Emergent Biosolutions Inc (NYSE:EBS): Do You Know About This Bad News?

Christine Lawrence - March 11, 2014

Boston, MA 03/11/2014 (wallstreetpr) – Emergent Biosolutions Inc (NYSE:EBS) develops, manufactures and distributes medicines that protect against infections or combat infections. The company is getting a lot of good news unfolding all around it in recent times. These touch on acquisitions and exciting financial performance data.

Yet, there is something that stands out as bad news for the company and its investors. That is what we are a looking at now, but first, it helps to take a recap of the latest developments in the stock.

Shares of Emergent Biosolutions Inc (NYSE:EBS) rose 1.15 percent to $28.09 by close of business Monday. Earlier, the shares escalated to $28.48, establishing a fresh 52-week high on day that a fairly large volume of shares changing hands.

Other latest good news

Emergent Biosolutions Inc (NYSE:EBS) recently announced that its revenue grew from $281.9 million in 2012 to $312.1 million in 2013. That was accompanied by net income improvement to $31.1 million in 2013, compared with $23.5 million in 2012. Moreover, last year was characterized with strong sales with the company reporting an increase of 12 percent in U.S. sale of its anthrax vaccine – BioThrax.

Bad news begins here

Inasmuch as sale of BioThrax was up significantly in 2013, that also comes as bad news in that the drug remaining as the cash cow for Emergent Biosolutions Inc (NYSE:EBS) suggests that a few things are not doing well within its products portfolio.

The company is investing a lot to diversify and in the process it has acquired two companies or better yet, technologies. But it seems it is taking way too long for the acquisitions to start bringing in their much needed contribution in order to wean off Emergent Biosolutions Inc (NYSE:EBS) from dependency on BioThrax.

Emergent Biosolutions Inc (NYSE:EBS) put out $26 million to acquire a division of Bracco Diagnistics – RSDL. That division contributed revenue of $11.2 million last year. The company also invested $222 million in the acquisition of Cangene Corp, a Canadian company that is supposed to add specialty products to Emergent Biosolutions Inc (NYSE:EBS)’s product portfolio.

Bottom line

It is a good sign as along as BioThrax remains the top rated revenue earner for Emergent Biosolutions Inc (NYSE:EBS). However, with the recent acquisitions, we can hope that some shifts will be noted when the company makes its next report.

Christine Lawrence

Christine Lawrence is a financial analyst. She loves analyzing socioeconomic trends in the background of financial moves. She has overall seven years of experience in Auditing, Finance and Writing.

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