ADMA Biologics (ADMA) Plunges 3.46% as Auditor Resignation Sparks Governance Concerns

Shares of ADMA Biologics (ADMA) tumbled 3.46% on October 2, hitting an intraday low of $15.84—the lowest level since March 2025. The selloff followed the abrupt resignation of its independent auditor, CohnReznick LLP, disclosed in an SEC filing on September 24, 2024, which triggered immediate investor skepticism about governance and financial transparency. The auditor’s exit occurred without board or audit committee approval, raising concerns over internal controls at the biotech firm.

The auditor’s departure disrupted ADMA’s momentum, which had seen its stock surge 350% year-to-date amid growth in immune globulin therapies like Asceniv and Bivigam. These products target niche markets for primary immunodeficiency and infectious disease treatments, but the loss of CohnReznick—a firm with a strong reputation in biotech accounting—has cast doubt on ADMA’s ability to secure a replacement quickly or maintain compliance. While the company reaffirmed revenue guidance of $400 million for 2024 and $445 million for 2025, the market’s negative reaction underscored a prioritization of operational stability over financial projections.

Analysts note the biotech sector’s heightened sensitivity to governance risks, with ADMA’s beta of 0.54 typically indicating lower volatility. The 18% drop in early October, however, defies historical patterns, highlighting the auditor event’s severity. The stock’s decline below its 50-day moving average ($17.02) but above the 200-day average ($18.89) suggests a short-term correction rather than a structural downturn. Institutional ownership remains at 75.68%, but recent stake increases by firms like Cullen Frost Bankers Inc. and Smartleaf Asset Management LLC in early 2024 are now seen as outdated indicators, failing to offset recent instability.

ADMA’s ability to recover will hinge on its speed in resolving the auditor transition and restoring transparency. The company’s reliance on consistent revenue from its product pipeline, coupled with regulatory scrutiny risks, means any delays in securing a new auditor could further erode confidence. Investors are now closely monitoring ADMA’s next steps, with the stock’s trajectory likely to remain tied to its governance response and compliance adherence in the coming months.