Loading...
•
Sep 30, 2022
ADMA Biologics Q3 2022 Earnings Report
ADMA Biologics' Q3 2022 results reflected significant revenue growth and gross profit improvement.
Key Takeaways
ADMA Biologics reported a 99% year-over-year increase in total revenues for Q3 2022, reaching $41.1 million. The company also saw a substantial increase in gross profit, driven by a favorable contribution from ASCENIV. They are raising full-year 2022 revenue guidance to $145 million.
Total revenues for Q3 2022 increased by 99% year-over-year to $41.1 million.
Gross profit for Q3 2022 grew to $9.7 million, a $9.3 million increase compared to Q3 2021.
ASCENIV's prescriber and patient base expanded, driving record utilization.
The company is on track to have ten BioCenters FDA-licensed by year-end 2023 and forecasts raw material plasma supply self-sufficiency in the same period.
ADMA Biologics
ADMA Biologics
Forward Guidance
ADMA Biologics anticipates total 2022 revenues will reach approximately $145 million. The Company continues to anticipate generating approximately $250 million or more in revenue in 2024, and approximately $300 million or more thereafter. At these revenue levels, and based upon current assumptions, ADMA continues to forecast achieving corporate gross margins in the range of 40-50% and net income margins in the range of 20-30%.
Positive Outlook
- Raising FY 2022 Total Revenue Guidance to $145 Million From $130 Million Previously
- Gross Profit Growth and Narrowing Net Losses Expected into 2023
- ADMA anticipates further margin enhancements as product throughput transitions throughout the first half of 2023 to exclusively the higher margin 4,400-liter scale product.
- The Company maintains and reiterates its previously provided profitability timeline, which is expected no later than the first quarter of 2024
- ADMA anticipates its strong plasma supply position will support its upwardly revised production and revenue forecasts.
Challenges Ahead
- A substantial portion of BIVIGAM revenues during the third quarter consisted of legacy 2,200-liter scale product, which yields a significantly lower margin compared to the current 4,400-liter batch production scale.
- The residual, lower margin inventory produced at the 2,200-liter scale is anticipated to be fully exhausted over the coming quarters
- Net loss decreased by approximately $2.8 million compared to the third quarter of 2021, primarily attributed to higher gross profit of $9.3 million, partially offset by a $2.3 million increase in interest expense as a result of additional debt principal as well as rising interest rates.
- Additional offsets during the third quarter of 2022 included increased plasma center operating expenses of $1.7 million attributed to having nine plasma centers in operation compared to five operating centers during the same period last year, as well as increased general and administrative expenses of $2.2 million resulting from increased headcount, commercialization, and marketing expenditures.
- However, should current demand trends and margin dynamics sustain, accelerated profitability timelines may be achievable.