ADMA Biologics Inc (ADMA)

[mick]

$ADMA [-chart]static.seekingalpha.com/uploads/2020/8/23/4562691-15982152370618997.png[/chart]



https://seekingalpha.com/article/4370328-adma-biologics-is-bargain-again-after-recent-sell-off

Figure 4: ADMA Financial Highlights (source: ADMA’s August 2020 Corporate Presentation)

ADMA’s current burn rate of about $80 million per year suggests that the company will need at least one more raise by early next year,
but after that product sales will hopefully have grown to a level where they can sustain the business without further dilution.

Analyst estimates back this up, suggesting the company will show positive cash-flow in 2022.

ADMA’s long-term debt level is significant at just under $100 million
in total, and it’s worth noting that all of it appears to mature in 2022.

ADMA will likely have positive cash-flow by then, but not enough of it to pay off that much debt. Something to watch for will be whether ADMA can find a non-dilutive way to raise some additional cash or restructure its debt by then.

An obvious risk for the company though is that if sales disappoint or costs of the infrastructure build-out overrun substantially,
ADMA could have to rely on further dilutive cash raises to keep its business afloat and pay down its debt.

Such a move could result in big losses for current shareholders.

ADMA is only trading at about 5x current sales, but analysts agree with the company that ADMA is in for substantial revenue growth over the next few years.