U.S. Markets close in 4 hrs 15 mins

Emergent Completes Acquisition of Anthrax Drug Raxibacumab

Zacks Equity Research

Emergent BioSolutions Inc. EBS announced that it has closed the acquisition of anthrax monoclonal antibody, raxibacumab, from GlaxoSmithkline plc GSK. In December 2012,  raxibacumab was approved of by the FDA for the treatment and prophylaxis of inhalational anthrax.

Going forward, the company plans to assume responsibility of supplying the product to the U.S. Strategic National Stockpile (SNS) under a multi-year contract with the Biomedical Advanced Research and Development Authority (“BARDA”).

The contract is valued at approximately $130 million. Notably, Emergent plans to transfer manufacturing of raxibacumab to its existing facilities in Baltimore in 2020. Also, the company expects to purchase product from GlaxoSmithkline to enable completion of deliveries to SNS under existing BARDA procurement contract.

Emergent’s shares have outperformed the industry year to date. The stock has rallied 24.7% compared with the industry’s gain of 15.2% in the same time frame.

Moreover, the acquisition of raxibacumab will expand the portfolio of approved medical countermeasures and is in sync with the company’s strategy of meeting the customer’s requirements.  

In fact, with the acquisition of raxibacumab, the company expects the revenues to increase by about $9 million for full-year 2017. Additionally, Emergent expects the GAAP net income to remain neutral reflecting the impact of initial costs to begin the process of transferring raxibacumab manufacturing from GSK to Emergent, which is expected to be completed in 2020.

Emergent Biosolutions, Inc. Price

 

Emergent Biosolutions, Inc. Price | Emergent Biosolutions, Inc. Quote

Zacks Rank & Stocks to Consider

Emergent carries a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include ACADIA Pharmaceuticals Inc. ACADand Biogen Inc. BIIB. Both ACADIA and , Biogen carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ACADIA’s loss per share estimates have narrowed from $2.82 to $2.57 for 2017 and from $2.07 to $1.90 for 2018 over the last 60 days. The company delivered positive earnings surprises in two of the trailing four quarters with an average beat of 7.97%. Share price of the company has climbed 34.7% year to date.

Biogen’s earnings per share estimates have moved up $21.37 to $21.42 for 2017 and from $23.11 to $23.23 for 2018 over the last 60 days. The company delivered positive earnings surprises in all the trailing four quarters, with an average beat of 6.41%. The share price of the company has increased 11.9% year to date.

Can Hackers Put Money INTO Your Portfolio?

Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GlaxoSmithKline PLC (GSK) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
Emergent Biosolutions, Inc. (EBS) : Free Stock Analysis Report
 
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research