ADMA Biologics (ADMA) 11 Aug 222022 Q2 Earnings call transcript

Good afternoon, and welcome to the ADMA Biologics Second Quarter 2022 Financial Results and Corporate Update Conference Call on Wednesday, August 10, 2022. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately 2 hours following the end of the call. At this time, I'd like to introduce Skyler Bloom, Senior Director of Business Development and Corporate Strategy at ADMA Biologics. Please go ahead.

you financial us quarter results recent updates. thank discuss afternoon XXXX and corporate Biologics' ADMA for everyone for this joining to and Welcome, the second Officer; Adam Financial Chief and General and I'm Vice BioCenters. Officer Grossman, ADMA today Lenz, Executive by Chief joined Executive and Manager, Brian President, President

the some results. call, and provide will then provide and company's quarter an financial introductory of XXXX second today's During will update provide Brian an comments Adam on progress, overview corporate

summary brief a remarks opening Finally, the Adam recent some will The is Earlier and issued provide call corporate the we second results release www.admabiologics.com. questions. and available press before for certain financial then up detailing achievements on summarized updates. at quarter our today, XXXX release website

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

disclaim report to representing as earnings disclosure views any laws. our required specifically issued only Factors as be in release We the of notice statements cause actual represent forward-looking a to call that, section for of obligations risk refer to from date on for subsequent any for I Grossman. on such as forward-looking our addition, by In Form should the section of statements these update XXXX report turn federal discussion any December XX, statements. like date. ended section now of quarterly the Risk as call June as materially today our XX-K Adam our factors to differ we XXXX views to the XXXX in securities as not quarter factors of the the Adam? well ended over the you our any results Form relied upon could of that year With We this and the annual XX, important XX-Q except would

Thank healthy all Good today's and you afternoon, you, Skyler. hope you on everyone, and for remain us thank We joining safe. call.

quarter of second banner company. The of execution period was XXXX for [ph] our another

near we the continues portfolio. particularly improvement and periods. will ASCENIV a IVIG for XX% and period. driven robust from adoption our term with growth million. are previously product product Drawing to over the continued the evolve ASCENIV. the with product, higher by growth this demand periods. year, pleased Consistent to to coming total and the losses exceeding quarter, share by XXXX the product The year-to-date prior context, favorably the The progresses disciplined expense the we expansion strong are highlighted, we revenues longer generated our net year and generate anticipated will $XXX profitability. well to the company's as to underlying be grew visible during will over are year profitability trends increases are confident our market for sustain foundation Enabled management, trends, revenue the and confident product unfolds. continue margin accelerate, In mix accelerate and the establish year-over-year, towards our company IG half for of we significant we will margin first anticipated coupled as full the revenue as upside become anticipate increasingly the by margin strong pathway gains both revenues During margin growth meaningfully of significant with from we gross narrowed company's strong the well-positioned execution

mobilized Our education medical which products commercial appropriate organization expanding campaigns, brand's focused are has successfully on and the positioned and commercial constructed awareness and the targeted utility. product, conveyed messaging

to Our team as new realized has growth for well identified penetration opportunities yet existing headroom be institutions. as providers both among increased within

is oftentimes Importantly, resoundingly demonstrating improvements. on life has poorly the and benefits this IVIG positive products. We standard at-risk population primary being and devotion believe proud our confidence And are and risk that synonymous for feedback validates world company's population and quality ADMA trust and with now our name products treated ASCENIV with underserved this that this problematic market been at mission to fuels of Biologics immunodeficient with providers commercialize for patients physicians the Anecdotal immunodeficient patient real to and patients. is infection. us. are patients supports novel It controlled is we

nimble capabilities ASCENIV, demand as as provide for efficient grows. manufacturing Finally, cost on our product production time and flexibility,

and sufficient revenue plasma supply upside internal have to with support the we products. targets we RSV Additionally, external believe

our are a We raw capacity supply growing and as source standpoint, RSV to prepared normal rapidly manufacturing demand. plasma products meet well material as from well

gain Turning growing immunoglobulin the continues U.S share to The BIVIGAM. market. product to market penetrate and in

pleased are growth specific overall We with execution. and product

the quarter second XXXX the of utilization products highest and relaunch represented in The demand period since of pull-through XXXX.

is revenue BIVIGAM's ongoing and potential fully and in confidence intact. Our unwavering peak

patient ADMA care. continuity of pandemic, remains committed the throughout have delivering the we As to

expanding pressures pre-pandemic anticipate collection levels. all considerably team At which FDA-licensed with collection next are basis focus present plasma and this to more Our help collection in With our our respect the our product in upwardly a to assertive robust across are in are revenue construction. manage remuneration are of forward ADMA supply execution forecasts present, third-party plasma all in ADMA's inventories, to to sufficiency. to and and at plasma plasma macro This strong with rapidly quarter [indiscernible] supply ongoing anticipated be the we is an truly centers And can due segment, donor supply consumer which business that proud centers We portfolio. in we result plasma communities welcoming look rates. believe centers the is to a inflection our position bonds, It serve. exceeding to internal donors stages track centers partner have We inventories is context center second not our associated in encouraged with to at the now by remarkable and building under historic our XX various end At the operational possible on the facilities. collecting local two Six inflation are state-of-the-art point have many These we additional donations the on economic plasma, of are efforts conditions, included two our our IG advisors. of RSV end by organization's BioCenters to contracts. we remain dedication increased network donors leadership are our and plasma secure having million have accomplishments substantial novel offset biosensors of traffic without could the staff, in the of plasma. umbrella. for which across and revised supply been plasma addition normal corporate plasma year, support of foot FDA trusted centers self management's recorded XX licensed, source BioCenter the total we $XXX collection

achieving control our on your for organizations reality. corporate in our of operations Thank dedication is Our you hard now vision goals commitments collected complete establish work and and and for these our end-to-end to our who improving efforts us. to we on we dedication to patients, commend admin made focused whom team patients stockholders the remarkable the care health and prescribers have are promises. entire on know counting We your delivering

the turning call is I'd like alternatives confirm a process our to priority remains and before to Additionally, strategic Brian, over top ongoing.

XXXX developments the With like will that over value to said, I'd a and financials. review the to objective of as Brian Our maximize materialize. to market is turn second shareholder the for call we update now quarter

release you, second earlier Adam. a press And I'll of outlining some We our the Thank highlights. financial results. today, now XXXX key discuss quarter issued

June the an XXXX XXXX. total second As to represents XX%. $XX.X And revenues of XXXX $XX.X for million The million as of were second quarter or earlier, increase approximately million, quarter the this ended XX, mentioned $XX.X during Adam compared continued the the expansion revenue growth and product for impacted our of and ASCENIV. IVIG our compared base favorably of portfolio was of of the up customer XXXX second for ramp BIVIGAM by quarter quarter commercial to second

we As first XXXX, half a revenues are generate result to full in of year XXXX well-positioned million. the of encouraging of $XXX excess

of for the product driven second During of compared of by realized quarter higher XXXX. quarter XXXX, second during $X.X our from Gross second the a was the to million of ASCENIV. profit favorable gross gross profit contribution margin a million quarter $X ADMA loss a

expanding expenditures. in increasingly XXXX expenses share, diluted pathway having and loss on million, million, XXXX. June grow last general with look $XX.X ended of result trends by XX. We net profits as loss anticipate and Our attributed basic consolidated as net per doing these of of increased June commercialization four million rates, and we plasma as additional net increased to operation year, interest along will of to as per basic our decreased operating gross and net clear. was million, quarter expense eight well to compared expect for expenses in the net primarily to XX, grow centers Net offset as $XX.X loss loss losses This forward million plasma interest million. narrow gross debt, administrative attributed to by progresses. become In ahead, of as quarter quarters time $X.XX million, marketing of centers revenues center $X.X the to a for margins ended a the we so, $X.X $X.X in profitability a headcount, consolidated well higher is rising and to $X.X approximately loss this $X.XX increase or in continue XXXX compared to resulting diluted increased share of as or $X.X

non-dilutive access our current position forward, at additional the accessible this losses and In and $XX million discretion. of in strengthened million company's We improvements company inception. receivable the expected end sheet pro net is and best than the in in balance is position from moving have of funds $XX recent Hayfin, our and been a million, ADMA total accounts of On $XX periods. the funding the at now stands cash financial has to million, over of which hand the since $XX on an basis, context greater at includes quarter liquidity forma second significantly

the was million, accounts cash notably of $XXX of asset XX, XXXX, June total as million As recorded $XXX of well of million total receivable ADMA's $XX $XX million. value inventory and as company's cash cost, including equivalents

very last time year. to this centers progress operation collecting and BioCenters four Lastly, with our compared pleased in at the with now eight expansion we're plasma

total FDA this three first centers six. of for the centers, During this to of a now approvals approved half FDA received year, brings our and we

We also and construction. presently have another two two FDA under centers under licensing, preparation additional

to We year-end XX are back licensed call having well-positioned achieve XXXX. goal turn closing now that, centers collecting will of With by our the all remarks. to I for Adam over FDA stated and

In profitability. more and in annual in million million million $XXX XXXX gross during to We and Brian. our $XX guidance. we requisite $XXX that line this million top continue time period thereafter. profit of summary, measures to XXXX to or comprehensively At you, believe term provided net anticipate reiterate successfully company's XXXX, toward beyond. on $XX million, respectively, Thank generate We and longer $XXX more to implemented potential level, financial enable $XXX advancement track annually to ADMA and previously the have or revenue income generating we collected is all all million

current for is for continued support. While trends closing, guidance. of are later will profitability sustained. XXXX, first I'd IG portfolio becomes timelines dynamics the formally than At this quarter revisit clear, demand and In the your reiterated to stockholders thank market profitability no previously should timing possible profitability of guided like characterized for the accelerated we your

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Elliot from James. comes question Raymond first with Our Wilbur

is line open. Your

as Thanks. [indiscernible] PIN personal The operator code well.

How you Elliot? doing, are

on hear quarter. again. the Good. you. voice Congrats to Good strong Thank you. Thank your

the of for Just wanted actually, thinking one-time to top or first, margin percentages inventory called effects the given some Brian. be And year, I Maybe of favorable have thinking sequential then questions. moving over given expected sort you a longer and about for progressing to margins, a parts dated that I couple about both increase was just And the the ask gross of in that could should we well expectations of think dollar quarter, specifically of a items think XQ as out couple the last of terms line balance impact. how shutdown. impact

a So how in be just over may this quarter of the margin trying to -- levels this the balance sense get of terms of representative year. of

and The the Thank thank was remaining in for where and forecast inventory, historically margin a mix impact our at and you mentioned thinking longer XX%, gross Elliot. the see the as continued XX%, looking questions, way the we've BIVIGAM a ASCENIV. continued being of were Sure. of XX%, XX%. BIVIGAM the generated to the balance to higher XX% the standard recognition our growth. revenue higher you products compliments margin from of year at that for as mix Nabi, this IVIG ASCENIV narrowing about well looking margin our incremental seeing maybe Thinking revenues continue about nature. our and losses compared we we're we're profit of higher mix and we calls, expansion XX%, previous is dated on What

current direction, consecutive positive four gross gross recently, look in narrowing revenues feel was margins to and progress. that certainly with very, consecutive gross margin, do continuing losses, that trend we eight And improved net -- this the quarter that hopeful produce very growth. to of to being then at XX%, positive and net plus we're revenue line top losses margins quarters this continue So quarters increased narrowing we're of quarter. we And see quarters and to as clean going we forward a

that range. I XX% think in the XX%, to last XX% couple were of quarters

to to of did a XX% going in basis, as a From have to then gross quantifiable are the XX% modestly we And rest gross we would certainly blended peak will BIVIGAM margins, end ASCENIV quarter, to peak XX% be will think in the blended through a range; XXXX This the to margin progress and say year, to standpoint, I range. rise that into continuing we towards XX% XX% we in XX%. going then of XXXX. exit Nabi the XX% look be range we is that on going and XXXX XX% XXXX by as into somewhere

balance our of gross out be how a year. we're rest continued margins of of modest in -- the there'll So this is success increase forecasting continued the remaining

producing can, I always that we're them. in to achievable days. just I me think bit We've we And sets falling that always really these if Elliott, to meeting into happening certainly pleased and XX% We've maybe firing are our estimates. just I of important out expectations, it's faster. management point line. love are year-over-year team drug favor And for is been conservative really we're it's been on I'll and a we've all the say -- like a turns add, lot coming with been the Inventory growth. The business a little Things cylinders. off

way the been we've with the expect expenses conservative the continued I cautious for at guidance. continues very want to pleased guess quarter-over-quarter So where $XXX to pleased demand it just and And we're plaguing the point We've, pharmaceutical with that macroeconomic here. see reiterated all enhanced But are to profitability. expect But with well, uncertainties exceed execution we product million. to able pressures, our this. manufacturers, that be We've to quarter, during to through manage we inflationary really the the we grow. with execution, chain, the supply we're growth, saying, want we're very our looking to the we certainly be

of there. on macro some about current I'm comments your talk environment collection And in to you just the just Can volumes. you're seeing Thanks. collection What traffic, the side. terms foot going put of

high you're You the kind maybe overall seeing mentioned side. on level to of being you've there inflationary terms terms centers, and remuneration, just prepared donors what of in commentary but but commentary, of able get in pressures collection into

absolutely. Sure,

It's offset of at for for these and for positives been public are but that But up. well. following we've since those in I'll centers sort XXXX lives. some headlines numbers XXXX. increasing, store can Brian the this the I'm collection a while, to increasing people grocery ADMA. their for the is have to of Inflation last same costs XXXX population who've some company the I very been folks that speak to other of are operating they're one stated of to I pump the and foot recall say, a at think say regular traffic the rates to Plasma Those and for general way are experiencing the here. publicly, can the let actual certainly just volumes that companies It's the some daily from the timeline. pressures plasma donation. of

[indiscernible] are donor to centers accelerate. very continue high-level. inflation located. that and extremely where the is our big programs at should government a are We communities part So, closely, We think of really we're work foot traffic

we during under currently XX centers we're our are our across and seeing collecting remarks, we've are staffing, And corporate and that that we've collection month said, of geographies. operating the month, plasma. all we're, are ramping eight improving As up, over prepared board in the centers got volumes got umbrella, we

get feel we're very confident feel us ahead a of that opportunities to the able going pleased next sufficiency very with we're confident really we from to sometime we standpoint. to year. So, that collection self be And

bit elaborate to that. just a more So little on

one didn't that's they shut up I result the more the Adam collections special to But much centers having running opening that trafficking today throughout the remain a down things certainly higher do. are was donor of open We center. centers our pandemic, donor able think programs. were Our than of for pre-pandemic as

programs, in, where social coming still well. out to to are gone with So extremely Obviously, located as donors We're we inactive. the able was previously even that's we geographically keep away. were That distancing. able roll we're excited some now

that and is So groceries. there's an opportunity though augment based for to gas donors inflation think prices, on their income income even we that to earn think additional increasing, we rising

certainly happy located to we've we're local So the States. centers in add United economies that throughout the to XX the

provisions question to Maybe another in Washington wondering and out here. have the out a be the not perspective visibility carve the lot and Plasma legislation, I moving, as get of legislation one latest any last a or whether deletions had know, changes to macro you and it's and of subject such they subject in of more I wondering to me, if we would chambers the will kind with that here. final terms of still exists any bill. legislation that exemption that of legislation thanks. Negotiation. or that through both come original a additions just respect if have queue of But Okay, iteration but for for coming just into good therapies price. back I'm not fast of moving in the

play short get yes, Hill. Obama plasma Protein now folks believe are excluded. caucus companies of That's Association, due trying And the comment, combined is that products to continue around to is the in Plasma products molecules exists reform. were in we, work in are industry. excluded. of I their derived that be bill. that that Sure, the space. Historically under the Therapeutics Elliot. of plasma products arms the brethren to question arena think Capitol draft Care, policy the to that I with product confident there. I the have -- They're Understand felt small We latest on your would generic that world that different really the of our plasma the ADMA's other think, I We that the than and as we're been efforts, formed there's that do out that some to the has drug the pricing I we we answer that the the in -- a as think exemption well plasma team, and

things the laboratories, that testing in continue in And altruistic and infectious have laboratory costs make all be to we implement. dealing the with we rise. plasma. practices And good to pandemics human to like and donate with and good grow need global cannot diseases and manufacturing, beings of You think I additional the come and

the that I frankly, think there are plasma look margin companies, that that of regulators understand of costs that different additional of profile quite there additional pharma. and are it's some when And pressures. than the you at

plasma is the So once it's negotiations into a veins Medicaid and we're in does right from of help good most going excluding very, Every pleased. thing where while some Medicare very government keep to to patients stuff our it's we product and do the the think needed. price

Thanks for Elliot. the questions,

question Cantor. next with Kristen Our Kluska comes from

line open. Your is

Thanks Hi, for strong and on my taking another good questions congrats everyone. afternoon, quarter.

guidance? your and to for product current adjust these does some forecasting. or as So could But give trends provided approach few these guidance that in your And, quarters you example, of about talk individual I revenue your lower you end profitability relates on that you've need appreciate next your to the would internal bases? what this conservative see similar you of assume it forecasts growth months to

-- be when of But continues oiled If Sure, surprised. to really doing is proving our market No, job. it, mouth ASCENIV to supply see seen. and to utilization, does We again, sales unlocking I surprised very as pleased. We're guidance? to think chain, said, by alluded the are pleased? word Are our medical commercial [indiscernible] take approach for maybe the it Kristen, alluded is results? education well that we at this great their successful. that Are accelerate we grassroots thanks not certainly some point, even I in we performing growth the it. the think in We're medical we've our I'll the way we and question. team to of We're challenges. we're messaging And campaigns adjust the very, off start BIVIGAM and of continue utilization and growth me we're and faced with after well. very to the profitability We to economic what and penetration

could I've quarter. we got the So glimpse see into I third a think another,

into demand strong see third quarter. to continue We trends the

we the think that the as potential I year, we unfolds. close this year will course, revisit as of we accelerate and the continues, profitability to as guidance formally is in to end a there get that believe timeline, due certainly

in see it's think we internal things, said demand the if well, have our One I is prepared into profitability is something and expectations. those the to don't we of accelerate more year. set we faster in operate, more the And ASCENIV we macroeconomic we to really, much growing don't becoming. demand statement that very feel our the of we meet it pressures the increased QX' And certainly on trends here, that working from visible custom corners, plant do inventory bring even best continue That's if to of We've, have the I the our the the whatever XX. jobs even just we're doesn't for around really trying want I day, make. that the the trends. channel substantially for what this where process fall then end to we than same production track matter expectations profitability, we before one sky love see our plant plasma process confident thing the that pretty we about we're certainly or And on

the class. BIVIGAM Of batch want make all BIVIGAM RSV We bring we if over is a make we do to plasma. want bring the over to So to ASCENIV,

And able worth life meet investors to in of assure Brian There's to the allow having solid don't we want additional earlier, be. don't month growing have we've to think can And there mentioned this BIVIGAM in swap we street. meet it expectations drug a more some we mentioned Brian out incentives. that will of year coupled that been inventory. And hand demand shelf caught to that trends I $XXX amount million for Producing I us short. the product So a will inventory we our be that the standard think the that extension. of to on batches XX

on it. to Kristen. But good the am and very So continued today, commit I the certainly committing we our and I quarterly patients, promises delivering about feel can't prescribers stockholders. growth to But the

continue historically that think XXXX ramp have that to produce close we've milligrams of a we production to XX%, just liter XXXX, will up couple things the we a production plant. we're Presently, And be to timeframe. XXX,XXX that X XX% in as I about said to plant and add that to at

plant, as continue all testing at gross realize turns, the So increasing inventory that to results, lead perhaps capital, improved margin. improved efficiencies we and will to expediting improved working

narrow losses. we're obviously, continue to improve going things, closely and inventory margins continue very to improved So to business to the efficiencies turns these things other in monitor and net

Thank you. Appreciate that.

attributed year factors? combination it So now ASCENIV of ongoing. starts? had per is two of you've Are you've also just number to momentum Or increased? has successful that is that a average patients the of and a Or doses really just is highlighted new couple these of quarters seeing with you the a lot the growth

is answer The yes.

going they've than IG comorbidities. seeing they Most And are a their have are patients therapy, less standard patients. Kristen, optimized. of other had complications because on and on We set success is

same off if on the differentiated what are I institutions on some is their set a in amongst sticky. we're see very, outcomes We're and a of patients. all little stay seeing patient the and believe And and that tell are you world year. second starting the around here. out population, in that in we patients that you to to we're we're existing very existing And are number of that up I seeing couple of a certainly a making of now product long and secondary And the patients. of making is drug. patients IG on is a it's just that we're that of that a of And there is deficient the immune the very building well travelling seeing to time. growth Typically, we regional this business doing again which we're We truly, consistent do proud couple new standard that meetings a quality utilization clinicians the very, institutions their you tend and adding with drug, time. in opening prescribers these at primary we feel switching message was on that of prescribers, deficient on meeting labeled bit And therapy, period of use. our therapy a life truly immune remaining patients and patients, KOL. we're therapy have difference of one can So of that's for indicated eyes A for medical

these a the continued papers of going have are to very to publications domain. and our And high differentiated to very, of that, offering good IG from product titers feel pool a patents IVIG. the we're antibodies. And donors a scientific their quantify in not with and a to that specifically, feel that's they panel enter that while have have going and We on And plasma can't continue opportunity as outcomes in increasing see to problem donors shown a the we the where levels for with have PI So in tested or now other that [indiscernible] we have increasing are our that try domain, I RSV patient viral patients. into provide can They I accelerated you public that to today, pull-through that the patient on doctors the we've amount just can tell the sufficient respiratory another trends manufactured to derived that's now frequency. battery pathogens. of to of their demand that's hold something we're

respond with the you have bucket sense market just simply do or of these they a percent comorbidities IG of And of kind don't they general ballpark into have of having Okay. fits either well? complications other IVIG this or what

immune deficient primary about XX% is -- for we in figure the of immunodeficient market. immunoglobulin the that in market so Yes, population,

grams XXX are these annually, primary are million product it immune about call there used models, risk. say on million immune patient We probably population. So XX% XX say Based patients deficiency patients. our were secondary to of grams typically roughly internal are deficient and the higher so XXX,XXX of primary using XX%

time. have So antibiotics comorbidities, They chronic conditions. chronic long persistent on have infections, they they periods have of lung for they're underlying

look to you that comorbidities risk look try would website, factors at that the to some call asceniv.com So subjected population when at of if this the out we types the be patient of and and really we subset,

our the that IG and It's in market. the to at dosing look -- you XX,XXX this a modest top drive this, incentive profitability. helping the penetration utilization company, really target you patients of revenue marketplace and it's XX,XXX line you are And call see when to at look deliver substantial of to will into it,

you. Thank Great.

over further for are call the like closing remarks. to There to no Adam I'd turn any back questions. Grossman

everybody time. attention you Thank Sure. for and your

your continued Sorry to for good great and difficulties immune Have in allowing appreciate patients. the make help to support a we us these products compromised technical afternoon.

program. This concludes great the a Have day.