EBS - Why Emergent BioSolutions Stock Inched Slightly Higher Today
2023-05-15 18:27:50 ET
Emergent BioSolutions (NYSE: EBS) has been quite the up-and-down stock of late. On Monday, it had an up session on the market, creeping northward by 1.2% and exceeding the S&P 500 's gain of 0.3%. Investors seemed to be expressing cautious optimism about a new deal reached by the contract drug manufacturer and biotech.
That morning before market open, Emergent announced that it had finalized the sale of its travel health business. The buyer is Denmark-headquartered peer Bavarian Nordic, which has handed over $270 million for the set of assets. It's also on the hook to pay up to an additional $110 million to Emergent in potential milestone payments.
Under the terms of the deal, Emergent has transferred the rights to typhoid vaccine Vivotif and cholera jab Vaxchora. Bavarian Nordic is also acquiring Emergent's pipeline vaccine Chikv VLP, aimed at blocking the viral disease chikungunya. For its $270 million, the European company is also acquiring a factory in Switzerland and a research facility in California.
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Why Emergent BioSolutions Stock Inched Slightly Higher Today