Emergent BioSolutions Q3 2020 Earnings Report
Key Takeaways
Emergent BioSolutions reported a 24% increase in total revenues for Q3 2020, driven by growth in contract development and manufacturing services. Net income decreased slightly, but adjusted net income and adjusted EBITDA saw significant increases. The company updated its full year 2020 guidance, refining revenue ranges and raising profitability ranges.
Total revenues increased by 24% to $385.2 million compared to Q3 2019.
Adjusted EBITDA increased by 58% to $168.1 million compared to Q3 2019.
The company secured approximately $60 million in new business and existing project extensions across its CDMO portfolio.
FDA approved the shelf life extension of NARCAN® Nasal Spray from 24 months to 36 months.
Emergent BioSolutions
Emergent BioSolutions
Emergent BioSolutions Revenue by Segment
Forward Guidance
Emergent BioSolutions updated its full year 2020 financial forecast, refining revenue ranges and raising profitability ranges.
Positive Outlook
- Year over year improvement in gross margin of 400 - 600 basis points driven by improved product mix and increased contribution from the Company's CDMO business
- No generic competition in 2020 for NARCAN® Nasal Spray.
Challenges Ahead
- The previously announced 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 continued deferral into 2021 of a follow-on procurement contract with the U.S. government for raxibacumab, the Company's FDA-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)