Financial Performance - Total revenues for Q1 2025 were $222.2 million, a decrease of 26% compared to $300.4 million in Q1 2024[19] - Net income for Q1 2025 was $68.0 million, significantly up from $9.0 million in Q1 2024, representing a 655% increase[21] - Earnings per diluted share increased to $1.19 in Q1 2025 from $0.17 in Q1 2024, reflecting a substantial improvement in profitability[19] - Operating expenses for Q1 2025 were $172.3 million, down 34% from $260.6 million in Q1 2024, showing improved cost management[19] - The Company’s commercial product sales for the three months ended March 31, 2025, were $45.3 million, compared to $118.5 million in the same period of 2024[96] - The MCM Products segment reported revenues of $156.6 million in Q1 2025, slightly up from $155.4 million in Q1 2024[126] - The segment adjusted gross margin for the Commercial Products segment was $20.8 million in Q1 2025, down from $66.4 million in Q1 2024[126] - The MCM Products segment's adjusted gross margin increased to $107.4 million in Q1 2025 from $93.6 million in Q1 2024[126] Assets and Liabilities - Cash and cash equivalents rose to $149.1 million as of March 31, 2025, compared to $99.5 million at the end of 2024, marking a 50% increase[16] - Total current assets increased to $706.8 million in Q1 2025, up from $598.7 million at the end of 2024, indicating an 18% growth[16] - Total liabilities decreased to $873.4 million in Q1 2025 from $906.9 million at the end of 2024, a reduction of approximately 4%[16] - The company reported a loss on assets held for sale of $12.2 million in Q1 2025, with no such loss reported in Q1 2024[19] - As of March 31, 2025, total inventories, net amounted to $314.0 million, slightly increasing from $311.7 million as of December 31, 2024[59] - Property, plant and equipment, net decreased to $221.0 million as of March 31, 2025, down from $270.6 million at the end of 2024[60] Cash Flow and Investments - Cash used in operating activities was $11.2 million in Q1 2025, a significant improvement compared to $62.6 million in Q1 2024[24] - Total cash, cash equivalents, and restricted cash increased by 45% to $152.8 million as of March 31, 2025[203] - Net cash provided by investing activities increased by $70.3 million, driven by proceeds from the sale of property and milestone payments related to previous business sales[209] - Net cash used in operating activities decreased by $51.4 million, primarily due to higher net income excluding non-cash items[208] Organizational Changes and Restructuring - The Company initiated multiple organizational restructuring plans, resulting in a cumulative restructuring charge of $48.8 million across various plans[53][54][55][56] - The Company reduced its workforce by approximately 400 employees as part of the August 2023 restructuring plan[54] - The Company initiated a restructuring plan in May 2024, resulting in a workforce reduction of approximately 300 employees and a cumulative restructuring charge of $19.1 million[140] - The company initiated an organizational restructuring plan in August 2024, resulting in a workforce reduction of approximately 70 employees and incurring restructuring charges of $2.7 million[144] Sales and Revenue Sources - The Company completed the sale of its travel health business to Bavarian Nordic for a cash purchase price of $270.2 million, with potential milestone payments totaling $80.0 million[46] - The Company sold its worldwide rights to RSDL for a cash purchase price of $75.0 million, recognizing a pre-tax gain of $60.8 million after transaction costs[48] - The sale of the Baltimore-Camden facility was completed for approximately $35.0 million, resulting in a pre-tax loss of $36.5 million[49] - The Baltimore-Bayview facility was sold to Syngene for $36.5 million, with a pre-tax gain of $7.9 million recognized[51][52] Tax and Legal Matters - The estimated effective annual tax rate increased to 27% for the year ended December 31, 2025, compared to 19% for 2024, reflecting a significant rise in estimated profit and changes in income jurisdictional mix[103] - The Company recorded a pre-tax operating expense of $40.0 million related to a settlement of securities litigation, with $30.0 million covered by insurance proceeds[107] - The Company agreed to pay a fine of $1.5 million to the SEC as part of an administrative order, which was paid on April 18, 2025[118] Future Outlook and Financing - The Company expects to recognize approximately $199.3 million of unsatisfied performance obligations within the next 24 months, out of a total future contract value of approximately $270.4 million[97] - Future capital requirements will depend on various factors, and the company may seek additional external financing for financial flexibility[213] - If the company raises funds through equity securities, stockholders may experience dilution[214] - Public or bank debt financing may involve covenants that could restrict the company's ability to incur additional debt or pursue acquisitions[214] - Collaboration and licensing arrangements may require the company to relinquish valuable rights to technologies or product candidates[214] Product Portfolio and Market Position - As of March 31, 2025, Emergent BioSolutions has a portfolio of 10 products, including vaccines and therapeutics, which generate a substantial portion of the company's revenue[29] - The company has exclusive commercial rights for KLOXXADO distribution in the U.S. and Canada, enhancing its product offerings in the opioid overdose treatment market[31] - Emergent's Anthrax - MCM Products segment includes the only FDA-licensed therapeutic for inhalational anthrax, generating significant revenue potential[31] - Emergent's product portfolio includes NARCAN Nasal Spray, which is a key product in its Commercial Products segment[30]

Financial Performance - Q1 2025 - Q1 2025 revenues reached $222 million, aligning with the midpoint of guidance[20] - Adjusted EBITDA for Q1 2025 was $78 million, representing 35% of total revenues, a 1300 bps increase compared to Q1 2024[35] - Adjusted Gross Margin improved to 58% in Q1 2025, a 700 bps increase from 51% in Q1 2024[36] - Net leverage significantly improved to 28x Adjusted EBITDA, a 50% reduction from 57x year-over-year[20] Liquidity and Debt Reduction - Cash position improved to $149 million, up by $49 million compared to the end of 2024[20] - Gross debt was reduced from $909 million to $700 million[44] - Net debt decreased by 23%, a reduction of $209 million[44] Guidance and Outlook - The company reaffirmed its 2025 revenue guidance of $750 million to $850 million and Adjusted EBITDA guidance of $150 million to $200 million[20, 51] - The company anticipates R&D expenses to be approximately 6% to 7% of revenue and SG&A expenses to be around 27% to 28% of revenue for 2025[51] Business Segments - International MCM revenue was $91 million, accounting for approximately 60% of total MCM sales in Q1[22] - The company secured a 3-year agreement for $65 million with Ontario's Ministry of Health for NARCAN® Nasal Spray[62]

[Q1 2025 Financial Results Overview](index=1&type=section&id=Emergent%20BioSolutions%20Reports%20First%20Quarter%202025%20Financial%20Results) Emergent BioSolutions reported a 26% revenue decrease, but net income surged 656% and Adjusted EBITDA rose 16%, reaffirming 2025 guidance [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Q1 2025 saw a 26% revenue decrease, but significant profitability improvements with net income up 656% and Adjusted EBITDA up 16% - CEO Joe Papa highlighted that the solid Q1 results, including revenues within guidance, increased profitability margins, and improved cash flow, demonstrate the success of the company's multi-year strategic turnaround plan[3](index=3&type=chunk) Q1 2025 vs. Q1 2024 Financial Highlights | ($ in millions, except per share amounts) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $222.2 | $300.4 | (26)% | | Net Income | $68.0 | $9.0 | 656% | | Net Income per Diluted Share | $1.19 | $0.17 | 600% | | Adjusted Net Income | $40.7 | $31.1 | 31% | | Adjusted EBITDA | $77.6 | $66.9 | 16% | | Adjusted EBITDA Margin | 35% | 22% | +1300 bps | | Gross Margin % | 50% | 45% | +500 bps | | Adjusted Gross Margin % | 58% | 51% | +700 bps | [Recent Business Updates](index=2&type=section&id=Recent%20Business%20Updates) Q1 2025 strategic initiatives included government contracts, NARCAN® portfolio expansion, facility divestiture, milestone payments, and a share repurchase program - Key operational and strategic activities in Q1 2025 included: * Secured a **~$20.0 million contract option** to supply BioThrax® to the U.S. Department of Defense * Gained exclusive U.S. and Canadian commercial rights to KLOXXADO® (naloxone HCI) Nasal Spray * Completed the sale of the Baltimore-Bayview facility for **$36.5 million** * Earned **$50.0 million** in development milestone payments from Bavarian Nordic, with **$30.0 million** paid during the quarter * The Board of Directors authorized a share repurchase program of up to **$50.0 million**[9](index=9&type=chunk) [First Quarter 2025 Financial Performance](index=2&type=section&id=First%20Quarter%202025%20Financial%20Performance) Overall Q1 2025 performance showed a 26% revenue decline offset by significant operating expense reductions and increased other income [Revenues](index=2&type=section&id=Revenues) Total Q1 2025 revenues decreased 26% to $222.2 million, driven by lower NARCAN® and Other Products sales, partially offset by Smallpox MCM growth Revenue Breakdown by Category (Q1 2025 vs Q1 2024) | ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Product sales, net:** | | | | | NARCAN® | $45.3 | $118.5 | (62)% | | Anthrax MCM | $47.9 | $55.9 | (14)% | | Smallpox MCM | $106.4 | $50.2 | 112% | | Other Products | $2.3 | $49.3 | (95)% | | **Total Product sales, net** | **$201.9** | **$273.9** | **(26)%** | | All other revenues | $20.3 | $26.5 | (23)% | | **Total revenues** | **$222.2** | **$300.4** | **(26)%** | [Product Sales Analysis](index=3&type=section&id=Product%20Sales%20Analysis) Product sales were mixed, with sharp declines in NARCAN® and Other Products, but a significant increase in Smallpox MCM revenues - **NARCAN®** revenues decreased by **$73.2 million (62%)** primarily due to lower sales of OTC NARCAN® and an unfavorable price/volume mix in Canadian retail sales[10](index=10&type=chunk) - **Smallpox MCM** revenues increased by **$56.2 million (112%)** mainly due to the timing of higher ACAM2000® and TEMBEXA® sales to the U.S. government[11](index=11&type=chunk) - **Other Products** revenues decreased by **$47.0 million (95%)** primarily due to lower BAT® sales and the absence of RSDL® product sales following its divestiture in 2024[12](index=12&type=chunk) [All Other Revenues Analysis](index=3&type=section&id=All%20Other%20Revenues%20Analysis) Services revenue declined by 61% due to a facility sale, partially offset by a 64% increase in Contracts and Grants revenue - **Services** revenues decreased by **$11.3 million (61%)** mainly because of the sale of the Camden facility to Bora Pharmaceuticals in Q3 2024[12](index=12&type=chunk) - **Contracts and Grants** revenues increased by **$5.1 million (64%)** primarily due to development work associated with Ebanga™[13](index=13&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Total operating expenses decreased 34% to $172.3 million, primarily due to lower cost of sales and SG&A, while R&D remained flat Operating Expenses Breakdown (Q1 2025 vs Q1 2024) | ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Cost of product and services sales, net | $88.5 | $144.6 | (39)% | | Research and development ("R&D") | $15.1 | $15.1 | — % | | Selling, general and administrative ("SG&A") | $52.4 | $84.7 | (38)% | | Amortization of intangible assets | $16.3 | $16.2 | 1% | | **Total operating expenses** | **$172.3** | **$260.6** | **(34)%** | - The **38% decrease in SG&A expenses** was primarily due to lower compensation costs from restructuring, reduced marketing expenses, and lower professional and legal service fees[17](index=17&type=chunk) [Additional Financial Information](index=4&type=section&id=Additional%20Financial%20Information) Capital expenditures significantly decreased by 67% to $3.6 million in Q1 2025, reflecting reduced development activities Capital Expenditures (Q1 2025 vs Q1 2024) | ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Capital expenditures | $3.6 | $10.8 | (67)% | | Capital expenditures as a % of total revenues | 2% | 4% | | [Reportable Segment Information](index=5&type=section&id=Reportable%20Segment%20Information) Segment performance was mixed, with Commercial Products revenue declining significantly while MCM Products showed strong gross margin expansion [Commercial Products Segment](index=5&type=section&id=Commercial%20Products%20Segment) The Commercial Products segment experienced a 62% revenue decline and an 80% gross margin decrease due to lower NARCAN® sales Commercial Products Segment Performance (Q1 2025 vs Q1 2024) | ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $45.3 | $118.5 | (62)% | | Gross margin | $11.3 | $57.0 | (80)% | | Gross margin % | 25% | 48% | | - The segment's adjusted gross margin, which excludes intangible asset amortization, decreased by **69% to $20.8 million**, with the adjusted gross margin percentage falling to **46%** from 56% in the prior year[20](index=20&type=chunk)[21](index=21&type=chunk) [MCM Products Segment](index=6&type=section&id=MCM%20Products%20Segment) The MCM Products segment saw a 1% revenue increase and a 15% gross margin growth, driven by a favorable sales mix and lower costs MCM Products Segment Performance (Q1 2025 vs Q1 2024) | ($ in millions) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $156.6 | $155.4 | 1% | | Gross margin | $99.6 | $86.4 | 15% | | Gross margin % | 64% | 56% | | - The segment's adjusted gross margin increased by **15% to $107.4 million**, and the adjusted gross margin percentage improved to **69%** from 60% in the prior year[22](index=22&type=chunk)[23](index=23&type=chunk) [2025 Financial Forecast](index=7&type=section&id=2025%20Financial%20Forecast) The company reaffirmed its full-year 2025 revenue and Adjusted EBITDA guidance, while increasing its GAAP net income forecast Full Year 2025 Financial Forecast | METRIC ($ in millions) | Updated Range (as of 05/07/2025) | Action | | :--- | :--- | :--- | | Total revenues | $750 - $850 | UNCHANGED | | Net income | $20 - $70 | INCREASED | | Adjusted net income | $20 - $70 | UNCHANGED | | Adjusted EBITDA | $150 - $200 | UNCHANGED | | Adjusted gross margin % | 48% - 51% | UNCHANGED | Q2 2025 Forecast | METRIC ($ in millions) | Q2 2025 Forecast | | :--- | :--- | | Total revenues | $95 - $120 | [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's balance sheets, statements of operations, and cash flows for Q1 2025 and prior periods [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1,426.1 million, with increased cash and stable debt, leading to higher stockholders' equity Key Balance Sheet Items (in millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $149.1 | $99.5 | | Total current assets | $706.8 | $598.7 | | Total assets | $1,426.1 | $1,389.7 | | Total current liabilities | $111.9 | $162.4 | | Debt | $665.7 | $663.7 | | Total liabilities | $873.4 | $906.9 | | Total stockholders' equity | $552.7 | $482.8 | [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 net income surged to $68.0 million, driven by reduced operating expenses and significant other income, despite lower revenues Key Income Statement Items (in millions) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $222.2 | $300.4 | | Total operating expenses | $172.3 | $260.6 | | Income from operations | $49.9 | $39.8 | | Total other income (expense), net | $42.8 | $(27.7) | | Net income | $68.0 | $9.0 | | Diluted EPS | $1.19 | $0.17 | [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw improved operating cash flow and positive investing cash flow, resulting in a $47.2 million net increase in cash Key Cash Flow Items (in millions) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11.2) | $(62.6) | | Net cash provided by (used in) investing activities | $59.5 | $(10.8) | | Net cash provided by (used in) financing activities | $(0.4) | $40.7 | | Net change in cash, cash equivalents and restricted cash | $47.2 | $(32.7) | [Reconciliation of Non-GAAP Financial Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures like Adjusted Net Income and Adjusted EBITDA to their GAAP equivalents Q1 2025 Reconciliation of Net Income to Adjusted Net Income (in millions) | | Q1 2025 | | :--- | :--- | | Net income (GAAP) | $68.0 | | Total adjustments | $(27.3) | | Adjusted net income (Non-GAAP) | $40.7 | Q1 2025 Reconciliation of Net Income to Adjusted EBITDA (in millions) | | Q1 2025 | | :--- | :--- | | Net income (GAAP) | $68.0 | | Total adjustments | $9.6 | | Adjusted EBITDA (Non-GAAP) | $77.6 | FY 2025 Forecast Reconciliation of Net Income to Adjusted EBITDA (in millions) | | 2025 Full Year Forecast | | :--- | :--- | | Net income (GAAP) | $20 - $70 | | Total adjustments | $130 | | Adjusted EBITDA (Non-GAAP) | $150 - $200 |

Core Viewpoint - Emergent BioSolutions Inc. reported a significant increase in net income and profitability margins for Q1 2025, despite a decline in total revenues compared to the previous year, indicating a successful execution of its strategic plan aimed at long-term growth and profitability [2][3][6]. Financial Highlights - Total revenues for Q1 2025 were $222.2 million, a decrease of 26% from $300.4 million in Q1 2024 [3][6]. - Net income surged to $68.0 million, reflecting a 656% increase from $9.0 million in Q1 2024 [3][6]. - Adjusted net income rose by 31% to $40.7 million, compared to $31.1 million in the prior year [3][6]. - Adjusted EBITDA increased by 16% to $77.6 million, with an adjusted EBITDA margin of 35%, up from 22% in Q1 2024 [3][6]. Revenue Breakdown - Product sales decreased by 26% to $201.9 million, with notable declines in NARCAN sales by 62% and Anthrax MCM by 14%, while Smallpox MCM sales increased by 112% [9][10][11][12]. - Revenues from services fell by 61% to $7.2 million, primarily due to the sale of the Camden facility [16]. - Contracts and grants revenue increased by 64% to $13.1 million, driven by development work related to Ebanga™ [17]. Operating Expenses - Total operating expenses decreased by 34% to $172.3 million, with significant reductions in cost of product and services sales by 39% and SG&A expenses by 38% [18][19][21]. - Research and development expenses remained stable at $15.1 million [20]. Recent Business Updates - The company secured contracts valued at approximately $20 million for BioThrax® supply to the U.S. Department of Defense and $16.7 million for collaboration on Ebanga™ [7]. - Emergent gained exclusive commercial rights to KLOXXADO in the U.S. and Canada and completed the sale of its Baltimore-Bayview facility for $36.5 million [7]. - The Board authorized a stock repurchase program of up to $50 million [7]. Financial Forecast - The company reaffirmed its 2025 financial guidance, expecting total revenues between $750 million and $850 million, with net income projected between $20 million and $70 million [31][32].

Core Points - Emergent BioSolutions Inc. has entered a three-year agreement valued at approximately $65 million to supply NARCAN Nasal Spray to the Ontario Ministry of Health for the Ontario Naloxone Program [1] - The agreement aims to enhance access to NARCAN Nasal Spray, which is critical for reversing opioid overdoses, especially given the ongoing opioid crisis in Ontario [2][3] Company Overview - Emergent BioSolutions has been supplying NARCAN Nasal Spray to Ontario since 2018, demonstrating a long-term commitment to addressing opioid poisoning deaths in Canada [1][3] - The company emphasizes the importance of making life-saving medications available to individuals at risk of opioid overdose and their communities [3][4] Industry Context - From January to March 2025, Ontario reported 653 suspected drug-related fatalities, averaging 7 deaths per day, although there was a 30% decrease in overdose deaths compared to the same period in the previous year [2] - The Ontario Naloxone Program is crucial for providing access to naloxone, a life-saving medication, to those at risk of opioid overdose [4]

Core Points - Emergent BioSolutions Inc. will host a conference call on May 7, 2025, at 5:00 pm eastern time to discuss Q1 2025 financial results [1] - Participants can access the 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] - Emergent encourages engagement through its website and social media platforms [4] Investor and Media Contacts - Richard S. Lindahl serves as the Executive Vice President and CFO, with contact available for investor inquiries [5] - Assal Hellmer is the Vice President of Communications, available for media inquiries [5]

Core Viewpoint - Emergent BioSolutions Inc. has authorized a stock repurchase program of up to $50 million, reflecting confidence in its strategy and future outlook while aiming to create long-term value for shareholders [1][2]. Company Overview - Emergent BioSolutions has approximately 54.3 million shares of common stock outstanding as of December 31, 2024 [3]. - The company focuses on delivering protective and life-saving solutions for various health threats, including smallpox, mpox, botulism, Ebola, anthrax, and opioid overdose emergencies [4]. Stock Repurchase Program - The stock repurchase may occur on the open market or through privately negotiated transactions, with timing and amount determined by management based on market conditions and other factors [2]. - The program is part of the company's multi-year transformation plan aimed at driving long-term growth and profitability [2].

GAITHERSBURG, Md., March 20, 2025 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE:EBS), a leading public health company that delivers protective and life-saving solutions to communities across the world, today announced that its Compensation Committee has granted an equity award to a newly hired employee under its 2023 Inducement Plan (the "Inducement Plan"). The employee will receive an award of restricted stock units and stock options representing 72,882 shares of Emergent common stock (the "Equity A ...

Emergent BioSolutions will lead commercial launch efforts to increase access to intranasal naloxone and combat opioid overdose poisonings in CanadaLONDON and GAITHERSBURG, Md., March 20, 2025 (GLOBE NEWSWIRE) -- Hikma Pharmaceuticals PLC (Hikma, Group), the multinational generic pharmaceutical company, announces the approval of KLOXXADO® (naloxone HCl) Nasal Spray 8 mg, by Health Canada for the treatment of known or suspected opioid overdose, as manifested by respiratory and/or central nervous system depres ...

Core Insights - Emergent BioSolutions Inc. has completed the sale of its Baltimore-Bayview drug substance manufacturing facility to Syngene International for approximately $36.5 million, subject to customary post-closing adjustments [1][2] - The sale allows Emergent to streamline operations while retaining rights to secure manufacturing services and capacity at the facility for future growth and pandemic response production in collaboration with Syngene [2][3] - The CEO of Emergent stated that this deal positions the company well for executing turnaround initiatives and driving sustainable, long-term growth [3] Company Overview - Emergent BioSolutions has been active for over 25 years, focusing on delivering protective and life-saving solutions for various health threats, including smallpox, mpox, botulism, Ebola, anthrax, and opioid overdose emergencies [4]