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Biopharmaceutical Insider Buys Shares of ADMA Biologics

Adam Grossman (Insider Trades), CEO and president of ADMA Biologics Inc. (ADMA), bought 2,250 shares of the company on Dec. 2. The average price per share was $9.15 for a total transaction cost of $20.587. ADMA Biologics is a late-stage biopharmaceutical company that develops, manufactures and intends to commercialize specialty plasma-based biologics for treatment and prevention of certain infectious diseases. The company has a market cap of $98.28 million and a P/S ratio of 16.12.

The number of insider buys increased from seven in 2013 to 13 this year. Although the number of insider buys increased, the volume of insider buys per year decreased from 524,854 to 36,761 shares in the same period. Grossman bought 79,240 shares of the company in 18 transactions since 2013, with his earliest buy increasing in value by about 5% since then. ADMA CFO Brian Lenz (Insider Trades) bought 1,000 shares of the company at an average per share price of $9.15 on Dec. 2. Like Grossman, Lenz's earliest transaction with the company in 2013 increased by about 5% in value since then. There were no insider sales of the company from 2013 to 2015, despite a peak in month-end price at $12.37 per share on Nov. 5. For more information about insider trades with ADMA, click here.


The company reported an increase in revenue from $1.366 million in the third quarter of 2014, to $1.852 million in the third quarter of 2015. Net loss also increased during this period of time, from $3.385 million, or 36 cents per share, to $5.102 million, or 48 cents per share. Consistent with third quarter comparisons, annual net income follows a decreasing trend, while annual net revenue follows an increasing trend. On Sept. 21, the company announced that the FDA accepted the company's Biologics License Application for review. The application was for RI-002, a treatment which displayed positive results in a Phase III study with primary immunodeficiency participants. The results also showed no serious bacterial infections reported at the endpoint of disease, which more than meets the requirement by the FDA of less than or equal to one serious bacterial infection per patient-year. ADMA also received approval by the FDA to open a second plasma center in Marietta, Georgia. Grossman commented that owning plasma collection centers will allow ADMA to be "partially vertically integrated for a portion of its raw material supply for RI-002."


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This article first appeared on GuruFocus.