Shares of Emergent Biosolutions (EBS) are doing very well today on its earnings report. Actually, the company’s earnings plunged but that’s not what the market is reacting to.
The company makes the BioThrax vaccine for anthrax which is mostly purchased by the U.S. government. Due to an order delay last quarter, Emergent’s sales dropped by 60% and earnings dropped by 95%.
The company is waiting for HHS to finalize a purchase of 25 million doses. Emergent says that one of the other bidders is protesting, and that’s holding things up. Emergent reiterates that its relationship with HHS “continues to be strong.”
The company also said that it expects revenues to grow by 25% to 35% this year, and profits will be over $20 million. The stock is an excellent buy.