ADMA vs Takeda: Which Plasma Therapy Stock Is the Better Buy Today?

Yahoo

25-06-2025

ADMA Biologics ADMA and Takeda TAK are leading players in the plasma derived immunoglobulin sector.
ADMA markets plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases.
On the other hand, Takeda has a well-diversified business with a focus on gastroenterology (GI), rare diseases, plasma-derived therapies (PDT), oncology and neuroscience.
Given the companies' commanding position in the plasma-derived therapies market, choosing one stock over another can be challenging. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice.
ADMA Biologics markets plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases.
The company's top line currently comprises sales of three FDA-approved products — Bivigam (an Intravenous Immune Globulin ['IVIG'] product to treat primary humoral immunodeficiency), Asceniv (to treat primary immunodeficiency disease or PIDD) and Nabi-HB (to treat and provide enhanced immunity against the hepatitis B virus).
Asceniv, its lead product, is a plasma-derived IVIG that contains naturally occurring polyclonal antibodies. These antibodies are proteins used by the body's immune system to neutralize microbes, such as bacteria and viruses, and prevent infections and diseases.
Asceniv is indicated for the treatment of PIDD or inborn errors of immunity in adults and adolescents. It is manufactured using ADMA's unique, patented plasma donor screening methodology and tailored plasma pooling design, which blends normal source plasma with respiratory syncytial virus plasma obtained from donors tested using the company's proprietary microneutralization assay.
Demand was record high in the first quarter. Consequently, ADMA expects Asceniv's total revenue share to expand throughout 2025 and beyond.
ADMA plans to file a supplemental biologics license application in mid-2025 for the expansion of Asceniv's label to include the pediatric setting for patients who are two years and older.
ADMA expects to generate initial, proof-of-concept animal data before 2025-end for its lead pipeline program, SG-001, a hyperimmune globulin targeting S. pneumonia. It believes that SG-001 has the potential to generate $300-500 million or more in high-margin annual revenues, with IP protection through at least 2037.
Takeda is focused on developing life-saving plasma-derived therapies, which are essential for patients with a variety of rare and complex chronic diseases. Takeda has created a dedicated PDT business unit that manages the business end-to-end, from plasma donation to manufacturing, R&D and commercialization.
The PDT business posted 9% growth in 2024. Takeda's broad immunoglobulin portfolio includes Hyqvia, Cuvitru, Gammagard Liquid and Gammagard S/D. Among these, Hyqvia is a product consisting of human normal IG and recombinant human hyaluronidase (licensed from Halozyme).
Hyqvia is the only subcutaneous IG treatment for primary immunodeficiencies (PID) patients with a dosing regimen that requires only one infusion up to once per month and one injection site per infusion to deliver a full therapeutic dose of IG. It is approved in the United States for adults with PID, and in Europe for patients with PID syndromes and myeloma or CLL with severe secondary hypogammaglobulinemia and recurrent infections. Hyqvia was also approved for maintenance treatment in adult patients with chronic inflammatory demyelinating polyneuropathy (CIDP) in the United States and CIDP patients of all ages in Europe.
Gammagard Liquid/Kiovig is a liquid formulation of the antibody replacement therapy immunoglobulin (IG), for the treatment of adult and pediatric patients two years of age or older with PID and adult patients with multifocal motor neuropathy (MMN) (administered intravenously). It is also approved for adult patients with CIDP. Kiovig is the brand name used for Gammagard Liquid in many countries outside the United States.
Cuvitru is indicated as replacement therapy for primary humoral immunodeficiency in adults and pediatric patients two years of age and older.
The PDT business is one of the focal areas for Takeda's R&D efforts. The company is developing next-generation immunoglobulin products with 20% facilitated SCIG (TAK-881) and liquid low IgA IG (TAK-880). It is also pursuing other early-stage opportunities (e.g., hypersialylated Immunoglobulin [hsIgG]) that would diversify its portfolio further.
The company has also joined forces with Halozyme, Kamada, and Johnson & Johnson to advance its pipeline further.
The Zacks Consensus Estimate for ADMA's 2025 sales implies a year-over-year increase of 18.61%, and that for earnings per share (EPS) suggests an improvement of 36.73%. However, EPS estimates for 2025 have moved south in the past 60 days. Nonetheless, the metric for 2026 has moved north during the same time frame.
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The Zacks Consensus Estimate for TAK's 2025 sales implies a year-over-year decrease of 2.80%, while that for EPS suggests an improvement of 6.21%. However, EPS estimates for 2025 and 2026 have moved south in the past 60 days.
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From the perspective of price performance, TAK has fetched better returns than ADMA so far this year. Shares of ADMA have gained 4.1%, while those of TAK have risen 13.91%.
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From a valuation standpoint, ADMA is more expensive than TAK. ADMA's shares currently trade at 21.79X forward earnings, higher than 9.03X for TAK.
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Large biotech companies are generally considered safe havens for investors interested in this sector.
Takeda is a drug giant with an extremely broad and diverse portfolio. It is one of the three largest producers of plasma derivatives in terms of total sales. TAK's diversified plasma drug portfolio, global infrastructure, and encouraging R&D efforts should help it drive growth in its PDT business.
TAK currently carries a Zacks Rank #4 (Sell).
On the other hand, ADMA's top line is witnessing steady growth on the back of robust Asceniv demand. An acceleration in new patient starts, a potential label expansion and further penetration in existing markets should significantly expand Asceniv's sales.
ADMA currently carries a Zacks #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
While large-cap TAK provides stability and has provided better returns than ADMA so far this year, we believe ADMA's revenue potential to be further unlocked with the market expansion of Asceniv, positioning it for solid growth. Hence, ADMA is a better pick at present.
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This article originally published on Zacks Investment Research (zacks.com).
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