Emergent BioSolutions Q3 revenue falls 52% on lower NARCAN sales, weaker smallpox product revenue
Overview
US biopharmaceutical firm's Q3 revenue fell 52% yr/yr, missing analyst expectations
Company posted Q3 net loss and adjusted net loss as margins declined sharply
Revenue drop driven by lower naloxone and smallpox product sales, partly offset by anthrax sales
Outlook
Emergent BioSolutions now expects 2026 revenue between $600 mln and $645 mln
Company forecasts 2026 net loss of $225 mln to $255 mln
Emergent BioSolutions sees 2026 adjusted EBITDA of $110 mln to $140 mln
Result Drivers
NALAXONE SALES DROP - Co said lower OTC NARCAN sales in the US, mainly due to unfavorable price-volume mix, drove decline in naloxone revenue
SMALLPOX PRODUCT WEAKNESS - Co attributed lower smallpox product revenue to reduced US government and international sales, mainly due to timing of orders
ANTHRAX SALES GAIN - Higher US government purchases of CYFENDUS anthrax vaccine partly offset declines in other segments
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $110 mln | $123.20 mln (3 Analysts) |
Q3 Adjusted Loss Per Share | $0.36 | ||
Q3 Loss Per Share | $0.64 | ||
Q3 Adjusted Net Loss | Beat | $18.70 mln | $20 mln (2 Analysts) |
Q3 Net Loss | $32.70 mln | ||
Q3 Adjusted EBITDA | Beat | -$4.60 mln | -$17 mln (2 Analysts) |
Q3 Gross Margin | 14.00% | ||
Q3 Adjusted Gross Margin | 28.00% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for Emergent BioSolutions Inc. is $11.00, about 61.5% above its October 30 closing price of $6.81
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)