Emergent BioSolutions Announces Sale of Baltimore-Camden Manufacturing Site to Bora Pharmaceuticals for $30 Million
June 20 2024 - 7:00AM
Emergent BioSolutions Inc. (NYSE: EBS) today announced that it has
entered into a definitive agreement to sell its drug product
facility in Baltimore-Camden to an affiliate of Bora
Pharmaceuticals Co., Ltd. (“Bora”, TWSE: 6472), a leading
international pharmaceutical services company, for a total value of
approximately $30 million. The Camden site, which is part of
Emergent’s Contract Development and Manufacturing Organization
(CDMO), has clinical and commercial non-viral aseptic fill/finish
services on four fill lines, including lyophilization, formulation
development, and support services. Alongside the facility,
approximately 350 current Emergent employees are expected to join
Bora as part of the transaction.
“The decision to sell our Camden manufacturing facility is
aligned with our multi-year plan to create a customer focused,
leaner and more flexible organization, while we improve overall
profitability and raise capital to reduce our debt,” said Joe Papa,
President and CEO at Emergent. “We are grateful to our dedicated
colleagues who have embodied Emergent’s mission to protect and
enhance life by delivering on our customers’ commitments. We are
working to ensure a smooth transition to Bora, especially for our
Camden team and valued customers, over the coming weeks and
months."
This divestiture, combined with Emergent’s recently announced
strategic operational changes to stabilize its financial position,
are key steps to achieving improvement in Emergent’s cost structure
and performance by streamlining the broader manufacturing network
to Lansing, Michigan and Winnipeg, Canada sites.
Papa adds, “Executing this transaction is part of our strategic
efforts to ensure long-term sustainability and growth at Emergent
and enables us to focus on core areas of opportunity more aligned
with the company’s future.”
The agreement includes a transfer of assets, equipment, and
workforce associated with the Baltimore-Camden facility, and is
expected to close in the third quarter of 2024, subject to the
satisfaction or waiver of customary closing conditions.
For Emergent, Truist Securities served as financial advisor, and
Covington & Burling LLP served as legal counsel in connection
with this transaction.
About Emergent BioSolutionsAt 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. All statements,
other than statements of historical fact, including statements
regarding the expected timing for completion of the disposition of
Emergent’s Baltimore-Camden facility and transfer of employees,
Emergent’s ability to achieve the objectives of the disposition,
including achieving improvement in cost structure and performance
by streamlining Emergent’s manufacturing network, and Emergent’s
future results, are forward-looking statements. We generally
identify forward-looking statements by using words like
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“forecast,” “future,” “goal,” “improve,” “intend,” “may,” “plan,”
“position,” “possible,” “potential,” “predict,” “project,”
“should,” “target,” “will,” “would,” and similar expressions or
variations thereof, or the negative thereof, but these terms are
not the exclusive means of identifying such 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 statements will be accurate. Readers should
realize that if underlying assumptions prove inaccurate or if known
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 any obligation to update any forward-looking
statement to reflect new information, events or circumstances.
There are a number of important factors that could cause
Emergent’s 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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