Shares of Emergent BioSolutions (EBS) have more than doubled in market cap so far this year, outperforming the industry’s 13% decline, as seen in the chart below. This surge in stock price started earlier this year after management announced several strategic changes to enhance profitability and stabilize its financial position. During the same period, the stock has also outperformed the broader Medical sector and the S&P 500. It is currently trading above its 200-day moving average.EBS Stock Outperforms In ...

GAITHERSBURG, Md., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE:EBS) today announced that the Biomedical Advanced Research and Development Authority (BARDA) within the Administration for Strategic Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services has awarded a $50 million option to Emergent's existing contract (HHSO100201600030C) for the acquisition of CYFENDUS® (Anthrax Vaccine Adsorbed, Adjuvanted). Deliveries are expected to begin this calendar yea ...

Emergent BioSolutions (EBS -5.59%) saw its shares tumble on Tuesday, due to news of a share sell-off. The vaccine maker divulged in a regulatory filing that several institutional share and warrant holders are selling such securities. Investors reacted by trading Emergent's stock down by almost 6%, on a day when the S&P 500 (^GSPC 0.05%) more or less flatlined.Unloading shares and exercising warrantsThe selling parties are mainly entities affiliated with OHA Agency, a business that provided a $250 million te ...

If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth . Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. I hope to see you there.Emergent BioSolutions (NYSE: EBS ), the Gaithersburg, Maryland headquartered biotech reported its Q3 earnings on Wednesday 6th November, after the bell, leading to a 20% su ...

Core Viewpoint - Emergent BioSolutions Inc. reported mixed third-quarter earnings, with a notable increase in stock price driven by new mpox trials in Africa and a significant turnaround in adjusted EPS [1][5]. Financial Performance - Third-quarter sales reached $293.8 million, a 9% increase year over year, but fell short of the consensus estimate of $297.5 million [1]. - Adjusted EPS was $1.37, a recovery from a loss of $1.09 a year ago, exceeding the consensus of $0.14 [1]. Revenue Breakdown - Revenues from Narcan Nasal Spray decreased by 33% to $95.3 million due to the transition to over-the-counter sales and lower Canadian retail sales, although OTC Narcan sales increased [2]. - Anthrax MCM revenues fell by 65% to $11.4 million, while Smallpox MCM sales surged over fivefold to $132.7 million [2]. Guidance Updates - The company revised its 2024 revenue guidance to $1.065 billion – $1.125 billion, slightly below the previous range and consensus of $1.123 billion [3]. - Commercial product sales guidance was adjusted to $420 million – $430 million, down from $450 million – $480 million [3]. - MCM product sales outlook was updated to $510 million – $550 million, compared to the earlier expectation of $455 million – $490 million [3]. Services Segment and Loss Projections - Services segment sales are now expected to be $105 million – $110 million, lower than the previous range of $120 million – $130 million [4]. - The company anticipates a 2024 net loss of $203 million – $183 million, an improvement from the earlier loss range of $314 million – $274 million [4]. - Adjusted EBITDA is forecasted to be $180 million – $200 million, up from the previous forecast of $140 million – $180 million [4]. New Trials and Initiatives - Emergent BioSolutions announced a new trial for brincidofovir (Tembexa) to treat mpox, sponsored by PANTHER and led by the Africa Centres for Disease Control and Prevention, set to begin in the Democratic Republic of Congo [5]. Stock Performance - EBS stock increased by 28.3%, reaching $11.80 during the latest trading session [6].

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Moody's Corporation (MCO) : This integrated risk assessment firm has seen the Zacks Consensus Estimate for its current year earnings increasing 6.3% over the last 60 days.Emergent BioSolutions Inc. (EBS) : This life sciences company has seen the Zacks Consensus Estimate for its current year earnings increasing 34.3% over the last 60 days.LivaNova PLC (LIVN) : This medical device company has seen the Zacks Consensus Estimate for its curr ...

Financial Data and Key Metrics - Total revenues for Q3 2024 were $294 million, a 9% year-over-year improvement, at the upper end of the guidance range [19] - Adjusted EBITDA for Q3 2024 was $105 million, or 36% of revenues, an improvement of $85 million versus the prior year [19] - Year-to-date revenue was $849 million, up 10% versus the prior year, driven by U.S. government and international medical countermeasures [24] - Year-to-date adjusted EBITDA was $162 million, an improvement of $188 million versus the prior year [24] - Net debt was reduced to $551 million, a $206 million reduction since the beginning of 2024 [17] Business Line Performance - NARCAN sales were $95 million in Q3 2024, with year-to-date volumes up 7% [18][20] - Anthrax MCM sales were $11 million, a decrease versus the prior year due to timing of deliveries [21] - Smallpox MCM sales were $133 million, including deliveries of ACAM2000 and VIGIV contract options to the U.S. government [21] - Other product sales, including BAT, were $30 million, and Bioservices revenues were $14 million [21] Market Performance - NARCAN volumes increased year-to-date, driven by strong demand in the U.S. public interest channel and expanded categories like business and retail channels [11][31] - The company received FDA approval for ACAM2000 to include the mpox expanded indication, strengthening its smallpox portfolio [11][36] - The company secured over $500 million in medical countermeasure contract modifications for Anthrax MCM, Smallpox MCM, and BAT [18] Strategic Direction and Industry Competition - The company is transitioning from the stabilization phase to the turnaround phase of its multi-year plan, focusing on operational improvements and profitable growth [7][8] - The company is strategically focusing on international expansion and line extensions of current products, such as NARCAN, to drive future growth [39] - The company is leveraging its unique position in medical countermeasures to engage with U.S. and international governments, responding to public health threats like mpox and Ebola [35][37] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the bipartisan support for the company's mission to combat public health threats like opioid overdoses and biodefense [13] - The company raised its 2024 revenue and adjusted EBITDA guidance, reflecting strong performance and improved financial stability [9][25] - Management highlighted the importance of maintaining competitive pricing for NARCAN while leveraging its brand and distribution capabilities to sustain market leadership [57][58] Other Important Information - The company successfully refinanced its debt, closing a $250 million term loan with Oak Hill Advisors and a $100 million asset-backed revolving credit facility with Wells Fargo [10][16] - The company resolved legacy compliance and legal matters, including a $50 million settlement with Janssen Pharmaceuticals [15] - The company appointed Dr. Simon Lowry as Head of R&D and Chief Medical Officer, and promoted Jessica Perl to General Counsel and Corporate Secretary [12] Q&A Session Summary Question: Long-term gross margin outlook for NARCAN - The company expects NARCAN gross margins to stabilize around the current level of 50%, with ongoing efforts to improve cost of goods sold [45] Question: New growth opportunities and asset acquisitions - The company is focused on both internal growth opportunities, such as NARCAN line extensions and geographic expansion, and external business development deals that align with its capabilities [47][51] Question: Factors impacting NARCAN guidance and competitive dynamics - NARCAN guidance was adjusted due to competitive pricing pressures and discontinued RX NARCAN sales, but volumes remain strong with 7% year-to-date growth [55][59] - Pricing in the NARCAN market has stabilized, with the majority of sales still coming from the public interest market [61][63] Question: Smallpox contract deliveries and future revenue recognition - A significant portion of the $400 million Smallpox contract will be recognized in 2025, with some revenue expected in Q4 2024 [65] Question: Asset sales and future site utilization - The company is evaluating further asset sales and site utilization, with a focus on reducing operating expenses while maintaining manufacturing capabilities [70][72] Question: Long-term EBITDA potential - The company has significantly reduced operating expenses and streamlined its site network, positioning itself for improved profitability, though specific 2025 guidance was not provided [74][75]

Emergent Biosolutions (EBS) came out with quarterly earnings of $1.37 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to loss of $1.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 179.59%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.97 per share when it actually produced a loss of $2.32, delivering a surprise of -139.18%.Over the last four quar ...

| --- | --- | |----------------------------|-------| | | | | | | | | | | | | | Q3 2024 | | | Financial | | | Results | | | Update | | | November 6, 2024 | | | | | | | | | | | | Proprietary & Confidential | | PROPRIETARY AND CONFIDENTIAL Q3 2024 Update Introduction INTRODUCTION Safe Harbor Statement/Trademarks This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including sta ...

Part I. Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents the company's financial position and performance, showing a shift to net income in Q3 2024 and improved cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.48 billion**, liabilities to **$969.4 million**, and equity to **$508.4 million** as of September 30, 2024 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2024 (Unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,477.8** | **$1,823.2** | | Cash and cash equivalents | $149.9 | $111.7 | | Property, plant and equipment, net | $278.1 | $382.8 | | **Total Liabilities** | **$969.4** | **$1,173.9** | | Debt, current portion | $0.8 | $413.7 | | Debt, net of current portion | $661.8 | $446.5 | | **Total Stockholders' Equity** | **$508.4** | **$649.3** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2024 net income of **$114.8 million** marks a significant turnaround from a **$263.4 million** loss in Q3 2023 Statement of Operations Summary (in millions, except EPS) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$293.8** | **$270.5** | **$848.9** | **$772.7** | | Commercial Product Sales | $95.3 | $142.1 | $333.8 | $386.2 | | MCM Product Sales | $174.2 | $107.7 | $393.0 | $309.2 | | **Income (Loss) from Operations** | **$64.5** | **($242.1)** | **($99.2)** | **($682.6)** | | Goodwill Impairment | $0.0 | $218.2 | $0.0 | $218.2 | | Gain (Loss) on Sale of Business | $64.3 | ($0.7) | $24.3 | $74.2 | | **Net Income (Loss)** | **$114.8** | **($263.4)** | **($159.3)** | **($711.0)** | | **Diluted EPS** | **$2.06** | **($5.08)** | **($3.03)** | **($13.97)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations turned positive at **$138.6 million** for YTD 2024, a significant improvement from prior year Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $138.6 | ($238.4) | | Net cash provided by investing activities | $96.6 | $223.7 | | Net cash used in financing activities | ($190.5) | ($540.4) | | **Net change in cash, cash equivalents and restricted cash** | **$44.7** | **($554.8)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details business segments, accounting policies, and key events including divestitures, debt refinancing, and litigation settlements - The company operates through three reportable segments: **Commercial Products** (NARCAN®), **MCM Products** (Anthrax, Smallpox, etc.), and **Services** (CDMO)[24](index=24&type=chunk)[149](index=149&type=chunk) - The company has alleviated substantial doubt about its ability to continue as a going concern, citing progress on strategic plans[33](index=33&type=chunk)[35](index=35&type=chunk)[257](index=257&type=chunk) - Completed the sale of its RSDL® business for **$75.0 million** cash, recognizing a pre-tax gain of **$60.8 million**[46](index=46&type=chunk) - Completed the sale of its Baltimore-Camden drug product facility for approximately **$35.0 million** cash, recognizing a pre-tax loss of **$36.5 million**[48](index=48&type=chunk)[49](index=49&type=chunk) - Recognized a non-cash impairment charge of **$27.2 million** in Q2 2024 related to planned facility closures[51](index=51&type=chunk)[52](index=52&type=chunk) - Entered into a new **$250.0 million** Term Loan and **$100.0 million** Revolving Credit Agreement, repaying prior facilities[34](index=34&type=chunk)[93](index=93&type=chunk)[99](index=99&type=chunk) - Agreed to settle a shareholder class action lawsuit for **$40.0 million**, with **$30.0 million** from insurance proceeds[139](index=139&type=chunk) - Settled arbitration with Janssen, receiving **$50.0 million** and recognizing it as services revenue[146](index=146&type=chunk)[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved Q3 2024 performance driven by MCM sales, strategic divestitures, and debt refinancing, alleviating going concern doubts [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q3 2024 total revenues rose **9%** to **$293.8 million**, driven by MCM sales, leading to operating income turnaround Q3 2024 vs Q3 2023 Revenue Performance (in millions) | Revenue Category | Q3 2024 | Q3 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Commercial Product Sales | $95.3 | $142.1 | ($46.8) | (33)% | | MCM Product Sales | $174.2 | $107.7 | $66.5 | 62% | | Services | $14.3 | $14.2 | $0.1 | 1% | | **Total Revenues** | **$293.8** | **$270.5** | **$23.3** | **9%** | YTD 2024 vs YTD 2023 Revenue Performance (in millions) | Revenue Category | YTD 2024 | YTD 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Commercial Product Sales | $333.8 | $386.2 | ($52.4) | (14)% | | MCM Product Sales | $393.0 | $309.2 | $83.8 | 27% | | Services | $97.5 | $57.7 | $39.8 | 69% | | **Total Revenues** | **$848.9** | **$772.7** | **$76.2** | **10%** | - The increase in Services revenue for the nine months ended Sep 30, 2024, was primarily due to the **$50.0 million** arbitration settlement with Janssen[250](index=250&type=chunk) - SG&A expenses decreased **11%** in Q3 2024 due to restructuring initiatives and lower legal fees, partially offset by a settlement charge for stockholder litigation[200](index=200&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=56&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Financial condition improved with increased cash and working capital, successful debt refinancing, and positive operating cash flow - As of September 30, 2024, the company had **$149.9 million** in unrestricted cash and equivalents and **$100.0 million** available under its new Revolving Credit Agreement[256](index=256&type=chunk)[259](index=259&type=chunk) - Management believes that its sources of liquidity are adequate to fund operations for at least the next twelve months, alleviating prior going concern doubts[257](index=257&type=chunk)[259](index=259&type=chunk) - Cash flow from operating activities improved by **$377.0 million** year-over-year for the nine-month period, driven by better operational results and working capital changes[262](index=262&type=chunk) - Investing activities provided **$96.6 million** in cash, primarily from the sales of the RSDL® business and the Baltimore-Camden facility[263](index=263&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily from interest rate fluctuations and foreign currency exchange rates - The company has exposure to interest rate risk on its floating-rate debt; a hypothetical **1%** increase in the eurocurrency rate would increase annual interest expense by approximately **$2.5 million**[277](index=277&type=chunk) - The company is exposed to foreign currency exchange rate fluctuations, primarily related to the Euro, Canadian dollar, Swiss franc, and British pound[278](index=278&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2024, with no material changes - Based on an evaluation as of September 30, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[279](index=279&type=chunk) - No material changes to the internal control over financial reporting occurred during the third quarter of 2024[280](index=280&type=chunk) Part II. Other Information [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a **$40.0 million** securities class action settlement - The company refers to Note 15, "Litigation," for information on legal proceedings[281](index=281&type=chunk) - Key legal matters include the settlement of a securities class action lawsuit and ongoing shareholder derivative lawsuits[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) Key risks include significant indebtedness of **$700.8 million**, restrictive debt covenants, and potential inability to realize divestiture benefits - The company's significant indebtedness of approximately **$700.8 million** could limit its ability to obtain additional financing and place it at a competitive disadvantage[283](index=283&type=chunk) - Debt agreements contain restrictive covenants that limit actions such as incurring more debt, making capital expenditures, and pursuing acquisitions[287](index=287&type=chunk)[289](index=289&type=chunk) - The company may not realize the full expected benefits from the sales of its travel health business, RSDL®, and the Baltimore-Camden facility[297](index=297&type=chunk)[299](index=299&type=chunk) - The company is ineligible to file a new Registration Statement on Form S-3 until 2025, which may inhibit its ability to access capital markets[294](index=294&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued unregistered warrants and common stock to lenders in connection with its new Term Loan Agreement - On August 30, 2024, the company sold Warrants to purchase **2.5 million** shares of common stock to its term loan lenders[301](index=301&type=chunk) - On September 17, 2024, the company issued **1,113,338** shares of common stock to its term loan lenders at approximately **$8.98** per share[302](index=302&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated Rule 10b5-1 trading arrangements in Q3 2024 - No directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading plan in Q3 2024[304](index=304&type=chunk)