Emergent BioSolutions, Inc. (EBS)

Emergent BioSolutions Inc. (Emergent) is a biopharmaceutical company focused on the development, manufacture and commercialization of immunobiotics. The company operates in two business segments: biodefense and commercial. In the biodefense business, it develops and commercializes immunobiotics for use against biological agents that are potential weapons of bioterrorism. In the commercial business, it develops immunobiotics for use against infectious diseases with unmet or underserved medical needs.

Emergent’s BioThrax is the only anthrax vaccine approved by the U.S. Food and Drug Administration. In 2004, the Project BioShield Act became law, providing $5.6 billion in appropriations over ten years and authorizing the procurement of countermeasures for biological, chemical, radiological and nuclear attacks. Project BioShield provides for the procurement of countermeasures for anthrax. This development has benefited company a lot. In February’07 U.S. regulators granted fast-track status to its product for post-exposure prevention of anthrax infection. This also augurs well for the future outlook of the company.

The company does have some issues to grapple with. The company is dependent essentially on a single client i.e. U.S government for much of its business. This is certainly not a very healthy situation as it may deprive the company of any pricing power in the event any competitor comes up with a substitute.

Emergent’s valuation is seems expensive. However the company is a profit making entity. Its niche value offering shall also be appealing to many investors especially those whose would like to keep the stock as a hedging tool against an anthrax scare. Thus the stock may outperform in medium term.

1) Emergent BioSolutions Inc. (EBS) just received one of the biggest contracts ($448, with the U.S. Department of Health and Human Services), in the company’s history.

2) BioThrax is the only only FDA-approved vaccine for the prevention of anthrax infection.

3) One insider has sold 10% (MICHIGAN BIOLOGIC PRODUCTS, INC.) of there holdings, and most of this 10% selling occurred before news came out regarding the company's largest contract of $448, in company history

4) Down to $8.88 from its high of $17.75 (1/25/07); When NEWS has been nothing but GREAT, regarding future contracts.

5) Emergent BioSolutions Inc. (EBS) is in process of expanding its manufacturing facility.

6) IPO price was priced at $12.50 a share (Nov 06)

IMHO $11 per share is playing it safe.

-------------Call all Fire-Sale Buyers!!!!

has a constant revenue stream from the good ole US of A and sticks to its 50 day MA very well

Niche company with growing market share

This is clearly an industry of its own making, and EBS holds the edge on R/D. While I do hope there's no vast desease outbreak, the fact remains this company's business is protecting/immunizing

New government contracts, new product lines, and the only FDA approved Anthrax vaccine. Great earnings over the last few quarters and last few years, what's not to like?

Makers of Anthrax vaccine for the military and other biodefense products, which require regular boosters. Relative low P/E. Up 80% since October and I haven't seen the ceiling yet.

IBD

The only Anthrax vaccine provider. U.S. has the possibility of engagement of small scale warfares in Mid-east and Asia in the next 5 years, so there are still strong requirement of the Anthrax vaccine.

Demand on the rise.

tech

Speculation more than one year is too uncertain.

Emergent BioSolutions maintains a large economic moat through it's Biothrax vaccine. Two of it's vaccines in late stage development, a typhoid vaccine candidate and a hepatitis B therapeutic vaccine candidate, uniquely positions EBS to take advantage of the expected huge growth of demand in LDC and MDC.

anthrax vaccine

2/162 in Biotechnology -(84.2 @ A+/A-)

MIKE TURNER PICK

Sadly, bioterrorism and biowarfare will be a threat for quite awhile.

Very high insider ownership with alot of potential for blow ups with product develope ments.Same basic formula i like.Increasing balance sheets, reasonably low p/e,good insider ownership,low debt.

proven innovator