Emergent BioSolutions Inc. (EBS) research, news, and more from GeoInvesting

Company description

Tue, 04 Oct 2016 14:10:14 GMT

Emergent BioSolutions Inc. is a biopharmaceutical company that offers specialized products to healthcare providers and governments to address medical needs and emerging health threats. The Company develops, manufactures and delivers a portfolio of medical countermeasures primarily for government agencies in the areas of biological and chemical threats and emerging infectious diseases (EID). It also develops and commercializes therapeutics in areas of hematology/oncology, transplantation, infectious diseases and autoimmune disorders. Its two operating divisions include Biodefense and Biosciences. The Biodefense division is a pharmaceutical business focused on countermeasures that address public health threats, including chemical, biological, radiological, nuclear and explosives (CBRNE) threats, as well as EID. The Biosciences division is a pharmaceutical business focused on therapeutics in hematology/oncology with secondary on transplantation, infectious disease and autoimmunity.

Research

Thu, 30 Oct 2025 20:57:03 GMT

Emergent BioSolutions (NYSE:EBS) ($9.40; $501.5M market cap) announced Q3 2025 results:

Q3 sales of $231.1 million vs. $293.8 million in the prior year and beat analyst estimates of $199.0 million
Q3 adjusted EPS: $1.06 vs. $1.37 in the prior year and beat analyst estimates of $0.11

“Following a strong second quarter, we are proud to again beat the high end of our third quarter 2025 revenue guidance by $21 million, with continued margin expansion that gives us confidence in meeting the higher end of our adjusted EBITDA guidance for 2025,” said Joe Papa, president and CEO of Emergent. “We remain confident in our products business as evidenced by the sequential growth of our naloxone franchise, where pricing has stabilized for NARCAN® Nasal Spray, as well as continued demand from our international customers, who represent 34% of our medical countermeasures orders year to date. The Company has now secured eleven MCM contract modifications and product orders in 2025, highlighting the consistent global demand for medical countermeasures products, in a world where biological threats represent a growing risk. Our balance sheet is healthy, and we are judiciously deploying our capital to create shareholder value and build a long-term growth trajectory”

Guidance:

Raises FY2025 sales guidance to $775-$835 from $765-$835
Raises adjusted net income guidance to $70-85 from $45-70

Investors should note that the adjusted net income for 9 months 2025 was $109.6 million, implying a loss for Q4 2025.

Research

Wed, 09 Jul 2025 17:21:42 GMT

Emergent BioSolutions (NYSE:EBS) ($6.87; $372.9M market cap) announced a $51.9 million contract modification for the delivery of CNJ-016® [Vaccinia Immune Globulin Intravenous (Human)] (VIGIV) to ASPR:

"Securing this contract modification for VIGIV treatment underscores Emergent’s ongoing partnership with the U.S. government to support its overall smallpox preparedness strategy,” said Paul Williams, senior vice president, head of products business, global government & public affairs at Emergent. “We are proud to fulfill our mission to protect and save lives and stand ready to provide our diverse medical countermeasures through our North American supply chain and capabilities for stockpiling to help address public health threats in the United States and around the world.”

Key highlights:

$51.9 million contract modification awarded by ASPR under 10-year contract (75A50119C00037)
Award is for additional doses of CNJ-016® (VIGIV), used to treat complications from smallpox vaccination
Contract supports U.S. smallpox biodefense preparedness
Follows recent contract amendment for BAT® [Botulism Antitoxin Heptavalent (A–G)] under ASPR contract 75A50119C00075

Emergent BioSolutions Inc. develops and manufactures medical countermeasures, including vaccines, therapeutics, and nasal sprays, for public health threats such as opioid overdose, anthrax, smallpox, cholera, typhoid, botulism, Ebola, and equine encephalitis, and also offers contract development and manufacturing services.

Research

Fri, 09 Dec 2016 15:50:28 GMT

EBS ($27.22) - Emergent Biosolutions, a specialty biopharmaceutical company focusing on the development, manufacture, and distribution of a portfolio of vaccines, therapeutics, and other novel products, announced this morning that they had received two contract awards - one for $911 million and the other for $100 million:

Today, Emergent signed a follow-on contract with the Centers for Disease Control and Prevention (CDC), under Solicitation No. 2016-N-17905, valued at up to $911 million to supply approximately 29.4 million doses of BioThrax® (Anthrax Vaccine Adsorbed) to the Strategic National Stockpile (SNS) through September 2021. BioThrax is the only anthrax vaccine licensed by the U.S. Food and Drug Administration (FDA) and is indicated for both pre-exposure prophylaxis and post-exposure prophylaxis of anthrax disease.
Also today, the Biomedical Advanced Research and Development Authority (BARDA), a division within the Office of the Assistant Secretary of Preparedness and Response at HHS, issued a notice of intent to procure approximately $100 million of BioThrax for delivery into the SNS within 24 months from the date of contract award, which the company anticipates will be in the first half of 2017. This contract will be separate from and in addition to the follow-on procurement contract with CDC.

At first glance, guidance appears to be well ahead of estimates. Investors should note that the updated guidance is below original forecasted guidance from February of 2016:

“Full Year: revenue of $600 to $630 million; GAAP net income of $75 to $85 million, non-GAAP adjusted net income of $90 to $100 million, and EBITDA of $150 to $160 million”

However, the newly issued guidance removes any uncertainty and is above analyst estimates of $459.0 million and EPS $0.87. Using the midpoint of the adjusted net income guidance implies EPS of $1.50 and $1.75 for a combined basis and continuing basis, respectively. At current price of $28, the EPS guidance implies P/E for 2016 of 16 on continuing operations.

The current caveat is the unknown for 2017. The company states they're going to update guidance in January of 2017:

The company anticipates providing 2017 financial guidance in early January 2017, as part of its presentation at the JP Morgan Annual Healthcare Conference. The 2017 guidance will take into account the BioThrax revenues anticipated under the newly executed follow-on CDC contract and the expected BioThrax procurement contract with BARDA, as well as the company’s plan to address its operational and administrative costs to ensure they are sized and aligned to support the company’s growth.

Research

Tue, 04 Oct 2016 14:11:06 GMT

On June 22, 2016 EBS plummeted after uncertainty surfaced regarding its chances and size regarding to win a potential major contract award from the U.S. government. EBS is a bio-pharmaceutical company that develops, manufactures, and sells specialized products to healthcare providers and governments in the United States and internationally.

We think the downside risk seems to have abated and the stock is selling at a discount to the high price of $39.21 on the day the news.

On Friday, September 30, 2016 EBS announced a multi-year contract with the Biomedical Advanced Research and Development Authority worth up to $1.6 billion for the advanced development and delivery of the company’s next generation anthrax vaccine candidate, NuThrax. The total value of contract is dependent upon all options being exercised. It is possible the market was expecting a higher dosage amount with the new contract. The company has stated in the past that for the government to maintain its desired stockpile of Anthrax vaccines, a 20 million per year dosage would be needed. However, this was always rough estimates and the figures were based off BioThrax product which required higher dosage amount than the next generation NuThrax vaccine. BioThrax is the only FDA licensed anthrax vaccine. The next generation product NuThrax, is still a development stage product and thus faces competition from various players who also receive government development stage grants. In the end, like BioThrax, it seems likely that EBS's NuThrax vaccine will be the lead candidate for the next generation Anthrax vaccine. While there are many variables to the story, there are reasons for optimism.

Reasons For Tracking

EBS Has steadily grown sales and EPS since 2011 through 2015. 2016 looks to be a possible speed bump before the company regains growth momentum and works to achieve its $1 billion revenue goal by 2020

	2016	2015	2014	2013	2012	2011
Sales	$488.3 E	$522.7	$450.1	$312.7	$281.9	$273.4
EPS	$1.03	$1.60	$1.18	$1.03	$0.65	$0.64

The new 5 year contract with BARDA, a division of the U.S. Department of Health and Human Services, provides an element of certainty to the story. Contract details:

"The contract comprises a five-year base period of performance valued at about $200 million to develop NuThrax for post-exposure prophylaxis of anthrax disease. The contract requires the company to deliver to the Strategic National Stockpile (SNS), initially two million doses subsequent to Emergency Use Authorization pre-approval by the FDA.

In addition, the contract includes procurement options for the delivery of an additional 7.5 million to 50 million doses of the candidate to the SNS, valued from approximately $255 million to up to $1.4 billion, respectively along with options for an additional clinical study and post-marketing commitments valued at $48 million. If both options are exercised in full, the total contract value would increase and total up to $1.6 billion."

Analyst estimates prior to this contract announcement called for strong growth in 2017 over 2016. Analysts expect EPS and revenue to come in at $1.99 on $582.1 million for 2017 vs. $1.03 and $488.3 million for 2016. We will continue to monitor any analyst updates that may reflect the recent contract win. We also need to verify if estimates had included an assumption that EBS would win this award.
The company has strong relationship with Government:

“A unique component of our Biodefense division investigational stage product portfolio is that all candidates are under an active development contract with significant funding from the U.S. government. This allows our development pipeline, along with our marketed products, to be aligned with the strategic priorities of our U.S. and allied foreign government customers.”

Recent investor presentation shows strategic goals for 2020
- Sales of $1 billion
- Net income CAGR of >20%
Commentary in 2015 10K regarding strategic goals

“In January 2016, we announced a new five-year (2016-2020) growth plan, following the completion of our previous three-year (2012-2015) growth plan. This new growth plan presents our strategic, operational and financial goals to be achieved by the end of 2020 and is centered on our renewed focus on medical countermeasures addressing a broad spectrum of public health threats. This growth plan outlines how we intend to drive and accelerate our continued growth through 2020. It is built on a strategy that focuses on (1) expanding our leadership position in the public health threats market; (2) developing innovative products based on our platforms and with a focus on third-party funding; (3) continuing to grow through acquisition of revenue-generating and accretive products and businesses; and, (4) continuing to deliver attractive net income growth. In executing on the growth plan, we are leveraging our core competencies; specifically, government relations and contracting; medical countermeasure development; quality manufacturing; business and product acquisitions; and, financial discipline. Successful execution of the growth plan will culminate in our having achieved specific corporate revenue, product development and profitability goals by the end of 2020.”

EBS has a strong product pipeline
The company continues to look for strategic acquisitions that support a growth plan and align with core competencies.
Wells Fargo analyst David Maris calls the recent contract "very positive news" and maintained an "Outperform" rating with a $40 to $42 price target

We feel shares could attain $49.75 by the end of fiscal 2017. (25x analyst estimates of $1.99)

Caveats:

The Company has two more quarters of down to flat comps before growth resumes.
Substantially all the Company’s revenues come from the U.S. government.

Reasons For Tracking

Tue, 04 Oct 2016 04:00:00 GMT

We think the downside risk seems to have abated and the stock is selling at a near 20% discount to the high price of$ 39.21 on the day the news.

Reasons For Tracking

EBS Has steadily grown sales and EPS since 2011 through 2015. 2016 looks to be a possible speed bump before the company regains growth momentum and works to achieve its $1 billion revenue goal by 2020

	2016	2015	2014	2013	2012	2011
Sales	$488.3 E	$522.7	$450.1	$312.7	$281.9	$273.4
EPS	$1.03	$1.60	$1.18	$1.03	$0.65	$0.64

The new 5 year contract with BARDA, a division of the U.S. Department of Health and Human Services, provides an element of certainty to the story. Contract details:

Analyst estimates prior to this contract announcement called for strong growth in 2017 over 2016. Analysts expect EPS and revenue to come in at $1.99 on $582.1 million for 2017 vs. $1.03 and $488.3 million for 2016. We will continue to monitor any analyst updates that may reflect the recent contract win. We also need to verify if estimates had included an assumption that EBS would win this award.
The company has strong relationship with Government:

Recent investor presentation shows strategic goals for 2020
- Sales of $1 billion
- Net income CAGR of >20%
Commentary in 2015 10K regarding strategic goals

EBS has a strong product pipeline
The company continues to look for strategic acquisitions that support a growth plan and align with core competencies.
Wells Fargo analyst David Maris calls the recent contract "very positive news" and maintained an "Outperform" rating with a $40 to $42 price target

We feel shares could attain $49.75 by the end of fiscal 2017. (25x analyst estimates of $1.99)

Caveats:

The Company has two more quarters of down to flat comps before growth resumes.
Substantially all the Company’s revenues come from the U.S. government.