Emergent BioSolutions, Inc. (NYSE:EBS)

CAPS Rating: 4 out of 5

A biopharmaceutical company focused on the development, manufacture and commercialization of immunobiotics. The Company operates in two business segments: biodefense and commercial.


Player Avatar zzlangerhans (99.77) Submitted: 7/30/2011 12:50:39 AM : Outperform Start Price: $20.51 EBS Score: -54.02

The stock has bounced upward from these levels twice already this year. The company claims that a dramatic drop in Biothrax revenues last quarter was due to an "internal process of redeployment" that has now been substantially completed. No, I don't know what that means. But they projected record revenues of 80-90M for the current quarter and total 2011 revenues of 320-340M, with net income of 35-45M. The next earnings will be reported on August 4 and if the company is true to their word, the share price will surely gap up. If they're surprised and disappointed, who knows.

Meanwhile the company has numerous other dishes in the kitchen. They recently initiated a phase Ib trial of cheaply acquired Trubion compound TRU-16 in relapsed B cell lymphoma. Trubion's SBI-087 is in a phase II dose finding study for rheumatoid arthritis. Data from a phase II trial of their TB vaccine in infants is expected in H2 2012, and a phase IIb trial of the TB vaccine in HIV patients may be initiated in the near future. The company has also acquired rights to zanolimumab anti-T cell antibody for CTCL and PTCL from TenX Biopharma.

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