ADMA Biologics, Inc. (NASDAQ:ADMA) Q4 2022 Earnings Call Transcript

We’re going to start producing ASCENIV at the larger scale. So we should see product rolling off the line 7 to 10 months after that. We feel real good about this. I mean this is just us growing up as an organization. So it’s growing up as a manufacturing organization. I mean we’ve made hundreds of batches now at the 4,400 liter scale for BIVIGAM. This is what our production team likes to do. This is what our supply chain folks and our manufacturing team likes to do, and they’re doing it well. So I’m very, very proud of the team for doing this. Appreciate the agency, FDA’s review of our submission. And I think that this is just the sign of our company growing up as a more mature manufacturing organization. Regarding pediatric percentage of PI patients, I don’t have that information right in front of me.

So I reserve the right to follow up, Anthony, and you can publish it in a note. Look, we think it’s a very nice thing to have in our label. It’s a federal requirement to run and fulfill the pediatric study requirements. So we hope that shareholders see that we don’t shirk our responsibility. We take them seriously. We’ve completed the study for BIVIGAM. The pediatric study for ASCENIV is currently enrolling. Do I think that it helps add more patients to drug therapy? Maybe. I think that patients who need IVIG — are there pediatric patients on our products? I would say, I believe that there are, yes. I think that it just helps. I think that it puts us at parity with a number of our competitor products. And we feel very, very good about the potential to expand the label for BIVIGAM as that study has been fully completed and we’ve submitted our regulatory packet to the agency.

Operator: . And our next question comes from Kristen Kluska from Cantor. And our next question comes from Elliot Wilbur from Raymond James.

Elliot Wilbur: Can you hear me all right?

Adam Grossman: Elliot, we hear you loud and clear.

Elliot Wilbur: Okay. Okay. A little bit of a challenge today getting into queue. Maybe I could start with a couple of questions for Brian, and just specifically thinking about expectations of positive EBITDA no later than the second half. I just wanted to confirm that the EBITDA metric that you’re referencing is, in fact, an adjusted EBITDA number and would exclude stock comp expense. And maybe within that, if you could just give us a rough ballpark number of what you’re thinking about in terms of depreciation expense. I think it was like $1.7 million last quarter. I don’t know if that’s just a good run rate to think about over the course of 2023 or not, but some color there, please.

Brian Lenz: Sure. Thanks for the question, Elliot. Yes, I would say if you were to look at our fourth quarter and even third quarter depreciation, amortization as part of our EBITDA calculation, which would be an adjusted EBITDA, positive EBITDA, no later than the second half of 2023, that would exclude stock-based comp, depreciation, amortization. While we haven’t given formal guidance on ranges and dollars, we think it’s a tremendous forward-looking accomplishment in a very short period of time. And then to follow shortly there after that, we feel very confident about our positive cash flow and profitability on or before the first quarter of 2024.

Elliot Wilbur: Okay. And if I may, an accounting question for you. Can you just talk about the plasma center collection costs on the P&L currently and how those would change or progress, I guess, as more collection volume is utilized for your own production? I seem to recall that some of that would get rolled into inventory and not be running through the P&L, but I just wanted to verify that and how we should be thinking about that with respect to your margin targets.