GAITHERSBURG, Md. - Emergent BioSolutions Inc. (NYSE: EBS), a pharmaceutical company with a market capitalization of approximately $510 million, has acquired exclusive commercial rights for KLOXXADO® (naloxone HCl) Nasal Spray 8 mg in the United States and Canada, as announced today. According to InvestingPro data, the company's stock has shown remarkable resilience with a 359% return over the past year, despite recent market volatility. The six-year agreement with Hikma Pharmaceuticals (OTC:HKMPY) will enhance Emergent's portfolio of opioid overdose treatments, including the over-the-counter NARCAN® Nasal Spray 4 mg.
The addition of KLOXXADO® to Emergent's offerings is part of a broader strategy to address the opioid crisis by increasing the availability of life-saving naloxone products. KLOXXADO® is a prescription-based option, providing a higher dose of naloxone compared to NARCAN®, which is available without a prescription. InvestingPro analysis reveals that Emergent maintains a strong financial position with a current ratio of 2.88, indicating robust ability to meet short-term obligations.
Emergent's commitment to fighting the opioid epidemic is underscored by its efforts to raise awareness and ensure a strong supply of naloxone. The company's acquisition of NARCAN® in 2018 marked a significant step in their mission, contributing to the first meaningful decline in U.S. opioid overdose deaths since that year, as reported by the Centers for Disease Control and Prevention.
The agreement allows for the continued manufacture of KLOXXADO® by Hikma to maintain consistent distribution. Emergent plans to incorporate KLOXXADO® into its NARCANDirect™ online distribution network, which serves emergency services, law enforcement, educational institutions, and community programs.
KLOXXADO® is approved for emergency treatment in cases of suspected opioid overdose, indicated by respiratory and/or central nervous system depression. It is a critical tool for first responders and those at risk of encountering opioid overdoses, providing an immediate treatment option to reverse the effects.
Emergent's President and CEO, Joe Papa, emphasized the importance of offering two naloxone products to meet the diverse needs of communities and patients affected by opioid overdoses. Dr. Simon Lowry, Emergent's Chief Medical (TASE:PMCN) Officer, also highlighted the necessity of broadening public awareness and access to naloxone as the standard of care for opioid overdose reversal.
This news is based on a press release statement by Emergent BioSolutions. InvestingPro analysis suggests the stock is currently undervalued compared to its Fair Value, with analysts setting price targets between $12 and $15. Subscribers to InvestingPro can access the comprehensive Pro Research Report, which provides detailed analysis of Emergent's financial health, market position, and growth prospects among 1,400+ top US stocks.
In other recent news, Emergent BioSolutions secured a $16.7 million contract option from BARDA as part of a 10-year agreement potentially worth $704 million. The contract supports the development of the Ebanga™ treatment for Zaire Ebola virus infections. Despite analysts from InvestingPro suggesting the stock is undervalued, they do not anticipate profitability this year. Emergent has also secured a $50 million contract for its CYFENDUS® Anthrax Vaccine from BARDA, following a previous $30 million contract for the same vaccine. H.C. Wainwright has initiated coverage of Emergent with a Buy rating, highlighting the company's diversified business model and strong financial position. Sales of the company's NARCAN product, used in opioid overdose reversal, are projected to surpass $400 million in 2024. Despite these developments, Emergent's annual revenue stands at $1.13 billion, with current operations not yielding profitability.
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