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Jun 30, 2020
Emergent BioSolutions Q2 2020 Earnings Report
Emergent BioSolutions reported increased revenue, net income, and adjusted EBITDA driven by product sales and CDMO services.
Key Takeaways
Emergent BioSolutions reported a strong Q2 2020, with a significant increase in total revenues, driven by increases in product sales and contract development and manufacturing services. The company also revised upward its full year 2020 guidance.
Total revenues increased by 62.3% compared to Q2 2019.
Net income was $92.7 million, a significant increase from a net loss in Q2 2019.
Adjusted EBITDA increased by 431.0% compared to Q2 2019.
The company signed key collaborations to advance COVID-19 vaccine and therapeutic solutions.
Emergent BioSolutions
Emergent BioSolutions
Emergent BioSolutions Revenue by Segment
Revenue by Segment
Anthrax MCM Revenue
CapyFin.comOther Products Revenue
CapyFin.comContracts and Grants Revenue
CapyFin.com Forward Guidance
Emergent BioSolutions revised its full year 2020 financial forecast upward. The company expects total revenues between $1.5 billion and $1.6 billion and adjusted EBITDA between $535 million and $600 million.
Positive Outlook
- Year over year improvement in gross margin of 400 - 600 basis points driven by improved product mix and increased contribution from our CDMO business
- NARCAN Nasal Spray revenues between $285 million and $315 million.
- Anthrax vaccines revenues between $320 million and $350 million
- ACAM2000 revenues between $180 million and $200 million
- Contract development and manufacturing services revenues between $440 million and $460 million
Challenges Ahead
- The delay into 2021 of the launch of the Phase 3 clinical study for CHIKV-VLP, the Company's chikungunya virus virus-like particle vaccine, due to the timing of certain operational factors
- The deferral into 2021 of a follow-on procurement contract with the U.S. government for raxibacumab, the Company's Food and Drug Administration-approved anthrax monoclonal antibody therapeutic, due to the impact of the prioritization of Operation Warp Speed on the Company's technology transfer activities for the product
- Continued challenges through the end of 2020 in the Company's travel health business and revenues associated with Vaxchora®(Cholera Vaccine, Live, Oral) and Vivotif®(Typhoid Vaccine Live Oral Ty21a)
- No generic competition in 2020 for NARCAN®(naloxone HCl) Nasal Spray
- The outlook for 2020 does not include estimates for potential new corporate development or other M&A transactions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income