ADMA Biologics Shares Fall 16% After DSO Hits 113 Days
ADMA Biologics' shares plunged 16% on March 24 after Culper Research highlighted days sales outstanding surging to 113 days, suggesting channel stuffing inflated reported 2025 revenue growth from –3.5% real change to +20% claimed. Hagens Berman has opened a securities investigation into potential GAAP and revenue recognition violations.
1. Short seller allegations
A report from Culper Research accused ADMA Biologics of channel stuffing by extending payment terms and offering rebates, driving days sales outstanding to 113 days at year-end 2025 compared with 43 days a year earlier and allegedly inflating reported revenue growth to +20%.
2. Investigation launch
Hagens Berman initiated a securities investigation to determine whether ADMA violated GAAP and revenue recognition rules, inviting investors with losses and potential whistleblowers to participate in examining the company’s financial reporting and internal controls.
3. Market reaction
ADMA Biologics shares collapsed over 16% on March 24, sparking a notable analyst downgrade from overweight to neutral and reflecting investor concern over the validity of the company’s reported growth metrics.
4. Company overview
ADMA Biologics is a commercial biopharmaceutical company that manufactures and markets ASCENIV, a specialty immunoglobulin therapy for immunodeficient patients, and had reported 20% revenue growth for 2025 prior to the allegations.