Form 4: ADMA Biologics CEO Sells Shares Under 10b5-1 Plan

ADMA Biologics President and CEO, Adam S. Grossman, executed a pre-planned sale of common stock following the exercise of stock options.

Summary

• Adam S. Grossman, President and CEO and a Director of ADMA Biologics, Inc., reported transactions on March 16, 2026.
• Grossman acquired 15,000 shares of common stock by exercising stock options at a price of $5.40 per share.
• Immediately following the option exercise, Grossman sold 15,000 shares of common stock at $15.16 per share.
• An additional 6,000 shares of common stock were sold at $15.16 per share on the same date.
• All transactions were conducted pursuant to a Rule 10b5-1 trading plan established on November 14, 2025.
• Following these transactions, Grossman directly beneficially owns 2,112,777 shares of common stock, which includes various unvested Restricted Stock Units (RSUs) and previously owned shares.
• Grossman also indirectly beneficially owns 1,143,426 shares through Areth, LLC, where he is a control person, and 580,957 shares through Hariden, LLC, where he is the managing member.
• Grossman retains 690,950 stock options with an exercise price of $5.40, which were granted on February 26, 2024, and vest over four years.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. While it involves insider selling, the pre-planned nature via a 10b5-1 plan mitigates concerns about immediate negative sentiment, and the option exercise reflects a profitable compensation event.

Positives

• The CEO exercised stock options, indicating the stock price was significantly above the exercise price of $5.40, realizing a substantial gain.
• The transactions were executed under a Rule 10b5-1 trading plan, suggesting a pre-determined strategy for diversification or liquidity rather than a reaction to recent negative company news.

Negatives

• The sale of 21,000 shares by a key executive, even if pre-planned, represents a reduction in direct insider ownership.

Industry Context

StockSavvy.ai notes that insider transactions, particularly those executed under a Rule 10b5-1 plan, are common for executives to manage personal finances, diversify holdings, and exercise compensation awards. Such pre-planned sales are generally viewed as less indicative of management's immediate sentiment about the company's short-term prospects compared to unplanned, open-market sales.

Related Party Transactions

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

Stakeholder Impact

• Shareholders may note the reduction in direct insider ownership, but the pre-planned nature of the sale suggests no immediate change in company fundamentals or outlook.
• Employees are not directly impacted by this specific transaction, as it relates to executive compensation and personal financial management.

Key Dates

Recommendation

The insider transactions, being pre-planned under a Rule 10b5-1 plan, do not signal a change in the company's fundamental outlook or immediate prospects. While an executive sale might typically be a negative signal, its scheduled nature makes it a neutral event for investment decisions. Investors should continue to evaluate ADMA Biologics based on its operational performance, financial results, and strategic initiatives rather than this routine insider transaction.

Keywords

ADMA Biologics, ADMA, Adam S. Grossman, Insider Trading, Form 4, Stock Option Exercise, Share Sale, 10b5-1 Plan, Biologics, Pharmaceutical