Form 4: ADMA Biologics CEO Sells Shares After Option Exercise

ADMA Biologics President and CEO, Adam S. Grossman, exercised stock options and subsequently sold 21,000 shares of common stock for $16 per share, as part of a pre-arranged 10b5-1 trading plan.

Summary

• Adam S. Grossman, President and CEO of ADMA Biologics, reported transactions on November 19, 2025, involving the exercise of stock options and subsequent sale of common stock.
• Grossman exercised options to acquire 15,000 shares of common stock at an exercise price of $5.40 per share.
• Concurrently, he sold a total of 21,000 shares of common stock (15,000 shares from the exercise and an additional 6,000 shares) at a price of $16.00 per share.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan established on December 5, 2024.
• Following these transactions, Grossman's direct beneficial ownership of common stock is 2,013,850 shares.
• He also holds an additional 1,143,426 shares indirectly through Areth, LLC, and 580,957 shares through Hariden, LLC.
• Grossman retains 735,950 stock options with an exercise price of $5.40 and holds various unvested Restricted Stock Units (RSUs) totaling 1,032,166 shares.

Sentiment

Score: 5

Explanation: The transaction is a pre-planned insider sale following an option exercise, which is a routine event for executives. While it reduces direct ownership, it was executed under a 10b5-1 plan, suggesting it's not based on new material non-public information and therefore carries a neutral sentiment.

Positives

• The sale price of $16.00 per share is significantly higher than the option exercise price of $5.40, indicating a profitable transaction for the insider.
• The transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, which suggests the sales were scheduled and not based on recent material non-public information.

Negatives

• The sale of 21,000 shares by a key executive, even if planned, results in a reduction of direct beneficial ownership, which some investors might view as a negative, though mitigated by the 10b5-1 plan.

Risks

• A Form 4 filing primarily reports insider transactions and does not typically contain disclosures about company-specific risks. Therefore, no specific risks are mentioned in this filing.

Future Outlook

This Form 4 filing reports past insider transactions and does not contain forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This filing is a standard insider transaction report (Form 4) and does not provide information that allows for a direct analysis of broader industry trends or competitive landscape. It solely details the personal trading activity of a key executive.

Related Party Transactions

• The reporting person, Adam S. Grossman, is a control person of Areth, LLC, which owns 1,143,426 shares of common stock.
• The reporting person is the managing member of Hariden, LLC, which owns 580,957 shares of common stock.

Stakeholder Impact

• Shareholders might interpret the insider selling differently; however, the disclosure that the transaction was part of a Rule 10b5-1 plan mitigates potential negative perceptions by indicating a pre-scheduled, rather than reactive, sale.
• Employees are not directly impacted by this specific insider transaction report.

Next Steps

• Continued vesting of 1,032,166 unvested Restricted Stock Units (RSUs) granted on various dates between March 2022 and February 2025, which vest quarterly over four years.
• Continued vesting of 735,950 remaining stock options, with the original grant vesting 25% on February 26, 2025, and the remainder monthly until full vesting on February 26, 2028.

Key Dates

Recommendation

The filing details a pre-planned insider transaction (option exercise and sale) by the CEO. While it represents a reduction in direct ownership, the transaction was executed under a Rule 10b5-1 plan, indicating it was scheduled in advance and not based on immediate market sentiment or new material non-public information. This type of routine transaction typically does not warrant a change in investment recommendation unless accompanied by other significant company news or a pattern of aggressive insider selling, thus a 'hold' recommendation is appropriate.

Keywords

ADMA Biologics, ADMA, Adam S. Grossman, Form 4, insider transaction, stock option exercise, share sale, 10b5-1 plan, CEO, President, common stock, equity