Emergent BioSolutions 3Q Results

Emergent BioSolutions
3Q Revenue: $240 million (-27%)
3Q Loss: $75.7 million (loss of $32.7 million 3Q21)
YTD Revenue: $790 million (-26%)
YTD Loss: $135.8 (earnings were $41.6 million YTD21)
Comments: Revenues from CDMO services decreased $76.4 million in the quarter largely due to lower combined revenues of $59.1 million from AstraZeneca and Janssen reflecting the impact of reduced production activities at the Bayview facility as a result of a cessation of manufacturing activities under the AstraZeneca contract which occurred in 2021, and a pause and eventual cessation of manufacturing activities under the Janssen contract which began 1Q22. The decrease also reflects reduced production at the Camden facility in the quarter driven by additional investments in strengthening quality and compliance that restricted the Company’s ability to optimally utilize the existing capacity at the site. These declines in revenues were partially offset by an increase in services revenues earned at the Company’s Winnipeg facility.
 
The company completed the acquisition from Chimerix of worldwide rights to TEMBEXA (brincidofovir), the first U.S. FDA approved smallpox oral antiviral, following the award by the Biomedical Advanced Research and Development Authority (BARDA) of a 10-year procurement contract valued at up to $680 million to deliver 1.7 million doses of TEMBEXA to the U.S. government.
 
Revenues from Anthrax vaccines increased $8.6 million in the quarter, driven by timing of deliveries to the U.S. government, specifically the Strategic National Stockpile (SNS). The Company received an AV7909 (Anthrax Vaccine Adsorbed, Adjuvanted) contract modification in September 2021 valued at approximately $399.0 million to deliver additional AV7909 doses through March 2023.
 
Revenues from nasal naloxone products decreased $45.4 million due to a reduction in commercial retail sales following the launch of a generic in December 2021. This decrease was partially offset by strong growth in unit sales of branded NARCAN (naloxone HCl) Nasal Spray to public interest customers in the U.S., as well as from sales of the authorized generic product licensed to Sandoz, which launched in December 2021.