Benchmark analyst Robert Wasserman downgraded Emergent BioSolutions to Hold from Buy and removed his prior price target after the company reported a 27% year-over-year decline in revenue compared to his estimate for just a 3% decrease. The revenue shortfall in the quarter comes primarily from the lack of option exercise by the U.S. Government for ACAM2000 smallpox vaccine and the company also revised financial guidance for FY22 downward due to the ACAM2000 shortfall. Emergent is continuing discussions with the U.S. related to the ACAM2000 purchase shortfall, which could be "a big boost to results" for Q4 or 2023, said Wasserman, but he is lowering his rating until the company can return to positive quarterly earnings comparisons.
Published first on TheFly
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