ADMA Biologics rebounds 15% after countering short-seller's damning report
ADMA Biologics saw its shares jump 15% at Friday's market open after a steep 27% drop earlier in the week. The recovery followed a detailed response to allegations made by short-seller Culper Research. Investors reacted as the company released fresh data on its flagship product, ASCENIV. The trouble began when Culper Research published a critical report, prompting a sharp sell-off in ADMA's stock. By Thursday, brokerage Cantor Fitzgerald had downgraded the company from Overweight to Neutral, citing an inadequate initial rebuttal to the claims.
ADMA fought back with a comprehensive update on Friday. It provided distributor inventory levels and end-customer demand figures for ASCENIV, its key treatment for immunocompromised patients. The data showed demand rising steadily over two years, with distributor stockpiles falling from 84 to 48 days above safety levels by March 2026. The company also clarified ASCENIV's market position. Unlike standard IVIG therapies, it serves as a late-line option for patients who fail to respond to conventional treatments. Its unique plasma screening process and inclusion of RSV antibodies allow for premium pricing in a niche category. ADMA argued that short-seller claims lacked direct comparative studies. Supporting its defence, ADMA confirmed that an audit by a Big Four accounting firm found no issues with its internal controls. The move helped shift investor sentiment, though shares remain far below pre-report levels. There is speculation that Culper Research may issue a follow-up statement, potentially reigniting pressure on the stock.
ADMA's 15% rebound reflects investor confidence in its latest data and rebuttal. The company's detailed figures on ASCENIV demand and inventory levels provided a clearer picture of its market performance. However, the stock has yet to fully recover, and further statements from Culper Research could influence trading in the coming days.
