NYSE$EBS

Emergent BioSolutions Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Emergent BioSolutions reported financial results for Q3 2021.

Emergent BioSolutions reported a decrease in total revenue by 15% compared to Q3 2020, with a net loss of $32.7 million. The company secured contract renewals, advanced its pipeline, and implemented organizational enhancements. They are confident in their 2024 growth plan.

  • Total revenues decreased by 15% compared to Q3 2020, totaling $329.0 million.
  • Net loss was $32.7 million, a significant decrease compared to net income of $39.5 million in Q3 2020.
  • NARCAN Nasal Spray revenues increased by 50% due to growth in U.S. public interest and commercial retail markets.
  • ACAM2000 revenues increased significantly due to the timing of deliveries to the U.S. government.

Headline financials

Total Revenue

$329M

Previous: $385M-14.6%
EPS (adj)

-$0.36

Previous: $2.19-116.4%
Adjusted EBITDA

-$3.3M

Previous: $168M-102.0%
Capital Expenditures

-$178M

Previous: -$105M-69.8%
Free Cash Flow

-$211M

Previous: -$65.5M-222.1%
Net Income

-$32.7M

Previous: $39.5M-182.8%
Operating Income

-$34.7M

Previous: $61.3M-156.6%
Gross Profit

-$34.7M

Previous: $236M-114.7%
Cash & Equivalents

$404M

Previous: $415M-2.7%
Total Assets

$2.87B

Previous: $2.62B+9.6%
Stock-Based Comp

$10.4M

Previous: $10M+4.0%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$329M

Q3 2021-14.6%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $73.4M total across 3 segments · Q3 2021

  • Other Products
    $40.9M+6.2%
  • Contracts and Grants
    $16.9M-34.7%
  • Anthrax MCM
    $15.6M-78.9%

Forward guidance

Emergent BioSolutions updated its 2021 financial forecast, including total revenues between $1.7 billion and $1.8 billion and adjusted EBITDA between $500 million and $550 million.

Tailwinds

  • Narcan® Nasal Spray revenues assume the naloxone market remains competitive and incorporates the impact of at least one new branded entrant into the market
  • Anthrax vaccines revenue is expected to continue to primarily reflect procurement of AV7909 under the terms of the Company’s existing contract with BARDA at a more normalized annual level.
  • ACAM2000®vaccine revenues incorporate the expected full delivery of product under the $182 million option exercise received in July 2021 as well as other international sales.
  • CDMO services revenue reflects the continued manufacturing of Johnson & Johnson's COVID-19 vaccine bulk drug substance. On July 29th, the Company announced that it was informed by the FDA that it can resume production at its Bayview manufacturing facility.
  • R&D expenses are expected to reflect continued pipeline progress across the portfolio, including the assumption of at least one Phase 3 launch and one Biologics License Application (BLA)/Emergency Use Authorization (EUA) filing.

Headwinds

  • Gross margin reflects the impact of the Q3 2021 performance as well as expectations for the remainder of the year.
  • CDMO services revenue reflects the impact of the mutual agreement with HHS to end the Company's involvement in the CIADM program and to close out remaining obligations under the CIADM base contract and related task orders. This agreement reduces the total contract value to be realized under the 2020 task order to $470.9 million from $650.8 million.
  • Total revenues, specifically other product sales, are expected to be impacted due to the Company's assumption that a new raxibacumab contract will be awarded later than previously planned.
  • The company expects that a new branded entrant will enter the naloxone market.
  • The company expects that a generic entrant will enter the market prior to the anticipated appellate decision related to the pending patent litigation, which is expected by the end of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.5%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+75.5%

Q1 2024

Best reaction

-41.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+13.3%+13.5%
Q4 2025-27.1%-21.0%-28.6%
Q3 2025+36.9%+7.3%+18.8%
Q1 2025+35.0%+24.1%+39.9%
Q4 2024-6.4%-15.5%-29.3%
Q3 2024+22.8%+33.6%+0.6%
Q2 2024-41.2%-27.1%-21.5%
Q1 2024+75.5%+111.7%+203.2%
Q4 2023-18.8%-17.9%-32.8%
Q3 2023-8.9%-22.9%+5.5%
Q2 2023-20.0%-25.9%-40.9%
Q1 2023+18.5%+0.7%-8.0%
Q4 2022-9.7%-15.0%-31.8%
Q3 2022-36.7%-22.5%-38.6%
Q2 2022-12.6%-8.6%-30.7%
Q1 2022-11.2%-8.5%-3.4%
Q4 2021-6.7%-2.2%+4.1%
Q3 2021-37.0%-33.3%-20.3%
Q2 2021+1.1%-2.7%-1.5%
Q1 2021-1.7%-4.8%-2.3%
Q4 2020-15.9%-23.7%-25.7%
Q3 2020-6.1%-10.9%-15.8%
Q2 2020+18.1%+30.1%+24.8%
Q1 2020+6.4%+7.5%+12.9%
Q4 2019+2.1%-7.2%-23.6%
Q3 2019-5.4%-7.6%-5.4%
Q2 2019+1.5%+0.7%-0.8%
Q1 2019-8.0%-9.2%-23.7%
Q4 2018-2.8%-11.0%-25.8%
Q3 2018+6.0%+12.6%+19.0%
Q2 2018+3.9%+0.2%+13.8%
Q1 2018-4.0%-4.9%+1.4%
Q4 2017-3.0%+0.6%+6.6%
Q3 2017+7.0%-3.6%+9.1%
Q2 2017-1.1%-1.2%+4.2%
Q1 2017-3.5%+3.2%+5.6%
Q4 2016+0.1%+4.9%-3.7%
Q3 2016+9.8%+22.0%+4.7%
Q2 2016-2.1%-2.6%-11.6%
Q1 2016+0.9%
Q4 2015-3.8%
Q3 2015+2.5%
Q2 2015+5.2%
Q1 2015-2.0%
Q4 2014-3.6%
Q3 2014+7.6%
Q2 2014-2.6%
Q1 2014-10.5%
Q4 2013+9.1%
Q3 2013+9.1%
Q2 2013+1.6%
Q1 2013-5.0%
Q4 2012+1.8%
Q3 2012+8.4%
Q2 2012+1.1%
Q1 2012+4.9%
Q4 2011+4.6%
Q1 2011+4.6%
Q4 2009+8.1%
Q3 2011-5.3%
Q3 2010-5.3%
Q2 2010-8.2%
Q2 2011-8.2%
Q1 2010-1.5%

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