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1. Company Snapshot

1.a. Company Description

Emergent BioSolutions Inc., a life sciences company, focuses on the provision of preparedness and response solutions that address accidental, deliberate, and naturally occurring public health threats (PHTs) in the United States.The company's products address PHTs, which include chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travel health; and emerging health crises and acute/emergency care.It offers BioThrax, an anthrax vaccine; ACAM2000, a smallpox vaccine; Botulism Antitoxin Heptavalent to treat botulinum disease; vaccinia immune globulin intravenous that addresses complications from smallpox vaccine; raxibacumab for the treatment and prophylaxis of inhalational anthrax; Anthrasil to for inhalational anthrax; reactive skin decontamination lotion kits; and Trobigard, a combination drug-device auto injector product candidate; and Trobigard, a combination drug-device auto injector product candidate.


The company also provides NARCAN, a nasal spray for the emergency treatment of known or suspected opioid overdose; Vivotif, an oral vaccine for typhoid fever; and Vaxchora, a single-dose oral vaccine to treat cholera.In addition, it is developing AP003, a Naloxone multidose nasal spray; AP007, a sustained release Nalmefene injection for treatment of opioid use disorder; AV7909, an anthrax vaccine; CGRD-001, a pralidoxime chloride/atropine auto-injector; CHIKV VLP, a chikungunya virus VLP vaccine; COVID-HIG for the treatment of SARS-CoV2; EGRD-001, a diazepam auto-injector; SIAN, an antidote for the initial treatment of acute poisoning of cyanide; and UniFlu, a universal influenza vaccine.Further, the company provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services.


The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.

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1.b. Last Insights on EBS

Emergent BioSolutions' recent performance has been impacted by a decline in investor sentiment following the execution of a contract modification for the Ebanga treatment for Ebola. The contract, valued at approximately $16.7 million, while still a significant development, may not have met investor expectations. Additionally, the company's recent Q4 earnings release, while beating estimates, did not provide any new insights into its future growth prospects. The lack of a clear growth strategy and the continued decline in investor optimism following the appointment of CEO John Papa may be contributing to the negative sentiment surrounding the company.

1.c. Company Highlights

2. Emergent's Q3 2025 Earnings: A Strong Beat on Revenue and Adjusted EBITDA

Emergent's third-quarter 2025 financial performance was impressive, with revenues coming in at $231 million, exceeding the upper end of the guidance range by $21 million. The company's adjusted EBITDA margin was 38%, a 200 basis point increase year-over-year, driven by a more favorable product mix and a leaner cost structure. Earnings per share (EPS) was $1.06, significantly beating estimates of -$0.12. The strong financial performance was driven by sequential growth in NARCAN and the addition of four new contract modifications.

Publication Date: Nov -23

📋 Highlights
  • Revenue Exceeds Guidance:: Q3 revenue reached $231 million, $21 million above the high end of guidance, with full-year revenue guidance raised to $775–$835 million.
  • Adjusted EBITDA Growth:: Year-to-date adjusted EBITDA hit $194 million, achieving the high end of annual guidance early, with updated full-year guidance of $195–$210 million (up $15 million at midpoint).
  • Strong Liquidity and Debt Reduction:: Total liquidity rose to $346 million, net leverage fell to ~2x from 3.3x in Q3 2024, and $15.8 million was spent on share repurchases under a $50 million program.
  • Naloxone Business Momentum:: NARCAN unit volume grew 13% QoQ, with 9% revenue growth and expectations of market tailwinds in opioid overdose treatment.

Segment Performance

The NARCAN business remained strong, with 13% quarter-over-quarter growth in unit volume and 9% revenue growth. The medical countermeasures (MCM) products segment also performed well, driven by international orders, which accounted for 34% of MCM orders year-to-date. The company's diversified product portfolio, including MCM products, sets it apart in the biodefense space, with no single product driving contract-based revenue.

Guidance and Outlook

Emergent raised its full-year 2025 revenue guidance to $775 million to $835 million and adjusted EBITDA guidance to $195 million to $210 million. The company expects continued growth in the NARCAN business and is pursuing strategic growth investments in government collaborations for new biodefense products and external commercial programs. Analysts estimate next year's revenue growth at 14.6%, indicating a positive outlook for the company.

Valuation and Metrics

Emergent's current valuation metrics are as follows: P/E Ratio of 7.04, P/B Ratio of 0.92, P/S Ratio of 0.69, EV/EBITDA of 4.44, and Net Debt / EBITDA of 1.93. The company's return on equity (ROE) is 14.09%, indicating a relatively strong return on shareholders' equity. With a strong financial performance and a positive outlook, the company's valuation metrics will be closely watched to determine if the current prices are justified.

3. NewsRoom

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Emergent BioSolutions Marks 10-Year Anniversary of the U.S. FDA Approval of NARCAN® Nasal Spray and Reinforces its Commitment to Increasing Naloxone Access

Nov -18

Source: globenewswire.com

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Emergent BioSolutions Announces Retirement of Dr. Louis W. Sullivan from Board of Directors

Nov -12

Source: globenewswire.com

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Blueone Card Inc. Subsidiary Millennium EBS Partners with DFCC Bank in Sri Lanka to Implement ISO Transformer Solution

Nov -11

Source: globenewswire.com

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Looking for a Fast-paced Momentum Stock at a Bargain? Consider Emergent Biosolutions (EBS)

Nov -07

Source: zacks.com

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Emergent BioSolutions: Solid Q3, Expecting Better Days To Come

Nov -07

Source: seekingalpha.com

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Emergent Biosolutions Inc. (EBS) Soars to 52-Week High, Time to Cash Out?

Oct -31

Source: zacks.com

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Emergent BioSolutions Inc. (EBS) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Emergent Biosolutions (EBS) Beats Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.19%)

6. Segments

Commercial Products

Expected Growth: 9.27%

Emergent BioSolutions' commercial products segment growth of 9.27% is driven by increasing demand for its anthrax vaccine, BioThrax, and smallpox vaccine, ACAM2000. Additionally, the company's expansion into the infectious disease market, particularly with its acquisition of Narcan, has contributed to growth. Strong sales of its only FDA-approved vaccine, Vaxchora, for cholera prevention, also support the segment's growth.

Medical Countermeasures Products

Expected Growth: 9.27%

Emergent BioSolutions' Medical Countermeasures Products segment growth of 9.27% is driven by increasing government funding for biodefense and public health preparedness, rising demand for vaccines and therapeutics, and strategic partnerships with government agencies and pharmaceutical companies.

Services

Expected Growth: 8.27%

Emergent BioSolutions Inc.'s 8.27% growth is driven by increasing demand for its specialty pharmaceuticals, particularly in the areas of infectious diseases and autoimmune disorders. Strong sales of its anthrax vaccine, BioThrax, and growth in its contract development and manufacturing organization (CDMO) business also contribute to its growth.

Reconciling Items

Expected Growth: 9.27%

Emergent BioSolutions Inc.'s 9.27% growth is driven by increasing demand for its vaccines and therapeutics, particularly in the anthrax and smallpox markets. Strong sales of its Narcan opioid overdose treatment and expansion into new markets, such as the COVID-19 vaccine market, also contribute to growth. Additionally, strategic acquisitions and partnerships have enhanced the company's product portfolio and capabilities.

7. Detailed Products

BioThrax

A vaccine that protects against anthrax infection

ACAM2000

A smallpox vaccine that protects against smallpox and monkeypox

Vivotif

An oral vaccine that protects against typhoid fever

Raxibacumab

A monoclonal antibody that treats inhalational anthrax

Narcan

A nasal spray that treats opioid overdose

Centre for Innovation in Advanced Development and Manufacturing (CIADM)

A facility that develops and manufactures vaccines and therapeutics

8. Emergent BioSolutions Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Emergent BioSolutions Inc. faces moderate threat from substitutes due to the presence of alternative products and services in the biotechnology industry.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Emergent BioSolutions Inc.'s products and services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the biotechnology industry, which gives Emergent BioSolutions Inc. some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for biotechnology products and services, which attracts new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established companies in the biotechnology industry, which leads to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.09%
Debt Cost 10.16%
Equity Weight 42.91%
Equity Cost 10.16%
WACC 10.16%
Leverage 133.02%

11. Quality Control: Emergent BioSolutions Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cyclo Therapeutics

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Value: 8.0

Growth: 3.4

Quality: 5.0

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

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DURECT

A-Score: 3.8/10

Value: 6.0

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 9.0

Volatility: 0.0

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Quality: 4.5

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Emergent BioSolutions

A-Score: 3.2/10

Value: 6.5

Growth: 1.3

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Growth: 1.3

Quality: 4.3

Yield: 0.0

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Rockwell Medical

A-Score: 2.6/10

Value: 6.4

Growth: 4.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.9$

Current Price

11.9$

Potential

-0.00%

Expected Cash-Flows