H.C. Wainwright Reiterates Buy Rating on Emergent BioSolutions (EBS)

H.C. Wainwright analyst Raghuram Selvaraju reiterated a Buy rating and $15.00 price target on Emergent BioSolutions (NYSE: EBS).

The analyst commented: "Last week, Emergent BioSolutions announced that the Biomedical Advanced Research and Development Authority (BARDA)—part of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services (HHS)—executed a contract modification for the second option period, valued at approximately $16.7M, for drug product process and analytical testing validation and long-term stability for Ebanga (ansuvimab-zykl). Ebanga is indicated for the treatment of infection caused by the Zaire Ebola virus, a filovirus that is associated with potentially fatal hemorrhagic fever. The existing 10-year contract consists of a base period of performance with two option periods for advanced development valued at ~$118M, and option periods for procurement of Ebanga treatment over five years valued at up to $583M. Under the terms of the contract, Emergent will complete activities to advance the development of Ebanga through post-licensure commitments, including manufacturing scale-up, transferring manufacturing technology, and completing stability studies, as well as the submission of a supplemental Biologics License Application (sBLA) to the FDA. In the wake of this contract modification execution, which closely follows a prior contract option and modification for the company's anthrax vaccine, we reiterate our Buy rating and 12-month price target of $15."

For an analyst ratings summary and ratings history on Emergent BioSolutions click here. For more ratings news on Emergent BioSolutions click here.

Shares of Emergent BioSolutions closed at $9.88 yesterday.

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