Shares in ADMA Biologics Inc. (NASDAQ:ADMA) experienced a dramatic surge of 11.58% on Friday, closing at $9.25, effectively ending a five-day downward trend. The upswing followed the company’s forceful dismissal of allegations made in a report by short-sellers, which accused the firm of disseminating misleading information regarding its growth trajectory.
ADMA Biologics issued a statement refuting claims made by Culper Research concerning the demand for Asceniv. The company asserted that demand has, in fact, increased over the past two years, a conclusion supported by data obtained from distributors and customers.
Furthermore, the company addressed accusations of channel stuffing, clarifying that distributors are required to maintain a specific level of safety stock. This practice ensures that patients are not at risk of missing critical treatments. ADMA Biologics also emphasised that its financial statements are transparent and have been rigorously reviewed by independent auditors, who have issued an unqualified opinion.
According to the company, ADMA is dedicated to pioneering a new era in the manufacturing, marketing, and commercialisation of specialised biologic products. These products are designed for the prevention and treatment of infectious diseases in immunocompromised individuals and other patients vulnerable to specific infections. The company is focused on generating long-term value for its shareholders.
Despite the company’s strong rebuttal, a shareholder law firm has stated its intention to investigate the short seller report further. The investigation will aim to determine whether ADMA Biologics has potentially violated federal securities laws.
