ADMA Biologics Inc

Good afternoon and welcome to the ADMA Biologics second quarter 2026 financial results and business update conference call on Wednesday, August 5th, 2026. 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 the company. Please go ahead.

Welcome, everyone, and thank you for joining us this afternoon to discuss Admiral Biologics financial results for the second quarter of 2026 and recent corporate updates. I'm joined today by Adam Grossman, our President and Chief Executive Officer, Terry Kohler, our Chief Financial Officer and Treasurer. During today's call, Adam will provide some introductory comments and provide an update on corporate progress, and Terry will provide an overview of the company's second quarter 2026 financial results. Finally, Adam will then provide some brief summary remarks before opening up the call for questions. Earlier today, we issued a press release detailing the second quarter 2026 financial results and summarized certain achievements in recent corporate updates. The release is available on our website at www.adminbiologics.com. Before we begin our formal comments, I'll remind you that we will be making forward-looking statements 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 statements 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 quarterly report on Form 10-Q for the quarter ended June 30th, 2026 for discussion of important factors that could cause actual results to differ materially from those forward-looking statements. Please note that the discussion on today's call includes certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. A reconciliation of these non-GAAP financial measures to the most directly comparable gap metric is available in our earnings release, which is available on our website at www.admobiologics.com. With that, I would like to now turn the call over to Adam Grossman. Adam?

Good afternoon, everyone, and thank you for joining us. Our second quarter results reflect strong execution across the business and demonstrate the power of Ascentive's long-term growth trajectory. During the quarter, we delivered continued financial progress, strong cash generation, and improving commercial momentum, while incentive utilization strengthened throughout the period. Ascentive demand accelerated during the second quarter, and June delivered the strongest sequential utilization growth we have experienced since the first half of 2024. This momentum was driven by increasing physician adoption, broader provider engagement, New Patient Starts, and Higher Patient Utilization. As we have discussed previously, distributor reported end user utilization remains our leading indicator of continued revenue growth. Based on the end market utilization data we continuously review, we believe current incentive inventory levels remain appropriate and are consistent with underlying demand. Importantly, incentive utilization strengthened progressively throughout the quarter across our commercial network, reinforcing our view that Ascentiv remains early in its penetration of the later line refractory primary immunodeficiency market. While we continue to see competitive pressures in the US immunoglobulin market, Divigam demand stabilized during the quarter, resulting in sequential improvements in both utilization and revenue. Increased supply and competitive pricing pressures remain within the US standard immune globulin market. And we continue to maintain our disciplined approach that prioritizes durable, profitable growth over unsustainable discounting and other incentives. Importantly, despite this evolving standard IG backdrop, Ascentive continued to outperform and utilization expanded. Increasing physician adoption, new patient starts, and record utilization further demonstrate the relative insulation provided by Ascentive's differentiated product profile and its positioning among later line refractory and medically complex primary immunodeficiency patients. One of the most important developments during the quarter was the continued expansion of Ascentive's real-world evidence base. We've submitted an abstract for presentation at the 2026 American College of Allergy, Asthma, and Immunology Annual Scientific Meeting, highlighting results from a large, real-world health outcomes and health resource utilization analysis of 127 medically complex primary immunodeficiency patients, the majority of whom had previously received other immunoglobulin replacement therapies prior to switching to Ascentive. The analysis compared patient outcomes and healthcare resource utilization during the 12 months before incentive initiation with the 12 months following administration. Following initiation of incentive treatment, patients experienced statistically significant reductions in infection-related hospitalizations, outpatient healthcare utilization, oral antibiotic use and corticosteroid use, The proportion of patients experiencing infection-related emergency room visits also declined. We believe these results are especially meaningful because they were observed in a medically complex population with significant baseline disease burden and healthcare resource utilization. The study's cohort included patients with chronic pulmonary and respiratory comorbidities, prolonged use of antibiotics or corticosteroids, and prior infection-related hospitalizations or emergency room utilization. We believe these findings further support Ascentive's differentiated clinical profile and growing body of real-world evidence. These findings also reinforce our view of Ascentive's positioning as a later line therapy for PI patients whose disease remains inadequately controlled and provides additional support for continued physician adoption, patient access and payer engagement. We believe these findings complement Ascentive's existing broad commercial payer coverage and could further strengthen commercial payer access. More broadly, we feel payer willingness to engage in these discussions reflects growing recognition of Ascentive's differentiated value proposition and the significant clinical and financial burden associated with recurrent infections, hospitalizations, and other healthcare utilization among medically complex patients. Operationally, we believe we are well positioned to support the continued revenue growth. Our yield-enhanced manufacturing process remains embedded in commercial production and continues to support product availability, manufacturing efficiency, and margin performance. Our diversified plasma sourcing strategy provides reliable access to high-titer plasma and we believe our current supply infrastructure is sufficient to support anticipated demand. We are confident our financial position also remains a significant strategic advantage. Strong profitability and cash generation provide us with substantial flexibility to invest in commercial expansion, manufacturing initiatives and our capital efficient pipeline while continuing to execute on our capital allocation priorities. During the quarter, we repurchased approximately 7.1 million shares of common stock under our previously authorized share repurchase program. These repurchases were funded through internally generated cash flow, and we continue to believe that returning capital to stockholders at attractive values represents an effective use of capital while preserving meaningful financial flexibility. We remain on track to complete our previously stated $200 million or more 2026 share repurchase target. Looking ahead, we continue to see multiple expected durable drivers of incentive growth. These include increasing patient utilization, expanding physician adoption, new patient starts, broader prescriber engagement, growing payer access, and an expanding body of clinical and real-world evidence. Accordingly, we are reiterating our full year 2026 financial guidance and remain confident in our ability to meet or exceed those expectations. Beyond Ascentive, we continue to advance SG-001 through a capital efficient development pathway. We are progressing with plasma collection optimization, potency assay development, and additional preclinical activities supporting planned CGMP conformance log production during the second half of 2026. It is well documented in the published literature that a significant unmet medical need exists despite current strep pneumonia prevention recommendations. Immunocompromised patients remain at a disproportionately high risk for severe pneumococcal disease. Underlying impairments in functional immunity limit vaccine mediated protection, leaving a persistent need for alternative targeted preventive strategies in the patients at greatest risk. We believe SG-001 has the potential to mitigate the disease burden and are encouraged by the preclinical studies conducted to date. These activities are intended to support the anticipated submission of our pre-IND meeting package to the FDA by year end. Encouraging preclinical findings generated to date continue to support our belief that SGO01 could address a meaningful unmet medical need and represent a substantial long-term growth opportunity for ADMA. If approved, we believe SGO01 represents a $300 to $500 million annual revenue opportunity, leveraging ADMA's existing manufacturing capabilities, and commercial infrastructure could support an efficient development program and potentially expeditious commercial launch. Overall, we believe ADMA enters the second half of 2026 from a position of increasing strength. Ascent of demand is accelerating and differentiated value proposition is becoming increasingly well supported. Fibig and demand is stabilizing in the face of increased competitive pressures and we believe our manufacturing and plasma sourcing platforms are positioned to support sustained growth and ensure the continuity of care for patients. Our business is performing across all facets. We are making progress with our stated corporate goals and objectives and we continue to generate significant cash. Before I turn the call over to Terry, I would like to recognize and thank the entire ADMA team for their continued dedication, efforts and execution. Our commitment to patience, operational discipline, and focus on excellence remain central to our performance and position the company for sustained long-term success. Terry?