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Investing.com - H.C. Wainwright has reiterated its Buy rating and $15.00 price target on Emergent BioSolutions (NYSE:EBS) following a $56 million contract modification to supply ACAM2000 vaccine to the U.S. government. According to InvestingPro data, the stock appears undervalued with strong financial health metrics and trades at an attractive P/E ratio of 3.05.
The contract modification, announced Monday, brings Emergent’s total projected sales for ACAM2000 vaccine and ancillary products to more than $120 million this year from various customers. Deliveries under the new agreement are expected to begin in September.
ACAM2000 is licensed for active immunization against smallpox and mpox disease for individuals determined to be at high risk for infection. The single-dose vaccine, administered percutaneously via a bifurcated needle, received FDA approval for smallpox prevention in 2007 and was additionally approved for mpox immunization in August 2024.
The modification falls under Emergent’s existing 10-year contract with the Administration for Strategic Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services. The vaccine is also licensed for smallpox protection in Canada, Australia and Singapore.
H.C. Wainwright noted that while the recent contract awards are factored into company guidance, they expect demand for these products to increase over time. The stock has shown strong momentum with a 44% gain over the past six months. Get deeper insights and access to more financial metrics with InvestingPro, including exclusive analysis and Fair Value calculations.
In other recent news, Emergent BioSolutions reported its Q2 2025 earnings, which revealed a mixed performance. The company achieved an earnings per share (EPS) of $0.16, significantly exceeding the projected EPS of -$0.10. However, revenue did not meet expectations, totaling $141 million compared to the anticipated $174 million. Additionally, Emergent BioSolutions secured a $56 million contract modification to supply its ACAM2000 vaccine to the U.S. government, boosting projected sales for the vaccine and related products to over $120 million this year. The company also received a $30 million contract modification from the Biomedical Advanced Research and Development Authority (BARDA) for its CYFENDUS anthrax vaccine. In light of these developments, H.C. Wainwright has reiterated its Buy rating on Emergent BioSolutions stock with a $15.00 price target. These updates highlight the company’s ongoing engagements and financial activities.
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