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What's in Store for ADMA Biologics' (ADMA) Q3 Earnings?

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During the third-quarter 2020 earnings call, we expect investors to focus on ADMA Biologics, Inc.’s (ADMA - Free Report) progress with its plasma collection centers and the recently joined CoVIg-19 plasma alliance and sales numbers of Asceniv and Bivigam.

The company’s surprise record has been mixed so far as its bottom line beat estimates in two of the trailing four quarters and lagged the same on the other two occasions, the average miss being 24.35%. In the last reported quarter, ADMA Biologics witnessed a negative earnings surprise of 21.05%.

Shares of ADMA Biologics have plunged 46.7% so far this year compared with the industry’s 4.9% decrease.


Let’s see, how things are shaping up for the quarter to be reported.

Factors at Play

ADMA Biologics is engaged in manufacturing specialty plasma-derived biologics for the treatment of immunodeficient patients who are at risk of infection. The company currently markets three FDA-approved plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases. These are, namely Asceniv (immune globulin intravenous, human — slra 10% liquid) for treating primary humoral immunodeficiency (PI), Bivigam (immune globulin intravenous, human) for addresing PI and NABI-HB (hepatitis B immune globulin, human) to provide increased immunity against the hepatitis B virus.

In the last reported quarter, ADMA Biologics’ revenues were primarily driven by a high uptake of Bivigam and Asceniv, a trend that most likely continued in the to-be-reported quarter.

Meanwhile, ADMA BioCenters, a wholly-owned subsidiary of ADMA Biologics, began donor collections during the second quarter. The company submitted a biologics license application (BLA) to the FDA, seeking approval for its second plasma collection center. Investors will be keen to get an update on the same.

Operating expenses related to the development of this plasma collection center and the commercialization efforts for Bivigam and Asceniv might have escalated in the third quarter as well.

Notably, in September 2020, ADMA Biologics launched a COVID-19 ImmunoRank Neutralization MICRO-ELISA, a fully-validated ELISA assay designed for the detection of SARS-CoV-2 neutralizing antibodies in plasma. Per the company, ImmunoRank can test up to 90 samples per test kit with 99.8% specificity. The company is planning to file an Emergency Use Authorization (EUA) to the FDA for the potential approval of the same. An update regarding the same is expected on the impending earnings call.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for ADMA Biologics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: ADMA Biologics has an Earnings ESP of +7.32% as the Zacks Consensus Estimate currently stands at a loss of 21 cents per share while the Most Accurate Estimate is pegged at a loss of 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ADMA Biologics currently carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Here are some drug/biotech stocks worth considering from the same space as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Alnylam Pharmaceuticals (ALNY - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank #3, currently. The company is scheduled to report earnings on Nov 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

Compugen (CGEN - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2, presently. The company is scheduled to report earnings on Nov 5.

Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +3.83% and a Zacks Rank of 3, presently. The company is scheduled to report earnings on Oct 29.

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