ADMA stock plummeted Thursday after the company's auditor unexpectedly resigned. But ADMA Biologics kept its guidance for this year and next.
The company makes immunoglobulin for patients with compromised immune systems. It's the top stock in the IBD 50 and has perfect IBD Composite and Relative Strength ratings.
But ADMA stock collapsed 16.3%, closing at 17.01, after the company said in a filing with the Securities and Exchange Commission that its current independent registered public accounting firm, CohnReznick LLP, will resign after filing the report for its quarter ended Sept. 30.
CohnReznick isn't required to obtain — and did not seek — ADMA's permission to resign. The board and the audit committee didn't take part in CohnReznick's decision, ADMA said in its 8k filing.
The company reiterated its guidance for 2024 and 2025. The company still expects sales to come in at $400 million and $445 million, respectively.
ADMA Stock Reverses Lower
The resignation puts a dent in ADMA stock's 350% run this year, as of Wednesday's close. Shares began the year trading under 5. They ended Wednesday's regular session above 20.
ADMA Biologics is best known for its product Asceniv. Asceniv is created using the plasma donated by people who naturally have a higher number of antibodies capable of dealing with respiratory syncytial virus. Also called RSV, the seasonal virus causes coldlike symptoms in most people. But it can be serious or deadly in people with compromised immune systems.
People with primary immunodeficiency receive regular infusions of products like Asceniv. ADMA also sells an infusion called Bivigam, which includes an array of antibodies found in a healthy immune system, and Nabi-HB to protect against hepatitis B in people who've been exposed.
ADMA stock undercut its 50-day moving average on the news Thursday, according to MarketSurge. But shares remained well above their 200-day line.
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