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Apr 01, 2021
J&J (JNJ, $164.62) vaccine supply halted, after mix-up at Emergent BioSolutions (EBS, $92.94) plant

J&J (JNJ, $164.62) vaccine supply halted, after mix-up at Emergent BioSolutions (EBS, $92.94) plant

A mix-up of ingredients of Johnson & Johnson’s  ( J&J ) COVID-19 vaccine and Astra Zeneca’s at an Emergent BioSolutions (EBS)  manufacturing plant in Maryland ruined 15 million doses of J&Js   vaccine, leading to deliveries getting halted.

The mix-up occurred about two weeks ago, and all shipments  from the plant have been halted by the Food and Drug Administration. The latter in probing into the matter.

Last July, Emergent BioSolutions signed a contract, for a deal worth $480 million over the first two years, to make vaccine components for J&J .

While currently distributed J&J vaccines are not affected, the plant is supposed to produce millions of the single-shot vaccines which are expected to help the U.S. scale up its COVID-19 vaccinations in coming weeks.

EBS has manufacturing deals with several other pharmaceutical companies for vaccines including Novavax ,  Vaxart Inc., and Humanigen.

Related Ticker: EBS

EBS's Stochastic Oscillator is sitting in overbought zone for 9 days

The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

Following a 3-day decline, the stock is projected to fall further. Considering past instances where EBS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

EBS broke above its upper Bollinger Band on August 25, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for EBS entered a downward trend on August 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where EBS's RSI Indicator exited the oversold zone, of 40 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Momentum Indicator moved above the 0 level on August 21, 2026. You may want to consider a long position or call options on EBS as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for EBS just turned positive on August 21, 2026. Looking at past instances where EBS's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EBS advanced for three days, in of 259 cases, the price rose further within the following month. The odds of a continued upward trend are .

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.933) is normal, around the industry mean (47.010). P/E Ratio (8.849) is within average values for comparable stocks, (93.888). EBS's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.974). EBS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.453) is also within normal values, averaging (177.089).

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. EBS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EBS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.

Notable companies

The most notable companies in this group are Teva Pharmaceutical Industries Limited (NYSE:TEVA), ZOETIS (NYSE:ZTS), Elanco Animal Health (NYSE:ELAN), BioCryst Pharmaceuticals (NASDAQ:BCRX), Bausch Health Companies (NYSE:BHC), Tilray Brands Inc. (NASDAQ:TLRY), Canopy Growth Corp (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), Journey Medical Corp (NASDAQ:DERM).

Industry description

A generic drug contains the same chemical substance as a drug that was originally protected by patents. Generic drugs are generally sold at cheaper price points, compared to name-brand pharmaceuticals, after patents for the more expensive drugs lapse. The generic drug industry has created a major market, thanks to the lower pricing. According to the Center for Justice and Democracy at New York Law School, 80 percent of all drugs prescribed are generic, and generic drugs are chosen 94 percent of the time when they are available. But their manufacturers must be able to prove to the FDA that they can be effective substitutes for the original drugs. Some of the major generic drug makers include Zoetis, Inc., Allergan plc and Mylan N.V.

Market Cap

The average market capitalization across the Pharmaceuticals: Generic Industry is 4.09B. The market cap for tickers in the group ranges from 2.12K to 63.66B. AGN holds the highest valuation in this group at 63.66B. The lowest valued company is CANQF at 2.12K.

High and low price notable news

The average weekly price growth across all stocks in the Pharmaceuticals: Generic Industry was -1%. For the same Industry, the average monthly price growth was 0%, and the average quarterly price growth was 37%. GELS experienced the highest price growth at 62%, while BTAI experienced the biggest fall at -59%.

Volume

The average weekly volume growth across all stocks in the Pharmaceuticals: Generic Industry was -12%. For the same stocks of the Industry, the average monthly volume growth was -36% and the average quarterly volume growth was 73%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 52
P/E Growth Rating: 64
Price Growth Rating: 55
SMR Rating: 87
Profit Risk Rating: 82
Seasonality Score: -15 (-100 ... +100)
Related Portfolios: BIOTECHNOLOGY SECTOR
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a manufacturer of biopharmaceutical products

Industry PharmaceuticalsGeneric

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Biotechnology
Address
300 Professional Drive
Phone
+1 240 631-3200
Employees
900
Web
https://www.emergentbiosolutions.com
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