Sell Emergent BioSolutions For a 31% Win!
Posted by Lance Jepsen on December 16, 2016 6:55 AM
Tags: Anthrax, Anthrax Vaccine Adsorbed, Antibody, Bioterrorism, Centers for Disease Control and Prevention, Emergent BioSolutions, Government, Strategic National Stockpile, Terrorism, United States Department of Health and Human Services, Viral hemorrhagic fever
December 16, 2016: Sold Emergent BioSolutions for a 31% win in just 6 trading days. Congratulations if you were able to make money on the trade.
December 12, 2016: Emergent BioSolutions announced that Health Canada has approved their New Drug Submission (NDS) for its botulism antitoxin, BAT [Botulism Antitoxin Heptavalent (A, B, C, D, E, F, G) – (Equine)]. BAT is indicated for the treatment of symptomatic botulism following documented or suspected exposure to botulinum neurotoxin serotypes A, B, C, D, E, F, or G in adults and pediatric patients. BAT was approved under the Extraordinary Use New Drug (EUND) Regulations, which provide a regulatory pathway for products for which collecting clinical information for its intended use in humans is logistically or ethically not possible.
December 8, 2016: Emergent BioSolutions will support HHS Anthrax Preparedness strategy with up to $1 billion in BioThrax deliveries to the Strategic National Stockpile. Emergent BioSolutions affirms FY16 revenue combined $485 to $505 million versus the $487 million estimate.
Emergent BioSolutions also announces that it has signed a follow-on contract with CDC valued at up to $911 million to supply to the SNS approximately 29.4 million doses of BioThrax through September 2021.
BARDA issues a notice of intent to separately procure approximately $100 million of BioThrax for the SNS over 24 months from contract award, which is expected in 1H 2017.
These actions, together with the recently awarded BARDA contract for NuThrax, reflect the U.S. government’s intention to transition the stockpile of anthrax vaccines from BioThrax to NuThrax beginning in 2019.
Under these contract actions, the company plans to deliver approximately nine million doses of BioThrax in each of 2017 and 2018. In 2019, the company anticipates delivering approximately 10 million doses comprised of a combination of both BioThrax and NuThrax.
BioThrax pricing in 2017 under the CDC follow-on contract is 2% higher than current levels and is subject to a 3% annual price escalation over the duration of the contract. Deliveries are scheduled to continue, subject to availability of funding, through September 2021.
Emergent BioSolutions expects that the BARDA procurement contract, which will be separate from and in addition to the follow-on procurement contract with CDC, will require the company to complete delivery of all BioThrax doses covered by that agreement within 24 months from the date that the contract is awarded. BioThrax pricing under the BARDA procurement contract is anticipated to be the same as BioThrax pricing in 2017 under the CDC follow-on contract.
The CEO said, “Emergent believes these actions reflect the U.S. government’s continued assessment of anthrax as a high-priority threat and its firm commitment to protecting the nation against bioterrorism. We are pleased to be able to make meaningful contributions to helping the government execute its strategy to achieve its preparedness goals.”
November 15, 2016: Emergent BioSolutions entered into an exclusive worldwide license agreement with Integrated BioTherapeutics whereby Emergent will gain exclusive rights to use IBT’s proprietary vaccine antigens and know-how in joint research, development, and manufacturing collaboration focused on an equine-based hyper immunoglobulin for the treatment of hemorrhagic fever caused by Filoviruses. Financial terms of the agreement are not disclosed. The development of this vital hyperimmune product candidate is being directed under the auspices of a collaboration between IBT, Emergent, Auburn University, Public Health Agency of Canada, and US Army Medical Research Institute of Infectious Diseases (USAMRIID). Emergent, supported by IBT and their network of collaborators, intend to develop this product candidate towards approval by the U.S. Food and Drug Administration for the treatment of filovirus hemorrhagic fever. Once approved, the product may be produced for inclusion in the Strategic National Stockpile for emergency use or in response to possible future outbreaks.
November 7, 2016: Emergent BioSolutions price target was cut to $33 from $36 at JPMorgan. JPMorgan reiterates an Overweight rating.
November 7, 2016: Emergent BioSolutions beats on EPS, coming in for Q3 at $0.58 versus the $0.39 estimate. The company also beat on revenue coming in at $142.9 million versus the $88 million estimate. The Company continues to postpone its financial guidance for 2016 until the CDC follow-on BioThraxprocurement contract has been finalized.
As a result of the August 1, 2016, spin-off of the Company’s biosciences business into a separate publicly traded company, Aptevo Therapeutics Inc., the financial statements and related explanatory sections for Emergent, exclusive of Aptevo, presented herein have been revised accordingly and are referenced as continuing operations.
Emergent BioSolutions Stock Chart
The Finviz screener settings used to find Emergent BioSolutions are: Sector Healthcare, P/E Under 20, Foward P/E Under 20, PEG Low (<1), EPS growth this year High (>25%), EPS growth next year High (>25%), Gross Margin High (>50%)
Emergent BioSolutions is a specialty biopharmaceutical company seeking to protect and enhance life by offering specialized products to healthcare providers and governments to address medical needs and emerging health threats. Since its founding in 1998, Emergent’s history has been one of innovation and growth focused on a singular mission—to protect and enhance life. From its beginnings as a private company with a single location in Lansing, Michigan, Emergent has grown into a thriving public company with sites around the world.
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