HomeMarket NewsMicro Cap StocksInvestors Are Fuming Over Emergent Biosolutions' Stock Drop Despite Big Government Contract

Investors Are Fuming Over Emergent Biosolutions’ Stock Drop Despite Big Government Contract

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Emergent Biosolutions Inc EBS shares started the day strong but took a nosedive despite securing a $75 million contract from the Biomedical Advanced Research and Development Authority (BARDA).

Underwhelming Contract: BARDA granted Emergent Biosolutions a $75 million option to its existing contract for the acquisition of newly licensed anthrax vaccine CYFENDUS. Deliveries are set to commence in 2023 and wrap up by the end of the first quarter of 2024.

CYFENDUS received FDA approval in July 2023 as a two-dose anthrax vaccine for post-exposure prophylaxis use in those aged 18 and older. 

Paul Williams, senior vice president and products head at Emergent Biosolutions, described the CYFENDUS vaccine as a crucial asset for the company’s anthrax medical countermeasures franchise, and it supports the U.S. government’s anthrax preparedness strategy.

“This procurement helps ensure the nation has sufficient anthrax vaccine and aligns with Emergent’s longstanding commitment to strengthen public health preparedness,” Williams said.

See Also: Why Is RNA Therapeutics-Focused Avidity Biosciences Stock Trading Higher Today?

Disappointing Stock Movement: Although Emergent Biosolutions shares initially soared above $2.30 per share, they quickly spiraled downward. The stock was down 4.36% at $1.98 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.

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