ADMA Biologics Faces Increased Short Interest Amid Allegations

Got story updates? Submit your updates here. ›

ADMA Biologics (NASDAQ:ADMA), a New Jersey-based biopharmaceutical company, has seen a significant increase in short interest on its stock in March, with short positions now accounting for 11.3% of shares outstanding. This comes amid allegations from a short-seller report that the company has engaged in questionable practices, leading to multiple securities fraud investigations being launched.

Why it matters

The short-seller report and subsequent legal scrutiny have added volatility to ADMA's stock, which has declined significantly since the company's last earnings release. The outcome of the investigations could have major implications for investor confidence and the company's future prospects.

The details

As of March 13th, ADMA Biologics had short interest totaling 25,826,838 shares, a 35% increase from the prior month. This represents 7.1 days' worth of average trading volume. The company has refuted the short-seller's allegations, calling the report 'unsubstantiated, misleading and inaccurate', and defending the competitive position and revenue recognition of its ASCENIV product. However, the legal risks remain, with multiple law firms launching securities fraud investigations and investor alerts following the short report and stock price decline.

• As of March 13th, ADMA Biologics had short interest totaling 25,826,838 shares.
• This represents a 35% increase from the February 26th total of 19,137,458 shares.

What they’re saying

What’s next

The judge overseeing the securities fraud investigations will decide in the coming weeks whether to allow the lawsuits to proceed, which could further impact ADMA's stock price and investor sentiment.