Emergent BioSolutions (EBS) $1.6B BARDA Contract 'Very Positive' - Wells Fargo's Maris
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Wells Fargo analyst David Maris called today's news from Emergent BioSolutions (NYSE: EBS) of a $1.6 billion BARDA contract opportunity for the development and ultimate procurement NuThrax, EBS's next generation anthrax vaccine, "very positive."
The FDA could authorize NuThrax under the Emergency Use Authorization mechanism as early as late-2018.
Maris notes the BARDA contract includes procurement options for an additional 7.5 million to 50 million doses of NuThrax for the Strategic National Stockpile, representing an opportunity for EBS of $255 million on the low end and up to $1.4 billion on
the high end.
"On the high end, this represents an estimated price per dose of approximately $28, which is above our expectation for $25 per
dose," he said.
He added, "We see the award and announcement today as a confirmation of our expectations, and good execution by EBS when needed. Finally, we see this as a confirmation that the U.S. government has not shifted its priority for biodefense of anthrax countermeasures, as some had feared."
The firm reiterated an Outperform rating and $40-$42 valuation range.
Shares of Emergent BioSolutions closed at $27.76 yesterday.
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