ADMA Biologics, Inc.

ADMA Biologics, Inc.(NASDAQ: ADMA) is a biopharmaceutical business focused on developing, producing, and marketing speciality plasma-based biologics to treat and prevent infectious illnesses.

Key Highlights

• The company reported a growth of 101.24% in total revenue to USD 20.68 million in Q3FY21 (ended September 30, 2021) compared to USD 10.28 million in Q3FY20.
• Net loss for Q3FY21 increased to USD 17.71 million from USD 16.92 million in Q3FY20.
• On November 16, 2021, ADMA began operations and actuation of donor plasma collections at its latest ADMA BioCenters at Myrtle Beach, South Carolina.
• Significantly low gross margin 1.9% in Q3FY21 vs. industry median of 85.4%.
• The Debt/Equity ratio as of Q3FY21 was 0.92x, making a relatively leveraged balance sheet.
• Stock is currently trading below its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 1.01 to USD 3.11.
• ADMA's share price has decreased 42.03% and 41.75% in the past nine and twelve months, respectively.

Technical Price Chart (as of December 16, 2021). Analysis by Kalkine

Conclusion: The company's bottom-line performance deteriorated in Q3FY21 compared to the previous comparable period. Given the lackluster fundamentals, a significant correction in the stock price in the past twelve months and lack of visibility in bottom-line growth, we recommend an "Avoid" rating on the stock at the closing price of USD 1.20, down 6.25% as of December 16, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Diffusion Pharmaceuticals Inc.

Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN) is a biopharmaceutical business that develops medicines to improve the body's ability to transport oxygen to where it is required. Glioblastoma multiforme (GBM) and metastatic brain cancer are treated with trans sodium crocetinate (TSC), which is the company's lead product candidate.

Key Highlights

• The company has yet to report revenue from its operations.
• Net loss for Q3FY21 increased to USD 12.20 billion from USD 4.44 billion reported in Q3FY20, attributable to USD 8.64 billion from the In-process research and development impairment charge.
• On December 16, 2021, DFFN dosed its first patients in ILD-DLCO Trial. TSC will be tested in patients with previously diagnosed interstitial lung disease (ILD).
• Negative ROE of 27.6% in Q3FY21.
• Stock is currently trading below its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 0.34 to USD 1.85.
• DFFN's share price has decreased 50.99% and 65.64% in the past six and nine months, respectively.

Technical Price Chart (as of December 17, 2021). Analysis by Kalkine

Conclusion: The company has not reported revenues to date. Given the lackluster fundamentals, a significant correction in the stock price in the past nine months, and lack of visibility in bottom-line growth, we recommend an "Avoid" rating on the stock at the current price of USD 0.3505, up 1.89% as of December 17, 2021, at 1:19 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.