This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Emergent BioSolutions (NYSE: EBS) -- my top 2009 pick -- makes the only FDA-licensed vaccine for the prevention of anthrax," says Timothy Lutts in his The Cabot Stock of the Month.
"Located in Rockville, Maryland, the company is currently filling a $448 million government order for 18.75 million doses, and in October, the U.S. government contracted to purchase 14.5 million additional doses valued at up to $404 million, to add to the Strategic National Stockpile.
"The vaccine is named BioThrax, and it accounts for 97% of the revenues of Emergent BioSolutions. However, the company has a full pipeline including two 'next generation' anthrax vaccines.
"Also in development are two anthrax therapeutics (immunoglobulin and monoclonal), two botulinum vaccines and a botulinum therapeutic (botulinum is the nasty form of Botox), an oral typhoid vaccine, a next generation tuberculosis vaccine, a hepatitis B immunotherapy and a chlamydia vaccine.
"In short, the company has used its success with BioThrax to bankroll the development, acquisition and licensing of other drugs. Some of these drugs could be in high demand by the U.S. government in its battle against bioterrorism and biowarfare, while others could be valued by the general medical community.
"The company has been solidly profitable since 2002. In the third quarter, revenues grew 30% to $56.6 million, while earnings grew 240% to $0.34 per share."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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