Core Insights - Emergent BioSolutions Inc. announced participation in several upcoming investor conferences, indicating active engagement with the investment community [1][3]. Company Overview - Emergent BioSolutions has a mission to protect and save lives, focusing on delivering solutions for health threats such as smallpox, mpox, botulism, Ebola, anthrax, and opioid overdose emergencies [2]. Upcoming Events - The company will participate in the RBC Global Healthcare Conference on May 20, 2025, with a fireside chat scheduled for 3:35 pm ET, available for virtual attendees via webcast [3]. - Emergent will also present at the Goldman Sachs Leveraged Finance Conference on May 29, 2025, in Dana Point, California [3]. - Additionally, the company is set to present at Benchmark's 5th Annual Healthcare House Call Virtual Investor Conference on May 29, 2025 [3]. - The Jefferies Global Healthcare Conference presentation is scheduled for June 5, 2025, at 1:25 pm ET, also available for virtual participation [3].

Emergent Biosolutions (EBS) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 44.90%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.35 per share when it actually produced earnings of $0.05, delivering a surprise of 114.29%.Over the last four ...

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $68 million, representing a 656% increase compared to Q1 2024 [17] - Total revenues were $222 million, down from the prior year due to lower NARCAN and VAC sales, partially offset by higher international smallpox sales [19] - Adjusted EBITDA was $78 million, an increase of $11 million year-over-year, with an adjusted EBITDA margin of 35%, up 1,300 basis points [20] - Adjusted gross margin improved to 58%, a 700 basis point increase year-over-year due to product mix and improved cost structure [20] Business Line Data and Key Metrics Changes - Medical countermeasure (MCM) products generated $91 million in sales outside the U.S. in Q1 2025, contributing significantly to overall revenue [19] - NARCAN sales experienced a decline due to pricing impacts and competition from generic products, but trends improved in the early weeks of Q2 2025 [22][23] - The company reaffirmed revenue and adjusted EBITDA guidance for 2025, focusing on core strengths in medical countermeasures and opioid overdose reversal treatments [10][27] Market Data and Key Metrics Changes - The company reported strong international sales, with approximately 40% of overall revenue coming from outside the U.S. [57] - The naloxone market is expected to grow at a mid-single-digit rate, with the public interest segment being the largest contributor [31][50] - A significant contract valued at $65 million was secured with the province of Ontario for NARCAN supply, indicating growth potential in Canada [34][51] Company Strategy and Development Direction - The company is focused on a multiyear turnaround plan aimed at stabilizing operations, improving profitability, and achieving sustainable growth [8] - Strategic business development transactions were completed to enhance core capabilities, including partnerships for medical countermeasures [10] - The company is actively managing its manufacturing footprint to mitigate tariff impacts and ensure compliance with USMCA [15][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improved cash flow and liquidity, with total liquidity of $249 million as of Q1 2025 [24] - The company anticipates strong profit follow-through from 2024, despite lower top-line revenue, indicating a focus on margin improvement [28] - Management highlighted the importance of continued collaboration with government stakeholders to meet expectations for 2025 deliveries [13] Other Important Information - The company announced a $50 million share repurchase program, which will expire in March 2026 [26] - An annual ESG report for 2024 was published, emphasizing the company's commitment to quality and sustainability [29] Q&A Session Summary Question: Can you discuss your manufacturing footprint and tariff exposure? - The majority of products are manufactured in the U.S. or Canada, with limited tariff exposure due to USMCA compliance [42][43] Question: What drove the gross margin improvement this quarter? - Cost reductions from divestitures and a favorable product mix, particularly higher-margin international orders, contributed to gross margin improvement [45][46] Question: Were NARCAN dynamics considered in the Q1 revenue forecast? - Yes, the company anticipated some impacts from competition and federal funding delays, gaining clarity as the quarter progressed [47][48] Question: What is the expected growth for different segments in the naloxone market? - The public interest segment remains the largest, but business-to-business activities are expected to grow faster due to new initiatives [50][51] Question: How will the $65 million contract with Ontario be allocated? - It is reasonable to assume the revenue could come in fairly evenly over the three-year contract period [60] Question: Will the company benefit from pharmaceutical manufacturing onshoring? - The company is well-positioned with its manufacturing network and has capacity for drug substance and fill-finish, looking to assist companies transitioning back to the U.S. [61][62]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $68 million, representing a 656% increase compared to Q1 2024 [16] - Total revenues were $222 million, a decline from the previous year due to lower NARCAN and VAC sales, partially offset by higher international smallpox sales [18] - Adjusted EBITDA was $78 million, an increase of $11 million year-over-year, with an adjusted EBITDA margin of 35%, up 1,300 basis points [19] - Adjusted gross margin improved to 58%, a 700 basis point increase year-over-year due to product mix and improved cost structure [19] Business Line Data and Key Metrics Changes - Medical countermeasure (MCM) products generated $91 million in sales outside the U.S. in Q1 2025, contributing significantly to overall revenue [18] - NARCAN sales experienced a decline due to pricing impacts and competitive pressures, but trends improved in the early weeks of Q2 2025 [22][30] - The company reaffirmed revenue and adjusted EBITDA guidance for 2025, indicating confidence in operational performance despite revenue fluctuations [9][27] Market Data and Key Metrics Changes - International sales accounted for approximately 40% of total revenue in Q1 2025, highlighting the company's focus on global market expansion [56] - The naloxone market is expected to grow at a mid-single-digit rate, with the company emphasizing its competitive position in this segment [31][48] Company Strategy and Development Direction - The company is focused on a multiyear turnaround plan aimed at stabilizing operations, improving profitability, and achieving sustainable growth [7] - Strategic business development transactions were completed to enhance core capabilities, including partnerships for medical countermeasures [9] - The company is committed to combating the opioid overdose epidemic and expanding access to NARCAN through various distribution channels [11][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improved cash positions and strong receivable collections expected in Q2 2025 [10][23] - The company anticipates strong profit follow-through from 2024, despite lower top-line revenue, indicating a focus on margin improvement [28] - Management highlighted the importance of international preparedness for medical countermeasures in light of global health threats [56] Other Important Information - The company has a total liquidity of $249 million, which includes cash and undrawn revolver capacity, providing a solid foundation for strategic growth initiatives [23] - A $50 million share repurchase program was announced, with no purchases made in Q1 2025, indicating a cautious approach to capital allocation [26] Q&A Session Summary Question: Can you discuss your manufacturing footprint and tariff exposure? - The majority of products are manufactured in the U.S. or Canada, with limited tariff exposure due to USMCA compliance [41] Question: What drove the gross margin improvement this quarter? - Cost reductions from divestitures and a favorable product mix, particularly from international orders, contributed to gross margin improvement [44][45] Question: Were NARCAN dynamics considered in the Q1 revenue forecast? - Yes, some impacts were anticipated, but clarity on the magnitude of competitive pressures improved over the quarter [46][47] Question: How do you see the naloxone market growing? - The market is expected to grow at a mid-single-digit rate, with public interest remaining the largest segment, but business-to-business activities are anticipated to grow faster [49][50] Question: Will the $65 million contract with Ontario be evenly distributed over three years? - It is reasonable to assume that revenue from the contract will be recognized fairly evenly over the three years [58] Question: Is the company likely to benefit from manufacturing onshoring? - The company is well-positioned with existing manufacturing capacity and is open to supporting companies transitioning back to the U.S. [60][61] Question: Has the company been actively repurchasing stock? - The company will provide updates on the share repurchase program each quarter, but no purchases were made in Q1 2025 [63]

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]