ADMA Biologics Inc (NASDAQ:ADMA) reported an increase of 19% YoY to $7.8 million in Q2 2020. It is mainly on the backdrop of increased sales of ASCENIV, BIVIGAM, and intermediates.
President of ADMA, Adam Grossman, said the company accomplished several milestones in Q2 2020 despite facing challenging macro market conditions. The company reported a growth of 78% in H1 2020. It experienced disruptions in the supply chain because of the impact of COVID-19 pandemic on some third-party vendors. As a result, ADMA could not submit for the US FDA authorization.
Resolves supply delays
ADMA could resolve some of the supply delays in July 2020 by adding additional testing laboratories in consultation with FDA. Going forward, the company will not face any delays in testing and on supplies.
Strong demand persists for immunoglobulin product line
Grossman said strong demand exists for its immunoglobulin product line. The company expects to reap better revenues from this product line in H2 2020 and beyond because it anticipates a significant increase in volumes by expanding capacity. It is on track to achieve the target of annual revenues of $250 million or more in the next three to five years.
Builds a new plasma collection center
ADMA completed the construction of its new plasma collection center in Q2 2020. It commenced donor collections. The company also applied for BLA (Biologics Licensing Application) with the FDA and expects to receive it in mid-2021.
ADMA installed a new AFSM (aseptic fill-finish machine) at its Boca Raton Facility. It also commenced a feasibility production of BIVIGAM batches at a higher scale to almost double the manufacturing.
ADMA began collecting plasma from the COVID-19 CP (convalesced patients). Grossman said he is proud of all these milestones and achievements and confident in ensuring the continuous supply of NABH-HB, ASCENIV, and BIVIGAM. It is well-positioned to capitalize on the growing need for plasma products.
Expects to inaugurate 3rd plasma collection center soon
ADMA plans to open a 3rd center for plasma collection and construct 4th center towards the end of 2020. The company is on track to establish up to ten plasma collection centers in the next three to five years.
ADMA recently joined an alliance for CoVIg-19 Plasma. As part of this alliance, the company initiated the collection of plasma from convalesced patients. The company has sufficient capital to ramp up production.