Emergent BioSolutions Inc. (EBS - Free Report) announced that a district court of New Jersey passed an unfavorable decision with respect to the company on the patent litigation of its Narcan (naloxone HCl) nasal spray 4mg. The court ruled in favor of the defendants, Teva Pharmaceuticals Industries Limited (TEVA - Free Report) .
Emergent plans to appeal the above decision to the Court of Appeals for the Federal Circuit.
Per the press release, the financial outlook for 2020 that includes expectations related to this litigation, efforts to develop and manufacture the COVID-19 vaccines and therapeutics, and other relevant information will be provided when Emergent reports second-quarter 2020 financial results.
Shares of Emergent were down in after-hours trading following the aforementioned news announced on last Friday. However, the stock has soared 61.1% so far this year compared with the industry’s increase of 6.9%.
We remind investors that the 2018 acquisition of Adapt Pharma added the latter’s Narcan nasal spray to Emergent’s portfolio, thereby solidifying the company’s presence in the public health threats market. The product contributed significantly to Emergent’s sales growth in 2019.
Moreover, in the first quarter of 2020, Narcan nasal spray added $72.2 million to Emergent’s product sales, increasing 10% year over year.
Emergent has a robust vaccine portfolio, candidates of which are being evaluated in several early-mid-stage studies to address various ailments.
We note that to address the global COVID-19 pandemic, Emergent inked several contract development and manufacturing (CDMO) deals to provide manufacturing services to various companies for helping them produce their respective experimental vaccine candidates against COVID-19.
The company signed a CDMO contract with Vaxart (VXRT - Free Report) and small biotech Novavax (NVAX - Free Report) to help them develop their respective vaccine candidates against COVID-19. In April 2020, Emergent reached a CDMO agreement with Johnson & Johnson to support the manufacturing of its lead vaccine candidate against COVID-19. The deal is valued at around $135 million.
Meanwhile, Emergent initiated the development of two product candidates for the treatment and prevention of COVID-19 in March 2020. The company is developing the two candidates to leverage its hyperimmune platforms with well-established safety databases.
Emergent currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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