ADMA Biologics, Inc. (NASDAQ:ADMA), a biopharmaceutical company, announced on Thursday that it has appointed KPMG LLP as its new independent registered public accounting firm. The engagement with KPMG is effective immediately following the filing of ADMA's Quarterly Report for the fiscal quarter ended September 30, 2024.
The decision to switch to KPMG comes as part of the company's regular reporting procedures. KPMG will audit ADMA Biologics' consolidated financial statements for the fiscal year ending December 31, 2024. The audited financial statements will be included in the company's Annual Report on Form 10-K, which is expected to be filed on or before March 3, 2025.
ADMA Biologics clarified that during the fiscal years ended December 31, 2023, and 2022, and the subsequent interim period through Thursday, the company did not consult with KPMG on any accounting principles applied to a specified transaction, audit opinions on the company’s financial statements, or any matter that was subject to disagreement or a reportable event as defined in Regulation S-K.
The company's previous auditor was not mentioned in the press release statement. The change in the company's certifying accountant is a significant step in ADMA Biologics' ongoing financial reporting and compliance efforts.
ADMA Biologics is headquartered in Ramsey, New Jersey, and specializes in the development and manufacturing of plasma-derived biologics for the treatment of immune deficiencies and infectious diseases. This SEC filing indicates the company's commitment to maintaining rigorous financial oversight and transparency in its operations.
In other recent news, ADMA Biologics continues to make significant strides despite an impending auditor change. The biopharmaceutical company announced a robust year-over-year revenue increase of 78%, reaching $107.2 million. Additionally, ADMA Biologics has repaid $30 million of its revolving credit facility with Ares Capital, reducing its total gross debt by 22% to $105 million, a strategic move expected to enhance its earnings growth potential.
H.C. Wainwright and Mizuho Securities have responded to these developments by maintaining their Buy ratings for ADMA Biologics. H.C. Wainwright reaffirmed its confidence with a price target of $18.00, while Mizuho Securities increased its price target from $12.00 to $14.00.
In other recent developments, ADMA Biologics announced its upcoming inclusion in the S&P SmallCap 600 index and the promotion of Brad Tade to the role of Chief Financial Officer and Treasurer. The company's Board of Directors also 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.
InvestingPro Insights
ADMA Biologics' recent appointment of KPMG as its new auditor aligns with the company's strong financial performance and growth trajectory. According to InvestingPro data, ADMA has demonstrated impressive revenue growth, with a 58.69% increase over the last twelve months as of Q2 2024, reaching $330.24 million. This growth is even more pronounced on a quarterly basis, with Q2 2024 showing a 78.29% revenue increase compared to the same quarter in the previous year.
The company's financial health is further underscored by two key InvestingPro Tips. Firstly, ADMA's liquid assets exceed its short-term obligations, indicating a solid financial position. Secondly, the company operates with a moderate level of debt, which suggests prudent financial management. These factors may have contributed to the decision to engage a Big Four accounting firm like KPMG, reflecting ADMA's commitment to maintaining high standards in financial reporting and corporate governance.
Investors considering ADMA Biologics may be interested to know that InvestingPro offers 16 additional tips for this stock, providing a more comprehensive analysis of its investment potential. These insights could be particularly valuable as the company transitions to a new auditor and prepares for future financial disclosures.
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