Emergent BioSolutions (EBS) announced preliminary results for 2014 and provided an outlook for 2015.
The company expects 2014 total revenue in the range of $445 million – $450 million, narrower than the previously guided range of $440 million – $460 million but up 43% at the midpoint from the year-ago period. The Zacks Consensus Estimate for 2014 revenues is $445 million, towards the lower end of the company’s projected range.
Snapshot of 2014 Results
In Feb 2014, Emergent BioSolutions acquired Cangene Corporation, which enabled the company to solidify its Biosciences and Biodefense Divisions. Initial revenues generated by the Biosciences division should contribute to the topline in 2014. Meanwhile, robust BioThrax sales (expected at approximately $246 million) should continue to boost revenues.
Full-year 2014 revenues will also reflect the impact of the successful collaboration between Emergent BioSolutions and MorphoSys AG for the development and commercialization of the former’s preclinical prostate cancer candidate, ES414.
Additionally, the company expanded its Biodefense franchise through the acquisition of the EV-035 series of molecules from Evolva Holding in Dec 2014. Emergent BioSolutions expects the expansion of the Biodefense division to positively impact growth.
Outlook for 2015
In addition to revealing the preliminary 2014 results, Emergent BioSolutions provided guidance for 2015.
In the first quarter of 2015, the company expects total revenue in the range of $90 million – $105 million.
For full year 2015, the company expects total revenue in the range of $510 million – $540 million. The Zacks Consensus Estimate for 2015 revenue is $503 million, below the lower end of the projected range.
Higher BioThrax sales (expected in the range of $270 million – $285 million) coupled with impressive performance of other products in the Biodefense Division in both domestic and international markets should drive growth. In addition, incremental growth in revenues from product sales and services by the Biosciences division is also expected to drive the topline. The company expects development funding through contracts, grants and collaborations revenues to continue in 2015.
Emergent BioSolutions carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Regado Biosciences, Inc. (RGDO), Amgen Inc. (AMGN) and Alexion Pharmaceuticals, Inc. (ALXN). All these stocks carry a Zacks Rank #1 (Strong Buy).
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