Investing.com -- ADMA Biologics Inc shares fell more than 9% on Tuesday afternoon after short seller Culper Research released a report alleging the company engaged in channel stuffing to inflate revenue growth.

Culper Research disclosed a short position in ADMA and claimed the company's reported growth is driven by what it called a channel stuffing scheme involving an undisclosed related party distributor. The short seller estimated that ADMA revenues declined 3% in 2025 versus the reported 20% growth, absent the alleged channel stuffing.

According to the report, ADMA has never conducted a head-to-head study, and ASCENIV holds a standard PI label. The report stated that payors treat ASCENIV as functionally identical to standard IVIGs available at lower prices and have implemented strict prior authorization requirements, step edits, and denials.

Culper cited ADMA's financial disclosures showing days sales outstanding increased from 43 to 113 days in 2025. The company reported $231 million in adjusted EBITDA but generated $50 million in cash from operations. Two distributors, BioCare and CuraScript, represented 73% of revenues and 87% of year-end receivables.

The short seller reported speaking with two employees at one of ADMA's largest distributors who said the company offered rebates and extended payment terms to induce excess ASCENIV stocking starting in 2025. One employee quoted in the report said payment terms extended to 120 days and the distributor was carrying 4 to 6 months of inventory on hand, compared to the typical 30 days.

Culper obtained third-party sales data showing ASCENIV provider sales of $79 million in 2023, $175 million in 2024, and $241 million in 2025, compared to ADMA's reported revenues of $93 million, $240 million, and $363 million respectively. The difference grew from $14 million in 2023 to $121 million in 2025.

The report also cited CEO Adam Grossman's January 2026 statement that ADMA has over 1,000 patients on ASCENIV. Based on this patient count and usage estimates, Culper calculated quarterly revenues of $59.4 million to $74.7 million versus approximately $104.4 million implied by ADMA's reported results.