) have been on the way down since it reported wider first quarter
2014 loss on May 8. The company's first quarter loss (on an
adjusted basis) of 40 cents per share was wider than the Zacks
Consensus Estimate of a loss of 34 cents. Furthermore, first
quarter 2014 loss was wider than the year-ago loss of 22 cents.
Higher costs were responsible for the wider loss incurred by the
company in the first quarter of 2014.
Revenues climbed 25% year over year to $53.9 million in the
first quarter of 2014. An 18% increase in product sales to $35.8
million boosted revenues in the reported quarter. Revenues were
short of the Zacks Consensus Estimate of $57 million. BioThrax
sales declined 20% to $24.5 million in the quarter due to the
timing of deliveries to the Strategic National Stockpile.
We note that BioThrax is the sole vaccine to be cleared by the
U.S. Food and Drug Administration (FDA) for the pre-exposure
prophylaxis of anthrax disease. Emergent BioSolutions is looking to
get BioThrax approved for the post-exposure prophylaxis (PEP) of
anthrax resulting from exposure (suspected or confirmed) to
bacillus anthracis in combination with antibiotics for treating
patients with suspected or confirmed exposure to anthrax
Last month, the FDA awarded orphan drug status to the vaccine
for the PEP indication. The status makes the drug eligible for
seven years of marketing exclusivity in the U.S. following approval
for the orphan indication. Emergent BioSolutions will not be
required to pay the fees associated with the filing of the
supplemental biologics license application (sBLA) as a result of
orphan status granted by the U.S. regulatory body. We expect
investor focus to remain on updates regarding Emergent
BioSolutions' efforts to expand BioThrax's label.
Outlook for 2014 Backed
The company still expects 2014 total revenues in the range of
$415 million-$445 million. The Zacks Consensus Estimate (pre
earnings) of $439 million is within the company's guidance range.
The company expects total revenues in the range of $95-$110 million
in the second quarter of 2014. The Zacks Consensus Estimate (pre
earnings) of $120 million is above the company's guidance
Emergent BioSolutions carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical sector include
Spectrum Pharmaceuticals, Inc.
). While Gilead and Spectrum Pharma carry a Zacks Rank #1 (Strong
Buy), Alexion is a Zacks Rank #2 (Buy) stock.
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ALEXION PHARMA (ALXN): Free Stock Analysis
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