Emergent BioSolutions (NYSE: EBS) stock soared on Wednesday with the appointment of the former Bausch + Lomb CEO as its new President and CEO.
Emergent (EBS) announced on Wednesday the appointment of Joseph Papa, former CEO of Bausch + Lomb, to lead the company. The move comes as the company, known for producing the opioid overdose reversal medication Narcan, is striving to resume its path to revenue growth.
Papa boasts 35 years of expertise in the healthcare sector. His extensive background includes his role as CEO of Bausch, where he successfully navigated the company through a challenging period, formerly known as Valeant. Under his leadership in 2016, Bausch aimed to overcome investigations into its accounting and pricing practices, signaling hope for Emergent’s revival.
Emergent has been strategically working to streamline operations, cutting costs, and shifting focus away from its contract manufacturing business due to sluggish demand. The company is determined to propel sales growth for Narcan and its other proprietary medications.
Emergent’s contract manufacturing division has encountered challenges due to decreased revenues from COVID-related products. In 2022, Johnson & Johnson concluded its contract with the company for manufacturing COVID-19 vaccines.
Benchmark analyst Robert Wasserman praised Emergent’s interim CEO for effectively stabilizing the company, but he emphasized that Papa’s appointment holds particular promise. Wasserman described it as “very positive,” noting that Papa’s extensive experience is expected to bolster Emergent’s focus on products like Narcan.
Emergent stock has plummeted by about 90% in the past 12 months, reaching a 16-year low in August.
In August, Emergent streamlined operations, cutting 400 jobs and scaling back activities at select facilities to focus on core products such as Narcan and anthrax vaccines.
Joseph Papa will succeed Haywood Miller, who served as interim CEO, effective February 21.
Emergent (NYSE: EBS) Stock Movement
EBS stock surged 78.29% to close at $2.71 on Wednesday. The traders had exchanged hands with 76,038,579 (76.03 million) shares compared to the average daily trading volume of 1.35 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
