Emergent BioSolutions EBS reported earnings of 36 cents per share (on an adjusted basis) in second quarter of 2015 beating the Zacks Consensus Estimate of 16 cents and the year-ago figure of 25 cents.
Revenues climbed 14% from the year-ago period to $126.1 million and above the Zacks Consensus Estimate of $111 million.
Quarter in Detail
Emergent generates product sales from two segments – Biodefense and Biosciences.
Total product sales grew 5% to $82 million from the year-ago period. Product sales from the Biodefense segment increased 8% to $75 million with BioThrax contributing $72.2 million, up 7% from the year-ago quarter. However, Biosciences product sales decreased 21% from the year-ago period to $7 million.
Contracts, grants and collaboration revenues were $35.2 million, up 54% year over year driven by an increase in funding for Anthrasil.
Research and development (R&D) expenses were $40.9 million, up 9% from the year-ago quarter. Selling, general and administrative (SG&A) expenses shot up 19% year over year to $36.5 million.
In the reported quarter, the company launched Ixinity, to treat teenagers and adult patients with hemophilia B in the U.S.
2015 Outlook
The company continues to expect revenues in the range of $510 million to $540 million in 2015.
Emergent also provided its guidance for the third quarter of 2015. The company expects total revenues in the range of $140 million to $155 million.
Announces Plans to Spin-Off Biosciences Segment
Along with announcing second quarter results, the company announced that the Board has authorized management to plan to tax-free spin-off the Biosciences business into a separate publicly traded company. The new company will focus on cancer and hematology treatments while the existing company will continue to operate as specialty biopharmaceutical company. This spin-off is expected to complete by mid-2016.
Emergent carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Actelion Ltd. ALIOF, AMAG Pharmaceuticals, Inc. AMAG and Biogen Inc. BIIB each sporting a Zacks Rank #1 (Strong Buy).
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