Shares of Emergent BioSolutions (EBS -3.70%) were sinking 7.7% as of noon ET on Friday. The decline came after the company announced its first-quarter results following the market close on Thursday.
Emergent BioSolutions reported Q1 revenue of $308 million, down 10% year over year. This result was in line with the company's previous guidance. The company posted a net loss of $3.7 million, or $0.07 per share. The consensus Wall Street estimate was for Q1 earnings of $0.12 per share.
The good news for Emergent BioSolutions is that its marketed products continue to enjoy strong momentum. Sales of its anthrax vaccines soared 88% year over year to $103.6 million. Nasal naxolone product revenue jumped 25% to $93.1 million. Overall, the company's total net product sales increased 72% to $237.1 million.
However, the bad news is that the company's contract development and manufacturing organization (CDMO) revenue is struggling mightily. CDMO services revenue fell 23% year over year in the first quarter to $51.8 million. CDMO leases plunged 92% to $9 million.
Emergent BioSolutions received a huge black eye in 2021 after the FDA identified multiple issues at its Baltimore, Maryland facility. This facility was manufacturing Johnson & Johnson's (JNJ -0.34%) COVID-19 vaccine. Emergent's CDMO still hasn't recovered from the negative publicity. The healthcare stock has plunged more than 70% since early 2021.
Emergent expects that its products will generate total sales of between $910 million and $1.08 billion in 2022. However, the company temporarily suspended its full-year guidance on all other fronts, including total revenue and earnings, after J&J decided to no longer project COVID-19 vaccine sales. J&J made that decision due to a global COVID-19 vaccine supply glut and vaccine hesitancy in some countries.