HCW starts ADMA Biologics at buy; PT $17

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H.C. Wainwright initiated coverage of ADMA Biologics (NASDAQ:ADMA) with a “buy” rating and $17 price target. The stock closed at $5.03 on Oct. 29.

Since its IPO in 2013, the company's focus has been on bringing a high-value, potent intravenous immunoglobulin (IVIG) product, RI-002 to the $5-billion U.S. market and addressing that segment of patients that need a more potent IVIG product, writes analyst Jason Kolbert.

“We acknowledge that the road to get here has had some bumps, specifically with ADMA's contract manufacturer, Biotest,” he added.

Mr. Kolbert said ADMA's CEO, who has spent his life in the IVIG marketplace, went out and acquired Biotest's manufacturing plant, which makes ADMA's IVIG, RI-002, as well as Biotest's IVIG products BIVIGAM and an HBV prophylaxis product (Nabi-HB).

“ADMA has, in our opinion, transformed itself into a fully integrated company with multiple products and a manufacturing operation, all of which should support its original mission, to commercialize RI-002,” he added.

Mr. Kolbert said the company’s next significant event is on Dec. 18, 2018, which is the PDUFA date for the Prior Approval Supplement filed in June of this year, requesting permission to resume production of BIVIGAM. “We expect a positive outcome,” he added.

Stephen Kilmer