Emergent BioSolutions: Primed For Booster Takeoff

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Emergent BioSolutions: Primed For Booster Takeoff

Emergent BioSolutions (EBS) is a global specialty life sciences company that develops and commercializes vaccines, drugs and devices that address public health biodefense threats. The Company is a preferred provider of biodefense products and services to the U.S. government under multi-year contracts. Its portfolio includes the only FDA-approved anthrax vaccine and smallpox vaccine and NARCAN nasal spray for treating opioid overdose. The Company’s products are sold mainly in the U.S. as well as internationally.

 

August 2, 2021

Price (as of close on July 30, 2021)

$65.92

 

Rating

BUY

 

12- Month Target Price

blocked

 

Emergent BioSolutions (EBS)

EBS secures FDA permission to resume production of the Johnson & Johnson COVID vaccine at its Bayview facility. We reiterate our Buy rating and blocked price target. 

ebs q2 21 highlight

 

Q2:21 Highlights

➢EBS announces plan to resume production of the Johnson & Johnson COVID vaccine at its Bayview manufacturing site. The facility has the capacity to manufacture 120 million doses per month

➢The US Dept. of Health and Human Services exercise contract options valued at $182 million covering delivery of doses of the company’s ACAM2000 smallpox vaccine in 2021 and $56 million covering delivery of its VIGIV smallpox therapeutic.

➢EBS builds revenues outside the US by securing a contract with the Canadian government for deliveries of Anthrasil, its’ treatment for inhalational anthrax. In addition, the company received approval from Belgium authorities to sell its’ Trobigard auto-injector, an emergency treatment of exposure to nerve agents or toxins.

➢Sales of the company’s NARCAN nasal spray rise 46% YOY to $106.2 million and EBS anticipates a decision regarding its patent infringement lawsuit currently being argued in the US Court of Appeals before year-end 2021.

➢The company’s CDMO business ends the June quarter with new business of $53 million, contract backlog of $1.1 billion and an opportunity pipeline of $672 million. New business was offset by $108 million of negative contract modifications mainly related to winding down work on the AstraZeneca COVID vaccine at Bayview.

We updated our revenue and adjusted EPS estimates to reflect June quarter results and guidance and reiterate our BUY rating and blockedblockedblockedblockedblockedblockedblocked

 

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