Adam Grossman: Thank you, Kristen. That’s very kind of you to say. Your question has me smiling with all of my notes and everything that I see here. I mean, look, I think, what I should say is that, for those who followed our story and it’s been a hell of a ride, Brian, hasn’t it?
Brian Lenz: Certainly.
Adam Grossman: We’ve had to bob and weave and we’ve had regulatory challenges and we’ve had supply chain challenges, and you name it, there have been tons of challenges. But at the end of the day, we knew, based on the Phase 3 data for our drug, that we had a product that was unique. We had a product that provided very, very good results for the primary and all the secondary endpoints. There was something special in what we were making and there were things that were not published with respect to some of the patient diaries and our clinical trial team would get feedback from the coordinators at these sites about just the way patients were responding to the product. So we always knew there was something special. But how do you model that?
How do you forecast this? There are certain things that occur when the product gets into the real world setting, which I know we’ve seen with other products. And I really do believe that, at that time, we were looking at our ability to get RSV plasma, our ability to produce. At one point in time, we were contract manufacturing, so how much capacity would our contract manufacturer give to us? So, I think the $300 million was a very, very fair, and honestly, appropriate forecast back then. With where we are today, I mean, I don’t want to say that we’re producing as fast as we can. We can’t keep up with the demand, but that’s the truth. We are producing as fast as we can. We’re working on strategies for identifying additional RSV plasma donors.
We’re working with other third-party collectors to augment our internal supply to collect as much plasma as we possibly can. I can tell you that, the peak guidance that we’re giving for next year, we raised it to $380, am I correct?
Brian Lenz: Yeah.
Adam Grossman: So, we are not factoring in any yield enhancement from there. We’re not factoring in any contribution for BIVIGAM and ASCENIV with respect for yield enhancement. Our peak revenues don’t factor in anything for the potential in the back half of the decade, say, for the strep pneumonia hypothermia. Hypothetically, I mean, if you could do the math, we have a 400-liter, 500,000-liter plant, 600,000-liter plant here. If you make it all ASCENIV, what does that yield you? If you’re fractionating 0.5 million liters of plasma at 4 grams per liter, that’s a lot of product. Will the payers pay for that much? Will the market absorb that much? I don’t have the answers. But what I do know is that where we are today, we’ve got patients waiting for therapy.
We’ve got patients who are waiting for us to release drugs to start therapy. We’ve got patients who have approvals from their payer to switch from whatever IG they’re on to ASCENIV. We are making the product as fast as we can. We cannot change how fast it takes to make these products. It takes, as we’ve said publicly, six months to nine months, seven months to 12 months, depending upon how good our team is. We’re working as fast as we can, Kristen. And I stick to what I said on previous calls. We give conservative guidance. We contemplate this range. If everything as we’re operating remains intact, obviously, we’re going to continue to beat and raise and beat and raise. That’s our MO. If something changes, we’re going to meet guidance and we’re going to hit it and we’re going to feel great about what we’re doing.
And if trends continue and we’re able to accelerate certain programs here at the company, I think, that there’s an opportunity for us to truly smash these numbers. It’s the same approach every year and I just feel really proud of our team, proud of the drug ASCENIV that we’ve brought to market and persevered through all these challenges. But it’s really the way the patients are responding to the drug. These are sick people. These are people who have had PI for years and who don’t respond well on their current therapy. They have complex comorbidities that are, to the point of being unmanageable in certain instances and they switch to ASCENIV and the patients thrive. And that’s what we’re most proud of here at ADMA. When you can change and impact and improve a patient’s life the way that we see that we’re doing it with ASCENIV.
That’s why we say it’s in the early innings. I don’t know what else to say but that, Kristen, but the drug is changing lives. It’s changing the treatment regimens out there in the market and I think our medical education, marketing, market access, sales strategies, I think, all of these things coming together are really meshing. From my perspective, there are very few companies our size that really launch products and stay independent. I think what the market is seeing is they’re seeing a real success story unfold right in front of their eyes. They’re seeing a company that is going at it alone, playing in a market of very, very big players and we’re differentiating ourselves, and we’ve done it in a way that has documented itself with 14 calendar quarterly beats and it’s because the products we make are good.
It’s because the people who come to work here every day really care about what they do. And I like to take a little credit. I care about what we do. It’s not just about this is where I get in trouble and the stock puts stuff that my son reads to me. Yes, it’s about the financials, but first and foremost, you got to take care of the FDA, got to take care of the SEC. You got to be able to operate. Then you got to make a good, safe product. You got to give the doctors what they need. You got to help the patients and the rest falls into place. And I think that you’re seeing our financials truly improve and the acceleration in the financial improvement has been dramatic. Our expenses are down. We’re controlling costs in the beginning of last year with our realignment of resources.
I mean, we’ve continued on that track and we’re going to continue to deliver for shareholders. We’re hyper focused on shareholder return here now. And look, I think the stock is truly undervalued. I think the cash generation that we’re going to develop from the — I think the cash generation that we’re going to see starting in Q1 of this year is going to be robust and it’s going to allow us to do a lot of great things.
