ADMA Biologics Announces First Quarter 2022 Financial Results and Provides Business Update
First Quarter 2022 Total Revenues Were Approximately
Increases Full Year 2022 Total Revenue Guidance to
Gross Margin Growth and Narrowing Net Losses Expected Throughout 2022 and Beyond
RAMSEY, N.J. and BOCA RATON, Fla., May 11, 2022 (GLOBE NEWSWIRE) -- ADMA Biologics, Inc. (Nasdaq: ADMA) (“ADMA” or the “Company”), an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics, today announced its first quarter 2022 financial results and provided a business update.
“Year-to-date execution for ADMA’s intravenous immunoglobulin product portfolio has exceeded internal expectations and serves as the basis for the increased 2022 total revenue financial guidance to
“We are very encouraged with our first quarter financial results, particularly when considering some of the non-recurring dynamics that occurred during the quarter,” said Brian Lenz, ADMA’s Chief Financial Officer, and General Manager, ADMA BioCenters. “The reported first quarter net loss includes a
Mr. Lenz continued, “The Company is well-capitalized, holding approximately
First Quarter 2022 and Recent Achievements:
- Executed Financially: Achieved first quarter 2022 total revenues of
$29.1 million , as compared to$16.0 million during the first quarter of 2021, an increase of$13.1 million , or approximately81% . Due to a favorable product mix, as we continue to expand our customer base for both BIVIGAM® and ASCENIV, ADMA realized a gross margin of approximately13% during the first quarter of 2022, resulting from continued supply chain operating efficiencies. This improved gross margin compared to the first quarter of 2021 was achieved despite our election to extend the previously scheduled and otherwise routine plant shutdown that occurred during the quarter, which resulted in additional costs to complete certain projects that had been forecasted later in the year. Excluding the costs associated with the extended facility shutdown, the Company estimates first quarter 2022 gross margins would have been closer to20% in a normalized production quarter. - Driving Greater Adoption of Higher Margin Product: ADMA is particularly encouraged with the continued physician adoption and utilization of its proprietary immune globulin product ASCENIV. Elevated product demand trends have sustained throughout April and into May, lending incremental confidence that ASCENIV’s upside will prove durable and margin mix will continue to favorably evolve throughout 2022 and beyond.
- Expiration Dating Extension: Announced the United States Food and Drug Administration’s (“FDA”) approval to extend the expiration dating from 24 to 36 months for both its ASCENIV and BIVIGAM drug product stored at 2-8°C. The extension of ASCENIV’s and BIVIGAM’s shelf life to 36 months dating is a meaningful enhancement of each product’s go-to market offering as it should provide for a more efficient net working capital cycle for the Company, as well as allow for more versatile utilization and inventory management by providers. As a result of this approval, in the second quarter of 2022, ADMA anticipates realizing certain, previously reserved for product at an outsized margin contribution.
- On-Track BioCenters Expansion: At present, our BioCenters segment has ten plasma collection centers under its corporate umbrella: five centers are FDA-licensed, two additional collection centers are operational and collecting plasma, and three centers in various stages of construction. The Company remains on track to have ten BioCenters locations FDA-licensed by year-end 2023 and in the same period forecasts raw material plasma supply self-sufficiency. We anticipate our strong plasma supply position will support our upwardly revised production and revenue forecasts.
- Refinanced Senior Secured Term Loan: Refinanced the Company’s senior secured term loan with Hayfin Capital Management (“Hayfin”), which among other things, lowered the effective cost of capital, extended the interest-only period by three years to March 2027 and, importantly, enabled the Company to raise significant non-dilutive capital. We have achieved the revenue milestone under the Hayfin loan agreement to draw down an additional
$25 million in non-dilutive funds at the Company’s discretion. - Ongoing Strategic Review: ADMA continues to evaluate a variety of strategic alternatives through its ongoing engagement with Morgan Stanley. The Company will communicate material developments as required by the U.S. Securities and Exchange Commission. The exploration of strategic opportunities remains a corporate priority for ADMA.
2022 & Long-Term Financial Guidance:
- 2022 Financial Guidance: Enabled by the strong start to the year, ADMA increases 2022 total revenue guidance to
$130 million or more, upwardly revised from$125 million . ADMA reiterates expectations to grow revenues and gross profits and narrow net losses as 2022 progresses. - 2024-2025 Financial Guidance: We believe that ADMA is on track to potentially generate
$250 million in topline revenue in 2024, and$300 million thereafter. At this revenue level, and based upon current assumptions, we anticipate potentially achieving 40-50% corporate gross margins and 20-30% net income margins. These assumptions translate to potential annual gross profit and net income of$100 -150 million and$50 -100 million respectively during the 2024-2025 time-period and beyond.
First Quarter 2022 Financial Results:
Total revenues for the first quarter ended March 31, 2022 were
Gross profit for the first quarter of 2022 was
Consolidated net loss for the quarter ended March 31, 2022 was
As of March 31, 2022, ADMA had working capital of
Conference Call Information
To access the conference call on May 11, 2022 at 4:30PM ET, please dial (855) 884-8773 (local) or (615) 622-8043 (international) at least 10 minutes prior to the start time and refer to conference ID 1783606. A live audio webcast of the call will be available under “Events & Webcasts” in the investor section of the Company’s website, https://ir.admabiologics.com/events-webcasts. An archived webcast will be available on the Company’s website approximately two hours after the event.
About BIVIGAM®
BIVIGAM (immune globulin intravenous, human –
About ASCENIV™
ASCENIV (immune globulin intravenous, human – slra
About ADMA BioCenters
ADMA BioCenters is an FDA-licensed facility specializing in the collection of human plasma used to make special medications for the treatment and prevention of diseases. Managed by a team of experts who have decades of experience in the specialized field of plasma collection, ADMA BioCenters provides a safe, professional and pleasant donation environment. ADMA BioCenters strictly follows FDA regulations and guidance and enforces cGMP (current good manufacturing practices) in all of its facilities. For more information about ADMA BioCenters, please visit www.admabiocenters.com.
About ADMA Biologics, Inc. (ADMA)
ADMA Biologics is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. ADMA currently manufactures and markets three United States Food and Drug Administration (FDA)-approved plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases: BIVIGAM® (immune globulin intravenous, human) for the treatment of primary humoral immunodeficiency (PI); ASCENIV™ (immune globulin intravenous, human – slra
Forward-Looking Statements
This press release contains “forward-looking statements” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, about ADMA Biologics, Inc. and its subsidiaries (collectively, “our”, “ADMA” or the “Company”). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain such words as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “intends,” “may,” “plans,” “predicts,” “projects,” “should,” “targets,” “will,” “would,” or, in each case, their negative, or words or expressions of similar meaning. These forward-looking statements also include, but are not limited to, statements about ADMA’s future results of operations (including, but not limited to, total 2022 revenues) and pro forma results; the success of ASCENIV™, particularly with physicians, providers and patients, and market share of the Company’s product portfolio; the benefits of extending the routine shutdown at the Boca Raton manufacturing facility; our production schedule and its impact on financial performance; the operational and financial benefits of expiration dating extension for ASCENIV and BIVIGAM®; the ability to obtain FDA approval of its plasma collection centers and the associated timing in connection therewith; the ability to achieve source plasma self-sufficiency and the associated timing in connection therewith, as well as benefits thereof; and the Company’s ongoing discussions with Morgan Stanley regarding the evaluation of strategic alternatives. Actual events or results may differ materially from those described in this press release due to a number of important factors. Current and prospective security holders are cautioned that there also can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Except to the extent required by applicable laws or rules, ADMA does not undertake any obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements. Forward-looking statements are subject to many risks, uncertainties and other factors that could cause our actual results, and the timing of certain events, to differ materially from any future results expressed or implied by the forward-looking statements, including, but not limited to, the risks and uncertainties described in our filings with the SEC, including our most recent reports on Form 10-K, 10-Q and 8-K, and any amendments thereto.
COMPANY CONTACT:
Skyler Bloom
Senior Director, Business Development and Corporate Strategy | 201-478-5552 | sbloom@admabio.com
INVESTOR RELATIONS CONTACT:
Michelle Pappanastos
Senior Managing Director, Argot Partners | 212-600-1902 | michelle@argotpartners.com
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
REVENUES: | |||||||
Product revenue | $ | 29,067,385 | $ | 16,012,910 | |||
License revenue | 35,708 | 35,708 | |||||
Total revenues | 29,103,093 | 16,048,618 | |||||
Cost of product revenue | 25,441,046 | 17,770,122 | |||||
Gross profit (loss) | 3,662,047 | (1,721,504 | ) | ||||
OPERATING EXPENSES: | |||||||
Research and development | 624,111 | 987,649 | |||||
Plasma center operating expenses | 3,974,589 | 2,242,343 | |||||
Amortization of intangible assets | 178,838 | 178,838 | |||||
Selling, general and administrative | 13,699,575 | 10,033,915 | |||||
Total operating expenses | 18,477,113 | 13,442,745 | |||||
LOSS FROM OPERATIONS | (14,815,066 | ) | (15,164,249 | ) | |||
OTHER INCOME (EXPENSE): | |||||||
Interest income | 33,068 | 22,059 | |||||
Interest expense | (3,389,038 | ) | (3,195,750 | ) | |||
Loss on extinguishment of debt | (6,669,941 | ) | - | ||||
Other expense | (166,880 | ) | (42,001 | ) | |||
Other expense, net | (10,192,791 | ) | (3,215,692 | ) | |||
NET LOSS | $ | (25,007,857 | ) | $ | (18,379,941 | ) | |
BASIC AND DILUTED LOSS PER COMMON SHARE | $ | (0.13 | ) | $ | (0.16 | ) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic and Diluted | 195,871,932 | 115,661,937 | |||||
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, | December 31, | ||||||
2022 | 2021 | ||||||
ASSETS | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 69,504,946 | $ | 51,089,118 | |||
Accounts receivable, net | 25,629,625 | 28,576,857 | |||||
Inventories | 139,146,311 | 124,724,091 | |||||
Prepaid expenses and other current assets | 5,519,301 | 4,339,245 | |||||
Total current assets | 239,800,183 | 208,729,311 | |||||
Property and equipment, net | 53,220,480 | 50,935,074 | |||||
Intangible assets, net | 1,549,930 | 1,728,768 | |||||
Goodwill | 3,529,509 | 3,529,509 | |||||
Right to use assets | 7,106,642 | 7,262,658 | |||||
Deposits and other assets | 2,825,748 | 4,067,404 | |||||
TOTAL ASSETS | $ | 308,032,492 | $ | 276,252,724 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 14,115,135 | $ | 12,429,409 | |||
Accrued expenses and other current liabilities | 16,654,540 | 17,214,988 | |||||
Current portion of deferred revenue | 142,834 | 142,834 | |||||
Current portion of lease obligations | 654,003 | 591,084 | |||||
Total current liabilities | 31,566,512 | 30,378,315 | |||||
Senior notes payable, net of discount | 138,423,052 | 94,866,239 | |||||
Deferred revenue, net of current portion | 1,940,156 | 1,975,865 | |||||
End of term fee | 1,500,000 | - | |||||
Lease obligations, net of current portion | 7,284,079 | 7,462,388 | |||||
Other non-current liabilities | 385,628 | 397,351 | |||||
TOTAL LIABILITIES | 181,099,427 | 135,080,158 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
STOCKHOLDERS' EQUITY | |||||||
Preferred Stock, | |||||||
no shares issued and outstanding | - | - | |||||
Common Stock - voting, | |||||||
196,347,529 and 195,813,817 shares issued and outstanding | 19,635 | 19,581 | |||||
Additional paid-in capital | 564,034,008 | 553,265,706 | |||||
Accumulated deficit | (437,120,578 | ) | (412,112,721 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 126,933,065 | 141,172,566 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 308,032,492 | $ | 276,252,724 | |||
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