Emergent BioSolutions Soars: Analyst Upgrades Stock With Near 100% Upside After FDA's Positive Move

Benchmark upgraded Emergent BioSolutions Inc EBS from Hold To Buy with a price target of $22 on the positive FDA and Narcan market news.
Related: FDA Approves First OTC Naloxone Nasal Spray For Opioid Overdose.
At current levels, EBS is valued at just 0.5x estimated 2023E revenues. The price target of $22 equates to 1.0x 2023E revenues.
The analyst writes that Emergent expects to launch its OTC product in the summer of 2023, giving a lead of around six months, if not more, over competing OTC versions.
Emergent also has the benefit of an existing sales channel.
Competitive Landscape
Rival firm Amphastar Pharma Inc's AMPH naloxone hydrochloride nasal spray won FDA approval in early March, while another potential competitor – Amneal Pharmaceuticals Inc AMRX, awaits approval.
Currently, Teva Pharmaceutical Industries Ltd TEVA and Novartis AG's NVS Sandoz market generics of the drug, with Emergent providing the manufactured product for Sandoz under a license agreement.
Public awareness and acceptance of the OTC version have picked up steam.
Price Action: EBS shares are up 14.49% at $12.09 on the last check Monday.

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