Form 4: ADMA Biologics CEO Granted New Equity Awards

ADMA Biologics' President and CEO, Adam S. Grossman, reported new grants of restricted stock units and stock options.

Summary

• Adam S. Grossman, President and CEO, and a Director of ADMA Biologics, Inc., reported transactions on February 9, 2026.
• Grossman was granted 282,529 restricted stock units (RSUs) which will vest quarterly over four years, subject to continued service.
• He was also granted 444,711 stock options with an exercise price of $16.37, vesting over four years (25% on the one-year anniversary, then monthly over the next three years) and fully vested by February 9, 2030, expiring on February 9, 2036.
• Following these transactions, Grossman directly beneficially owns 2,290,379 shares of common stock, which includes the newly granted unvested RSUs and previously granted unvested RSUs from 2022, 2023, 2024, and 2025, along with 975,684 shares of common stock.
• He also directly beneficially owns 444,711 stock options.
• Indirect beneficial ownership includes 1,143,426 shares through Areth, LLC, where Grossman is a control person, and 580,957 shares through Hariden, LLC, where he is the managing member.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting routine executive compensation that aligns management's interests with long-term company performance, without indicating any immediate operational or financial changes.

Positives

• The grant of 282,529 restricted stock units (RSUs) and 444,711 stock options aligns the CEO's long-term incentives with shareholder value creation.
• The vesting schedules for both RSUs (quarterly over four years) and stock options (over four years) promote executive retention and sustained performance.

Future Outlook

The filing details future vesting schedules for equity awards, indicating a long-term incentive structure for the CEO, with RSUs vesting quarterly over four years and stock options vesting over four years, fully by February 9, 2030.

Industry Context

StockSavvy.ai notes that the grant of restricted stock units and stock options to a CEO is a standard practice in the biotechnology and pharmaceutical industry, designed to align executive interests with long-term company performance and shareholder value. Such equity-based compensation is a common component of executive pay packages, reflecting a commitment to retention and performance-based incentives.

Comparison to Industry Standards

• The structure of equity grants, including RSUs and stock options with multi-year vesting schedules, is consistent with compensation practices observed at comparable biotechnology companies such as BioMarin Pharmaceutical Inc. (BMRN) or Sarepta Therapeutics, Inc. (SRPT), which frequently utilize similar long-term incentive plans to retain key executives.
• The exercise price of $16.37 for the stock options, presumably at or above the market price on the grant date, aligns with typical 'at-the-money' or 'out-of-the-money' option grants designed to incentivize future stock price appreciation.

Related Party Transactions

• Adam S. Grossman has indirect beneficial ownership of 1,143,426 shares through Areth, LLC, where he is a control person.
• Adam S. Grossman has indirect beneficial ownership of 580,957 shares through Hariden, LLC, where he is the managing member.

Stakeholder Impact

• Shareholders: The equity grants align the CEO's financial interests with long-term shareholder value, potentially encouraging decisions that benefit stock price appreciation.
• Employees: The compensation structure for the CEO may set a precedent or reflect the company's overall approach to executive incentives.

Next Steps

• RSUs will vest quarterly on each annual anniversary of the grant date over four years, subject to continued service.
• Stock options will vest over four years, with 25% vesting on the one-year anniversary of the grant date and the remaining 75% vesting monthly over the next three years, becoming fully vested on February 9, 2030.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation in the form of equity grants. While these grants align management's interests with long-term shareholder value, they do not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate as it reflects no immediate catalyst for significant price movement based solely on this filing.

Keywords

ADMA Biologics, Adam S. Grossman, Form 4, SEC filing, Restricted Stock Units, Stock Options, Executive Compensation, Insider Ownership, Equity Awards, Corporate Governance