ADMA Biologics Inc

Good afternoon and welcome to the ADMA Biologics first quarter 2022 financial results and corporate update conference call on Wednesday, May 11, 2022. 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'd like to introduce Skyla Bloom, Senior Director, 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 first quarter of 2022 and recent corporate updates. I'm joined today by Adam Grossman, President and Chief Executive Officer, and Brian Linz, 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 then Brian will provide an overview of the company's first quarter 2022 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for your questions. Earlier today, we issued a press release detailing the first quarter of 2022 financial results and summarized certain achievements and 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 represents the company's intentions, expectations, or beliefs concerning future events, which constitute forward-looking statements for the purposes of the safe harbor of 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 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, as well as the risk factors section of our quarterly report on Form 10-Q for the quarter ended March 31, 2022, 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 commercial performance and operational execution for ADMA's intravenous immunoglobulin product portfolios has exceeded internal forecasts and expectations. In the first quarter, we generated $29.1 million in total revenues, which translates to 81% growth compared to the first quarter of 2021, and continues the company's quarter-over-quarter growth as we advance towards profitability. The strong start to the year serves as the basis for increasing our 2022 total revenue target to $130 million or more, upwardly revised from the previously provided target of $125 million. As we initially highlighted during last quarter's call, the growth in our higher margin product portfolio, notably with Ascentive, is exceeding our internal expectations and catalyzing us to favorably rethink the product's potential contribution within our overall product mix. In response to increased demand during the first quarter of 2022, ADMA's nimble manufacturing platform allowed us to shift our production priorities and increase our production schedule to include significantly more incentive batches than previously planned for the first half of 2022. From a revenue perspective, we believe incentive will now contribute at a level that we previously did not forecast materializing prior to the second half of 2023 and forward timeframes. We believe the accelerated Ascentive adoption is being driven by ADMA's successful product positioning, commercial messaging, and medical education campaigns, which are focused on expanding the brand's awareness. As we approach the third year of Ascentive's commercial availability, we believe from market feedback within the IG landscape that our organization and the ADMA Biologics name are now synonymous with trust and confidence with physicians, providers, and patients. Additionally of note, we have seen the elevated demand trends for incentives sustained throughout April and into May, which we believe add weight to the view that the product's upside will prove durable moving forward. We believe incentive revenue growth is being driven by both expanded breadth of providers as well as increased depth within existing institutions on a same store basis. We are encouraged by these drivers. All told, we believe that we are in the early stages of building a significantly sized and profitable franchise with Ascentive, which we believe is particularly valuable in the context of patent protection extending through the mid-2030s. We expect to communicate more good news about Ascentive as the product's real-world body of evidence continues to build and commercial experience and growth trends evolve. Turning to ViviGAMP, the product continues to penetrate and gain market share in the growing U.S. immunoglobulin market. We are pleased with product-specific growth and execution. Notwithstanding our increased enthusiasm for Ascentive, our confidence in Vivigam's ongoing and peak revenue potential is unwavering and fully intact. As we have throughout the pandemic, ADMA remains committed to delivering the continuity of patient care. Our strong normal source and RSV plasma supply inventories, which are included in the total inventories of $139 million recorded at the end of the first quarter, are anticipated to support all upwardly revised revenue forecasts on an ongoing basis across our immunoglobulin portfolio. This robust plasma supply position is the result of us actively securing third-party plasma supply contracts, as well as the execution by our biocenters team in rapidly expanding our internal plasma collection center network. At present, in our biocenter segment, we have 10 plasma collection centers under our corporate umbrella. Five centers are FDA licensed. Two additional collection centers are operational in collecting plasma, and three centers are in various stages of construction. We remain on track to have all 10 plasma collection centers FDA licensed by the end of next year, at which point we anticipate having substantial plasma supply self-sufficiency. At present, we are encouraged with our donor foot traffic and collection volumes, which are now considerably exceeding our organization's pre-pandemic levels. These accomplishments could not have been possible without the dedication and focus of ADMA staff, leadership, and advisors. Our organization's collective vision and dedication to establish complete end-to-end control of our operations is now our reality. Thank you for your dedication and hard work in achieving our corporate goals. and delivering on our commitments to these patients, prescribers, and stockholders to whom we have made these promises. We commend the entire ADMA team for your remarkable efforts focused on improving healthcare for patients who we know are counting on us. In a moment, I'd like to turn the call to Brian for an in-depth review of the financial metrics and other operating achievements realized during the quarter. But before I do, I'd like to mention that we believe our improved liquidity position resulting from the first quarter of 2022 HAPEN debt refinancing, will enable the company to execute on its operating strategy while continuing to explore strategic alternatives to maximize shareholder value. The exploration of strategic opportunities is ongoing and progressing, and it remains a top corporate priority for the company. With that said, I'd now like to turn the call over to Brian for a review of the first quarter 2022 financials.