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Emergent (EBS) Beats on Q4 Earnings, Misses on Revenues
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Emergent BioSolutions Inc. (EBS - Free Report) reported fourth-quarter 2020 earnings of $3.67 per share, which comprehensively beat the Zacks Consensus Estimate of $2.72 and also improved from the year-ago quarter’s earnings of $1.57.
Revenues in the reported quarter were $583 million, up 62% from the prior-year period, primarily owing to an increase in contract development and manufacturing (“CDMO”) services revenues. However, the top line missed the Zacks Consensus Estimate of $588 million.
Shares of Emergent have rallied 30.7% so far this year compared with the industry’s increase of 10.4%.
Quarter in Detail
Total product sales increased 10% to $340.9 million from the year-earlier quarter primarily due to increased sales of smallpox vaccine ACAM2000.
ACAM2000, which was acquired from Sanofi (SNY - Free Report) in the fourth quarter of 2017, generated sales of $129.3 million, reflecting an increase of 65% year over year, as the timing delay which occurred during the third quarter of 2020 was resolved in the fourth quarter. The company continued deliveries of ACAM2000 to the United States Strategic National Stockpile in the reported quarter.
Narcan (naloxone HCl) nasal spray added $77.4 million to product sales, reflecting an increase of 16% year over year. Narcan was added to Emergent’s portfolio following the acquisition of Adapt Pharma in October 2018.
Notably, sales of anthrax vaccines (BioThrax and AV7909) were $115.7 million in the reported quarter, increasing 25% year over year.
However, other product sales plunged 74% on a year-over-year basis to $18.5 million due to a decline in sales of anthrax monoclonal antibody, raxibacumab, VIGIV and the travel health vaccines.
Revenues from contracts and grants increased 78% year over year to $43 million.
Contract manufacturing revenues jumped to $199.1 million, compared with $25.5 million reported in the year-ago period. The increase was on the back of contributions for services performed to address the COVID-19 pandemic provided to partners.
The company recorded adjusted EBITDA of $290.9 million in the reported quarter compared with $134.3 million in the year-ago period, up 116.6%.
Full-Year Results
For 2020, Emergent generated revenues of $1.5 billion, up 41% year over year. Net product revenues were $989.8 million in 2020, rising 10% on a yearly basis.
Adjusted earnings per share of $7.88 for full year 2020 were higher than the prior-year earnings of $2.91.
2021 Guidance
We remind investors that last month Emergent issued guidance for 2021. Along with the earnings release, the company reaffirmed the guidance.
Emergent predicts revenues of $1.95-$2.05 billion for 2021. The Zacks Consensus Estimate for the metric stands at $2.0 billion for the period. Emergent anticipates adjusted net income within $475-$525 million, while adjusted EBITDA is anticipated in the range of $750-$810 million.
In 2021, Emergent forecasts aggregate product revenues and services revenues from the CDMO business to be in the range of $925-$965 million.
The company expects sales of Narcan nasal spray in the bracket of $305-$325 million. Sales of smallpox vaccine ACAM2000 are expected in the band of $185-$205 million while sales of anthrax vaccines (BioThrax and AV7909) are expected in the range of $280-$310 million.
For the first quarter of 2021, the company expects total revenues of $330-$370 million.
Coronavirus Response and Other Updates
To address the global COVID-19 pandemic, Emergent inked several CDMO deals to provide manufacturing services to various companies for helping to them produce their respective experimental vaccine candidates against COVID-19.
Emergent reached a five-year large-scale drug substance manufacturing agreement with pharma giant Johnson & Johnson (JNJ - Free Report) for its lead COVID-19 vaccine candidate. Earlier this month, J&J had filed an application to the FDA seeking Emergency Use Authorization for the vaccine.
Emergent also agreed to provide CDMO services to AstraZeneca (AZN - Free Report) for supporting the manufacture of the latter’s COVID-19 vaccine candidate, which has been developed in partnership with Oxford University. AstraZeneca’s COVID-19 vaccine has been approved for temporary/conditional use in more than 50 countries including the European Union and the United Kingdom.
Notably, Emergent also signed a CDMO contract with Vaxart and small biotech Novavax to help them produce their respective vaccine candidates against COVID-19.
In January 2021, Emergent entered into a CDMO services agreement with Humanigen, Inc. for manufacturing the latter’s COVID-19 therapeutic candidate, lenzilumab. Emergent also signed a similar CDMO services agreement with Providence Therapeutics to provide drug product manufacturing services to their mRNA PTX-COVID19-B vaccine candidate.
Meanwhile, Emergent initiated a phase III study evaluating its hyperimmune globulin product, COVID HIG, for the potential treatment of patients hospitalized with COVID-19.
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Emergent (EBS) Beats on Q4 Earnings, Misses on Revenues
Emergent BioSolutions Inc. (EBS - Free Report) reported fourth-quarter 2020 earnings of $3.67 per share, which comprehensively beat the Zacks Consensus Estimate of $2.72 and also improved from the year-ago quarter’s earnings of $1.57.
Revenues in the reported quarter were $583 million, up 62% from the prior-year period, primarily owing to an increase in contract development and manufacturing (“CDMO”) services revenues. However, the top line missed the Zacks Consensus Estimate of $588 million.
Shares of Emergent have rallied 30.7% so far this year compared with the industry’s increase of 10.4%.
Quarter in Detail
Total product sales increased 10% to $340.9 million from the year-earlier quarter primarily due to increased sales of smallpox vaccine ACAM2000.
ACAM2000, which was acquired from Sanofi (SNY - Free Report) in the fourth quarter of 2017, generated sales of $129.3 million, reflecting an increase of 65% year over year, as the timing delay which occurred during the third quarter of 2020 was resolved in the fourth quarter. The company continued deliveries of ACAM2000 to the United States Strategic National Stockpile in the reported quarter.
Narcan (naloxone HCl) nasal spray added $77.4 million to product sales, reflecting an increase of 16% year over year. Narcan was added to Emergent’s portfolio following the acquisition of Adapt Pharma in October 2018.
Notably, sales of anthrax vaccines (BioThrax and AV7909) were $115.7 million in the reported quarter, increasing 25% year over year.
However, other product sales plunged 74% on a year-over-year basis to $18.5 million due to a decline in sales of anthrax monoclonal antibody, raxibacumab, VIGIV and the travel health vaccines.
Revenues from contracts and grants increased 78% year over year to $43 million.
Contract manufacturing revenues jumped to $199.1 million, compared with $25.5 million reported in the year-ago period. The increase was on the back of contributions for services performed to address the COVID-19 pandemic provided to partners.
The company recorded adjusted EBITDA of $290.9 million in the reported quarter compared with $134.3 million in the year-ago period, up 116.6%.
Full-Year Results
For 2020, Emergent generated revenues of $1.5 billion, up 41% year over year. Net product revenues were $989.8 million in 2020, rising 10% on a yearly basis.
Adjusted earnings per share of $7.88 for full year 2020 were higher than the prior-year earnings of $2.91.
2021 Guidance
We remind investors that last month Emergent issued guidance for 2021. Along with the earnings release, the company reaffirmed the guidance.
Emergent predicts revenues of $1.95-$2.05 billion for 2021. The Zacks Consensus Estimate for the metric stands at $2.0 billion for the period. Emergent anticipates adjusted net income within $475-$525 million, while adjusted EBITDA is anticipated in the range of $750-$810 million.
In 2021, Emergent forecasts aggregate product revenues and services revenues from the CDMO business to be in the range of $925-$965 million.
The company expects sales of Narcan nasal spray in the bracket of $305-$325 million. Sales of smallpox vaccine ACAM2000 are expected in the band of $185-$205 million while sales of anthrax vaccines (BioThrax and AV7909) are expected in the range of $280-$310 million.
For the first quarter of 2021, the company expects total revenues of $330-$370 million.
Coronavirus Response and Other Updates
To address the global COVID-19 pandemic, Emergent inked several CDMO deals to provide manufacturing services to various companies for helping to them produce their respective experimental vaccine candidates against COVID-19.
Emergent reached a five-year large-scale drug substance manufacturing agreement with pharma giant Johnson & Johnson (JNJ - Free Report) for its lead COVID-19 vaccine candidate. Earlier this month, J&J had filed an application to the FDA seeking Emergency Use Authorization for the vaccine.
Emergent also agreed to provide CDMO services to AstraZeneca (AZN - Free Report) for supporting the manufacture of the latter’s COVID-19 vaccine candidate, which has been developed in partnership with Oxford University. AstraZeneca’s COVID-19 vaccine has been approved for temporary/conditional use in more than 50 countries including the European Union and the United Kingdom.
Notably, Emergent also signed a CDMO contract with Vaxart and small biotech Novavax to help them produce their respective vaccine candidates against COVID-19.
In January 2021, Emergent entered into a CDMO services agreement with Humanigen, Inc. for manufacturing the latter’s COVID-19 therapeutic candidate, lenzilumab. Emergent also signed a similar CDMO services agreement with Providence Therapeutics to provide drug product manufacturing services to their mRNA PTX-COVID19-B vaccine candidate.
Meanwhile, Emergent initiated a phase III study evaluating its hyperimmune globulin product, COVID HIG, for the potential treatment of patients hospitalized with COVID-19.
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise
Emergent Biosolutions Inc. price-consensus-eps-surprise-chart | Emergent Biosolutions Inc. Quote
Zacks Rank
Emergent currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>