Pharma Stock Falls Amid Workforce Reduction Plans

The stock hit a 13-year low last month

Deputy Editor

Jan 9, 2023 at 10:30 AM

Emergent BioSolutions Inc (NYSE:EBS) is in the news today, after the pharmaceutical company announced it was cutting its workforce by roughly 5%. The move, along with other cost reduction measures, will save over $60 million in annual expenses.

EBS has reversed its premarket gains, however, and was down 5.2% at $12.87 at last glance. The security sports a 73.2% year-over-year deficit, but had been moving steadily higher since its Dec. 22, 13-year low of $10.61. A short-term drop could be in the cards, however, as the stock's 14-day relative strength index (RSI) of 84.5 sits in "overbought" territory.

Of the five analysts in coverage, four sport a "hold" rating, with one a "strong buy." Meanwhile, short interest has been on the rise, and represents 7.7% of the stock's available float, or nearly four days' worth of pent-up buying power.

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