Emergent Biosolutions (EBS) AI Stock Analysis

• Market Cap: $256.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.68
• Revenue Growth: -0.62%
• EPS Growth: 75.57%
• Country: US
• Employees: 900
• Sector: Healthcare
• Sector Strength: 64
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -3.72
• Shares Outstanding: 54,337,025
• 10 Day Avg. Volume: 922,676
• 30 Day Avg. Volume: 1,183,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.30
• Price to Cash Flow (P/CF): -1.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 201.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Emergent Biosolutions faces financial and operational challenges with declining revenues and negative profitability. The company's significant achievements in debt reduction and operational efficiency are positive, but ongoing revenue pressures and conservative guidance weigh on the outlook. Although the technical analysis shows bearish trends, potential oversold conditions could hint at a future rebound. The valuation remains unattractive due to negative earnings.

Positive Factors

Product Development and Contracts

A contract modification for the second option period was exercised for Emergent BioSolutions' Zaire Ebola virus vaccine, valued at approximately $16.7M, indicating continued government support and investment.

Share Repurchase Program

The announcement of a share repurchase program reflects management's belief that the shares remain undervalued.

Strategic Partnerships

Rocketvax strategic relationship marks expansion of vaccine pipeline and access to novel technological approaches.

Negative Factors

Competition and Market Challenges

Risks include faster-than-anticipated NARCAN franchise erosion due to greater-than-anticipated levels of generic competition.

Revenue Performance

Emergent BioSolutions reported a moderate miss in top-line revenue, recording $1.04B compared to expectations of ~$1.12B.

Stock Performance

Investors should note that Emergent shares are down roughly 49% compared to a roughly 10% decline in the benchmark XBI index.

Emergent Biosolutions Business Overview & Revenue Model

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.

How the Company Makes Money

Emergent BioSolutions makes money through the sale of its medical countermeasures and public health products to governments, non-governmental organizations, and commercial entities. Key revenue streams include contracts with the U.S. government for the provision of biodefense products such as anthrax vaccines and treatments for chemical exposure. The company also generates revenue from the development and sale of products addressing emerging infectious diseases, such as vaccines for COVID-19. Partnerships with other pharmaceutical and biotechnology companies for product development and commercialization contribute significantly to its earnings. Additionally, Emergent BioSolutions may receive funding from government agencies and organizations to support research and development activities.

Emergent Biosolutions Financial Statement Overview

Summary

Emergent BioSolutions shows significant financial challenges with declining revenues and persistent negative net income. However, the absence of debt and recent improvements in cash flow provide some positives.

Income Statement

Emergent Biosolutions has faced challenges in recent years, as evidenced by negative EBIT and net income margins. The company's revenue has been declining since 2021, and the net profit margin has been negative for the past three years. This indicates substantial operational and profitability issues. The Gross Profit Margin for the most recent year is unusually high due to the same value for total revenue and gross profit, suggesting data inconsistency or reporting issues.

Balance Sheet

The balance sheet shows a strong equity position relative to liabilities, with a debt-to-equity ratio of 0. This indicates no debt burden, which is positive. However, the Return on Equity is negative due to the negative net income, reflecting poor profitability. The Equity Ratio has decreased over the years, showing a reduced proportion of equity financing.

Cash Flow

While the company has managed to generate positive operating cash flow in the latest year, the free cash flow has only recently turned positive. The Operating Cash Flow to Net Income Ratio is strong due to negative net income, indicating an ability to generate cash despite accounting losses. However, historical free cash flow was negative, showing past liquidity issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.01B	1.05B	1.12B	1.79B	1.56B
	Gross Profit
1.01B	343.90M	427.20M	1.04B	1.03B
	EBIT
-108.70M	-726.40M	-166.00M	352.60M	433.80M
	EBITDA
36.90M	-505.30M	-32.90M	458.20M	549.00M
	Net Income Common Stockholders
-190.60M	-760.50M	-223.80M	219.50M	305.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.50M	111.70M	642.60M	576.10M	621.30M
	Total Assets
1.39B	1.82B	3.17B	2.96B	2.88B
	Total Debt
663.70M	860.20M	1.41B	841.00M	874.80M
	Net Debt
564.20M	748.50M	763.20M	264.90M	253.50M
	Total Liabilities
906.90M	1.17B	1.78B	1.34B	1.44B
	Stockholders Equity
482.80M	649.30M	1.38B	1.62B	1.45B
Cash Flow		Free Cash Flow
35.80M	-257.90M	-149.90M	96.10M	395.00M
	Operating Cash Flow
58.70M	-206.30M	-34.10M	321.10M	536.00M
	Investing Cash Flow
125.20M	212.30M	-381.30M	-225.00M	-151.00M
	Financing Cash Flow
-190.00M	-535.70M	481.20M	-141.00M	69.50M

Emergent Biosolutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBS, the sentiment is Negative. The current price of 4.98 is above the 20-day moving average (MA) of 4.68, below the 50-day MA of 5.98, and below the 200-day MA of 8.55, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 81.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBS.

Emergent Biosolutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	80 Outperform	$437.91M	7.53	28.70%	10.13%	-0.86%	-13.33%
ANIP	65 Neutral	$1.49B	―	-4.86%	―	26.20%	-219.22%
DVAX	57 Neutral	$1.31B	61.36	4.48%	―	19.36%	―
EBS	51 Neutral	$256.47M	―	-33.67%	―	-0.62%	75.57%
Sector *	51 Neutral	$5.20B	3.26	-40.34%	2.93%	17.68%	1.94%
LFCR	44 Neutral	$228.82M	―	-83.58%	―	6.88%	-17.54%
AQST	40 Underperform	$271.90M	―	77.48%	―	13.80%	-389.41%

Emergent Biosolutions Corporate Events

Emergent BioSolutions Sells Baltimore Facility to Syngene

On March 10, 2025, Emergent BioSolutions announced the sale of its Baltimore-Bayview drug substance manufacturing facility to Syngene International for $36.5 million. The agreement allows Emergent to retain rights to manufacturing services at the facility for future growth and pandemic response. This transaction is part of Emergent’s multi-year transformation plan to streamline operations and enhance its manufacturing network, which includes facilities in Lansing, Michigan, and Winnipeg, Canada. The sale is expected to close in the first quarter of 2025, following customary closing conditions.

Emergent BioSolutions Reports 2024 Financial Results

Emergent BioSolutions reported its financial results for the fourth quarter and full year 2024, highlighting a total revenue of $1.04 billion for the year. Despite a net loss of $31.3 million in Q4, this marked a 37% improvement from the previous year. The company achieved a significant increase in adjusted EBITDA, reaching $183.1 million for the year compared to a loss in 2023, and is guiding for an adjusted EBITDA between $150 million and $200 million in 2025. Strategic actions, including debt repayment and asset divestitures, have strengthened its financial position. The company also received substantial contract awards and FDA approval for expanding the use of ACAM2000®.