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GAITHERSBURG, Md. - Emergent BioSolutions Inc. (NYSE: EBS) has announced a donation of 50,000 doses of its ACAM2000® vaccine, in coordination with the World Health Organization (WHO) and the U.S. government, to aid in the fight against the mpox outbreak in Central Africa. This announcement comes in response to the WHO's declaration of the mpox surge as a public health emergency of international concern.
The vaccines will be delivered through Direct Relief to regions impacted by the disease, including the Democratic Republic of the Congo, Burundi, Kenya, Rwanda, and Uganda. The donation aligns with the WHO Director-General's August 14 statement and addresses the Africa CDC's estimated need for 10 million doses to control the epidemic on the continent.
Emergent has also submitted an Expression of Interest for the WHO's Emergency Use Listing, which would expedite the availability of ACAM2000® in response to the current outbreak. The company is prepared to scale up production, with the potential to increase supply by approximately 40 million doses if needed.
ACAM2000® is a single-dose smallpox vaccine, administered via a bifurcated needle, and is currently stockpiled in the U.S. and internationally for use in a bioterrorism emergency. A supplemental Biologics License Application seeking expanded indication for immunization against mpox virus is under FDA review, with completion expected in the third quarter of 2024.
Mpox is a virus related to smallpox, with recent outbreaks showing increased transmissibility and severe impacts on children and families in Central Africa. Emergent's CEO, Joe Papa, emphasized the importance of ongoing efforts to produce and stockpile vaccines for orthopoxviruses, including mpox and smallpox.
The company has a history of supplying ACAM2000® to the U.S. and allied governments for preparedness and stockpiling initiatives. The vaccine's labeling includes contraindications and warnings for individuals with severe immunodeficiency and various risks associated with vaccination.
This information is based on a press release statement from Emergent BioSolutions.
In other recent news, biopharmaceutical company, Emergent BioSolutions, has reported robust financial results for the second quarter of 2024, including a rise in revenue to $255 million. The company has also increased its revenue and adjusted EBITDA guidance for 2024. These updates were disclosed during an earnings call led by President and CEO Joe Papa and EVP and CFO Rich Lindahl.
Emergent BioSolutions has been focusing on strategic initiatives such as reducing debt, improving operating performance, and streamlining operations. These efforts have been supported by strategic actions like divestments, contract modifications with the U.S. government, and a settlement agreement with Janssen Pharmaceuticals.
The company's key products, such as NARCAN Nasal Spray, continue to be in high demand, contributing to the quarter's success. Additionally, the European Medicines Agency's acceptance of Emergent's Chikungunya vaccine submission, which triggered a $10 million milestone payment, marks a significant step forward.
Despite a reported adjusted EBITDA of negative $10 million for Q2 2024, Emergent BioSolutions remains optimistic about its financial position and profitability, expecting approximately $200 million available for debt repayment in 2024. The company sees potential growth opportunities in expanding its product portfolio and addressing public health issues.
InvestingPro Insights
As Emergent BioSolutions Inc. (NYSE: EBS) steps up its humanitarian efforts by donating vaccines to combat the mpox outbreak in Central Africa, the company's financial health and market performance are of interest to investors monitoring the impact of these initiatives. According to recent data from InvestingPro, Emergent BioSolutions has a market capitalization of $644.93 million, reflecting the current valuation of the company in the market.
An InvestingPro Tip highlights that the company has seen a significant return over the last week with a 61.02% price total return. Additionally, the stock has experienced a strong return over the last three months, with a 93.51% price total return. This suggests a recent upsurge in investor confidence, potentially influenced by the company's proactive response to global health concerns.
Despite the positive short-term returns, analysts do not anticipate the company will be profitable this year, which may be a point of consideration for long-term investors. The financial metrics reveal a negative P/E ratio of -1.16, indicating that the company is not currently generating profits relative to its share price. Furthermore, the company's revenue growth for the last twelve months stands at 2.79%, which shows a moderate increase in sales.
For investors seeking a deeper dive into Emergent BioSolutions' performance and future outlook, InvestingPro offers additional insights and tips. As of now, there are 9 more InvestingPro Tips available at https://www.investing.com/pro/EBS, providing a comprehensive analysis to help investors make informed decisions.
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