Form 4: ADMA CEO Exercises Options, Sells Shares Under 10b5-1 Plan

ADMA Biologics President and CEO Adam S. Grossman exercised stock options and subsequently sold a portion of his common stock holdings totaling 21,000 shares, pursuant to a Rule 10b5-1 plan.

Summary

• Adam S. Grossman, President and CEO of ADMA Biologics, Inc., reported transactions on September 15, 2025.
• He acquired 15,000 shares of common stock by exercising stock options at a price of $5.4 per share.
• Concurrently, he disposed of 21,000 shares of common stock (15,000 shares and 6,000 shares in separate transactions) at a price of $16.13 per share.
• All reported transactions were executed under a Rule 10b5-1 trading plan established on December 5, 2024.
• Following these transactions, Mr. Grossman directly beneficially owns 2,025,850 shares of common stock.
• He also indirectly owns 1,143,426 shares through Areth, LLC and 580,957 shares through Hariden, LLC, entities where he is a control person or managing member.
• His holdings include 1,032,166 unvested Restricted Stock Units (RSUs) from grants on February 19, 2025 (252,022 units), February 26, 2024 (418,296 units), March 6, 2023 (286,848 units), and March 7, 2022 (75,000 units).
• He holds options to buy 765,950 shares of common stock, granted on February 26, 2024, which vest over four years, with 25% vesting on February 26, 2025, and the remainder monthly until fully vested on February 26, 2028.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing reports routine insider transactions executed under a pre-established Rule 10b5-1 trading plan. These transactions are typically for personal financial management and do not inherently signal positive or negative company performance or outlook.

Positives

• The CEO realized a significant profit by exercising options at $5.4 per share and selling the shares at $16.13 per share.
• The transactions were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a structured approach to managing equity compensation rather than opportunistic trading.
• Despite the sales, the CEO retains substantial direct and indirect ownership, as well as significant unvested equity, maintaining alignment with shareholder interests.

Negatives

• Insider selling, even if planned, can sometimes be perceived negatively by investors, although these transactions represent a relatively small portion of the CEO's total potential holdings.

Future Outlook

This filing does not contain forward-looking statements or guidance regarding the company's future performance or strategic direction, as it is a report of insider transactions.

Industry Context

This Form 4 filing reports routine insider transactions for an executive in the biotechnology/pharmaceutical industry. Such transactions, particularly when executed under a Rule 10b5-1 plan, are common for executives to manage personal finances and diversify holdings, and do not typically reflect specific industry trends or competitive positioning.

Related Party Transactions

• The reporting person indirectly owns 1,143,426 shares through Areth, LLC, where he is a control person.
• The reporting person indirectly owns 580,957 shares through Hariden, LLC, where he is the managing member.

Stakeholder Impact

• Shareholders: The transactions are routine insider sales under a pre-arranged plan, which typically has minimal direct impact on shareholder value or perception, especially given the CEO's continued substantial equity holdings.
• Employees: No direct impact on employees is indicated by this filing.

Key Dates

Recommendation

The reported transactions are routine insider sales executed under a pre-arranged Rule 10b5-1 trading plan. Such planned sales are common for executives to manage personal finances and diversify holdings, and do not typically signal a change in the company's fundamental outlook. The CEO retains substantial equity, suggesting continued alignment with shareholder interests. Therefore, this filing alone does not warrant a change in investment recommendation.

Keywords

ADMA Biologics, Adam S. Grossman, Form 4, Insider Transaction, Stock Option Exercise, Stock Sale, Rule 10b5-1 Plan, CEO, Equity Compensation