What happened

In response to the company's report of first-quarter earnings, shares of Emergent BioSolutions (NYSE:EBS), a commercial-stage biotech focused on bioterrorism defense products, had dropped 10% as of 3:08 p.m. EDT on Friday.

So what

Here are the headline numbers from the company's first quarter:

  • Revenue jumped 62% to $190.6 million. The big jump is largely attributable to strong sales of NARCAN nasal spray, which is a recently acquired drug that treats overdoses.
  • Net loss was $26 million, or $0.51 per share.
  • Adjusted net loss was $6.8 million, or $0.13 per share. That figure was well behind the $0.09 in net income per share that analysts had estimated.
  • The company signed a new contract with the U.S. State Department valued at up to $100 million over 10 years.

Management also shared guidance for the upcoming quarter and full year:

  • Second-quarter revenue is expected to land between $200 million and $220 million. That's well short of the $254 million that Wall Street was expecting.
  • Full-year revenue is expected to be between $1.06 billion and $1.14 billion.
  • Full-year net income is forecast between $80 million and $110 million.
  • Full-year adjusted net income is expected to land between $150 million and $180 billion.
Colorful drugs on top of hundred dollar bills

Image source: Getty Images.

In addition to the first-quarter miss and weak second-quarter revenue guidance, Emergent BioSolutions was also called a strong sell by a research company today.

Add it all up, and it's no surprise to see the share price being punished today.

Now what

If management can deliver on the midpoint of its full-year guidance, then revenue and adjusted net income will grow by 41% and 36%, respectively. Those are numbers that should make any growth-focused investor smile.

However, management's first-quarter results and second-quarter guidance suggest that the bulk of the growth will not materialize until the back half of the year. That means that investors have some waiting to do before they get a better idea of whether or not the company will be able to deliver.