Emergent BioSolutions reported this morning that it has signed a 3-year contract with the U.S. Department of Health and Human Services valued at $448 million. The contract's chief component is $400 million for the delivery of 18.75 million doses of the anthrax vaccine BioThrax for inclusion in the national stockpile. The company also reiterated its full-year revenue guidance for growth of 10% to 15%, with expectations to hit the upper end of that range.
EBS has surged more than 25% higher right out of the gate this morning. This pop higher takes the stock above resistance from its 10-day and 20-day moving averages, which had pressured the shares lower since late July. Some of today's momentum could be the result of short covering; currently, 6.6% of the stock's available float has been sold short.