We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ADMA Stock Gains 17% in Three Months: Buy, Sell or Hold?
Read MoreHide Full Article
ADMA Biologics (ADMA - Free Report) has been a consistent market outperformer in recent times. Shares have gained 17.2% in the past three months against the industry’s decline of 10.6%. The stock has also outperformed the sector and the S&P 500 in this timeframe.
ADMA Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
ADMA Biologics markets plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases.
Though the first-quarter results (reported last month) were lower than expected, the company raised its annual revenue guidance for 2025 and 2026.
Let us delve into ADMA’s fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice in this scenario.
Asceniv Continues to Boost ADMA’s Growth
ADMA’s lead product, Asceniv, is a plasma-derived Intravenous Immune Globulin (“IVIG”) that contains naturally occurring polyclonal antibodies. These antibodies are proteins used by the body’s immune system to neutralize microbes, such as bacteria and viruses, and prevent infection and disease.
Asceniv is indicated for the treatment of primary immunodeficiency disease (PIDD) or inborn errors of immunity in adults and adolescents. It is manufactured using ADMA’s unique, patented plasma donor screening methodology and tailored plasma pooling design, which blends normal source plasma with respiratory syncytial virus plasma obtained from donors tested using the company’s proprietary microneutralization assay.
Demand was record high in the first quarter. Consequently, ADMA expects Asceniv’s total revenue share to expand throughout 2025 and beyond.
An acceleration in new patient starts and further penetration in existing markets should significantly expand Asceniv's peak revenue potential.
The portfolio also has other FDA-approved products — Bivigam (an IVIG product to treat primary humoral immunodeficiency) and Nabi-HB (to treat and provide enhanced immunity against the hepatitis B virus).
ADMA Looks to Expand Asceniv’s Label
ADMA plans to file a supplemental Biologics License Application in mid-2025 for the expansion of Asceniv’s label to include the pediatric setting for patients who are two years and older.
A potential label expansion will increase the target patient population.
Increase in Guidance: A Positive for ADMA
Along with providing first-quarter results, ADMA updated its outlook for 2025 and 2026. ADMA now expects to generate revenues of more than $500 million in 2025 and $625 million in 2026 (previous guidance: more than $490 million in 2025 and $605 million in 2026). Net income is projected to exceed $175 million in 2025 (no change from previous guidance) and increase to $245 million or more in 2026 (previous guidance: over $235 million).
ADMA’s Valuation & Estimates
From a valuation perspective, ADMA is expensive at this moment. Going by the price/sales ratio, ADMA’s shares currently trade at 8.44x forward sales, higher than its mean of 3.33x and the industry’s 1.69x.
Image Source: Zacks Investment Research
Estimate Movement
The Zacks Consensus Estimate for ADMA’s 2025 earnings per share has moved south in the past 60 days. However, the metric for 2026 has moved north during the same time frame.
Image Source: Zacks Investment Research
Stay Invested in ADMA
ADMA Biologics, which competes with Takeda (TAK - Free Report) and Grifols (GRFS - Free Report) in the U.S. market for plasma-derived products, should maintain momentum in the upcoming quarters. Incremental additional penetration of Asceniv should accelerate near-term revenue growth.
The targeted market has significant growth potential. Management expects additional opportunities for ADMA to continue to grow substantially in the underserved, immune-compromised and co-morbid patient population despite the availability of standard-of-care therapy.
However, the exceptional rally witnessed by the stock in the past year might limit any further gain. We advise investors to wait for now. For those already owning the stock, staying invested would be a prudent move.
Image: Bigstock
ADMA Stock Gains 17% in Three Months: Buy, Sell or Hold?
ADMA Biologics (ADMA - Free Report) has been a consistent market outperformer in recent times. Shares have gained 17.2% in the past three months against the industry’s decline of 10.6%. The stock has also outperformed the sector and the S&P 500 in this timeframe.
ADMA Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
ADMA Biologics markets plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases.
Though the first-quarter results (reported last month) were lower than expected, the company raised its annual revenue guidance for 2025 and 2026.
Let us delve into ADMA’s fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice in this scenario.
Asceniv Continues to Boost ADMA’s Growth
ADMA’s lead product, Asceniv, is a plasma-derived Intravenous Immune Globulin (“IVIG”) that contains naturally occurring polyclonal antibodies. These antibodies are proteins used by the body’s immune system to neutralize microbes, such as bacteria and viruses, and prevent infection and disease.
Asceniv is indicated for the treatment of primary immunodeficiency disease (PIDD) or inborn errors of immunity in adults and adolescents. It is manufactured using ADMA’s unique, patented plasma donor screening methodology and tailored plasma pooling design, which blends normal source plasma with respiratory syncytial virus plasma obtained from donors tested using the company’s proprietary microneutralization assay.
Demand was record high in the first quarter. Consequently, ADMA expects Asceniv’s total revenue share to expand throughout 2025 and beyond.
An acceleration in new patient starts and further penetration in existing markets should significantly expand Asceniv's peak revenue potential.
The portfolio also has other FDA-approved products — Bivigam (an IVIG product to treat primary humoral immunodeficiency) and Nabi-HB (to treat and provide enhanced immunity against the hepatitis B virus).
ADMA Looks to Expand Asceniv’s Label
ADMA plans to file a supplemental Biologics License Application in mid-2025 for the expansion of Asceniv’s label to include the pediatric setting for patients who are two years and older.
A potential label expansion will increase the target patient population.
Increase in Guidance: A Positive for ADMA
Along with providing first-quarter results, ADMA updated its outlook for 2025 and 2026. ADMA now expects to generate revenues of more than $500 million in 2025 and $625 million in 2026 (previous guidance: more than $490 million in 2025 and $605 million in 2026). Net income is projected to exceed $175 million in 2025 (no change from previous guidance) and increase to $245 million or more in 2026 (previous guidance: over $235 million).
ADMA’s Valuation & Estimates
From a valuation perspective, ADMA is expensive at this moment. Going by the price/sales ratio, ADMA’s shares currently trade at 8.44x forward sales, higher than its mean of 3.33x and the industry’s 1.69x.
Image Source: Zacks Investment Research
Estimate Movement
The Zacks Consensus Estimate for ADMA’s 2025 earnings per share has moved south in the past 60 days. However, the metric for 2026 has moved north during the same time frame.
Image Source: Zacks Investment Research
Stay Invested in ADMA
ADMA Biologics, which competes with Takeda (TAK - Free Report) and Grifols (GRFS - Free Report) in the U.S. market for plasma-derived products, should maintain momentum in the upcoming quarters. Incremental additional penetration of Asceniv should accelerate near-term revenue growth.
The targeted market has significant growth potential. Management expects additional opportunities for ADMA to continue to grow substantially in the underserved, immune-compromised and co-morbid patient population despite the availability of standard-of-care therapy.
However, the exceptional rally witnessed by the stock in the past year might limit any further gain. We advise investors to wait for now. For those already owning the stock, staying invested would be a prudent move.
ADMA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.