Form 4: ADMA Biologics Director Grossman Boosts Stake

ADMA Biologics Director Jerrold B. Grossman acquired 10,690 restricted stock units and 17,730 stock options, increasing his beneficial ownership in the company.

Summary

• Director Jerrold B. Grossman acquired 10,690 restricted stock units (RSUs) and 17,730 stock options in ADMA Biologics, Inc. on February 9, 2026.
• The RSUs will vest in two equal installments on the sixand twelve-month anniversaries of the grant date, becoming fully vested on February 9, 2027, contingent on continued service.
• The stock options have an exercise price of $16.37 and will vest in twelve equal monthly installments, becoming fully vested on February 9, 2027, with an expiration date of February 9, 2036.
• Following these transactions, Dr. Grossman's direct beneficial ownership includes 488,884 shares of common stock, which comprises 10,690 newly granted RSUs, 5,445 previously granted RSUs from February 19, 2025, and 472,749 directly owned common shares.
• Indirect beneficial ownership includes 22,857 shares via Brookwood LLC, 31,381 shares via the Jerrold Grossman 2019 Irrevocable Trust, 38,294 shares via Genesis Foundation Inc., and 175 shares owned by his wife.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting a standard compensation practice that aligns director interests with shareholders, indicating continued commitment from a key board member.

Positives

• Director Jerrold B. Grossman increased his equity stake in ADMA Biologics through the acquisition of restricted stock units and stock options.
• The grants align the director's interests with those of shareholders, as vesting is contingent on continued service and future stock performance.
• The stock options have a 10-year expiration date, providing a long-term incentive for value creation.

Future Outlook

The vesting schedules for the restricted stock units and stock options indicate future equity grants will become fully vested on February 9, 2027, subject to the director's continued service.

Industry Context

StockSavvy.ai notes that equity grants to directors, such as restricted stock units and stock options, are a common practice in the biotechnology and pharmaceutical industry, including companies like ADMA Biologics. These grants serve to align the interests of board members with long-term shareholder value creation, a strategy widely adopted by peers to incentivize sustained performance and commitment.

Comparison to Industry Standards

• The grant of restricted stock units and stock options to a director is a standard compensation practice across publicly traded companies, including those in the biotech sector like ADMA Biologics.
• Vesting schedules tied to continued service, such as the one-year full vesting for RSUs and monthly vesting for options, are typical mechanisms designed to retain key personnel and incentivize long-term commitment, comparable to practices at companies like Regeneron Pharmaceuticals or Amgen.
• The exercise price of $16.37 for the options reflects the market price at the time of grant, a common approach to ensure options provide value only if the stock price appreciates.

Related Party Transactions

• Indirect ownership of 22,857 shares by Brookwood LLC, where the Reporting Person is the managing member.
• Indirect ownership of 31,381 shares by the Jerrold Grossman 2019 Irrevocable Trust, where Dr. Grossman serves as investment trustee.
• Indirect ownership of 38,294 shares by Genesis Foundation Inc., where the Reporting Person is the President.
• Indirect ownership of 175 shares by the Reporting Person's wife.

Stakeholder Impact

• Shareholders: The increased equity stake of a director aligns management's interests with shareholders, potentially fostering long-term value creation.
• Employees: The use of equity grants as compensation is a common practice that can motivate and retain key personnel, including directors.

Next Steps

• Vesting of 5,445 RSUs on February 19, 2026.
• First installment vesting of 5,345 RSUs on August 9, 2026.
• Full vesting of 10,690 RSUs on February 9, 2027.
• Full vesting of 17,730 stock options on February 9, 2027.

Key Dates

Recommendation

This Form 4 filing reports a routine equity grant to a director, which is a standard compensation event and does not typically signal a significant change in the company's fundamental outlook or immediate operational performance. While it indicates continued commitment from a key board member, it lacks the substantive financial or strategic information that would warrant a 'buy' or 'sell' recommendation based solely on this filing. Therefore, a 'hold' recommendation is appropriate, pending further material news or financial disclosures.

Keywords

ADMA Biologics, ADMA, Jerrold B. Grossman, Form 4, Insider Trading, Restricted Stock Units, Stock Options, Equity Grant, Director Compensation, Beneficial Ownership