ADMA Biologics, Inc. (ADMA): A Bull Case Theory

We came across a bullish thesis on ADMA Biologics, Inc. on Stockmindsweb’s YouTube Channel. In this article, we will summarize the bulls’ thesis on ADMA. ADMA Biologics, Inc.'s share was trading at $17.70 as of January 13th. ADMA’s trailing and forward P/E were 20.58 and 28.99 respectively according to Yahoo Finance.

ADMA Biologics is positioned as a differentiated biotech company operating in a sector often marked by volatility and long development timelines, yet it already delivers meaningful revenue growth and profitability. The company specializes in plasma-derived immunoglobulin therapies for patients with immune deficiencies and an increased risk of infection, and operates a fully vertically integrated model spanning plasma collection through manufacturing. This structure supports supply reliability, scalability, and margin expansion, giving ADMA a competitive edge as demand for immunoglobulin therapies continues to rise. Its FDA approved products, including Asceniv, anchor a business that has transitioned into a high margin commercial stage.

Financial performance in Q3 2025 reinforced this positioning, with revenue reaching $134.2 million, up 12% year over year, and trailing 12 month revenue rising nearly 28% to $488.6 million. Profitability expanded sharply, with TTM EPS up more than 200%, supported by gross margins above 54%, strong returns on equity, and low leverage. While free cash flow per share declined year over year, overall margins and balance sheet strength remain solid. Over the past five years, revenue has compounded at an exceptional rate, and management has raised full year 2025 revenue guidance to at least $510 million, with a clear line of sight toward $630 million in 2026 and over $1.1 billion by 2029.

A key catalyst is FDA approval of yield enhanced production, which increases output per unit of plasma and is expected to drive sustained gross margin expansion, potentially toward 70% beginning in 2026. Additional upside exists through pipeline optionality, including a preclinical hyperimmune globulin candidate that could generate significant high-margin revenue. Risks remain, particularly product concentration, competitive pressure from larger players, and regulatory oversight, but overall ADMA represents a compelling growth investment supported by durable fundamentals, expanding profitability, and long term structural advantages.

Previously, we covered a bullish thesis on Coherus BioSciences, Inc. (CHRS) by Steve Wagner in March 2025, which highlighted the company’s oncology pivot, Loqtorzi adoption, balance sheet strength, and pipeline driven upside. CHRS’s stock price has appreciated by approximately 61.90% since our coverage. This is because key catalysts and pipeline for Jupiter– 02 potential remain intact. Stockmindsweb shares a similar thesis but emphasizes near-term profitability, vertical integration, and margin expansion.

ADMA Biologics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held ADMA at the end of the third quarter which was 33 in the previous quarter. While we acknowledge the potential of ADMA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.