RAMSEY, NJ - ADMA Biologics, Inc. (NASDAQ:ADMA), a biopharmaceutical company, announced that its independent registered public accounting firm, CohnReznick LLP, will resign following the filing of the company's Quarterly Report for the period ending September 30, 2024. The resignation will take effect upon the completion of the audit for the third quarter of 2024.
The company's Audit Committee has been informed of CohnReznick's decision and is actively engaged in the process of selecting a new accounting firm to audit ADMA Biologics' consolidated financial statements for the fiscal year ending December 31, 2024, as well as the audit of internal control over financial reporting as of the same date. CohnReznick has committed to assist in ensuring a smooth transition to the newly appointed firm.
According to the report, CohnReznick’s decision to resign was made independently, without seeking or requiring consent from ADMA Biologics. The company's Board of Directors and the Audit Committee were not involved in the decision-making process.
The previous reports from CohnReznick on ADMA Biologics' financial statements for the fiscal years ended December 31, 2023, and 2022, were free of any adverse opinions and did not contain any disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure. Additionally, there were no reportable events as defined by the SEC regulations.
ADMA Biologics has stated that it plans to adhere to the applicable filing deadlines and ensure the continuity of its financial reporting. The company has received a letter from CohnReznick, attached as Exhibit 16.1 to the SEC filing, confirming their agreement with the statements made by ADMA Biologics regarding the transition.
In other recent news, ADMA Biologics has announced significant financial developments and management changes. The biopharmaceutical company has been included in the S&P SmallCap 600 index, a move that may increase its visibility among investors. In addition, the company has repaid $30 million of its revolving credit facility with Ares Capital, reducing its total gross debt by 22% to $105 million. This strategic move, fueled by the firm's robust cash flow, is expected to enhance its earnings growth potential.
The company reported a substantial year-over-year revenue increase of 78%, reaching $107.2 million, surpassing analyst expectations. In response to this strong performance, H.C. Wainwright raised its price target for ADMA Biologics to $18.00, while maintaining a Buy rating. Mizuho Securities also revised its price target for the company, raising it from $12.00 to $14.00, with a maintained Buy rating.
In terms of management changes, Brad Tade has been promoted to the role of Chief Financial Officer and Treasurer. Furthermore, the company's Board of Directors approved amendments to the company's bylaws, reducing the threshold required for shareholders to remove a director with cause from two-thirds to a simple majority. These are the most recent developments in ADMA Biologics' ongoing operations and strategic initiatives.
InvestingPro Insights
ADMA Biologics' recent announcement regarding the transition of its independent auditor comes at a time when the company is experiencing significant financial growth. According to InvestingPro data, ADMA's revenue has shown impressive growth, with a 58.69% increase over the last twelve months as of Q2 2024, reaching $330.24 million. This growth trajectory is further emphasized by a substantial quarterly revenue growth of 78.29% in Q2 2024.
InvestingPro Tips highlight that ADMA's net income is expected to grow this year, and the company has been profitable over the last twelve months. This positive financial outlook is supported by the fact that three analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's near-term performance.
The market has responded favorably to ADMA's progress, with the stock trading near its 52-week high and showing a remarkable 520.36% price return over the past year. However, investors should note that ADMA is trading at a high P/E ratio of 135.33, which may indicate high growth expectations.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips on ADMA Biologics, providing a more comprehensive view of the company's financial health and market position.
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