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Emergent BioSolutions Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 1, 2012 02:02PM

Emergent BioSolutions Inc. (EBS) filed Quarterly Report for the period ended 2012-09-30. Emergent Biosolutions, Inc. has a market cap of $488.4 million; its shares were traded at around $13.51 with a P/E ratio of 13.4 and P/S ratio of 1.8. Emergent Biosolutions, Inc. had an annual average earning growth of 1.2% over the past 5 years.



Highlight of Business Operations:

Product sales revenues increased by $10.3 million, or 24%, to $54.0 million for the three months ended September 30, 2012 from $43.7 million for the three months ended September 30, 2011. This increase in product sales revenues was primarily due to a 37% increase in the number of doses of BioThrax delivered partially offset by a 10% decrease in the sales price per dose. The increase in the number of doses delivered was primarily attributable to timing of deliveries to the SNS. The decrease in the sales price per dose was due to a slightly lower price per dose under the current CDC contract compared to our prior contract with Health and Human Services, or HHS. Product sales revenues during the three months ended September 30, 2012 consisted of BioThrax sales to the CDC of $53.8 million and aggregate international and other sales of $247,000. Product sales revenues for the three months ended September 30, 2011 consisted of BioThrax sales to HHS of $43.6 million and aggregate international and other sales of $85,000.

Research and development expenses decreased by $1.8 million, or 6%, to $27.4 million for the three months ended September 30, 2012 from $29.2 million for the three months ended September 30, 2011. This decrease primarily reflects lower contract service expenses, and includes decreased expenses of $2.6 million for product candidates and technology platform development activities categorized in the Biosciences segment, increased expenses of $479,000 for product candidates and manufacturing development that are categorized in the Biodefense segment and increased expenses of $253,000 in other research and development, which are in support of central research and development activities. During the three months ended September 30, 2012 and 2011, we incurred research and development expenses net of development contract and grant revenues along with the net loss attributable to noncontrolling interests of $13.8 million and $12.4 million, respectively.

Product sales revenues increased by $20.8 million, or 17%, to $141.5 million for the nine months ended September 30, 2012 from $120.7 million for the nine months ended September 30, 2011. This increase in product sales revenues was primarily due to a 28% increase in the number of doses of BioThrax delivered partially offset by a 9% decrease in the sales price per dose. The increase in doses delivered is primarily attributable to the timing of deliveries to the SNS. The decrease in the sales price per dose was due to a slightly lower price per dose under the current CDC contract versus our prior contract with HHS. Product sales revenues for the nine months ended September 30, 2012 consisted of BioThrax sales to CDC of $141.1 million and aggregate international and other sales of $447,000. Product sales revenues for the nine months ended September 30, 2011 consisted of BioThrax sales to HHS of $119.4 million and aggregate international and other sales of $1.4 million.

Contracts and grants revenues increased by $1.1 million, or 2%, to $45.8 million for the nine months ended September 30, 2012 from $44.7 million for the nine months ended September 30, 2011. The increase in contract and grant revenues was primarily due to increased activity and associated revenue from our development contracts with BARDA for large-scale manufacturing for BioThrax and development of PreviThrax along with a milestone payment received for our PEP indication for BioThrax and the sale of our spi-VEC technology, partially offset by decreased activity under our NuThrax contracts with NIAID and BARDA and decreased revenue from Pfizer and Abbott. Contracts and grants revenues for the nine months ended September 30, 2012 consisted of $40.3 million in development contract and grant revenues from NIAID and BARDA, $4.0 million from Abbott and Pfizer and $1.5 million from the sale of patent and trademark rights and related materials pertaining to our spi-VEC platform technology. Contracts and grants revenues for the nine months ended September 30, 2011 consisted of $35.1 million in development contract and grant revenue from NIAID and BARDA and $9.6 million from Abbott and Pfizer.

Net cash used in operating activities of $24.8 million for the nine months ended September 30, 2011 was principally due to our net loss attributable to Emergent BioSolutions Inc. of $5.6 million, a $5.3 million increase in inventory related to the timing of BioThrax shipments, a net decrease in income taxes of $3.8 million related to timing differences, a decrease in accrued compensation of $9.4 million primarily due to the payment of the 2010 bonuses and UK restructuring costs, an increase in accounts receivable of $9.7 million due to the timing of collection of amounts billed primarily to HHS, a decrease in deferred revenue of $5.1 million primarily due to our Abbott collaboration, partially offset by non-cash charges of $7.9 million for stock-based compensation, $6.9 million for depreciation and amortization, and $4.3 million for development expenses primarily from our joint venture with the University of Oxford.

Read the The complete Report



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