Emergent BioSolutions Announces Strategic Operational Changes to Stabilize Financial Position
May 01 2024 - 4:10PM
Emergent BioSolutions (NYSE: EBS) today announced the next
phase of its new operational plan that consolidates operations,
closes several manufacturing facilities, and restructures its
enterprise workforce to improve the performance and profitability
of its business. Emergent will continue to focus on its core
products business – medical countermeasures and NARCAN® Nasal
Spray –and on delivering for its patients and customers, including
the U.S. and allied governments.
These strategic actions will lead to a reduction of
approximately 300 employees across all areas of the company, and
the elimination of approximately 85 positions that are currently
vacant. In combination with other rationalizing initiatives, these
actions are expected to result in annualized savings of
approximately $80 million when fully implemented. The costs
associated with the restructuring plan are estimated to be
approximately $18 million - $21 million and are
expected to be primarily incurred in the second half of 2024.
"Today’s actions are about the future of Emergent,” said CEO Joe
Papa. “We have put in place a multi-year plan to position Emergent
for sustainable and long-term success, and that starts by
stabilizing our operations, strengthening our balance sheet and
managing our debt.”
Papa continued, “Decisions like these are never easy as they
have real impact on many of our dedicated colleagues. We are
committed to providing resources to those affected as they
transition to new opportunities.”
As part of the operational changes, Emergent will shut down both
its Baltimore-Bayview Drug Substance manufacturing facility and
Rockville, Maryland Drug Product facility. Emergent will
concentrate operations at sites in Winnipeg, Canada, and Lansing,
Michigan, while the company actively explores strategic
alternatives for its other sites throughout the year.
"Our colleagues have demonstrated a tremendous commitment to
Emergent’s mission and ongoing resilience to change,” stated
Michelle Pepin, SVP and chief human resources officer. “We will
work with those impacted and support them through this difficult
time.”
As part of the reorganization, a new Chief Science Officer role
has been created and added to the executive management team,
reporting to Papa.
Emergent will report its first quarter 2024 financial results
today and will host a conference call at 5:00 p.m. Eastern
time to discuss this business update, Q1 2024 financial
review, as well as FY 2024 and Q2 2024 guidance. In addition, a
press release announcing an amendment to Emergent’s credit facility
was also recently filed.
About Emergent BioSolutions At
Emergent, our mission is to protect and enhance life. For 25 years,
we’ve been at work defending people from things we hope will never
happen—so we are prepared just in case they ever do. We provide
solutions for complex and urgent public health threats through a
portfolio of vaccines and therapeutics that we develop and
manufacture for governments and consumers. We also offer a range of
integrated contract development and manufacturing services for
pharmaceutical and biotechnology customers. To learn more about how
we plan to protect or enhance 1 billion lives by 2030, visit
our website and follow us on LinkedIn, X,
Instagram, Apple Podcasts and Spotify.
SAFE HARBOR STATEMENTThis press release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Any statements,
other than statements of historical fact, including statements
regarding the expected timing for implementation of its
restructuring activities, its total and cash cost, our ability to
achieve the objectives of the restructuring, including expected
annualized savings and our future results and any other statements
containing the words "anticipate," "believe," "continue," "could,"
"estimate," "expect," "forecast," "future", "goal," "intend,"
"may," "plan," "position," "possible," "potential," "predict,"
"project," "should," "target", "will," "would," and similar
expressions or variations thereof, or the negative thereof, are
forward-looking statements. Forward-looking statements are based on
our current intentions, beliefs and expectations regarding future
events based on information that is currently available. We cannot
guarantee that any forward-looking statement will be accurate.
Readers should realize that if underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual
results could differ materially from our expectations. Readers are,
therefore, cautioned not to place undue reliance on any
forward-looking statements. Any forward-looking statement speaks
only as of the date of this press release and, except as required
by law, we do not undertake to update any forward-looking statement
to reflect new information, events or circumstances.
There are a number of important factors that could cause our
actual results to differ materially from those indicated by any
forward-looking statements. Readers should consider this cautionary
statement, as well as the risk factors and other disclosures
included in our periodic reports filed with the U.S.
Securities and Exchange Commission, when evaluating our
forward-looking statements.
Investor Contact:Richard S. LindahlExecutive
Vice President, CFOlindahlr@ebsi.com
Media Contact:Assal HellmerVice President,
Communicationsmediarelations@ebsi.com
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