Will This Small Biotech Survive an Aggressive Short-Seller Attack?
If you find this company using a conventional screener, you’ll be amazed. Revenue growth of 64.6% a year since 2020 sounds like a dream for any investor looking for hidden growth gems. But one well-known short seller pointed out that it might all be a big bluff by the company’s management, and sent the stock sharply lower.
Key points
Screeners show a growth rate of 64.6% a year, but this year the company added just one percent to revenue.
A short seller published a report after which the stock lost 16 percent in a single day.
In February, the company promised $1 billion in revenue; ten weeks later, it scrapped the entire plan.
Two customers accounted for 73% of revenue, and days sales outstanding jumped from 43 to 113 days.
Analysts expect almost double today’s price; the Bulios model sees 57% less.
The rearview mirror shows 65%, the windshield 1%
ADMA Biologics $ADMA is a small American manufacturer of blood plasma-derived medicines with a single plant in Florida. It’s a dwarf compared with giants like Grifols, Takeda, or CSL, but it collects much of its own plasma and manufactures everything at home in the US. That’s why it long stayed out of the tariff debate, and why the market long viewed it more as a manufacturer than a biotech company.
Where does that headline figure actually come from? In 2020, the company had revenue of $42.2 million. For 2025, it reported $510 million. That’s a twelvefold increase in five years, or precisely that 64.6% a year. Every screen looking for growth companies lists it among the top results.
But a look at the present tells a completely different story. In the first half of 2026, ADMA generated $238.9 million in revenue, compared with $236.8 million a year earlier. In the second quarter, revenue grew by 2%. The market reacted brutally: from a peak of $20.46 on December 12, 2025, the price fell as low as $7.21 on March 26, 2026. Today, the stock trades around $10, and the company has a market cap of roughly $2.3 billion.
Is this the right time to get in, or are those who say this company is worth much less right?