EBS - Emergent BioSolutions: A Top Pick For The Monkeypox Outbreak

• Emergent BioSolutions’ stock has spiked up over the past week as a monkeypox outbreak begins to spread to Europe and North America. The company is my Top Pick for monkeypox.
• Emergent's smallpox vaccine, ACAM2000, is expected to be effective against monkeypox due to its close relation to the variola virus that causes smallpox. ACAM2000 is already in the national stockpile.
• The company recently announced that they have made a $225M deal with Chimerix to acquire the exclusive global rights to a smallpox antiviral, Tembexa.
• At the moment, EBS is trading at a 1.46x forward price-to-sales for 2022, which is substantially under the industry's average of 5x price to sales.
• I take a look at some valuation models to determine what the ticker's intrinsic value is. In addition, I will discuss how the valuation impacts my investment strategy.

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