ADMA Biologics announced a 5-year manufacturing and supply agreement to produce and sell plasma-derived medicines.
ADMA Biologics (NASDAQ:ADMA) announced a 5-year manufacturing and supply agreement with an unnamed partner to produce and sell plasma-derived medicines from ADMA’s US Food and Drug Administration (FDA) approved Immune Globulin (IG) manufacturing process.
As quoted in the press release:
“A core element of our business strategy is to leverage and maximize the revenue we generate from the available manufacturing capacity at our FDA-approved plasma-derived products production facility. Through the production of our own marketed assets, BIVIGAM®, ASCENIV™ and NABI-HB®, we will now be able to generate additional revenue over and above the sales of the FDA-approved drugs themselves,” said Adam Grossman, ADMA’s President and Chief Executive Officer. “Based on current production and forecasted market sales volumes, we estimate that these additional revenues from the sale of these fractions will add between $5 million and $10 million to our annual revenues for 2020 and 2021 respectively. Depending on future plant capacity utilization and potential expansion, as well as our forecasted IG production ramp, we believe this contract has the potential to generate between $10 million and $20 million per year from 2022 through 2024. We are proud to be an emerging partner of choice for plasma-derived intermediate fractions and we look forward to providing high quality products to this new partner and delivering the highest level of service and value to all of our customers to support our overall growth objectives.”