Q1 2024 ADMA Biologics Inc Earnings Call

Operator: Good afternoon, and welcome to the ADMA Biologics First Quarter 2024 Financial Results and Business Update Conference Call on Thursday, May 9, 2024. At this time, all participants are in a listen-only mode. There will be a question and answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately two hours following the end of the call. At this time, I would like to introduce Skyler Bloom. Please go ahead.

Good afternoon, and welcome to the admin Biologics first quarter 'twenty 'twenty four financial results and business update conference call on Thursday May 19 2024.

Gary Jay Nachman: Awesome. Thanks, Gary. Great job, guys. Thanks. Okay.

Operator: We have no further questions in queue. I would like to turn the call back over to Adam Grossman for closing remarks.

Gary Jay Nachman: At this time all participants are in a listen only mode there'll be a question and answer session to follow.

Adam S. Grossman: Thank you, everybody. Thank you again to the ADMA team. Thank you again to all of our investors.

Operator: Please be advised that this call is being recorded at the company's request and will be available on the Companys website approximately two hours following the end of the call.

Skyler Bloom: At this time I would like to introduce Skyler Blum. Please go ahead.

Skyler Bloom: Welcome, everyone, and thank you for joining us this afternoon to discuss ADMA Biologics' financial results for the first quarter of 2024 and recent corporate updates. I'm joined today by Adam Grossman, President, Chief Executive Officer, and Interim Financial Officer, and Brad Tade, Vice President of Financial Operations.

Adam S. Grossman: We can't do it without your support, and we appreciate you. So donate plasma. It's the summertime season. Donate blood, also. In summertime, there are usually blood shortages, but donating blood and blood components help save lives. We appreciate you all. Thank you for your time and have a great afternoon.

Skyler Bloom: Welcome everyone and thank you for joining us this afternoon to discuss asthma biologics financial results for the first quarter of 2024 and recent corporate updates I'm joined today by Adam Grossman, President Chief Executive Officer, and interim financial Officer, and Brad <unk> Vice President.

Skyler Bloom: <unk> of financial operations during.

Skyler Bloom: During today's call, Adam will provide some summary introductory comments and provide an update on corporate progress, and then Brad will provide an overview of the company's first quarter 2024 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the first quarter 2024 financial results and summarized certain achievements in recent corporate updates. The release is available on our website at www.admabiologics.com.

Adam S. Grossman: During today's call Adam will provide some summary introductory comments.

Skyler Bloom: And provide an update on corporate progress and then Brad will provide an overview of the company's first quarter 2024 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions.

Skyler Bloom: Earlier today, we issued a press release detailing the first quarter 2024 financial results and summarize certain achievements in recent corporate updates. The release is available on our website www dot asthma biologics dot com before we begin our formal comments I'll remind you that we will be making forward looking assertions.

Skyler Bloom: Before we begin our formal comments, I'll remind you that we will be making forward-looking assertions during today's call that represent the company's intentions, expectations, or beliefs concerning future events, which constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to factors, risks, and uncertainties, such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from those expressed or implied by such statement.

Skyler Bloom: During today's call that represent the company's intentions expectations or beliefs concerning future events, which constitute forward looking statements for the purposes of the safe Harbor provisions under the private Securities Litigation Reform Act of 1095.

Skyler Bloom: All forward looking statements are subject to factors risks and uncertainties such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements.

Skyler Bloom: In addition, any forward-looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update any such statements, except as required by the federal securities laws. We refer you to the Disclosure Notice section in our earnings release we issued today and the Risk Factors section of our quarterly report on Form 10-Q for the quarter ended March 31, 2024 for a discussion of the important risk factors that could cause actual results to differ materially from these forward-looking statements. Please note that the discussion on today's call includes certain non-GAAP financial measures, including adjusted EBITDA. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release.

Skyler Bloom: In addition, any forward looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date.

Skyler Bloom: We specifically disclaim any obligations to update any such statements except as required by the federal Securities laws.

Skyler Bloom: We refer you to the disclosure notice section in our earnings release, we issued today and the risk factors section of our quarterly report on Form 10-Q for the quarter ended March 31, 2024 for a discussion of the important risk factors that could cause actual results to differ materially from these forward looking statements.

Skyler Bloom: Please note that the discussion on today's call include certain non-GAAP financial measures, including adjusted EBITDA. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric is available in our earnings release with that I would now like to turn the call over to Adam Grossman Adam go ahead.

Skyler Bloom: With that, I would now like to turn the call over to Adam Grossman. Adam, go ahead.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Please wait; the conference will begin shortly.

Skyler Bloom: Yeah.

Adam S. Grossman: Thank you, and welcome, everyone. The beginning of 2024 has been a transformative period for us at ADMA Biologics. We believe the future has never been brighter, and our commercial success story continues to unfold with great momentum. During the first quarter, we continued to execute on our growth strategy and exceeded our financial forecast. Compounding revenue growth and management's cost containment measures have enabled us to once again raise our financial guidance for both top and bottom line projections, underscoring the strength of our innovative business model, which we believe has proven to be distinctly durable and resilient through various operating conditions.

Adam S. Grossman: Thank you.

Adam S. Grossman: And welcome everyone.

Adam S. Grossman: At the beginning of 2024 has been a transformative period for us at <unk> biologics.

Adam S. Grossman: We believe the future has never been brighter and our commercial success story continues to unfold with great momentum.

Adam S. Grossman: During the first quarter, we continued to execute on our growth strategy and exceeded our financial forecast.

Adam S. Grossman: Compounding revenue growth and management cost containment measures have enabled us to once again raise our financial guidance for both top and bottom line projections.

Adam S. Grossman: Underscoring the strength of our innovative business model, which we believe has proven to be distinctly durable and resilient through various operating conditions.

Adam S. Grossman: Total revenues for the first quarter of 2024 grew by 44% year over year to $81.9 million. This rapid revenue growth, combined with a tightly managed cost structure, resulted in adjusted EBITDA of $26.4 million during the first quarter of 2025. This represents a 970% year-over-year growth rate compared to the first quarter of 2023. Gap net income grew to $17.8 million during the first quarter of 2020, compared to a gap net loss of $6.8 million during the first quarter of 2020.

Adam S. Grossman: Total revenues for the first quarter of 2024 grew by 44% year over year to $81 9 million.

Adam S. Grossman: This rapid revenue growth combined with a tightly managed cost structure resulted in adjusted EBITDA of $26 4 million during the first quarter of 2024.

Adam S. Grossman: This represents a 970% year over year growth rate compared to the first quarter of 2023.

Adam S. Grossman: GAAP net income grew to $17 $8 million during the first quarter of 2024 compared to a GAAP net loss of $6 $8 million during the first quarter of 2023.

Adam S. Grossman: We anticipate continued revenue growth leading to increased operating leverage and increased earnings across near-term periods, which would further solidify ADMA's position as one of the fastest-growing and profitable biopharma companies in the United States. With net leverage approaching zero, we continue to believe that we are achieving significant new milestones for our financial performance. As AdMa's forward-looking business trends build momentum, we're revising financial guidance upwards for both 2024 and 2025, increasing both top and bottom line projections based on current market facts.

Adam S. Grossman: We anticipate continued revenue growth leading to increased operating leverage and increased earnings across near term periods, which would further solidify <unk> position as one of the fastest growing and profitable biopharma companies in the United States.

Adam S. Grossman: With net leverage approaching zero.

Adam S. Grossman: Continue to believe that we are achieving significant new milestones for our financial performance.

Adam S. Grossman: As Ed much forward looking business trends build momentum.

Adam S. Grossman: We're revising financial guidance upwards for both 2024 and 2025.

Adam S. Grossman: Increasing both top and bottom line projections.

Adam S. Grossman: Based on current market factors, we now anticipate generating revenues during these periods of more than $355 million and $410 million respectively.

Adam S. Grossman: We now anticipate generating revenues during these periods of more than $355 million and $410 million, respectively. At these revenue levels, we estimate adjusted EBITDA will exceed $110 million and $160 million for 2024 and 2025, respectively, representing a 45% year-over-year growth rate. Similarly, we are increasing net income guidance to more than 85 million dollars and 135 million dollars for 2024 and 2025, respectively, representing an approximately 60% year-over-year increase, in addition to the significant increases to near-term guidance.

Adam S. Grossman: At these revenue levels we.

Adam S. Grossman: Estimate adjusted EBITDA will exceed $110 million and $160 million for 2024 and 2025, respectively.

Adam S. Grossman: Presenting a 45% year over year growth rate.

Adam S. Grossman: Similarly.

Adam S. Grossman: We are increasing net income guidance to more than $85 million and $135 million for 2024 and 2025, respectively.

Adam S. Grossman: Representing an approximately 60% year over year increase.

Adam S. Grossman: In addition to the significant increases to near term guidance, we expect to continue to favorably reassess the terminal earnings power.

Adam S. Grossman: We expect to continue to favorably reassess the terminal earnings power beyond 2025 for our business, and plan to communicate more detail around forecasted revenue and earnings growth post-2025 as internal developments and projects progress. The underlying drivers of our revenue and earnings growth continue to strengthen, with Ascentive reaching new highs across nearly all utilization KPIs, and Vivagam, Deepening its Entrenchment in the Growing U.S. Immunoglob We believe the continued growth of our commercial portfolio is largely attributable to our focus on the immune-deficient patient segment, particularly those with complex comorbidities.

Adam S. Grossman: <unk> 2025 for our business and plan to communicate more detail around forecasted revenue and earnings growth post 2025, as internal developments and projects progress.

Adam S. Grossman: The underlying drivers of our revenue and earnings growth continue to strengthen.

Adam S. Grossman: With the Senate, reaching new highs across nearly all utilization kpis.

Adam S. Grossman: And Dave again, deepening its entrenchment and the growing U S immunoglobulin market.

Adam S. Grossman: We believe the continued growth of our commercial portfolio is largely attributable to our focus on the immune deficient patient segment.

Adam S. Grossman: Particularly those with complex comorbidities.

Adam S. Grossman: We believe this specialized focus, combined with our innovative business model, diverse product portfolio, and targeted medical education, marketing, and market access initiatives, have differentiated ADMA within the U.S. immunoglobulin landscape, establishing what we are confident is an enduring and growing foothold, specifically regarding We see real growth potential within the product's targeted addressable market, especially among immune deficient patients with complex comorbidities. Launch metrics remain supported with Ascent's unique product profile responding in clinical practice and real-world settings. As demand trends accelerate, we are reassessing the product's peak potential, and we believe that we are still in the early stages of tapping into the product's full market opportunity.

Adam S. Grossman: We believe the specialized focus combined with our innovative business model diverse product portfolio and targeted medical education marketing and market access initiatives has differentiated AD, but within the U S. Immunoglobulin landscape, establishing what we're confident is an enduring and growing foothold.

Adam S. Grossman: Specifically regarding our Senate.

Adam S. Grossman: We see real growth potential within the products targeted addressable market, especially among immune deficient patients with complex comorbidities.

Adam S. Grossman: Launch metrics remain supported with incentives unique product profile resonating in clinical practice in a real world settings.

Adam S. Grossman: As demand trends accelerate we are reassessing the product's peak potential.

Adam S. Grossman: We believe that we are still in the early stages of tapping into the product's full market opportunity.

Adam S. Grossman: We expect these continuous improvements in both top and bottom line results will sustain over the near and longer term. We are confident the ongoing strengthening of our balance sheet will position us well to pursue new growth opportunities in a capital efficient manner, including, but not limited to, advancing our preclinical R&D pipeline program and otherwise opportunistically utilizing our cash flows to maximize shareholder value. Moving to our longer-term growth initiative, we continue to make progress with all programs consistent with our prior communication.

Adam S. Grossman: We expect these continuous improvements in both top and bottom line results will sustain over the near and longer term.

Adam S. Grossman: We are confident the ongoing strengthening of our balance sheet will position us well to pursue new growth opportunities in a capital efficient manner, including but not limited to advancing our preclinical R&D pipeline programs and otherwise opportunistically utilizing our cash flows to maximize shareholder value.

Adam S. Grossman: Moving to our longer term growth initiatives, we continue to make progress with all programs consistent with our prior communications.

Adam S. Grossman: Our efforts to enhance immunoglobulin production yield through innovations to our manufacturing processes have continued to advance in 2024 year to date. We believe it's successful. These initiatives can provide transformative accretion to our revenue and earnings objectives beginning potentially in the second half of next year. Furthermore, we believe our preclinical hyperimmune globulin program targeting strep pneumonia aligns with unmet medical needs and leverages our expertise in clinical development, specialty biologics, manufacturing, and commercial product launch.

Adam S. Grossman: Our efforts to enhance immunoglobulin production yield through innovations through our manufacturing processes have continued to advance in 2024 year to date.

Adam S. Grossman: We believe if successful these.

Adam S. Grossman: These initiatives can provide transformative accretion to our revenue and earnings objectives, beginning potentially in the second half of next year.

Adam S. Grossman: Furthermore, we believe that our preclinical hyper immune globulin program targeting strep pneumonia aligns with unmet medical needs and Leverages, our expertise in clinical development specialty biologics manufacturing and commercial product launches.

Adam S. Grossman: On the plasma supply front, our collection centers continue to perform well, positioning us to meet increased production forecasts for our IG portfolio. We are seeing increased hyperamine plasma collections to support the growing demand and utilization of the center, and collection volumes across the network on a same-center basis are reaching new highs.

Adam S. Grossman: On the plasma supply front, our collection centers continued to perform well.

Adam S. Grossman: Positioning us to meet increased production forecast for our IHG portfolio.

Adam S. Grossman: We are seeing increased hyper immune plasma collections to support the growing demand and utilization of incentives and collection volumes across the network on a same center basis are reaching new highs.

Adam S. Grossman: Overall, we believe ADMA is well positioned for continued growth and innovation, with a strong foundation for success in the years ahead and the spirit of continuing to innovate across our business and operational functions. During the first quarter, we expanded the implementation of our ADMAlytics generative AI and machine learning platform to optimize and streamline certain production processes. We anticipate that ADMAlytics will provide far-reaching improvements and efficiencies across our operations, which would support the company's rapid earnings growth trajectory and reinforce our position as a thought leader in the specialty biologics market.

Adam S. Grossman: Overall, we believe admin is well positioned for continued growth and innovation with a strong foundation for success in the years ahead.

Adam S. Grossman: In the spirit of continuing to innovate across our business and operational functions.

Adam S. Grossman: During the first quarter, we expanded the implementation of our AD miletich generative AI and machine learning platform.

Adam S. Grossman: To optimize and streamline certain production processes.

Adam S. Grossman: We anticipate that <unk> will provide far reaching improvements and efficiencies across our operations, which would support the companys rapid earnings growth trajectory and reinforce our position as a thought leader in the specialty biologics market.

Adam S. Grossman: Upon reflecting on the journey of Adler.

Adam S. Grossman: We believe that our achievements reflect the unwavering commitment and hard work demonstrated by our outstanding and knowledgeable team members. The evolution from a young virtual biotech startup company to now operating a compliant end-to-end controlled supply chain. We are advancing our position as one of the fastest growing and profitable biopharma companies in the United States. This is truly rare and remarkable.

Adam S. Grossman: We believe that our achievements reflect the unwavering commitment and hard work demonstrated by our outstanding and knowledgeable team members.

Adam S. Grossman: The evolution from a young virtual biotech startup company to now operating a compliant and to end controlled supply chain.

Adam S. Grossman: We're advancing our position as one of the fastest growing and profitable biopharma companies in the United States.

Adam S. Grossman: This is truly rare and remarkable.

Adam S. Grossman: To our employees, we extend our heartfelt gratitude for your tenacity, perseverance, and tireless dedication, which not only fuels our progress but also leaves a significant impact on those we serve. It's the collaborative ethos and collective effort that truly distinguish our work. We deeply value the dedication, enthusiasm, and diligence exhibited by each member of our team. It's this steadfast devotion that drives our successes and enables us to maintain firm control over our operations in line with our fundamental vision.

Adam S. Grossman: To our employees, we extend our heartfelt gratitude for your tenacity, perseverance and tireless dedication, which not only fuels our progress, but also leaves a significant impact on those we serve.

Adam S. Grossman: It's the collaborative ethos and collective effort that truly distinguish our workplace.

Adam S. Grossman: We deeply value the dedication enthusiasm and diligence exhibited by each member of our team.

Adam S. Grossman: It's this steadfast devotion that drives our successes and enables us to maintain firm control over our operations in line with our fundamental vision.

Adam S. Grossman: We firmly believe that this strong foundation paves the way for even greater accomplishments in the periods ahead. With that, I'd now like to turn the call over to Brad for a review of the first quarter 2024 financial results.

Adam S. Grossman: We firmly believe that the strong foundation paved the way for even greater accomplishments in the periods ahead.

Adam S. Grossman: With that I'd now like to turn the call over to Brad for a review of the first quarter 2020 for financials.

Brad: Thank you Adam.

Brad Tade: We issued a press release earlier today outlining our first quarter 2024 financial results. And we will also be issuing our first quarter 10-Q report later this afternoon, which we would encourage you to read in conjunction with our comments and discussion points we will make during today's call.

Brad: We issued a press release earlier today outlining our first quarter 2024 financial results and we will also be issuing our first quarter 10-Q report later this afternoon.

Brad Tade: We would encourage you to read in conjunction with our comments and discussion points, we will make during today's call.

Brad Tade: I will now discuss some of the key financial highlights from the first quarter. Total revenues were $81.9 million for the quarter ended March 31st, 2024, as compared to $56.9 million for the first quarter ended March 31st, 2023. An increase of $25 million, or approximately 44%. The increase is primarily related to increased sales of our immunoglobulin products, partially offset by a planned decrease in sales of plasma to third parties due to the increasing retention of plasma for ADMA's internal IVIG production. The decline in external plasma sales is consistent with our prior messaging and forecast as we are utilizing a greater percentage of our internally sourced plasma from our collection network for manufacturing Ascentiv and Vivigam.

Brad Tade: I will now discuss some of the key financial highlights from the first quarter.

Brad Tade: Total revenues were $81 9 million for the quarter ended March 31, 2024, as compared to $56 9 million for.

Brad Tade: For the first quarter ended March 31, 2023, an increase of $25 million or approximately 44%. The increase is primarily related to increased sales of our immunoglobulin products, partially offset by a planned decrease in sales of plasma to third parties due to the increasing.

Brad Tade: Retention of plasma for Atmos internal production.

Brad Tade: The decline in external plasma sales is consistent with our prior messaging and forecast as we are utilizing a greater percentage of our internally sourced plasma from our collection network for manufacturing of incentives and better gas.

Brad Tade: Gross profit for the three months ended March 31st, 2024, was $39.1 million, as compared to $16.5 million for the same period a year ago, which represents an increase of $22.6 million. As a result, ADMA achieved a corporate gross margin of approximately 48% in the first quarter of 2024 as compared to approximately 29% in the first quarter of 2023. We believe the pathway is well paved to continue to grow gross profits over future periods.

Brad Tade: Gross profit for the three months ended March 31, 2024 was $39 1 million as compared to $16 5 million for the same period, a year ago, which represents an increase of $22 $6 million.

Brad Tade: As a result, admah achieved a corporate gross margin of approximately 48% in the first quarter of 2024 as compared to approximately 29% in the first quarter of 2023.

Brad Tade: We believe the pathway is well paid to continue to grow gross profits over future periods.

Brad Tade: As we progress further into 2024, we believe we are just now beginning to generate financial results that demonstrate the distinct operating leverage the business is capable of realizing, as our revenue growth rate improves and fixed expenses are tightly managed. During the first quarter, we grew Adjusted EBITDA to $26.4 million, as compared to $2.5 million for the first quarter of 2023. Additionally, during the first quarter, we generated $17.8 million of gap net income, as compared to a gap net loss of $6.8 million for the first quarter of 2023.

Brad Tade: As we progress further in 2024, we believe we are just now beginning to generate financial results that demonstrate the distinct operating leverage the business is capable of realizing.

Brad Tade: As our revenue growth rate improves and fixed expenses are tightly managed during.

Brad Tade: During the first quarter, we grew adjusted EBITDA to $26 4 million as compared to $2 5 million for the first quarter of 2023. Additionally, during the first quarter, we generated $17 $8 million of GAAP net income as compared to a GAAP net loss of $6.

Brad Tade: $8 million for the first quarter of 2023.

Brad Tade: The significant improvement in financial performance is driven primarily by increased sales, gross profit, and continued fiscal operating management of our business. Based on ADMA's fourth quarter annualized adjusted EVA growth and cash and cash equivalents. The company's current net leverage ratio has organically improved to approximately 0.85. We anticipate the balance sheet will continue to strengthen over the coming period, enabled by forecasted free cash flow and growing adjusted EBITDA. Specifically, bracketing the second quarter, we anticipate a significant step up in free cash flow, which we expect will continue to grow thereafter over the balance of 2024 and beyond. With that, I will now turn the call back over to Adam for closing remarks. Thank you, Brad.

Brad Tade: The significant improvement in financial performance is driven primarily by increased sales gross profit and continued fiscal operating management of our business.

Brad Tade: Based on <unk> fourth quarter annualized adjusted EBIT growth and cash and cash equivalents. The company's current net leverage ratio has organically improve to approximately 85.

Brad Tade: We anticipate the balance sheet, we will continue to strengthen over the coming periods enabled by forecasted free cash flow and growing adjusted EBITDA, specifically bracketing. The second quarter, we anticipate a significant step up in free cash flow, which we expect will continue to grow thereafter over the balance of 2000.

Brad Tade: 24, and beyond with that I will now turn the call back over to Adam for closing remarks.

Adam: Thank you Brad.

Adam S. Grossman: Our strong commitment to innovation and performance has yielded tangible results, driving significant growth and value creation, which we believe has set our company up for enduring success for years to come. Looking ahead to the remainder of 2024, we anticipate top-tier revenue and earnings growth fueled by transformative initiatives, all underpinned by our strong foundation of scientific, manufacturing, and commercial expertise. In the periods ahead, we look forward to leveraging both.

Adam: Our strong commitment to innovation and performance has yielded tangible results driving significant growth and value creation, which we believe has set our company up for enduring success for years to come.

Adam S. Grossman: Looking ahead to the remainder of 2024, we.

Adam S. Grossman: We anticipate top tier revenue and earnings growth fueled by transformative initiatives all underpinned by a strong foundation of scientific manufacturing and commercial excellence.

Adam S. Grossman: In the periods ahead, we look forward to leveraging both.

Adam S. Grossman: Our R&D know-how, and an innovative commercial model to unlock an even greater than anticipated terminal value for our business, with our upwardly revised financial guidance and forecasted increases to free cash flows in the second quarter and all foreseeable periods thereafter. We are extremely proud of the business we are building. The market opportunity for ADMA's innovative specialty biologics has continued to grow and evolve, and we are excited to expand upon the strong partnerships and inroads we've developed.

Adam S. Grossman: Our R&D knowhow and innovative commercial model to unlocking even greater than anticipated terminal value for our business.

Adam S. Grossman: With our upwardly revised financial guidance and forecasted increases to free cash flows in the second quarter.

Adam S. Grossman: And all foreseeable period thereafter.

Adam S. Grossman: Extremely proud of the business we are building.

Adam S. Grossman: The market opportunity for Adam is innovative specialty biologics has continued to grow and evolve.

Adam S. Grossman: And we are excited to expand upon the strong partnerships and inroads we have developed.

Adam S. Grossman: I extend our heartfelt gratitude to all who have supported us on this journey. Your trust and partnership are invaluable as we continue to make a difference in the lives of patients. As we move forward, I encourage you to join us in our mission, donate plasma, help save lives, and make a meaningful impact on our community. Thank you for your support and dedication. Together, we continue to write the story of ADMA's success. And with that, we'll now open up the call to your questions. Thank you all.

Adam S. Grossman: I extend our heartfelt gratitude to all who have supported us on this journey.

Adam S. Grossman: Your trust and partnership are invaluable as we continue to make a difference in the lives of patients.

Speaker Change: As we move forward I encourage you to join us in our mission Tony.

Adam S. Grossman: Donate plasma help save lives and make a meaningful impact on our communities.

Adam S. Grossman: Thank you for your support and dedication.

Adam S. Grossman: Together, we continue to write the story of add much success.

Speaker Change: And with that I'll now open up the call for your questions. Thank you operator.

Operator: To ask a question, please press star followed by the number one on your telephone keypad. Our first question comes from Anthony Petrone from Mizuho Group. Please go ahead; your line is open.

Speaker Change: To ask a question. Please press star followed by the number one on your telephone keypad.

Operator: Our first question comes from Anthony Petrone from Mizuho Group. Please go ahead. Your line is open.

Anthony Charles Petrone: Thank you. Hi Adam, and congratulations to the team. The first thought in my head is, you know, are they paying attention?

Anthony Charles Petrone: Thank you Linda Anthony congratulate hi, Adam and congratulations to the team.

Anthony Charles Petrone: First of all in my head is are they paying attention to.

Anthony Charles Petrone: to the performance here. But in looking ahead, I think one of the questions that we get from folks out there, and it seems like you touched on it, is where we are and I think the, you know, the capacity utilization today of the business, with Ascentive growing much faster than expected and Vivagam certainly looking like it's gaining steady market share in the traditional IG market. So maybe just a little bit on where capacity utilization is today.

Anthony Charles Petrone: So the performance here.

Anthony Charles Petrone: But in looking ahead I think one of the questions that we get.

Anthony Charles Petrone: From folks out there and it seems like you've touched on it.

Anthony Charles Petrone: As where we are and I think the the <unk>.

Anthony Charles Petrone: <unk> utilization today of the business with a set of growing.

Anthony Charles Petrone: Much faster than expected live again, certainly looking like it's gaining steady.

Anthony Charles Petrone: Market share in the traditional AG market. So maybe just a little bit on where capacity utilization is today and you spoke a little bit about the peak potential of this business.

Anthony Charles Petrone: And you spoke a little bit about the peak potential of this business. You know, look at the guidance you put out there for 24 and 25. When we do our math, there's a lot of, you know, room for variability, but we get to a number that's quite a bit higher than your 2025 number. But how should we be thinking about capacity utilization today and, you know, identifying where the peak potential is for this business? And I'll have a couple of follow-ups.

Anthony Charles Petrone: Look at the guidance you put out there for $24 25, when we do our math Theres a lot of room for variability, but we get to a number that's quite a bit higher than your 2025 number but how should we be thinking about capacity utilization today and.

Anthony Charles Petrone: Bracketing, where the peak potential is for this business and I'll have a couple of follow ups.

Adam S. Grossman: Always good questions, Anthony. Thank you for the kind words.

Speaker Change: Always good questions Anthony Thank you for the kind words.

Adam S. Grossman: I think my team is paying attention.

Speaker Change: Maybe before I jump in I, just wanted to take my hat off to the folks here to add I mean, it's.

Adam S. Grossman: Body working together I think this is this is what happens when you have a business that that look obviously, we have a great product.

Adam S. Grossman: It meets the unmet needs.

Adam S. Grossman: Pes immune compromised patients with complex comorbidities with assertive in with bid again, it's durable growing high quality product out there and I take my hat off to everyone that makes this possible because you can't do it you can't have a great idea without a lot of people who are going to give.

Adam S. Grossman: I definitely think my team is paying attention, and, you know, maybe before I jump in, I just want to take my hat off to the folks here at ADMA. I mean, it's everybody working together. I think this is, this is what happens when you have a business like that. Look, obviously, we have a great product. It meets the unmet needs of these immune compromised patients with complex comorbidities with Ascentive and Bivigam.

Adam S. Grossman: 100% effort every single day, and that's the admin team.

Adam S. Grossman: You know, it's a durable, growing, high-quality product out there, and I take my hat off to everyone that makes this possible because you can't do it. You can't have a great idea without a lot of people who are going to give 100% every single day. And that's the ADMA team. With that said, I mean, look, we're probably, I think I've said this before, you know, it's about 70 to 80%.

Adam S. Grossman: With that said I mean look we're probably I think Ive said this before.

Adam S. Grossman: It's about 70% to 80%.

Adam S. Grossman: Capacity, that's where we are now with production. Obviously, we're looking at ways to expand that. The more we can push in, the more we're going to get out. Yield enhancement, we have not even given guidance on yet. All these revised upward numbers do not include any accretion from yield enhancement. But what I can tell you is that, look, we're certainly penetrating stronger, harder, faster than we ever thought we would with Ascentive right now. The calendar flip was great.

Adam S. Grossman: Capacity, that's that's where we're running now with production obviously, we're looking at ways to expand that the more we can push in the more we're going to get out yield enhancement, we have not even giving guidance yet all of these revised upward numbers do not include any accretion from.

Adam S. Grossman: Yield enhancement, but what I can tell you is is that look we are we're certainly penetrating.

Adam S. Grossman: Stronger harder.

Adam S. Grossman: Foster than we ever thought we would with incentive right now.

Adam S. Grossman: I said this at the Raymond James Conference, I guess it's a couple months ago now, and Gary asked a similar question. If you look at our plant, 600,000 liters of peak capacity, and you just do the plasma economics, four grams per liter yield on average, somewhere between, call it 1.8 to 2.2 million grams come out of this plant, 2.4 million grams at peak. If all of that was Ascentive, Anthony, you'd be looking at a billion and a half to two billion plus in total top line revenue annually. Do I think that's possible? No, I don't.

Adam S. Grossman: The calendar flip was great.

Adam S. Grossman: I said this.

Adam S. Grossman: At the Raymond James Conference.

Adam S. Grossman: Yes, it's a couple of months ago now.

Adam S. Grossman: Gary asked a similar question in.

Adam S. Grossman: You look at our planned 600000 liter peak capacity.

Adam S. Grossman: And you just do the plasma economics, four grams per liter yield on average somewhere between call. It one eight to $2 2 million grams come out of this planned $2 4 million grams at peak, if all of that was incentive <unk>.

Adam S. Grossman: You'd be looking at 1 billion and a half to $2 billion plus in total topline revenue annually do I think thats possible no I don't.

Adam S. Grossman: You know, but anything's possible. You know, I think being able to secure that much hyperimmune plasma to make Ascentive would be a challenge. But I think somewhere, you know, the terminal value for this business or the terminal revenue generation opportunity with what we have today is somewhere between the near-term forward guidance of 410 and $2 billion. I don't know the exact number.

Speaker Change: But anything is possible.

Adam S. Grossman: I think being able to secure that much.

Adam S. Grossman: <unk>.

Adam S. Grossman: Plasma to make incentive I think would be a challenge but.

Adam S. Grossman: But I think somewhere the terminal value for this business or or the terminal revenue generation opportunity with what we have today is somewhere between the near term forward guidance of $4 10 and $2 billion.

Adam S. Grossman: You know, my team is working very, very expeditiously with respect to ramping up our ability to test for these hyperimmune high-titer RSV plasma donors. We've seen increased collections. Again, we're producing more product than ever. But I really think that, you know, the terminal earnings and the terminal revenue generation from this business, we're really in the early innings here. But I do think that there will be significant and sustained growth beyond 2025 with Ascentive and Vivigam.

Adam S. Grossman: I don't know the exact number my team is working very very expeditiously.

Adam S. Grossman: With respect to ramping up our ability to test for these hyper immune high titer RSV plasma donors.

Adam S. Grossman: We've seen increased collections again, we're producing more product than ever but I really think that the.

Adam S. Grossman: The terminal earnings in the terminal revenue generation from this business.

Adam S. Grossman: We're really in the early innings here, but I do think that.

Adam S. Grossman: There is significant and sustained growth beyond 2025 of incentive and began again. This is stage one of yield improvement.

Adam S. Grossman: Again, this is stage one of yield improvement. Hopefully, in the middle term of this year, we'll be able to give some more details on timeline and guidance. But we do think that we could be accretive with revenue generation as early as the second half of next year. But again, that's not in our revised guidance that we've given today. So hopefully that answers your question.

Adam S. Grossman: Fully in the middle term of this year, we'll be able to give some some some more details on timeline in guidance, but we do think that.

Adam S. Grossman: We could be accretive with revenue generation.

Adam S. Grossman: Or are we at the second half of next year, but again thats not in our revised guidance that we've given today, so hopefully that answers your questions.

Adam S. Grossman: They're very helpful. I'm gonna let others jump in. I have a lot, but I just want to maybe ask one on the supply chain, and I'll hop in. You talk about the donor side of the equation, you know, for RSV, high titer RSV maybe being a limitation. Is there a vaccination strategy that you can leverage now that we have RSV vaccines out there?

Speaker Change: Very helpful. I'll, let others jump in I got a bunch, but I just want to maybe ask one on the supply chain and I'll hop in.

Adam S. Grossman: You talk about the donor side of the equation.

Adam S. Grossman: For RSV high Titer <unk> the Navy being a limitation is narrow a vaccination strategy that you can leverage now that we have RSV vaccines out there congratulations again to the team. Thanks. Thanks Anthony.

Anthony Charles Petrone: Congratulations again to the team. Thanks.

Adam S. Grossman: Thanks, Anthony. The answer is no; we do not want to use the vaccine. You know, the special sauce here is not just the RSV. And I have talked about this before, and I don't mean to bore folks by saying the same thing, but RSV is the marker that we use to test to identify which donors have high levels of antibodies to this panel of different respiratory viruses. And on the website, in the publication section, we talk about this. Our donors are not just high titer for RSV; they're high titer for a panel of different infectious pathogens. So it's the naturally occurring antibody we feel.

Adam S. Grossman: The answer is no we do not want.

Adam S. Grossman: To use the vaccine.

Adam S. Grossman: The special sauce here is not.

Adam S. Grossman: It is not just the RSP and I have talked about this before and I don't mean to bore folks by saying the same thing but.

Adam S. Grossman: RSV is the marker that we used to test to identify which donors have high levels of antibodies to this panel of different respiratory viruses.

Adam S. Grossman: On the website and the publications section we talk about this.

Adam S. Grossman: Our donors are not just high high titer to RSV their high titer to a panel of different infectious pathogen. So.

Adam S. Grossman: If the naturally occurring antibody, we feel its really identifying who these high responders are and and look there are out there.

Operator: It's really identifying who these high responders are, and look, they're out there. They're out there. The hit rates are what we've seen historically. The post-pandemic return of the plasma donor is here. We're working on very unique and good strategies with our plasma centers and our third-party collectors who provide us with the hyper-immune plasma to pay these donors bonuses, bring them back in more frequently, and we're seeing the fruits of our labor. I mean, we have more raw material collected than ever before, and we feel very, very confident about our ability to deliver sustained quarter-over-quarter growth for the foreseeable future. Thanks.

Operator: They're out there the hit rates are or what we've seen historically.

Operator: The post pandemic.

Operator: Turn of the plasma donor is here.

Operator: Working on very unique and good strategies with our plasma centers.

Operator: Our third party collectors, who provide us with the.

Operator: The hyper immune plasma on paying these donors bonuses, bringing them back and more frequently.

Operator: And we're seeing the fruits of our labor I mean, we we have more material we have more raw materials collected.

Operator: Than ever before and we feel very very confident about our ability to deliver sustained quarter over quarter growth for the foreseeable future.

Speaker Change: Thanks, Ken.

Speaker Change: Thanks Anthony.

Kristen Brianne Kluska: Our next question comes from Kristen Kluska from Cantor Fitzgerald. Please go ahead; your line is open.

Operator: Our next question comes from Kristen <unk> from Cantor Fitzgerald. Please go ahead. Your line is open.

Kristen Brianne Kluska: Hey, Chris Hey, everyone.

Kristen Brianne Kluska: Hey, congrats on the quarter and starting to sound like a broken record here, but once again, really impressive numbers and, you know, kind of beating all of our expectations. So well done as you have a very unique position, giving you insight into forecasting revenues.

Kristen Brianne Kluska: Congrats on the quarter and starting to sound like a broken record here, but once again really impressive numbers and kind of.

Kristen Brianne Kluska: Beating all of our expectations, so well done.

Kristen Brianne Kluska: Do you have a very unique position, giving you insight into <unk>.

Kristen Brianne Kluska: Forecasting revenues I wanted to ask at what point you might consider reinvesting some of this capital to either expand the business or improve things on the manufacturing front or.

Kristen Brianne Kluska: If theres anything else you are looking at I know you've also guided on looking at other indications as well.

Adam S. Grossman: All great questions, and I will say, Kristen, you made us work hard this quarter. I think you were the top, top revenue estimate out there. So we had to work hard to beat your projections. But, you know, regarding cash flow and what we are going to do, I mean, look, we are positioned very favorably. I think as we generate cash and, you know, we certainly think the second quarter is going to be a very large quarter from a cash flow perspective. But, you know, if the interest rate backdrop continues and it remains elevated, so for it remains where it is.

Kristen Brianne Kluska: All great questions and I will say Kristen you've made us work hard this quarter I think you were at the top.

Adam S. Grossman: Top revenue.

Adam S. Grossman: Estimate out there so we have to work hard to beat your your projections, but.

Adam S. Grossman: Regarding the cash flow and what are we going to do I mean look we we are positioned very favorably I think as we generate cash in.

Adam S. Grossman: We certainly think the second quarter is going to be.

Adam S. Grossman: Large quarter from cash flow perspective.

Adam S. Grossman: But.

Adam S. Grossman: If the interest rate backdrop continues.

Adam S. Grossman: And it remains elevated sofa.

Adam S. Grossman: We've got the ability to pay down 50% of the revolving line that is attached to this ARIES deal that we did this past December. But as cash builds on the balance sheet, we can pay that down, reduce our interest expense, and reduce cash going out. I mean, I've said this before, and I don't mind saying these things like a broken record, but we are hyper-focused on shareholder returns. We're hyper-focused on creating shareholder value. I mean, a lot of investors have been with us since the beginning, and we can't thank them enough. And look, we've got a great product that helps people.

Adam S. Grossman: Remains where it is we've got the ability.

Adam S. Grossman: To pay down 50% of the revolving line that is attached to this.

Adam S. Grossman: Aries deal that we did this past December.

Adam S. Grossman: But as cash builds on the balance sheet, we can pay that down and reduce our interest expense reduced cash going out I mean, I've said this before and I don't I don't mind, saying these things like a broken record, but we are hyper focused on shareholder returns.

Adam S. Grossman: We're focused on creating shareholder value I mean, a lot of a lot of the investors have had been with us since the beginning and we can't thank them enough and look we've got great product that helps people so with all of this coming together.

Adam S. Grossman: So with all of this coming together, I think the stock is undervalued. I think our board feels the stock is undervalued, too. We're seeing other companies in this backdrop paying down their debt. You can see where our net leverage ratio is coming down to 0.85x. And, you know, if there's an opportunity to redeploy the capital, buy back some stock, look at other ways to enhance shareholder value, I mean, these are all things that we're considering, and we're talking at the board level. But no decisions have been made yet.

Adam S. Grossman: I think the stock is undervalued I think our board feels the stock is undervalued.

Adam S. Grossman: We're seeing other companies in this backdrop.

Adam S. Grossman: Paying down there that you see where our net leverage ratio is coming down that eight five X and.

Adam S. Grossman: If theres an opportunity to redeploy the capital buyback some stock look at other ways to.

Adam S. Grossman: Enhance shareholder value I mean, these are all things that we're considering and we're talking.

Adam S. Grossman: At the board level no decisions have been made yet, let's see how we continue to progress, but but with the way that that we're forecasting cash flows.

Adam S. Grossman: Let's see how we continue to progress. But with the way that we're forecasting cash flows, we certainly are going to be opportunistic. We are not looking to onboard assets, Kristen. I don't know if that's something that you were asking. That's not really something that we're looking at here. But, you know, investing in AdMalytics, investing in our IT infrastructure, investing in new systems to help streamline and enhance efficiencies, you know, I think something with Brad coming on board and his, you know, I guess financial operational experience has been a great value creator for us internally at the company, looking at all types of ways to extract more margin and more value out of the business. So we're very excited about the opportunities ahead. Kristen, it's Skyler.

Skyler Bloom: We certainly are going to be opportunistic we are not looking to onboard assets Christian I don't know if thats something that you were asking that's not that's not really something that we're looking at here but.

Adam S. Grossman: Investing in AD <unk> investing in our it infrastructure investing in new systems to help streamline and enhance efficiencies.

Skyler Bloom: I think something with with.

Skyler Bloom: Brad coming on board and his.

Skyler Bloom: I guess financial operational experience.

Skyler Bloom: It's been a great value creator for us here internally at the company.

Skyler Bloom: Looking at all types of ways to extract more margin and more value out of the business. So we're very excited about the opportunities ahead.

Skyler Bloom: Kristen, it's Skyler. I would add that in the event that we don't have the revolving credit facility fully drawn in the back half of this year, that represents upside to the net income guidance we provided today. We contemplate a fully drawn debt piece, so in the event that we continue to stack cash on the balance sheet, yet another lever for upside to the currently provided net income guidance.

Adam S. Grossman: Chris Skyler I would add that in the event that we don't have the revolving credit facility fully drawn in the back half of this year that represents upside to the net income guidance. We provided today, we contemplate a fully drawn debt piece. So in the event that we continue to stack cash on the balance sheet, yet another lever for upside to currently provided net income guidance.

Kristen: Absolutely. Okay. Thanks appreciate that color and then just my last question is obviously this is a great business, where people can donate plasma very often a couple of times a week. So I know you you've talked before about different incentives and ways to get there.

Kristen Brianne Kluska: I think I'll appreciate that color. And then just my last question is, obviously, this is a great business where people can donate plasma very often, a couple times a week. So I know you've talked before about different incentives and ways to get the specialty plasma, but have you looked to further find ways to get more donations from those patients that you've identified? And if so, has any of this worked for increased?

Kristen Brianne Kluska: The specialty plasma and but have you have you look to further.

Kristen Brianne Kluska: Find ways to get more donations from those patients that you've identified and if so how.

Kristen Brianne Kluska: Any of this works for increased churn.

Adam S. Grossman: So the answer is yes, Kristen, once we've spent the money and done the testing and identified which donor, either from one of our third parties or in one of our 10 wholly owned and operated centers, you know, once we know who the donor is, we've deployed strategies this year where we're paying bonuses for frequency, and we're increasing some of our donor fees on the incentive plasma because, obviously, we've got margin there. I don't like to say we've got margin to spare, but certainly, more is better.

Speaker Change: So the answer is yes Kristen.

Adam S. Grossman: Once.

Adam S. Grossman: Once we've spent the money and done the testing and identified which donor either from one of our third parties or in one of our 10 <unk>.

Adam S. Grossman: <unk> owned and operated centers.

Adam S. Grossman: Once we know who the owner is.

Adam S. Grossman: We have deployed strategies this year, where we're paying bonuses for frequency.

Adam S. Grossman: And we're increasing some of our donor fees on the incentives.

Adam S. Grossman: Because obviously, we've got margin there.

Adam S. Grossman: I don't like to say, we've got margin despair Budd.

Adam S. Grossman: And we've seen these programs work in our existing centers. We're starting to roll them out to our third parties. So, you know, we wouldn't be as confident in our guidance. We wouldn't be increasing top and bottom line guidance if we did not think that we were able to meet these forecasted targets.

Adam S. Grossman: Certainly more is better and.

Adam S. Grossman: We've seen these programs work.

Adam S. Grossman: Our existing centers, we're starting to roll them out to our third party. So we we wouldn't be as confident.

Adam S. Grossman: In our guidance, we wouldn't be increasing top and bottom line guidance. If we if we did not think that we were able to meet these.

Adam S. Grossman: Forecasted targets so.

Adam S. Grossman: As we've been demonstrating to the street for the last.

Adam S. Grossman: So, you know, as we've been demonstrating on the street for, you know, the last 10 plus calendar quarters, we feel really good about our positioning. Everything seems to be working well. And, you know, at the end of the day, patients do well on the products that ADMA Biologics produces full stop. For example, patients are doing very well on Bivigam. I've seen and heard and been told some very, very heartwarming stories as, you know, the medical conference season starts to unfold. It was the Clinical Immunology Society meeting last week.

Adam S. Grossman: 10, plus calendar quarters, we feel really good about our positioning.

Adam S. Grossman: <unk> seems to be working well and at.

Adam S. Grossman: At the end of the day pace.

Adam S. Grossman: Patients do well on the products that Adama biologics producers full stop patient.

Adam S. Grossman: Patients are doing very well on began.

Adam S. Grossman: I've seen and heard and been told some very very.

Adam S. Grossman: Heartwarming stories.

Adam S. Grossman: Has the medical conference season starts to unfold with the clinical Immunology Society meeting I think it was last weekend.

Adam S. Grossman: And I had a number of inbound calls from some of our field force on just stories that physicians are sharing with us about patients who were just not doing well on their other IG, and they would switch to Ascentive, and they've improved. It's what drives us. It's what fuels us, and we're going to keep investing in this business. We're going to keep investing in identifying more plasma donors. But... We think, again, that this is the early stages, and we can collect more, and we will produce more, and we will sell more.

Adam S. Grossman: I had a number of inbounds from some of our field force on just stories that physicians are are sharing with us about patients who were just not doing well on their other iga and they would switch to <unk> and <unk>.

Adam S. Grossman: They've improved.

Adam S. Grossman: It's what drives us, it's what fuels us and we're going to keep investing into this business, we're going to keep investing and to identify more more plasma donors, but.

Adam S. Grossman: We think again that this is the early stages and we can collect more than we will produce more and we will sell more.

Brad Tade: And just to add, right, I mean, those programs are gaining traction. We're starting to see the results of them, and as we stated, right, we're retaining our internally sourced plasma to meet our manufacturing needs, but it's good to see that the traction is starting to gain.

Speaker Change: And just just to add right I mean, those those programs are taking traction we're starting to see the results of it and as we stated we're retaining our internally sourced plasma to meet our manufacturing needs, but it's good to see that the traction is starting to gain.

Kristen Brianne Kluska: Great. Thanks. Congratulations again. Well done.

Speaker Change: Okay, great. Thanks, Congrats again well done.

Speaker Change: Thanks Kristen.

Operator: Our next question comes from Gary Nachman from Raymond James. Please go ahead; your line is open.

Kristen Brianne Kluska: Our next question comes from Gary Nachman from Raymond James. Please go ahead. Your line is open.

Gary Jay Nachman: All right, great. Good afternoon, and my congratulations as well on the quarter and all the progress, and thanks for that plug before our conference, Adam. I appreciate that.

Gary Jay Nachman: Alright, great good afternoon, and my congrats as well on the quarter and all the progress and thanks for that plugged before on our conference Adam I appreciate that.

Adam S. Grossman: Gary, it was great. I got to tell you we had a lot of great meetings out of that conference, and you know, I really think that that was the start of the year, and look where we are. I mean, it's, it takes a village to get all this done, so I appreciate all of our analysts and all of our bankers.

Gary Jay Nachman: Gary It was great I got to tell you we had a lot of a lot of great meetings at that conference and I really think that that was a look at what the start of the year and look at where we are I mean is.

Adam S. Grossman: It takes a village to get all this done so I appreciate all of our analysts and all of our banks.

Gary Jay Nachman: Yeah, for sure. So, I mean, when you say you're assessing the company's potential beyond 2025, a little more on how you're doing that, and the types of analyses you're doing, and how do you expect to communicate that, and in what time frame and form? So that would be the first question. And then, I guess, you know, when you talk about the durability of Ascent over the longer term, the payer question immediately comes to mind.

Speaker Change: Yes for sure.

Gary Jay Nachman: I mean, when you say youre assessing the company's potential beyond 2025, a little more on how you're doing that and the types of analyses you're doing and how do you expect to communicate that and in what timeframe and forum.

Gary Jay Nachman: So that'd be the first question.

Gary Jay Nachman: And then I guess when you talk about the durability of incentives long term.

Gary Jay Nachman: So making sure you won't get any surprising pushback there. The status today versus how you see this in a couple of years. And then also, that no other competitors out there can do these hyperimmune products, and that you think you'll be differentiated in that space for a long time.

Gary Jay Nachman: The payer question immediately comes to mind, so making sure you won't get any surprising pushback there. So the status today versus how you see this in a couple of years.

Gary Jay Nachman: And then also that no other competitors out there can do these hyper immune products and that you think youll be differentiated in that space for a long time.

Adam S. Grossman: All great questions. I think I wrote them down. The first thing that I'll touch on are the types of analyses. I mean, there's the Brad Tate, you know, Skyler Bloom models, and then there's the Grossman math.

Speaker Change: All great questions I think I wrote them down so.

Adam S. Grossman: Sure.

Adam S. Grossman: The first thing.

Adam S. Grossman: I will touch on are the types of analyses I mean, there is there is there is the Brad paid Skyler Bloom models and then there is the <unk>.

Adam S. Grossman: Grossman mass.

Adam S. Grossman: But what I can tell you is that look where we're at a point right now where I think it's.

Adam S. Grossman: But what I can tell you is that, look, we're at a point right now where the market is really asking for more product. The clinicians have seen the product work well. So really, it comes down to, can we produce more? We're selling everything we make, both products, Ascentive and Bifigam. And honestly, Nobby's been doing very well this year for us as well.

Adam S. Grossman: It's really.

Adam S. Grossman: The market is asking for more products.

Adam S. Grossman: Clinicians have seen the product worked well so really it comes down to can we produce more.

Adam S. Grossman: Selling everything we make.

Adam S. Grossman: Both products.

Adam S. Grossman: And if again and honestly Nabil has been doing very well this year for us as well and that's a decent margin product. So.

Adam S. Grossman: And that's a decent margin product. So really, this has been a hell of a start to the year. I mean, we're sitting here on May 9th, and things just look great. But as far as the analyses go, I mean, look, we have a good handle on the number of patients that could benefit from Ascentive. And if you recall, the math is roughly, you know, call it 250 to 500,000 PI patients. About half of them are on IG, and we estimate somewhere between, you know, call it 15 to 30% of those have some chronic lung condition and have some significant comorbidity that they've got a challenging course of treatment just on IG, standard IG alone.

Adam S. Grossman: Really this has been a hell of a start to the year I mean, we're sitting here may nine.

Adam S. Grossman: Thanks, just look great, but as far as the analysis I mean look we we have a good handle on the number of patients that debt that could could benefit from incentives.

Adam S. Grossman: And if you recall the math is roughly call it call it $250 to 500000 patients.

Adam S. Grossman: About half of them are on IAG, and we estimate somewhere between.

Adam S. Grossman: Call it 15% to 30% of those.

Adam S. Grossman: Have some chronic lung condition to have some.

Adam S. Grossman: Significant comorbidity that.

Adam S. Grossman: They've got a challenging course of treatment just on.

Adam S. Grossman: Standard <unk> alone most patients do very well, but we think that there could be in the order of 10% to 30000 people that can benefit from incentives.

Adam S. Grossman: Most patients do very well, but we think that there could be, you know, in the order of 10 to 30,000 people that could benefit from Ascentive. We haven't even scratched the surface. So, you know, I think that we've demonstrated proof of concept, I think with some of the notes that I've been getting from investors this afternoon, and I'm very, very congratulatory. Thank you all very much.

Adam S. Grossman: We haven't even scratched the surface so.

Adam S. Grossman: I think that we've demonstrated proof of concept I think with some of the notes that I've been getting from investors. This afternoon very very congratulatory. Thank you all very much.

Adam S. Grossman: It's better than the alternatives that you guys used to send me years ago. But what I'll say is that, you know, the demand is there. And I think I may have said this, Gary, at your conference. If not, you know, maybe someone's gonna shoot me, but it's like Rolex demand, you know? I have no idea if it's fabricated or not, but you can't walk into a store and buy one.

Adam S. Grossman: It's better than the alternatives that you guys use to send many years ago, but.

Adam S. Grossman: What I'll say is that.

Adam S. Grossman: The demand is there and I think I may have said this Gary your conference if not.

Adam S. Grossman: Maybe someone's going to excuse me, but it's like it's like Rolex demands I have no idea. If it's if it's fabricated or not but you can't walk into a store and buy one I mean attentive as all allocated out there new patient starts are scheduled.

Adam S. Grossman: I mean, Ascentive is all allocated out there, and new patient starts are scheduled. We just have to make more profit. I think the more we can make, and with our seven to 12 month production cycle time, that is shortening, but we've got the ability to, and we've said it all the time, we have tomorrow's newspaper. We know how much we're making, we know what we can forecast, and we would not be increasing guidance the way that we are, as strongly as we are, if we did not think that we could meet these targets. So that's that piece. What I'll say about the payers, someone's breathing heavy on my line. If they could just go on mute, if you're not me, thanks.

Adam S. Grossman: We just have to make more product I think the more we can make and with our 7% to 12 month production cycle time that is shortening, but we've got the ability to and we've said it all the time, we have claro newspaper, we know how much we're making we know what we can forecast.

Adam S. Grossman: And we would not be increasing guidance the way that we are as strong as we are if we did not think that we can meet these targets.

Adam S. Grossman: That is what I will say about the payers someone's breathe a heavy on my line. If they can just go on mute if you're not me.

Adam S. Grossman: The payers, you know, we've identified what good looks like, I think. I think that we have identified what appropriate use is. We're not seeing prohibitive barriers to entry right now. Coverage and access are good. It's ongoing.

Adam S. Grossman: The payers.

Adam S. Grossman: <unk>.

Adam S. Grossman: We've identified what good looks like I think I think that we have identified.

Speaker Change: What appropriate use we're.

Adam S. Grossman: We're not seeing prohibited barriers to entry right now.

Adam S. Grossman: Coverage and access is good.

Adam S. Grossman: It's ongoing.

Adam S. Grossman: Our ADDvantage IG program, which is our patient assistance program, is being utilized, and it's helping people with their co-pays. But I really think that when you look at the pharmacoeconomic value proposition, it resonates with prescribers, it resonates with payers, and I think that we've really characterized appropriate use very, very well. The Ascentive website's been updated. If you haven't taken a look, you should. Look at the website ascentive.com.

Adam S. Grossman: Our advantage <unk> program, which is our patient assistance program is being utilized and it is helping people with their copays.

Adam S. Grossman: But I really think that when you look at the pharma to economic value proposition.

Adam S. Grossman: It resonates with the prescribers it resonates with the payers.

Adam S. Grossman: And.

Adam S. Grossman: I think that we really characterize appropriate used very very well.

Adam S. Grossman: A set of website has been updated if you haven't taken a look you should look at a set of dot com.

Adam S. Grossman: I just truly believe that we're out there, and we're saying, no, don't use this product in everyone. It's not for everybody. It just isn't. It's for a patient that we believe is immune compromised, has PI, has secondary immune deficiency, and then has complex comorbidities that are hard to manage.

Adam S. Grossman: And.

Adam S. Grossman: Yes.

Adam S. Grossman: I just truly believe that.

Adam S. Grossman: We are out there and we're saying no don't use this product and everyone. It's not for everybody. It's just not it's for a patient that we believe that is immune compromise has ti as secondary immune deficiency and then has complex comorbidities that are hard to manage.

Adam S. Grossman: And I think that in this right patient population, we're not seeing a lot of barriers to getting patients on therapy. And then I think the last part of your question was still no competitors, no one that we see. Some of the competitors out there who have announced programs with specialty hyperimmunes, you know, they're not doing well with their programs. They're not doing well in general.

Adam S. Grossman: And I think that in this in this right patient population.

Adam S. Grossman: <unk>.

Adam S. Grossman: We're not seeing a lot of barriers to getting patients on therapy.

Adam S. Grossman: And then I think the last part of your question was still no competitors no one that we see.

Adam S. Grossman: Some of the.

Adam S. Grossman: Some of the competitors out there who have announced programs with specialty hyper immune <unk>. They are they are they are not doing well with their programs. They.

Adam S. Grossman: They are not doing well in general so I just think that we are where we are standing alone.

Adam S. Grossman: With our portfolio of products.

Adam S. Grossman: So, you know, I just think that we're standing alone with our portfolio of products. We've got a unique share of voice, if you will, within the immune compromised patient space. You know, that's where we focus specifically, and our IP, our IP is solid, and we feel very, very good that, with respect to the incentive and how it's made and how we market it, there is no competition that we are aware of in the United States for the foreseeable term. So hopefully, that answers the three parts of the question.

Adam S. Grossman: We've got a unique.

Adam S. Grossman: <unk> share of voice, if you will within the immune compromised patients space, you know that that's where we focus specifically.

Adam S. Grossman: And our IP, our IP is solid and.

Adam S. Grossman: We feel very very good that that with respect to a sensitive and how it's made.

Adam S. Grossman: And how we market it.

Adam S. Grossman: There is no competition.

Adam S. Grossman: We are aware of in the United States for the foreseeable term.

Adam S. Grossman: So hopefully that answers the third.

Adam S. Grossman: Yeah, that was great, but just on the outlook beyond 2025, I mean, you guys do a great job of even going out that far, but since you're talking about it, when do you think you're going to have enough visibility, you know, if it's going to be later this year into next year, once you start to see all the batteries kick in? No, Gary, I mean, look, we have ideas, obviously, but look, I need to see it. It's all about timing. When is my yield enhancement conformance lot going to be made? How do I get it on file?

Adam S. Grossman: Yes.

Speaker Change: That was great, but just on the outlook beyond 2025, I mean, you guys do a great job of even going out that far but since you are talking about it when do you think youre going to have enough visibility.

Adam S. Grossman: Later this year into next year once you start to see thank you.

Speaker Change: Gary what.

Adam S. Grossman: What I would say.

Adam S. Grossman: Adam.

Adam S. Grossman: No Gary I mean look we.

Adam S. Grossman: We have ideas, obviously, but look I need to see it's all about timing when in my yield enhancement conformance lots going to be made how do I get it on file whats the FDA going to say I could sit here and predict but I don't need to I've got enough growth coming that I that I hope to keep everyone happy for the for the near term I mean I.

Adam S. Grossman: What's the FDA going to say? You know, I could sit here and predict, but I don't need to. I've got enough growth coming that I hope to keep everyone happy for the near term. I mean, I think as we progress to the back half of this year, obviously, we'll be thinking about 2026 guidance, and, you know, look, in due course, as Skyler was saying, we should be in a position. But again, I think the sky's the limit.

Adam S. Grossman: Think as we progress to the back half of this year.

Adam S. Grossman: I mean, obviously, we'll we'll be thinking about 2026.

Adam S. Grossman: <unk>.

Adam S. Grossman: Guidance and.

Adam S. Grossman: Look in due course as as Skyler were saying, we should be in a position, but but again I think I think the sky's the limit I mean, and if the sky is that $2 billion peak revenue opportunity I mean look I've got staff here that that say to me.

Adam S. Grossman: I mean, and if the sky is that $2 billion peak revenue opportunity, I mean, look, I've got staff here that say to me, you know, I hate the term, but they say, "Boss," we're going to get you as much plasma as we possibly can. And I say, "Don't call me boss, but let's get as much plasma as we can possibly get." I mean, that's what we're focusing on here. Everyone is working together. Yield enhancement every single day. That's what's driving everybody's excitement in and around the production campus here at the plasma centers. I mean, it's buzzing.

Adam S. Grossman: The term, but they say boy, we're going to get you as much plasma as we possibly can and I would say don't call me boss, but let's get that much plasma as we could possibly get.

Adam S. Grossman: I mean, that's what that's what we're focusing on here everyone is working together yield enhancement every single day, that's what's driving everybody's excitement.

Adam S. Grossman: I mean, the, the donors are coming in the doors. Our new donor promotions, our promotions for the hyper-immune donors are really taking off, as Brad was mentioning. And Brad hit on a key point, which is that we're retaining more donors than ever before. And that's a key to winning the battle. So keep your pants on.

Adam S. Grossman: In and around.

Adam S. Grossman: Production campus here.

Adam S. Grossman: Plasma centers I mean, it's buzzing I mean, the the donors are coming in the doors.

Adam S. Grossman: Our new donor promotions our hour.

Adam S. Grossman: Promotions for the hyper immune donors are really taking off as Brad was mentioning in.

Adam S. Grossman: Brett Brad hit on a key point, which is.

Adam S. Grossman: We're retaining more donors than ever before and that's a key to win the battle. So.

Speaker Change: Keep your pants on we'll get you the numbers Gary.

Speaker Change: Well, we will get them for you, but look I think that you can hear the confidence.

Adam S. Grossman: We'll get you the numbers, Gary. We'll, we'll get them for you. But look, I think that you can hear the confidence in our prepared remarks. I think you hear the confidence in our tone with the Q and A. You know, we've really built a great business. And again, I take my hat off to my team because it was my father and my vision. We knew that the patients were out there. We knew that the doctors needed a product like this, but I have no idea how many employees we have today, 700 plus or minus, but it is 699 of them that are making this happen, and I'm just very, very happy to be along for the ride.

Adam S. Grossman: In our prepared remarks, I think you hear the confidence in our tone with the Q&A, we've really built a great business and again I take my hat off to my team because.

Adam S. Grossman: It was my father and my vision, we knew that the patients were out there we knew that the docks needed a product like this but.

Adam S. Grossman: I have no idea how many employees, we have today 700, plus or minus but it is it is 699 of them that are making this happen and.

Adam S. Grossman: Very very happy to be along for the ride.

Skyler Bloom: What we can say qualitatively today about the post-2025 growth story, right? It's going to be one defined by outsized operating leverage in the way that we've said time and time again that the current operating expenditure structure that you're seeing in the first quarter numbers that have remained relatively stable over the last few quarters, our commercial organization is right-sized. Our spend base is right-sized. So, as you think about post-2025 revenue growth, again, you're going to see operating leverage materialize that we believe we haven't yet realized. So, stay tuned. In due course, we'll provide a quantitative framework, but we're really excited about what the back half of the decade brings.

Adam S. Grossman: What we can say qualitatively today about the 2025 growth story right, it's going to be one defined by outsized operating leverage in the way that we've said time and time again that the current operating expenditure structure that youre seeing in the first quarter numbers that have remained relatively stable over the last few quarters. Our commercial organization is right sized.

Skyler Bloom: Spend basis right sized so as you think about post 2025 revenue growth again, youre going to see operating leverage materialize that we believe we havent yet realized.

Skyler Bloom: So stay tuned in due course, we'll provide quantitative framework, but we're really excited about what the back half of the decade brings.

Gary Jay Nachman: Yep, no, that's great. I'm only asking because you guys are bringing it up. So I think that's all fair in your assessment. I appreciate all that.

Speaker Change: Yes, no that's great only asking because you guys are bringing it up so I think thats all fair in your assessment. So I appreciate all that and then just quickly.

Speaker Change: Where are you currently with your penetration of incentives if you're still in the 500 to 1000 range are you now at the higher end of that just give us a sense when you talk about.

Gary Jay Nachman: The addressable market, which is 10% to 30000.

Speaker Change: And how much of the uses and secondary immunodeficiency versus primary it feels like that's something that's evolving out there.

Speaker Change: And then I'll get back in queue.

Speaker Change: Thanks, Gary.

Gary Jay Nachman: Majority of the utilization is is in primary immune deficiency.

Speaker Change: At least that's what our data suggests.

Speaker Change: We are.

Speaker Change: We are very very ill.

Speaker Change: Excited about the penetration with with where it is I mean.

Speaker Change: It's still in that range I mean, it's growing.

Speaker Change: But youre not just going to see overnight all of a sudden we're going to put thousands more patients on the product.

Speaker Change: I think youre going to see steady growth I think youre going to see period.

Speaker Change: Periods, where there's going to be.

Speaker Change: Bigger chunks of growth than you've seen historically, but.

Speaker Change: I think all of that.

Speaker Change: Is to be determined, but we're going to continue to penetrate we're going to continue to provide more drug quarter over quarter.

Speaker Change: <unk> and <unk> and.

Speaker Change: It's an exciting time for all of us here at Aetna.

Speaker Change: Awesome. Thanks, guys. Thanks, Okay.

Gary Jay Nachman: We have no further questions in queue I would like to turn the call back over to Adam Grossman for closing remarks.

Speaker Change: So thank you everybody. Thank you again to the ads team. Thank you again to all of our investors.

Speaker Change: Can't do it without your support.

Speaker Change: We appreciate you so.

Speaker Change: Donate plasma it's the summertime season donate donate blood also in summertime theres, usually blood shortages, but.

Gary Jay Nachman: Donate blood and blood components help save lives.

Speaker Change: We appreciate you all thank you for your time and have a great afternoon.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

Gary Jay Nachman: And then just quickly, where are you currently with your penetration of Ascentive? If you're still in the 500 to 1000 range, you know, are you now at the higher end of that? Just give us a sense of when you talk about the addressable market, which is 10 to 30,000. And then how much of the use is in secondary immunodeficiency versus primary?

Gary Jay Nachman: Please wait the conference will begin shortly.

Adam S. Grossman: It feels like that's something that's evolving out there. And then I'll get back and kick back.

Adam S. Grossman: Gary, the majority of utilization is in primary immune deficiency. At least that's what our data suggests. We are very, very excited about the penetration of where Ascentive is. I mean, it's still in that range.

Adam S. Grossman: I mean, it's growing. But, you know, you're not just going to see that overnight all of a sudden we're going to put thousands more patients on the product. I think you're going to see steady growth. I think you're going to see periods where there are going to be bigger chunks of growth than you've seen historically. But I think all of that is to be determined, but we're going to continue to penetrate. We're going to continue to provide more drugs, Bivigam and Ascentive, quarter over quarter. And it's an exciting time for all of us here at ADMA.

Adam S. Grossman: [music].

Adam S. Grossman: Okay.

Adam S. Grossman: [music].

Adam S. Grossman: Yes.

Adam S. Grossman: Yes.

Adam S. Grossman: Okay.

Adam S. Grossman: Yes.

Adam S. Grossman: [music] scenery.

Adam S. Grossman: No.

Adam S. Grossman: [music].