• Shares of Emergent BioSolutions jumped 18% in after-hours trading after the company posted stronger-than-expected Q3 results and raised its full-year guidance.
• The quarter saw double-digit revenue growth led by Narcan and smallpox vaccine sales, along with margin gains and lower operating costs.
• On Stocktwits, retail traders turned upbeat, with some predicting further upside in the coming sessions.

Emergent BioSolutions shares rallied 18% in after-hours trading on Wednesday, sparking a wave of retail chatter on Thursday. The biotech firm surprised Wall Street with better-than-expected third-quarter (Q3) results, raised its 2025 outlook, and showed real traction across its naloxone and biodefense product lines.

Revenue Tops Forecast, Margins Improve

Emergent delivered Q3 revenue of $231 million, up 10% from last year and ahead of guidance, helped by strong sales of its Narcan nasal spray and new government contracts for smallpox and anthrax countermeasures. Gross margin improved to 57%, while the company held costs in check, and operating expenses fell 41% from a year ago.

Net income came in at $51 million, a big turnaround from last year's losses, as Emergent's restructuring efforts and product mix paid off. The company also reduced its net debt by nearly 20% and ended the quarter with $346 million in liquidity, including $246 million in cash.

The company raised full-year revenue guidance to $775–$835 million and lifted adjusted EBITDA expectations to $195–$210 million, citing solid execution and international demand.

Smallpox Demand Drives Upside

Emergent said its Narcan and Kloxxado products continue to lead the naloxone market, benefiting from stable U.S. pricing and growing over-the-counter availability. Meanwhile, international sales made up 34% of total medical countermeasure revenue and are proving more profitable than U.S. contracts.

Sales of the company's smallpox vaccine climbed 15% year over year, supported by long-term global supply deals. Emergent also highlighted progress on its partnership with Switzerland's Rocketvax, with the first clinical trial for a next-generation vaccine platform expected to start in early 2026.

Stocktwits Traders See More Upside Ahead

On Stocktwits, retail sentiment for Emergent BioSolutions shifted to 'extremely bullish' from 'neutral' a day ago amid a 289% jump in 24-hour message volume. 

One user predicted that Emergent BioSolutions' stock could open around $20 or higher, saying they wouldn't be surprised by a sharp move up.

Another commenter said they viewed Emergent as a $30 stock, even without a potential buyout, adding that short sellers might soon be forced to cover.

Emergent BioSolutions' stock has declined 2% so far in 2025.

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