ADMA Biologics Inc

Good afternoon, and welcome to the ADMA Biologics Third Quarter 2021 Financial Results and Corporate Update Conference Call on Wednesday, November 10, 2021. At this time, all participants are in a listen-only mode. There will be a question-and-answer session to follow. Please be advised that this call is being recorded at the company's request and will be available on the company's website approximately two hours following the end of the call. At this time, I would like to introduce Skylar Bloom, Director of Investor Relations and Corporate Strategy at Adma Biologics. Please go ahead.

Welcome, everyone, and thank you for joining us this afternoon to discuss Adma Biologics financial results for the third quarter of 2021 and recent corporate updates. I'm joined today by Adam Grossman, President and Chief Executive Officer, and Brian Lind, Executive Vice President and Chief Financial Officer. During today's call, Adam will provide some introductory comments and provide an update on corporate progress, and then Brian will provide an overview of the company's third quarter 2021 financial results. Finally, Adam will then provide some brief summary remarks before opening the call up for questions. Earlier today, we issued a press release detailing the third quarter 2021 financial results and summarized certain third quarter achievements in recent corporate updates. The release is available on our website at www.admobiologics.com. Before we begin our formal comments, I'll remind you that we will be making forward-looking assertions during today's call that represent the company's intentions, expectations, or beliefs concerning future events which constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to factors, risks, and uncertainties, such as those detailed in today's press release announcing this call and in our filings with the SEC, which may cause actual results to differ materially from the results expressed or implied by such statements. In addition, any forward-looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligations to update any such statement except as required by the federal securities laws. We refer you to the disclosure notice section in our earnings release we issued today and the risk factors section of our 2020 annual report on Form 10-K and our quarterly report on Form 10-Q for the third quarter ended September 30th, 2021 for discussion of important factors that could cause actual results to differ materially from these forward-looking statements. With that, I'd like to now turn the call over to Adam Grossman. Adam?

Thank you, Skylar. Good afternoon, everyone, and thank you for joining us on today's call. We hope you remain healthy and safe. Third quarter 2021 marks another transformational period for ADMA Biologics and establishes a new baseline from which the company expects continued growth and value creation. During the quarter, we grew revenues by more than 100% year over year, $20.7 million. Even further, we realized a key inflection point for our business as we generated positive gross profit for the first time in our company's history. Looking to the remainder of 2021 and beyond, we anticipate gross profits increasing and net losses narrowing as costs and operating efficiencies begin to materialize as a result of receiving FDA approvals for both the expanded 4,400-liter Vivigan production scale, and our aseptic fill finish machine and its related processes. The multi-year remediation efforts and investments into the Boca Raton manufacturing facility, coupled with our BioCenter's plasma collection business unit, are now beginning to yield tailwinds for our operating results, which we anticipate will improve at an accelerating pace in the periods ahead. Our organization, through its operational executions, has clearly demonstrated strength and resilience and we believe is well positioned to meet or exceed all our financial and operating targets and unlock value for stockholders. During the quarter, we took measures to address the longstanding financing overhang that has historically weighed on ADMA's valuation. In October, we significantly strengthened our cash position with the successful closing of an underwritten public equity offering of $57.5 million in gross proceeds. When taken into consideration with our active engagement with prospective debt lenders, we believe there is potential to substantially fully fund our business for value creation and profitability potentially no later than the first quarter of 2024. Turning to ADMA BioCenters, The segment continues to excel and we believe is on track to have 10 or more facilities FDA approved by year end 2023. At this level, we will be well positioned to ensure continuity of commercial drug product supply for the company's immune globulin portfolio. With the rapid expansion of our plasma collection center network, in addition to the yield enhancements we are currently realizing from the implementation of humanetics persona technology, we believe the company will be well enabled to establish source plasma supply self-sufficiency in the coming years at a rapid pace. From an asset value perspective, the valuation of fully licensed plasma collection centers continues to appreciate with recent acquisitions as industry demands for finished goods continues to outpace raw material supply. ADMA's growing inventories of approximately $114 million at the end of the third quarter further validates the company's ability to achieve near-term and longer-term revenue growth targets. The commercial, regulatory, and operational milestones achieved during 2021 firmly establish ADMA as a reliable, vertically integrated, CGMP-compliant manufacturer capable of successfully competing in the robust U.S. immune globulin market. a market which is anticipated to exceed $17 billion in annual sales by 2027. Although we continue to reiterate all previously communicated strategic and financial objectives, we do note the potential for upside to current revenue and profitability targets as a result of the FDA approval of our in-house still-finished production operations. We believe that the majority of substantial capital investments into our infrastructure are now behind us. The pathway to profitability is well defined and rapidly approaching. Looking forward, ADMA anticipates continued commercial execution and remains committed to unlocking the yet to be realized fair value that our asset base now commands. These accomplishments could not have been possible without the dedication and focus of ADMA staff, leadership, and advisors. We commend the entire team for their extraordinary efforts focused on improving healthcare for U.S. patients who we know are counting on us. With that said, I'd now like to turn the call over to Brian for a review of the third quarter 2021 financials.