Emergent BioSolutions swings to Q2 loss on impairment charge; to cut jobs
Emergent BioSolutions swings to Q2 loss on impairment charge; to cut jobs
Overview
U.S. biopharma firm's Q2 revenue rose 66% yr/yr, driven by government contract modifications
Company posted Q2 net loss of $180.2 mln due to $191.3 mln non-cash impairment charge
Emergent to restructure operations, targeting $40 mln in annualized savings; to cut about 90 roles
Outlook
Emergent now sees 2026 total revenues at $645 mln to $675 mln, down from $720 mln to $760 mln
Company expects 2026 adjusted EBITDA of $130 mln to $150 mln, down from $155 mln to $175 mln
Emergent forecasts Q3 2026 revenues of $110 mln to $130 mln
Result Drivers
MCM SALES SURGE - Revenue growth was primarily driven by higher U.S. government sales of smallpox and botulism antitoxin products, due to contract modifications and delivery timing
NALOXONE DECLINE - Naloxone product revenues fell 22% yr/yr, mainly due to unfavorable price-volume mix in U.S. public interest channels, partially offset by increases in Canadian sales
ASSET IMPAIRMENT - Net loss was largely due to a $191.3 mln non-cash impairment charge related to the naloxone asset group
Company press release: ID:nGNX5srv54
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $234.30 mln | $177.50 mln (2 Analysts) |
Q2 Adjusted EPS |
| $0.60 |
|
Q2 Adjusted Net Income | Beat | $30.90 mln | $6.40 mln (1 Analyst) |
Q2 Net Loss |
| $180.20 mln |
|
Q2 Adjusted EBITDA | Beat | $96.50 mln | $33.90 mln (1 Analyst) |
Q2 Gross Margin |
| 50.00% |
|
Q2 Adjusted Gross Margin |
| 58.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "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 $12.00, about 58.5% above its August 4 closing price of $7.57
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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.)