ADMA Biologics Inc

We'll be right back. At this time, I'd like to introduce Skylar Bloom, Senior Director of Business Development 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 fourth quarter and full year 2021. In recent corporate updates, I'm joined today by Adam Grossman, President and Chief Executive Officer, and Brian Lenz, Executive Vice President, Chief Financial Officer, and General Manager of ADMA Biocenters. During today's call, Adam will provide some introductory comments and provide an update on corporate progress, and Brian will provide an overview of the company's fourth quarter and full year 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 fourth quarter and full year 2021 financial results and summarized certain fourth quarter achievements in recent corporate updates including $175 million debt refinance with Hathen Capital. 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 such statements, except as required by the federal securities laws. We refer you to the disclosure notice section in our earnings release we issued today in the risk factors section of our 2021 annual report on Form 10-K for the year ended December 31st, 2021, for discussion of important factors that could cause actual results to differ materially from these forward-looking statements. With that, I would now like to 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 all remain healthy and safe. Our 2021 operating and financial achievements mark a pivotal point in the business's evolution towards a profit-oriented growth organization. During the year, we delivered on our financial objectives, including 92% year-over-year revenue growth, and importantly, took assertive measures to shore up our financing and cash positions, notably with today's announced $175 million debt refinancing with AFIN, which we will address in more detail during this call. The year was capped by delivering fourth quarter revenues of $26.4 million, consistent with our previously disclosed expectation of annualizing at a rate of more than $100 million. The generation of first-time gross profitability for the full year 2021 driven by outsized assentive adoption in our overall product mix, the growth of our plasma collection center network, and the successful conclusion of the supply chain robustness initiatives undertaken at the Boca Raton, Florida, manufacturing facility. Of particular note, we are encouraged by the recent and continued utilization uptick for assentive, We believe our marketing, sales, and medical education efforts are effectively catalyzing adoption, and the product's unique manufacturing methods, antibody profile, and commercial value proposition are resonating well with physicians, providers, and patients. Brian will discuss the gross profitability implications resulting from the increasing adoption of Ascendant. But from our vantage point, we are seeing signals that the product may potentially exceed our previous expectations. Moving on to the supply chain, ADMA's investments towards securing raw material plasma supply and expanding its biocenters plasma collection center network enabled the company to maintain its production plans and grow its customer base throughout the pandemic and 2021. We are proud to have delivered on our promise of continuity of patient care during this period of plasma supply dislocation, impacting the broader immunoglobulin market. And we believe in doing so, we have solidified ADMA's emerging reputation as a reliable and growing immune globulin supplier in the United States. The recent approval of ADMA's fifth plasma collection center advances the company towards its goal of having 10 FDA-approved centers before the end of next year. which we believe will allow the company to potentially reach plasma supply self-sufficiency by year-end 2023. ADMA's growing internal plasma collections are currently being supplemented by third-party supply contracts, as well as the yield enhancements resulting from the implementation of the Humanetics Nexus Persona system. The successful expansion and operating results of ADMA's plasma collection network further solidifies our company's pathway towards profitability. Looking to the remainder of 2022, and based upon current data, we now anticipate total annual revenues to exceed $125 million, representing more than a 50 percent year-over-year growth rate compared to 2021. From a margin perspective, we anticipate gross profits will continue to increase and net losses will narrow as costs and operating efficiencies begin materializing as a result of our supply chain enhancement initiatives. We believe the commercial, regulatory, and operational milestones achieved during 2021 will serve as a strong foundation for ADMA to advance towards anticipated profitability no later than the first quarter of 2024. We expect the substantial vertical integration achieved to date will position our company to execute through even the most challenging operating backdrops. and excel even further in a more normalized environment. We thank the entire ADMA Biologics and ADMA BioCenters teams for their extraordinary efforts in keeping true to our mission of providing quality products to patients. Finally, we'd like to thank the HAFEM team for their hard work in completing their robust diligence process and closing on the debt refinancing with us. The plasma industry is global, and we believe Hathen's XUS operations and asset base makes for an ideal partner to enable ADMA's continued exploration of strategic alternatives and evaluation of creating business development opportunities. Brian will discuss the use of proceeds in more detail, but we are pleased to be able to extend the interest-only period by three years to March of 2027, significantly increase non-diluted funding for our business, and reduce ADMA's overall cost of capital. We believe the improved liquidity position resulting from the debt refinancing will enable the company to execute on its operating strategy while continuing to explore strategic alternatives with our advisors, Morgan Stanley. We believe this is an important step towards unlocking shareholder value. We'd also like to thank the Perceptive Advisors credit team for their support these past few years and the equity team for their continued investment and confidence in ADMA's forward-looking outlook. All of our organization's accomplishments across our business segments could not have been possible without the dedication and focus of ADMA staff, leadership, and advisors. We commend the entire team for their remarkable efforts focused on the continuity of care for 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 fourth quarter and full year 2021 financials.