAM and Eseniv. And it's an exciting time for all of us here at ADMA. ADMA. Operator00:42:54We have no further questions in queue. I would like to turn the call back over to Adam Grossman for closing remarks. Speaker 200:43:00No. Thank you, everybody. Thank you again to the ADMA team. Thank you again to all of our investors. We can't do it without your support and we appreciate you. Speaker 200:43:10So donate plasma, it's the summertime season. Donate blood also. In summertime, there's usually blood shortages, but donate blood and blood components help save lives. We appreciate you all. Thank you for your time and have a great afternoon. Operator00:43:27This concludes today's conference call. Thank you for your participation. You may now disconnect.Read morePowered by