Emergent BioSolutions Secures $250M in Government Contract, Announces Strategic Moves Including Sale Of Baltimore Site to Boost Cash Generation and Slash Debt by $100M

Author: Benzinga Newsdesk | July 09, 2024 07:41am

Emergent BioSolutions Inc. (NYSE:EBS) today highlights several recent advancements in improving its financial health, marked by robust cash generation and meaningful debt repayment. As set forth in its operational plan to transform the company over the next several years, Emergent is diligently executing its strategy to enhance operational efficiency, streamline costs, and generate cash to increase profitability and reduce the company's overall debt. This disciplined approach has enhanced Emergent's financial position, as well as enabling a customer focused, leaner and more flexible organization, and enriching its opportunities to pursue strategic initiatives.
 

Emergent's recent actions include:

• Secured $250 million in U.S. government contract award modifications for four medical countermeasures
• Announced a $30 million definitive agreement to sell its Baltimore-Camden manufacturing site, which is expected to close in the third quarter of 2024, subject to the satisfaction or waiver of customary closing conditions
• Received $7 million for sale of its unimproved, empty building in Canton, Massachusetts
• As disclosed yesterday in its SEC filing, the resolution of its contract dispute with Janssen Pharmaceuticals, Inc., including the impending receipt of $50 million in the third quarter of this year
• Expected receipt of a development milestone payment as part of its Travel Health Business sale by year end
   

"Emergent is making steady progress toward cash generation and debt repayment, which is in service to our strategic plan to stabilize our financial position and ultimately transform the organization as we continue to be a global leader in public health preparedness," said Joe Papa, president and CEO of Emergent. "We remain committed to reaching our target of more than $100 million in debt reduction this year, while continuing to deliver vital medicines to our customers and patients, creating long-term and sustainable value for shareholders and working toward strengthening our balance sheet, so that we have a healthier financial foundation to support our company's future direction."

Emergent will provide more on its 2024 financial outlook, incorporating any potential expectations related to these recent events, and other relevant information when it reports its second quarter financial results in August.

Posted In: EBS