Business Overview / Sources of Revenue

ADMA Biologics (ticker ADMA) is an end-to-end commercial biopharmaceutical company that develops, manufactures, markets, and commercializes specialty plasma-derived biologics for preventing and treating infectious diseases in immune-compromised patients[1][2]. The company generates revenue through three FDA-approved products: ASCENIV™ (Immune Globulin Intravenous, Human-slra), BIVIGAM® (Immune Globulin Intravenous, Human), and NABI-HB® (Hepatitis B Immune Globulin, Human)[1]. Additionally, ADMA operates plasma collection facilities that collect blood plasma for manufacturing their products[5]. The company also offers contract development and manufacturing organization (CDMO) services, providing capabilities such as aseptic filling, packaging, and GMP testing to partners with clinical-stage or commercial requirements[3]. While the search results don't provide a percentage breakdown of revenue sources between product sales and contract services, these represent the company's primary revenue streams.

Revenue Growth Potential and Recurrence

ADMA Biologics generates a large share of recurring revenue, with its higher-margin product ASCENIV now accounting for over 50% of total revenue[2]. The company’s business model relies on the consistent demand for plasma-derived therapies, supporting a stable, recurring revenue base. ADMA's revenue growth potential is significant; revenue rose 65% year-over-year to $426.5 million in 2024[5], with projections of over $490 million in 2025 and $605 million in 2026[5]. Management expects annual revenue to exceed $1 billion before 2030, implying a compound annual growth rate of roughly 15-18% over the next five years[5]. Yield enhancements, expanded plasma supply, and a growing product mix support this outlook, positioning ADMA for robust, sustained revenue growth driven by recurring therapeutic demand[2][5].

Economic Moat Factors

ADMA Biologics possesses a narrow economic moat, primarily due to its vertical integration and economies of scale achieved through its fully operational 4,400-liter plasma facility[5][1]. This integration significantly reduces operating costs and boosts margins—a key advantage in the capital-intensive plasma products industry[5]. However, the company faces stiff competition from much larger international players such as Takeda, Grifols, and CSL Behring, which limits ADMA’s market power and brand recognition[5]. The absence of substantial switching costs, strong brand power, or network effects further narrows its moat. While its unique, high-margin drugs offer some product differentiation, ADMA’s small market share in a $20 billion global market suggests its moat remains limited and vulnerable to larger incumbents[5][1].

Leadership

ADMA Biologics is led by Adam S. Grossman, who is the founder, Director, President, and Chief Executive Officer[1]. Grossman has been with ADMA since its inception and brought the company public in 2013[1]. With over 25 years in the plasma products industry, he has overseen major company milestones including acquisitions and FDA approvals[1]. Grossman holds a significant leadership role but the exact details of his ownership stake are not specified in the provided sources. He also temporarily serves as Interim Chief Financial Officer as of early 2024[5].

Financial Health

ADMA Biologics demonstrates strong financial health, with Q1 2025 revenue up 40% year-over-year to $114.8 million and a current ratio of 5.97x, suggesting a healthy balance sheet and liquidity[4]. The company is profitable, reporting $26.9 million in GAAP net income for Q1 2025[2][5]. ADMA has moderate debt levels and has recently reduced its cost of debt capital, further improving its position[2][4]. While detailed free cash flow and margin figures are not specified, robust EBITDA growth (81% YoY) suggests positive cash generation[2]. There’s no explicit indication of recent share buybacks or significant dilution in these results.

Last updated Jun 1, 2025