Market reaction and allegation overview
ADMA Biologics Inc saw its shares decline by more than 9% on Tuesday afternoon following the publication of a report by short seller Culper Research. Culper announced it held a short position in ADMA and asserted the company engaged in what it called a channel stuffing scheme that inflated ASCENIV revenue growth. The short seller estimated that, absent the alleged channel stuffing, ADMA revenues would have fallen 3% in 2025 rather than showing the 20% growth reported by the company.
Claims on product positioning and payor behavior
The report states ADMA has not conducted a head-to-head study and that ASCENIV carries a standard primary immunodeficiency label. Culper contends payors view ASCENIV as functionally equivalent to standard intravenous immunoglobulins available at lower prices, and that payors have responded by implementing strict prior authorization requirements, step edits, and denials for ASCENIV.
Financial and receivables irregularities highlighted
Culper points to ADMA’s own disclosures showing days sales outstanding rising from 43 days to 113 days in 2025. The short seller also contrasted reported profitability and cash conversion, noting ADMA reported $231 million in adjusted EBITDA but generated only $50 million in cash from operations. Concentration among distributors was another focal point: two distributors, BioCare and CuraScript, were reported to account for 73% of revenues and 87% of year-end receivables.
Distributor conversations and stocking behavior
The report says Culper spoke with two employees at one of ADMA’s largest distributors who described incentives that led to excess ASCENIV stocking beginning in 2025. According to the accounts cited in the report, ADMA offered rebates and extended payment terms to encourage larger purchases. One employee quoted in the report said payment terms extended to 120 days and the distributor was carrying four to six months of inventory, compared with a typical 30 days on hand.
Third-party sales data versus ADMA reported revenue
Culper supplied third-party provider sales figures for ASCENIV of $79 million in 2023, $175 million in 2024, and $241 million in 2025. It compared those numbers with ADMA’s reported revenues of $93 million in 2023, $240 million in 2024, and $363 million in 2025. The report emphasizes that the absolute difference between provider sales and ADMA-reported revenue widened from $14 million in 2023 to $121 million in 2025.
Patient counts and implied revenue calculations
The short seller also cited a statement by ADMA’s CEO Adam Grossman from January 2026 that the company had more than 1,000 patients on ASCENIV. Using that patient figure and Culper’s usage estimates, the short seller calculated quarterly revenues ranging from $59.4 million to $74.7 million, versus roughly $104.4 million implied by ADMA’s reported results for the same period.
Data-driven allegations and outstanding questions
Culper’s report assembles disclosures, third-party sales data, distributor interviews, and calculations to challenge ADMA’s reported growth trajectory. The short seller frames the combination of longer receivable days, concentrated distributor exposure, a large spread between reported revenue and provider sales, and alleged extended payment terms and rebates as evidence supporting its channel stuffing claim. The company’s reported adjusted EBITDA and relatively lower cash from operations are also highlighted as areas of concern in the report.
What remains uncertain
The report presents a set of quantitative comparisons and cited conversations that, according to Culper, point to aggressive revenue recognition through distributor stocking. The allegations raise questions about the sustainability and quality of reported revenue growth, but the information presented in the report is limited to the materials and interviews Culper disclosed.