Why Emergent BioSolutions Inc. Jumped Higher Today

Emergent BioSolutions (NYSE: EBS) is up 11.4% at 1:00 p.m. EDT after announcing third-quarter earnings following the closing bell yesterday. It was a solid quarter for the biodefense specialist, but the stock is likely jumping because the company raised revenue and income guidance for the year.

Product sales increased 18% as Emergent BioSolutions delivered more of its botulism antitoxin, BAT, to the strategic national stockpile and shipped more RSDL, its skin decontamination and neutralization product, to the Department of Defense. International sales of its immunoglobulin product VIGIV and its auto-injector Trobigard also boosted sales. All those benefits were able to overcome an 11% decline of Emergent's largest product, BioThrax, as the company delivered less of the anthrax vaccine to the strategic national stockpile.

Contract manufacturing was up 29% year over year, but revenue from contracts and grants decreased by 48% as multiple U.S. government contracts were completed and funding for some research and development activities was reduced. When those two smaller revenue sources are added to product sales, overall revenue increased 5% year over year in the third quarter.

Source: Fool.com