Down 75%, Can Emergent BioSolutions Turn Things Around?

Shares of drug manufacturer Emergent BioSolutions (NYSE: EBS) are down 75% in the past 12 months. Investors have been turning to safer investments amid the bear market and ditching the risky drugmaker. But last quarter, the company's revenue came in higher than its guidance, and the Food and Drug Administration (FDA) also recently approved its Narcan nasal spray for over-the-counter (OTC) use. Is Emergent on the right track, and can the stock be a great buy heading into the latter half of 2023?

A big problem with Emergent BioSolutions is that the U.S. government is a fairly large customer for the company, driving demand for multiple medical countermeasure (MCM) products it makes, including Anthrax MCM and Smallpox MCM. MCM products help prevent and treat diseases in relation to chemical and biological threats.

For the three-month period ending March 31, sales of those products totaled $29.1 million -- versus $132.7 million in the prior-year period, for a decline of 78%. There isn't an ongoing need for MCM products and that has been visible in Emergent's falling sales numbers:

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Source Fool.com