Why Emergent Biosolutions Stock Is Surging After The Close

Emergent Biosolutions Inc EBS shares are trading higher in Monday's after-hours session after the company was awarded a 10-year contract for development of an Ebola treatment.

What To Know: The Biomedical Advanced Research and Development Authority (BARDA) awarded Emergent BioSolutions a 10-year contract worth up to $704 million for advanced development, scaled manufacturing and procurement of Ebanga, a licensed treatment for Ebola.

The contract consists of a base performance period with two option periods for advanced development valued at approximately $121 million, as well as option periods for procurement of Ebanga over five years valued at up to $583 million. 

"Ebola virus has the ability to emerge unexpectedly posing a risk to global health. Its elusive nature makes it difficult to predict when and where an outbreak may occur, which underscores the importance of preparedness efforts against this public health threat," said Kelly Warfield, senior vice president of science and development at Emergent Biosolutions.

See Also: Why Arista Networks Stock Is Advancing After Hours

EBS Price Action: Emergent shares were up 7.64% after hours at $7.40 at the time of publication, per Benzinga Pro.

Photo: Miguel Á. Padriñán from Pixabay.