Culper Research Short ADMA Biologics: Channel Stuffing, an Undisclosed Related Party Distributor, and -3% Real Growth vs. +20% Reported
On March 24, 2026, Culper Research published a short report on ADMA Biologics, Inc. (NASDAQ: ADMA), alleging that the company's reported growth is 'a fiction driven more than entirely by a de facto channel stuffing scheme and an undisclosed related party distributor.' The firm estimates that, absent channel stuffing, ADMA revenues declined 3% in 2025 versus the +20% the company reported.
Epistemic note. Culper Research is a short seller that discloses a financial interest in the decline of ADMA stock. Its allegations — including the channel-stuffing characterization, the undisclosed related-party distributor claim, and the revenue-inflation estimates — are the opinions of a third party with a disclosed short position. None of this has been independently verified by The Forensic Ledger, adjudicated by a regulator or court, or admitted by ADMA Biologics.
A premium IVIG with no head-to-head study
Culper describes ADMA as a reverse merger founded by father-son duo Jerrold and Adam Grossman, who remain Vice Chairman and CEO. The report states that ADMA's flagship product, ASCENIV, is an IVIG therapy priced at approximately $900/gram — a 6-10x premium to standard IVIGs — on the basis that its high-RSV-titer blend lowers patient infection risk. However, the report states, ADMA has never run a head-to-head study, so ASCENIV holds a standard PI label. Culper states that payors treat ASCENIV as functionally identical to standard IVIGs available at a fraction of the price, and have levied strict prior authorization requirements, step edits, and outright denials — leading providers to slow ordering and leaving distributors with excess inventory. Despite this backdrop, the report notes, ADMA reported that ASCENIV revenues grew from $92.6 million in 2023 to $362.5 million in 2025, and the stock has more than tripled over three years.
The financial statements Culper says 'betray' the company
The report states that ADMA recognizes revenues upon delivery to distributors, and that in 2025, days sales outstanding (DSO) skyrocketed from 43 to 113 days. Culper states that ADMA reported $231 million in Adjusted EBITDA but generated just $50 million in cash from operations, and that two distributors — BioCare and CuraScript — represented 73% of revenues and 87% of year-end receivables.
Distributor employees: 'It's like cooking the books a bit'
Culper states it spoke with two high-level employees at one of ADMA's two largest distributors, each of whom it says told it independently that starting in 2025, ADMA induced the distributor to stock excess ASCENIV by offering rebates and extended payment terms in order to meet order expectations. The report quotes one employee: 'ADMA requested we started buying at a different ordering cycle. We typically had ordered once a month and kept 30 days on hand… they started incentivizing us to do larger orders [with] rebates and extended payment terms and keep more of it on hand… We're probably carrying 4 to 6 months on hand.' Another is quoted: 'Some of those terms are out to 120 days now… [Demand] is not really growing. I'm seeing more just moving stock and letting it sit on someone else's books… We're not buying more because of the volume going out the door, we're buying more because they're telling us to… It's like cooking the books a bit.' A former ADMA sales representative, the report states, added: 'they'll encourage them to order more to goose the channel, and then it just sits there.'
A widening gap between reported revenue and utilization
Culper states it obtained ASCENIV sales data from a leading third-party vendor, which it says reveals a significant and widening gap between reported ASCENIV revenues and ultimate utilization, even as growth has slowed over time. The report estimates at least $200 million in ASCENIV inventory now sits in the channel. It presents a table showing third-party provider data at $79M / $175M / $241M for 2023 / 2024 / 2025, versus ADMA-reported figures of $93M / $240M / $363M — a difference the report says grew from 14.8% in 2023 to 33.5% in 2025. Culper further states that ASCENIV revenues are inflated by 40% to 76% versus what the company's own disclosed patient count supports.
What would falsify this thesis
Falsification would look like: ADMA demonstrating that distributor inventory levels are normal and declining, not accumulating; DSO returning to historical levels as receivables are collected; cash from operations converging with reported Adjusted EBITDA; the third-party utilization data converging with reported revenues; and the company disclosing the nature of its relationship with the distributor Culper characterizes as an undisclosed related party. Corroborating developments would include a restatement of revenue or receivables, distributor write-downs or returns of excess ASCENIV inventory, payor denials accelerating, or a regulatory inquiry into the company's revenue recognition practices.
Culper Research's disclosed position
Culper Research disclosed that it, along with its members, partners, affiliates, employees, consultants, clients, and/or investors, has a position in ADMA securities, that it is likely to transact in the securities immediately following publication, and that it may be long, short, or neutral at any time thereafter regardless of its initial recommendation.
Source
⚖️ Editorial Disclaimer
This article summarizes with citation a research report already published by Culper Research. The Forensic Ledger is an independent newsroom and archive; it is not the author of the underlying allegations and does not adopt them as established fact. All figures and characterizations attributed to the report — including the channel-stuffing allegations, the undisclosed related-party distributor claim, the distributor-employee quotations, and the revenue-inflation estimates — are the opinions of a third party (Culper Research) that discloses a financial interest in the decline of the covered security. These claims have not been independently verified by The Forensic Ledger, have not been adjudicated by any court or regulator, and may be denied or disputed by ADMA Biologics. This article is published for informational and journalistic purposes only, is not investment advice, and is not a recommendation to buy, sell, or hold any security.
Original reporting by Culper Research. This article is desk analysis prepared by The Forensic Ledger from publicly available sources, summarized with citation to the original.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.
