ADMA Biologics stock rebounds 15% after refuting short-seller's fraud claims
ADMA Biologics saw its stock price rebound by 15% on Friday after a sharp decline earlier in the week. The recovery followed a detailed response to a short-seller report that had accused the company of questionable sales practices. Investors reacted positively to new data on inventory and demand for its key product, ASCENIV. The company's shares had plunged by 27% after Culper Research published a critical report. The short-seller claimed ADMA was inflating sales through excessive distributor stockpiling, a practice known as channel stuffing. It also questioned whether ASCENIV, a therapy for immunocompromised patients, truly differed from standard intravenous immunoglobulin (IVIG) treatments.
ADMA countered with a full rebuttal, releasing concrete figures on distributor inventory and end-customer demand. The data showed that ASCENIV inventory stood at 48 days above safety stock as of March 22, 2026—a significant drop from 84 days at the start of January. The company also clarified that ASCENIV serves as a late-line therapy, avoiding direct competition with conventional IVIG products. Despite the recovery, ADMA's stock remains below its pre-report levels. Analysts at Cantor Fitzgerald downgraded the company from *Overweight* to *Neutral*, citing an insufficient initial response to the short-seller's claims. Meanwhile, an independent audit by a Big Four accounting firm found no issues with ADMA's internal controls. There is speculation that Culper Research may issue another statement, which could further affect the share price.
ADMA's detailed inventory and demand data helped restore some investor confidence. The stock's partial recovery reflects a shift in sentiment, though concerns about market differentiation and sales practices linger. Future statements from Culper Research or additional analyst reviews may influence the company's stock performance in the coming weeks.
