Acambis: Life after the CDC

The trouble with government contracts is that they are binary: you either win them or you don't. When a proposed order worth millions is not taken up, the ramifications for a company can underline the meaning of the phrase "material event."

Having been profitable for about three years, Acambis plc had just such a material event last week, as the U.S. Centers for Disease Control and Prevention did not follow through on an expected order of 26.5 million doses of ACAM2000 smallpox vaccine. As a result, ACM will have a shortfall of about £52 million ($94 million) on the Street's 2004 revenue estimate of £140 million ($251.2 million). ...