Emergent BioSolutions: A Great Value Proposition Emergent BioSolutions (EBS)

Emergent BioSolutions: A Great Value Proposition Emergent BioSolutions (EBS)

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.

November 8, 2021

Price (as of close on November 5, 2021)

$33.11

Rating

BUY

New 12- Month Target Price

Emergent BioSolutions

EBS shares tumble after termination of CIADM contract. JNJ COVID vaccine and other vaccines and products remain on track. We maintain our Buy rating, . 

Q3:21 Highlights

➢ Termination of US government contract for pandemic preparedness reduces revenues to be realized under related task orders by $180 million while accelerating recognition of $60 million of deferred revenues.

➢ This contract termination has no impact on manufacturing of the JNJ COVID vaccine, which is a commercial order. EBS resumed manufacturing of the COVID vaccine in July and has to-date produced over 100 million doses.

➢ EBS secures a COVID vaccine manufacturing contract with Providence Therapeutics valued at $90 million over five years.

➢ The company’s CDMO business secured $118 million new business during the September quarter and ended the quarter with backlog of $1.0 billion.

➢ Sales of ACAM2000 smallpox vaccine rose $79.7 million as the company commenced deliveries under a contract option valued at $182 million. Sales of NARCAN nasal spray rose 50% to $133.3 million and EBS increased full-year guidance for this product to $400-$420 million from $305-$325.million earlier.

➢ Phase III trials began of the company’s chikungunya vaccine candidate and of its COVID-HIG therapeutic candidate for outpatient treatment of those at risk of severe forms of COVID.

➢ We updated our revenue and adjusted EPS estimates to reflect September quarter results and reduced guidance. We maintain our BUY rating 

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