Emergent BioSolutions inks $448M contract
Shares of Emergent BioSolutions Inc. (NYSE: EBS) shot up out of the gate this morning after the biopharmaceutical company reported this morning that it has signed a three year contract with the U.S. Department of Health and Human Services for $448 million.
Included under the terms of the contract, Emergent will provide 18.75 million doses of BioThrax (Anthrax Vaccine Adsorbed) for the strategic national stockpile, receive regulatory approval for four-year expiry dating for BioThrax and will receive $11.5 million in milestone payments for the advancement toward a post-exposure prophylaxis indication for BioThrax.
As a result of the contract, Emergent is reaffirming its revenue expectation for the full year of 10% to 15% total revenue growth, with a bias toward the upper end of the range and full year positive net earnings.
Emergent said it expects to begin making deliveries for approximately six million doses by year’s end.
BioThrax is the only FDA-approved vaccine for the prevention of anthrax infection.
Shares of Emergent (EBS) shot up $1.43, or 18.36%, to $9.22 out of the gate.
