Part I. Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Emergent BioSolutions Inc. as of June 30, 2025, detailing financial position and performance [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1,417.1 million** due to cash, while liabilities decreased, boosting stockholders' equity Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $267.3 | $99.5 | | Accounts receivable, net | $79.8 | $154.5 | | Inventories, net | $338.6 | $311.7 | | Total current assets | $719.5 | $598.7 | | Total assets | $1,417.1 | $1,389.7 | | **Liabilities & Equity** | | | | Total current liabilities | $127.1 | $162.4 | | Debt | $667.8 | $663.7 | | Total liabilities | $880.9 | $906.9 | | Total stockholders' equity | $536.2 | $482.8 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significantly reduced net loss in Q2 2025 and achieved net income for H1 2025, primarily due to lower operating expenses Statement of Operations Summary (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $140.9 | $254.7 | $363.1 | $555.1 | | Income (loss) from operations | $1.6 | $(203.5) | $51.5 | $(163.7) | | Net income (loss) | $(12.0) | $(283.1) | $56.0 | $(274.1) | | Diluted EPS | $(0.22) | $(5.38) | $0.99 | $(5.23) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved to **$95.2 million** for H1 2025, leading to a **$165.4 million** increase in total cash Cash Flow Summary - Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $95.2 | $(15.1) | | Net cash provided by (used in) investing activities | $76.7 | $(15.4) | | Net cash used in financing activities | $(6.8) | $(10.2) | | **Net change in cash, cash equivalents and restricted cash** | **$165.4** | **$(40.7)** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover the company's business structure, divestitures, restructuring, debt, legal proceedings, and segment re-evaluation - The company completed the sale of its Baltimore-Bayview drug substance manufacturing facility to Syngene for **$36.5 million**, recognizing a pre-tax gain of **$7.9 million**[52](index=52&type=chunk)[53](index=53&type=chunk) - The company has undertaken **multiple organizational restructuring plans** since January 2023 to reduce operating costs, resulting in workforce reductions and facility closures[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Total debt as of June 30, 2025, was **$700.0 million**, consisting of a **$250.0 million** term loan and **$450.0 million** in senior unsecured notes[72](index=72&type=chunk) - The company settled a securities class action lawsuit for **$40.0 million**, of which **$30.0 million** was paid from insurance proceeds[116](index=116&type=chunk) - Effective Q1 2025, the company re-evaluated its structure and now has two reportable segments: **Commercial Products** and **MCM Products**[132](index=132&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance and condition, noting Q2 2025 revenue decline but improved net loss from reduced expenses and strengthened liquidity [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q2 2025 total revenues fell **45%**, but operating expenses decreased **70%**, leading to operating income, with H1 2025 also showing improved operating results Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $140.9 | $254.7 | $(113.8) | (45)% | | Commercial Product Sales | $67.5 | $120.0 | $(52.5) | (44)% | | MCM Product Sales | $58.4 | $63.4 | $(5.0) | (8)% | | Total Operating Expenses | $139.3 | $458.2 | $(318.9) | (70)% | | Income (loss) from operations | $1.6 | $(203.5) | $205.1 | 101% | | Net income (loss) | $(12.0) | $(283.1) | $271.1 | 96% | H1 2025 vs H1 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $363.1 | $555.1 | $(192.0) | (35)% | | Commercial Product Sales | $112.8 | $238.5 | $(125.7) | (53)% | | MCM Product Sales | $215.0 | $218.8 | $(3.8) | (2)% | | Total Operating Expenses | $311.6 | $718.8 | $(407.2) | (57)% | | Income (loss) from operations | $51.5 | $(163.7) | $215.2 | 131% | | Net income (loss) | $56.0 | $(274.1) | $330.1 | 120% | [Reportable Segment Results](index=51&type=section&id=Reportable%20Segment%20Results) Segment results show Commercial Product revenue decline, MCM Products decrease, and 'All other revenues' fall due to a prior-year settlement - Commercial Product segment revenue decreased **44%** in Q2 2025, driven by lower sales of OTC NARCAN and an unfavorable price/volume mix[197](index=197&type=chunk)[198](index=198&type=chunk) - MCM Products segment revenue decreased **8%** in Q2 2025, with a **70%** decrease in Anthrax MCM sales partially offset by a **127%** increase in Smallpox MCM sales due to timing of government orders[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) - Services revenues (part of 'All other revenues') decreased **93%** in Q2 2025, primarily due to a one-time **$50.0 million** arbitration settlement with Janssen recognized in Q2 2024[208](index=208&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=64&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with cash increasing to **$267.3 million** and working capital rising, supported by a **$50.0 million** share repurchase program Financial Condition Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $267.3 | $99.5 | | Total working capital | $592.4 | $436.3 | | Debt | $667.8 | $663.7 | - The company authorized a **$50.0 million** share repurchase program in March 2025, with **$6.9 million** used to repurchase **1.1 million** shares in Q2 2025, leaving **$43.1 million** available[251](index=251&type=chunk) - The company had **$100.0 million** of unused capacity under its Revolving Loans as of June 30, 2025[262](index=262&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates on variable-rate debt and foreign currency exchange rate fluctuations - The company's primary market risks are **interest rate risk** on its floating-rate debt and **foreign currency exchange rate risk**[265](index=265&type=chunk) - A hypothetical **1%** increase in the eurocurrency rate as of June 30, 2025, would increase annual interest expense by approximately **$2.5 million**[267](index=267&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control - Management concluded that disclosure controls and procedures were **effective** as of June 30, 2025[269](index=269&type=chunk) - **No material changes** to internal control over financial reporting occurred during the three months ended June 30, 2025[270](index=270&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 16 of the financial statements for details on legal proceedings - For information on legal proceedings, the report directs readers to Note 16 of the Condensed Consolidated Financial Statements[271](index=271&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) Updates the company's risk factors, highlighting potential negative impacts from recent divestitures and the 2025 Share Repurchase Program - The company highlights **risks associated with its recent divestitures**, including retained liabilities, potential indemnification obligations, and the possibility of not realizing the full expected benefits from the sales[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk) - There is a **risk that the 2025 Share Repurchase Program may not be fully utilized or may not enhance long-term stockholder value**, and its suspension could negatively impact the stock price[278](index=278&type=chunk)[279](index=279&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's share repurchase activity under the 2025 Share Repurchase Program, including shares repurchased and remaining funds Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 200,000 | $5.01 | | May 2025 | 478,681 | $6.25 | | June 2025 | 441,500 | $6.48 | | **Total** | **1,120,181** | | [Item 5. Other Information](index=74&type=section&id=Item%205.%20Other%20Information) Director Kathryn Zoon adopted a Rule 10b5-1 trading arrangement for the potential sale of **24,286** shares of common stock - On May 16, 2025, Director Kathryn Zoon adopted a Rule 10b5-1 trading plan for the sale of up to **24,286** shares of common stock, expiring May 15, 2026[287](index=287&type=chunk)[288](index=288&type=chunk)

Financial Performance - Q2 2025 revenues reached $141 million, exceeding the high end of guidance by $21 million[14] - Adjusted EBITDA guidance is raised to $175 - $200 million for 2025[14] - Net leverage decreased significantly from 99x in Q2 2024 to 19x in Q2 2025[14] - Cash position improved to $267 million, with liquidity at $367 million, a $297 million increase year-over-year[14] - 11 million shares were repurchased in Q2 2025 for $69 million[16] Business Segments - International MCM sales accounted for 48% of total MCM revenue year-to-date[16,54] - NARCAN demand rebounded by 50% in Q2 2025 compared to Q1 2025[16,57] Future Outlook - Full year 2025 revenue is projected to be in the range of $765 - $835 million[14] - The company is pursuing organic and inorganic growth initiatives to create shareholder value[15,67] - The company plans to invest to enable sustainable, long-term growth[62]

Core Insights - Emergent BioSolutions Inc. reported second quarter 2025 financial results, exceeding revenue guidance by $21 million and improving profitability metrics significantly compared to the previous year [2][5][36] - The company is raising its full-year 2025 profitability guidance, reflecting strong execution of its multi-year transformation plan and sustained demand for its products [2][5] Financial Performance - **Q2 2025 vs. Q2 2024**: - Total revenues decreased by 45% to $140.9 million from $254.7 million - Net loss improved by 96% to $12.0 million from $283.1 million - Adjusted EBITDA increased by 382% to $28.5 million from a loss of $10.1 million [3][5][36] - **Year to Date (YTD) 2025 vs. YTD 2024**: - Total revenues decreased by 35% to $363.1 million from $555.1 million - Net income turned positive at $56.0 million compared to a loss of $274.1 million - Adjusted EBITDA increased by 87% to $106.1 million from $56.8 million [4][36] Revenue Breakdown - **Product Sales**: - Naloxone sales decreased by 44% to $67.5 million, primarily due to lower OTC and Canadian sales - Anthrax MCM revenues decreased by 70% to $11.6 million, affected by sales timing - Smallpox MCM revenues increased by 127% to $40.6 million, driven by higher sales of VIGIV CNJ-016 [8][9][10][12] - **Other Revenues**: - Revenues from services decreased by 93% to $15.0 million, largely due to a one-time arbitration settlement - Revenues from contracts and grants increased by 61% to $10.5 million, attributed to development work related to Ebanga™ [14][15] Operating Expenses - Total operating expenses decreased by 70% to $139.3 million from $458.2 million, driven by significant reductions in costs across various categories [16][17] - Research and development expenses decreased by 62% to $12.5 million, reflecting cost management efforts [19] - Selling, general and administrative expenses decreased by 49% to $43.7 million, due to restructuring initiatives [20] Segment Performance - **Commercial Products**: - Revenues decreased by 44% to $67.5 million, with a gross margin of 32%, down from 48% [24][26] - **MCM Products**: - Revenues decreased by 8% to $58.4 million, with a gross margin of 44%, up from 40% [27][29] Financial Forecast - The company updated its full-year 2025 financial forecast, projecting total revenues between $765 million and $835 million, with net income expected between $40 million and $65 million [36][37]

[Overview and Financial Highlights](index=1&type=section&id=Emergent%20BioSolutions%20Reports%20Second%20Quarter%202025%20Financial%20Results) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) In Q2 2025, Emergent BioSolutions exceeded revenue guidance by **$21 million**, reporting **$140.9 million**. Despite a **45%** year-over-year revenue decline, the company demonstrated a significant turnaround in profitability. Net loss narrowed by **96%** to **$12.0 million**, and Adjusted EBITDA surged by **382%** to **$28.5 million**, reflecting improved margins and strong execution of its transformation plan - The company exceeded the top end of its Q2 revenue guidance by **$21 million** and raised the low end/midpoint of its full-year 2025 profitability guidance[3](index=3&type=chunk)[5](index=5&type=chunk) Q2 2025 vs. Q2 2024 Key Financial Metrics | ($ in millions, except per share) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $140.9 | $254.7 | (45)% | | **Net Loss** | $(12.0) | $(283.1) | 96% | | **Net Loss per Diluted Share** | $(0.22) | $(5.38) | 96% | | **Adjusted Net Income (Loss)** | $8.6 | $(122.0) | 107% | | **Adjusted EBITDA** | $28.5 | $(10.1) | 382% | | **Adjusted EBITDA Margin** | 20% | (4)% | - | - Gross Margin improved significantly, reaching **36%** in Q2 2025 compared to **(26)%** in Q2 2024. Adjusted Gross Margin also expanded to **49%** from **26%** in the prior-year period[4](index=4&type=chunk)[5](index=5&type=chunk) [Year-to-Date (YTD) 2025 Financial Highlights](index=2&type=section&id=Year%20to%20Date%20(YTD)%202025%20Financial%20Highlights) For the first six months of 2025, total revenues were **$363.1 million**, a **35%** decrease from the same period in 2024. However, the company shifted from a significant net loss to a net income of **$56.0 million**. Adjusted EBITDA grew by **87%** to **$106.1 million**, with the Adjusted EBITDA margin expanding to **29%** from **10%** year-over-year YTD 2025 vs. YTD 2024 Key Financial Metrics | ($ in millions, except per share) | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $363.1 | $555.1 | (35)% | | **Net Income (Loss)** | $56.0 | $(274.1) | 120% | | **Net Income (Loss) per Diluted Share** | $0.99 | $(5.23) | 119% | | **Adjusted Net Income (Loss)** | $49.3 | $(90.9) | 154% | | **Adjusted EBITDA** | $106.1 | $56.8 | 87% | | **Adjusted EBITDA Margin** | 29% | 10% | - | [Recent Business Updates](index=2&type=section&id=Recent%20Business%20Updates) The company has recently secured several key contracts and modifications, reinforcing its role in providing medical countermeasures. Notable agreements include a **$65.0 million** multi-year contract for NARCAN® Nasal Spray with Ontario's Ministry of Health and two contract modifications with the U.S. government totaling over **$114 million** for BAT® and VIGIV® - Secured a **$65.0 million** multi-year contract with the Ontario Ministry of Health for NARCAN® Nasal Spray[7](index=7&type=chunk) - Obtained two significant U.S. government contract modifications: **$62.4 million** for BAT® (Botulism Antitoxin) and **$51.9 million** for VIGIV® (Vaccinia Immune Globulin Intravenous)[7](index=7&type=chunk) - Expanded its NARCANDirect® platform to include KLOXXADO® Nasal Spray and was added to the Russell 3000® Index[7](index=7&type=chunk) [Detailed Financial Performance (Q2 2025)](index=3&type=section&id=SECOND%20QUARTER%202025%20FINANCIAL%20PERFORMANCE) [Revenues](index=3&type=section&id=Revenues) Total revenues for Q2 2025 were **$140.9 million**, a **45%** decrease from Q2 2024. The decline was primarily driven by a **44%** drop in Naloxone product sales and a **79%** reduction in 'All other revenues,' which was impacted by a one-time arbitration settlement in the prior year. However, Smallpox MCM product sales grew by **127%** Q2 2025 Revenue Breakdown | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Product sales, net:** | | | | | Naloxone | $67.5 | $120.0 | (44)% | | Anthrax MCM | $11.6 | $38.7 | (70)% | | Smallpox MCM | $40.6 | $17.9 | 127% | | Other Products | $6.2 | $6.8 | (9)% | | **Total Product sales, net** | **$125.9** | **$183.4** | **(31)%** | | **All other revenues** | **$15.0** | **$71.3** | **(79)%** | | **Total revenues** | **$140.9** | **$254.7** | **(45)%** | [Product Sales, net](index=3&type=section&id=Product%20Sales,%20net) Net product sales decreased by **31%** to **$125.9 million**. Naloxone sales fell **$52.5 million** due to lower OTC and Canadian sales. Anthrax MCM revenues dropped **$27.1 million** due to the timing of government orders. This was partially offset by a **$22.7 million** increase in Smallpox MCM sales, driven by higher VIGIV® sales - Naloxone revenues decreased by **44%** (**$52.5 million**) due to lower sales of OTC NARCAN® and an unfavorable price/volume mix in Canada[10](index=10&type=chunk) - Anthrax MCM revenues declined by **70%** (**$27.1 million**), primarily reflecting the timing of sales related to CYFENDUS®[10](index=10&type=chunk) - Smallpox MCM revenues increased by **127%** (**$22.7 million**), mainly due to the timing of higher VIGIV® CNJ-016 sales[11](index=11&type=chunk) [All Other Revenues](index=4&type=section&id=All%20Other%20Revenues) All Other Revenues, comprising Services and Contracts/Grants, fell **79%** to **$15.0 million**. The Services segment revenue decreased by **93%**, largely because Q2 2024 included a one-time **$50.0 million** arbitration settlement with Janssen. Contracts and grants revenue increased by **61%** due to development work on Ebanga™ - Services revenue decreased by **$60.3 million** (**93%**), primarily due to a one-time **$50.0 million** arbitration settlement with Janssen in Q2 2024 that did not recur[13](index=13&type=chunk) - Contracts and grants revenue increased by **$4.0 million** (**61%**), driven by development work related to Ebanga™[14](index=14&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total operating expenses saw a substantial **70%** year-over-year reduction to **$139.3 million**. This was driven by a **77%** decrease in cost of sales, a **62%** drop in R&D expenses due to prior-year program terminations, and a **49%** reduction in SG&A from lower professional fees and restructuring benefits. Additionally, there were no impairment charges in Q2 2025, compared to a **$27.2 million** charge in Q2 2024 Q2 2025 Operating Expenses | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Cost of product and services sales, net | $66.9 | $296.1 | (77)% | | Research and development ("R&D") | $12.5 | $32.7 | (62)% | | Selling, general and administrative ("SG&A") | $43.7 | $85.9 | (49)% | | Amortization of intangible assets | $16.2 | $16.3 | (1)% | | Impairment of long-lived assets | — | $27.2 | (100)% | | **Total operating expenses** | **$139.3** | **$458.2** | **(70)%** | - R&D expenses decreased by **62%** primarily due to write-offs from program terminations in Q2 2024[17](index=17&type=chunk) - SG&A expenses decreased by **49%** due to lower professional services fees and reduced compensation costs from restructuring initiatives[17](index=17&type=chunk) [Capital Expenditures](index=4&type=section&id=Capital%20Expenditures) Capital expenditures for Q2 2025 were **$2.9 million**, a **37%** decrease from **$4.6 million** in Q2 2024. This reduction is attributed to lower development activities across the company's facilities. As a percentage of total revenues, capital expenditures remained stable at **2%** Q2 2025 Capital Expenditures | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Capital expenditures | $2.9 | $4.6 | (37)% | | Capital expenditures as a % of total revenues | 2% | 2% | - | [Reportable Segment Performance](index=5&type=section&id=REPORTABLE%20SEGMENT%20INFORMATION) [Q2 2025 Segment Results](index=5&type=section&id=SECOND%20QUARTER%202025%20REPORTABLE%20SEGMENT%20RESULTS) In Q2 2025, the Commercial Products segment experienced a **44%** revenue decline and a significant drop in gross margin to **32%**. In contrast, the MCM Products segment saw a smaller **8%** revenue decrease but improved its gross margin to **44%** from **40%** year-over-year, driven by a favorable product mix [Commercial Products Segment](index=5&type=section&id=Q2%202025%20Commercial%20Products) The Commercial Products segment revenue fell **44%** to **$67.5 million** in Q2 2025. Gross margin decreased **62%** to **$21.7 million**, with the gross margin percentage contracting significantly from **48%** to **32%**. This decline was primarily driven by lower sales of OTC NARCAN® and an unfavorable price and volume mix Q2 2025 Commercial Products Segment Performance | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $67.5 | $120.0 | (44)% | | **Gross margin** | $21.7 | $57.1 | (62)% | | **Gross margin %** | 32% | 48% | - | | **Segment adjusted gross margin** | $31.3 | $66.6 | (53)% | | **Segment adjusted gross margin %** | 46% | 56% | - | - The decrease in gross margin and margin percentage was largely due to lower sales of OTC NARCAN® and lower branded NARCAN® sales, combined with an unfavorable price and volume mix[22](index=22&type=chunk) [MCM Products Segment](index=6&type=section&id=Q2%2025%20MCM%20Products) The MCM Products segment reported a modest **8%** revenue decrease to **$58.4 million** in Q2 2025. Despite the lower revenue, gross margin increased by **1%** to **$25.8 million**, and the gross margin percentage improved to **44%** from **40%** in the prior year, benefiting from a favorable sales mix of higher-margin products Q2 2025 MCM Products Segment Performance | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $58.4 | $63.4 | (8)% | | **Gross margin** | $25.8 | $25.5 | 1% | | **Gross margin %** | 44% | 40% | - | | **Segment adjusted gross margin** | $32.2 | $35.1 | (8)% | | **Segment adjusted gross margin %** | 55% | 55% | - | - The increase in gross margin percentage was primarily due to a favorable sales mix weighted towards higher margin products and a decrease in shutdown costs compared to Q2 2024[24](index=24&type=chunk) [YTD 2025 Segment Results](index=6&type=section&id=YTD%202025%20REPORTABLE%20SEGMENT%20RESULTS) For the first half of 2025, the Commercial Products segment's revenue dropped **53%**, with its gross margin percentage falling to **29%**. Conversely, the MCM Products segment's revenue was nearly flat with a **2%** decline, but its gross margin grew by **12%**, and the margin percentage expanded to **58%**, indicating strong underlying profitability [Commercial Products Segment](index=6&type=section&id=YTD%202025%20Commercial%20Products) For the six months ended June 30, 2025, the Commercial Products segment's revenue decreased by **53%** to **$112.8 million**. Gross margin fell **71%** to **$33.0 million**, and the gross margin percentage declined to **29%** from **48%** in the prior-year period, reflecting continued pressure from lower NARCAN® sales and unfavorable mix YTD 2025 Commercial Products Segment Performance | ($ in millions) | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $112.8 | $238.5 | (53)% | | **Gross margin** | $33.0 | $114.1 | (71)% | | **Gross margin %** | 29% | 48% | - | | **Segment adjusted gross margin** | $52.1 | $133.0 | (61)% | | **Segment adjusted gross margin %** | 46% | 56% | - | [MCM Products Segment](index=7&type=section&id=YTD%202025%20MCM%20Products) For the first half of 2025, the MCM Products segment's revenue was stable at **$215.0 million**, a **2%** decrease. Gross margin increased by **12%** to **$125.4 million**, and the gross margin percentage improved significantly to **58%** from **51%** year-over-year, driven by a favorable sales mix and lower shutdown costs YTD 2025 MCM Products Segment Performance | ($ in millions) | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $215.0 | $218.8 | (2)% | | **Gross margin** | $125.4 | $111.9 | 12% | | **Gross margin %** | 58% | 51% | - | | **Segment adjusted gross margin** | $139.6 | $128.7 | 8% | | **Segment adjusted gross margin %** | 65% | 59% | - | [2025 Financial Forecast](index=8&type=section&id=2025%20FINANCIAL%20FORECAST) [Full Year 2025 Forecast](index=8&type=section&id=Full%20Year%202025%20Forecast) Emergent has revised its full-year 2025 forecast, narrowing the total revenue range to **$765-$835 million**. The company raised its profitability guidance, with net income now expected to be between **$40-$65 million** and Adjusted EBITDA between **$175-$200 million**, reflecting increased confidence in its operational performance Updated Full Year 2025 Financial Forecast | METRIC ($ in millions) | Updated Range (as of 08/06/2025) | Previous Range (as of 05/07/2025) | | :--- | :--- | :--- | | **Total revenues** | $765 - $835 | $750 - $850 | | **Net income** | $40 - $65 | $20 - $70 | | **Adjusted net income** | $45 - $70 | $20 - $70 | | **Adjusted EBITDA** | $175 - $200 | $150 - $200 | | **Adjusted gross margin %** | 50% - 52% | 48% - 51% | Key Assumptions for 2025 Forecast | Assumption | Updated Value | | :--- | :--- | | Interest expense | $50 million | | R&D | ~7% to 8% of Revenues | | SG&A | ~26% to 27% of Revenues | | Weighted avg. fully diluted share count | ~54 million | | Capex | ~$16 million | | Depreciation & amortization | ~$100 million | [Q3 2025 Forecast](index=8&type=section&id=Q3%202025%20Forecast) For the third quarter of 2025, the company forecasts total revenues to be in the range of **$180 million** to **$210 million** Q3 2025 Revenue Forecast | METRIC ($ in millions) | Q3 2025 Forecast | | :--- | :--- | | Total revenues | $180 - $210 | [Consolidated Financial Statements (Unaudited)](index=13&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's balance sheet shows total assets of **$1,417.1 million** and total liabilities of **$880.9 million**. Cash and cash equivalents increased significantly to **$267.3 million** from **$99.5 million** at the end of 2024, while total stockholders' equity grew to **$536.2 million** Balance Sheet Summary (as of June 30, 2025) | ($ in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $267.3 | $99.5 | | Total current assets | $719.5 | $598.7 | | **Total assets** | **$1,417.1** | **$1,389.7** | | **Liabilities & Equity** | | | | Total current liabilities | $127.1 | $162.4 | | Debt | $667.8 | $663.7 | | **Total liabilities** | **$880.9** | **$906.9** | | **Total stockholders' equity** | **$536.2** | **$482.8** | [Consolidated Statements of Operations](index=14&type=section&id=Consolidated%20Statements%20of%20Operations) The statement of operations for Q2 2025 shows a net loss of **$12.0 million**, a substantial improvement from a **$283.1 million** loss in Q2 2024. For the six-month period, the company achieved a net income of **$56.0 million**, compared to a net loss of **$274.1 million** in the first half of 2024, driven by lower operating expenses Statement of Operations Summary | ($ in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $140.9 | $254.7 | $363.1 | $555.1 | | **Total operating expenses** | $139.3 | $458.2 | $311.6 | $718.8 | | **Income (loss) from operations** | $1.6 | $(203.5) | $51.5 | $(163.7) | | **Net income (loss)** | **$(12.0)** | **$(283.1)** | **$56.0** | **$(274.1)** | | **Diluted EPS** | **$(0.22)** | **$(5.38)** | **$0.99** | **$(5.23)** | [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, the company generated **$95.2 million** in cash from operating activities, a significant turnaround from the **$15.1 million** used in the same period of 2024. Net cash from investing activities was **$76.7 million**, boosted by proceeds from asset sales. This resulted in a net increase in cash of **$165.4 million**, bringing the total cash, cash equivalents, and restricted cash to **$271.0 million** Cash Flow Summary (Six Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $95.2 | $(15.1) | | Net cash provided by (used in) investing activities | $76.7 | $(15.4) | | Net cash used in financing activities | $(6.8) | $(10.2) | | **Net change in cash, cash equivalents and restricted cash** | **$165.4** | **$(40.7)** | | **Cash, cash equivalents and restricted cash, end of period** | **$271.0** | **$71.0** | [Reconciliation of Non-GAAP Financial Measures](index=17&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)](index=17&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20Net%20Income%20(Loss)) This section reconciles the GAAP net loss of **$12.0 million** for Q2 2025 to a non-GAAP adjusted net income of **$8.6 million**. Key adjustments include adding back non-cash amortization charges (**$18.7 million**) and other items. For the six-month period, GAAP net income of **$56.0 million** is adjusted to a non-GAAP adjusted net income of **$49.3 million** Q2 2025 Reconciliation: Net Loss to Adjusted Net Income | ($ in millions) | Q2 2025 | | :--- | :--- | | Net loss (GAAP) | $(12.0) | | Non-cash amortization charges | $18.7 | | Severance and restructuring costs | $0.5 | | Changes in fair value of financial instruments | $2.9 | | Other expense (income), net items | $5.0 | | Tax effect | $(6.5) | | **Adjusted net income (Non-GAAP)** | **$8.6** | [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) The company reconciles its Q2 2025 GAAP net loss of **$12.0 million** to a non-GAAP Adjusted EBITDA of **$28.5 million**. Major adjustments include adding back depreciation & amortization (**$23.5 million**), net interest expense (**$13.4 million**), and income tax benefit (**$4.8 million**). This represents a significant improvement from an Adjusted EBITDA of negative **$10.1 million** in Q2 2024 Q2 2025 Reconciliation: Net Loss to Adjusted EBITDA | ($ in millions) | Q2 2025 | | :--- | :--- | | Net loss (GAAP) | $(12.0) | | Depreciation & amortization | $23.5 | | Income taxes | $(4.8) | | Total interest expense, net | $13.4 | | Other adjustments | $8.4 | | **Adjusted EBITDA (Non-GAAP)** | **$28.5** | [Reconciliation of Gross Margin to Adjusted Gross Margin](index=19&type=section&id=Reconciliation%20of%20Gross%20Margin%20to%20Adjusted%20Gross%20Margin) For Q2 2025, the GAAP gross margin of **$47.2 million** is reconciled to a non-GAAP adjusted gross margin of **$63.3 million**. The primary adjustment is the add-back of **$16.2 million** in intangible asset amortization. The resulting adjusted gross margin percentage was **49%** Q2 2025 Reconciliation: Gross Margin to Adjusted Gross Margin | ($ in millions) | Q2 2025 | | :--- | :--- | | Gross margin (GAAP) | $47.2 | | Intangible asset amortization | $16.2 | | Restructuring costs | $(0.1) | | **Adjusted gross margin (Non-GAAP)** | **$63.3** | | **Adjusted gross margin %** | **49%** | [Reconciliation of Forecasted Figures](index=20&type=section&id=Reconciliation%20of%20Forecasted%20Figures) The report provides reconciliations for its full-year 2025 forecast. The forecasted GAAP net income of **$40-$65 million** is reconciled to an adjusted net income of **$45-$70 million** and an adjusted EBITDA of **$175-$200 million**. Key adjustments include non-cash amortization, depreciation, interest, and taxes - Forecasted Net Income of **$40-$65 million** is reconciled to Adjusted Net Income of **$45-$70 million**, with major adjustments for non-cash amortization (**$65M**) and contingent consideration milestones (**-$50M**)[63](index=63&type=chunk) - Forecasted Net Income of **$40-$65 million** is reconciled to Adjusted EBITDA of **$175-$200 million**, with key add-backs for Depreciation & Amortization (**$100M**) and Total Interest Expense (**$55M**)[65](index=65&type=chunk)

Core Insights - The ongoing mpox outbreak is a significant global health threat, necessitating increased therapeutic research and innovation [1][3] - Emergent BioSolutions has published a comprehensive review on brincidofovir, highlighting its investigational use for treating mpox infections [1][5] Company Overview - Emergent BioSolutions is focused on developing protective solutions against public health threats, including mpox, and has over 25 years of experience in this field [6] Research and Development - Brincidofovir is being evaluated in a double-blind, placebo-controlled clinical trial (MOSA) in Africa, initiated in January 2025, in partnership with Africa CDC and PANTHER [4] - The trial aims to assess the safety and efficacy of brincidofovir for mpox patients, with initial funding from Horizon Europe and Africa CDC [4] Public Health Context - The World Health Organization declared the current mpox outbreak a Public Health Emergency of International Concern (PHEIC) on August 14, 2024, marking the second such declaration in two years [3] - The U.S. Centers for Disease Control and Prevention has reported a surge in mpox cases globally [3]

Core Viewpoint - Emergent BioSolutions Inc. recognizes the U.S. House of Representatives for adding over-the-counter naloxone to AED locations, enhancing access for first responders during opioid overdose emergencies [1][3] Group 1: Company Initiatives - Emergent is focused on expanding access to life-saving treatments like NARCAN Nasal Spray and KLOXXADO Nasal Spray to combat opioid overdose deaths [2][3] - The company has distributed over 85 million doses of NARCAN Nasal Spray in the U.S. and Canada since 2016, positioning itself as the leading supplier of nasal naloxone in the U.S. [3] Group 2: Legislative Support - Representative Buddy Carter's efforts to make naloxone readily available in the U.S. House of Representatives are acknowledged as a significant public health initiative [1][3] - The over-the-counter availability of naloxone is believed to have contributed to a reduction in overdose deaths, as reported by the U.S. Centers for Disease Control and Prevention [3] Group 3: Product Information - NARCAN Nasal Spray is the first FDA-approved over-the-counter naloxone product for emergency treatment of opioid overdose [5] - KLOXXADO Nasal Spray is a prescription medicine used for treating opioid emergencies and is not a substitute for emergency medical care [9]

Core Points - Emergent BioSolutions Inc. will host a conference call on August 6, 2025, at 5:00 pm eastern time to discuss its financial results for the second quarter of 2025 [1] - Participants can access the conference call via webcast or telephone, with advance registration required for telephone participation [2] - A replay of the conference call will be available on the Investors page of Emergent's website [3] Company Overview - Emergent BioSolutions has been dedicated to protecting and saving lives for over 25 years, focusing on public health preparedness [4] - The company provides life-saving solutions for various health threats, including smallpox, mpox, botulism, Ebola, anthrax, and opioid overdose emergencies [4]

Core Viewpoint - Emergent BioSolutions Inc. has secured a contract modification to deliver Vaccinia Immune Globulin Intravenous (Human) (VIGIV) to the U.S. Department of Health and Human Services for smallpox preparedness, highlighting the company's ongoing partnership with the U.S. government [1][2]. Group 1: Contract and Partnership - The contract modification involves additional doses of VIGIV, a treatment for complications arising from smallpox vaccination, under an existing 10-year contract with the Administration for Strategic Preparedness and Response (ASPR) [1]. - This modification follows a recent contract amendment for Botulism Antitoxin Heptavalent (BAT) with ASPR, indicating a broader collaboration between Emergent and the U.S. government in public health preparedness [2]. Group 2: Product Information - VIGIV is indicated for treating complications due to vaccinia vaccination, including severe generalized vaccinia and eczema vaccinatum, but is not indicated for postvaccinial encephalitis [3][4]. - The product has specific contraindications, including isolated vaccinia keratitis and severe allergic reactions to human globulins [4]. Group 3: Safety Information - Important safety information for VIGIV includes potential interactions with glucose monitoring systems, which may lead to falsely elevated blood glucose readings [3]. - Common adverse reactions reported in clinical trials for VIGIV include headache, nausea, rigors, and dizziness, with more than 10% of patients experiencing these effects [6].

Core Insights - Emergent BioSolutions is expanding its NARCANDirect online distribution network to include KLOXXADO Nasal Spray 8 mg, enhancing access to opioid overdose response tools starting July 1, 2025 [1][2] - The addition of KLOXXADO Nasal Spray, a higher dose naloxone product, aims to provide more options for emergency responders and communities in addressing opioid emergencies [2][4] - Recent CDC data indicates a 27% decrease in drug overdose deaths in 2024, with opioid-related deaths dropping by 34%, although a subsequent increase in overdose deaths was reported, highlighting the ongoing need for effective response tools [3][4] Company Developments - Emergent acquired exclusive commercial rights to KLOXXADO Nasal Spray in January 2025, aiming to increase the availability of naloxone in the U.S. and Canada [2] - The company is also introducing Convenience Kits through NARCANDirect, which will include essential components for overdose response, such as a CPR mask and examination gloves [4] - Emergent emphasizes the importance of collaboration with various sectors to enhance community preparedness for opioid emergencies [4] Industry Context - The opioid crisis remains a significant public health challenge, necessitating continuous innovation and support in overdose response strategies [3][4] - The introduction of KLOXXADO Nasal Spray is part of a broader effort to combat the evolving nature of the opioid epidemic and improve emergency preparedness [3][4]

Core Insights - ABeam Consulting (USA) Ltd. and Millennium EBS have formed a strategic collaboration to promote the Millennium EBS Payment Hub: ISO 20022 Transformer, aimed at providing banks and financial institutions with a solution for ISO 20022 compliance [1][2][5] Group 1: Collaboration and Offerings - The partnership combines ABeam's expertise in business and digital transformation with Millennium EBS's advanced payment technology, facilitating a streamlined approach for financial institutions [1][5] - The ISO 20022 Transformer enables seamless integration with legacy systems, ensuring compliance with evolving regulations and enhancing data quality and process efficiency [2][4][9] Group 2: Company Background - ABeam Consulting has over 42 years of experience and operates in 36 countries, serving more than 750 clients globally, with a reported revenue of $1 billion for fiscal year 2024 [8][10] - Millennium EBS, a subsidiary of BlueOne Card Inc., has over two decades of experience in delivering reliable payment solutions tailored to the needs of modern financial institutions [11] Group 3: Benefits of the ISO 20022 Transformer - Financial institutions can achieve greater operational efficiency across domestic and cross-border payments [6][9] - The solution ensures regulatory compliance with ISO 20022 standards and migration timelines, while also improving transaction transparency and data quality [9]