GAITHERSBURG, Md. - Emergent BioSolutions Inc. (NYSE: EBS) has been granted a $41.9 million contract modification by the Biomedical Advanced Research and Development Authority (BARDA), a segment of the U.S. Department of Health and Human Services. The funding is allocated for the enhancement and validation of the drug substance manufacturing process, stability over time, and readiness for commercial production of Ebanga™ (ansuvimab-zykl), an approved treatment for Ebola virus disease (EVD).
The contract extension is a part of a broader 10-year agreement with BARDA, which includes a base period for initial development and additional options for advanced development, with a total potential value of roughly $121 million. There are also procurement options for Ebanga™ treatments over five years that could reach up to $583 million.
Under the terms of the contract, Emergent will complete activities to advance the development of Ebanga™ treatment through post-licensure commitments. These include technology transfer as part of manufacturing scale-up, submission of a supplemental Biologics License Application to the U.S. Food and Drug Administration (FDA), and completion of stability studies.
Ebanga™ is a monoclonal antibody designated for the treatment of Zaire ebolavirus infections in adults and children, including newborns of mothers testing positive for the virus. It is not proven effective for other species within the Ebolavirus and Marburgvirus genera. Clinical benefits may vary based on the emergence of resistance or changes in viral virulence.
The most common adverse events observed after administration of Ebanga™ include fever, rapid heart rate, diarrhea, vomiting, low blood pressure, rapid breathing, and chills. Emergent BioSolutions emphasizes its role in providing medical countermeasures against public health threats.
This project, including the development and procurement of Ebanga™, is funded with federal funds from the Department of Health and Human Services; Administration for Strategic Preparedness and Response; BARDA under contract 75A50123C00037.
Emergent BioSolutions, celebrating 25 years in operation, focuses on developing and manufacturing vaccines and therapeutics for governments and consumers, alongside providing contract development and manufacturing services for the pharmaceutical and biotech industries.
The information in this article is based on a press release statement.
In other recent news, Emergent BioSolutions has secured a $250 million loan from Oak Hill Advisors, aimed at strengthening its financial position. The new credit facility is expected to aid in reducing net debt by over $200 million within the year. Emergent has also reported strong Q2 2024 financial results, including a rise in revenue to $255 million, and raised its revenue and adjusted EBITDA guidance for the year.
On the public health front, Emergent has launched the second year of the "Ready to Rescue" campaign, an opioid overdose awareness initiative featuring pro football legend Emmitt Smith. The company has also donated 50,000 doses of its ACAM2000® vaccine in response to the mpox outbreak in Central Africa, in coordination with the World Health Organization and the U.S. government.
In addition, Emergent's Chikungunya vaccine submission was recently accepted by the European Medicines Agency, triggering a $10 million milestone payment. These are among the recent developments for Emergent BioSolutions, signifying the company's commitment to addressing both financial and public health challenges.
InvestingPro Insights
Emergent BioSolutions (NYSE: EBS) has shown a dynamic financial performance over recent periods. An InvestingPro analysis highlights a high shareholder yield, which could indicate that the company is returning value to its shareholders through some form of capital distribution, such as buybacks or debt reduction. This is particularly noteworthy in light of the company's recent contract modification with BARDA, which may further impact its financials.
In terms of stock behavior, InvestingPro Tips suggest that Emergent BioSolutions often experiences high price volatility. This could be relevant for investors who are considering the timing of their investments in relation to the company's contract developments and product advancements.
InvestingPro Data indicates a market capitalization of $400.5 million, reflecting the company's size and market value. The revenue for the last twelve months as of Q2 2024 stands at $1102.2 million, with a gross profit of $218.4 million during the same period. Despite the company not being profitable over the last twelve months, with a negative return on assets of -31.8%, the stock has seen a strong return over the last year of 84.18%. This suggests that while the company faces challenges, investors may still see potential for growth, especially considering the significant contract with BARDA.
Investors interested in the detailed analysis of Emergent BioSolutions can find additional InvestingPro Tips at https://www.investing.com/pro/EBS, which may offer further insights into the company's valuation, stock performance, and potential investment opportunities.
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