Wedbush Raises Price Target on Emergent BioSolutions ( EBS) Following BARDA Request
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Price: $4.59 +2.23%
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush si reiterating its Outperform rating on shares of Emergent BioSolutions (NYSE: EBS) and is raising its price target from $32 to $37 following the request from BARDA for 44.75 million doses of BioThrax over 5 years to EBS.
The firm estimates at a price of ~$28 per dose, the deal could be worth up to $1.25 billion and anticipates that EBS could begin seeing revenues from the contract in Q4. If awarded this contract, the company's profit margin will rise from 25% to 30%.
Management also noted that it forecasts multi-year government funding of up to $95 million for the development of Anthravic, Travixa and its post-exposure anthrax therapeutic vaccine.
An analyst at Wedbush comments, "recall, the company’s pipeline candidate, SBI-087, appears to be on track to complete a Phase II trial in patients with rheumatoid arthritis and a second study in SLE. The company’s anti-CD37 antibody, TRU-016, continues in a Phase Ib/II study with bendamustine in relapsed/refractory CLL patients."
The firms current FY11 and FY12 EPS estimates are $1.23 and $1.71 with revenue estimates of $323 million and $346.5 million.
For more ratings news on Emergent BioSolutions click here and for the rating history of Emergent BioSolutions click here.
Shares of Emergent BioSolutions closed at $24.77 yesterday.
The firm estimates at a price of ~$28 per dose, the deal could be worth up to $1.25 billion and anticipates that EBS could begin seeing revenues from the contract in Q4. If awarded this contract, the company's profit margin will rise from 25% to 30%.
Management also noted that it forecasts multi-year government funding of up to $95 million for the development of Anthravic, Travixa and its post-exposure anthrax therapeutic vaccine.
An analyst at Wedbush comments, "recall, the company’s pipeline candidate, SBI-087, appears to be on track to complete a Phase II trial in patients with rheumatoid arthritis and a second study in SLE. The company’s anti-CD37 antibody, TRU-016, continues in a Phase Ib/II study with bendamustine in relapsed/refractory CLL patients."
The firms current FY11 and FY12 EPS estimates are $1.23 and $1.71 with revenue estimates of $323 million and $346.5 million.
For more ratings news on Emergent BioSolutions click here and for the rating history of Emergent BioSolutions click here.
Shares of Emergent BioSolutions closed at $24.77 yesterday.
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