Full Press Release Details
GAITHERSBURG, Md., July 09, 2024 (GLOBE NEWSWIRE) -- 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.
About Emergent BioSolutions
Safe Harbor Statement
This 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 reduce our debt by more than $100 million, and if so, within our anticipated timeframe, our ability to achieve the objectives of the restructuring, including our future results and any other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "goal," “impending,” "intend," "may," "plan," "position," "possible," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions or variations thereof, or the negative thereof.. 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 identified in our periodic reports filed with the U.S. Securities and Exchange Commission, when evaluating our forward-looking statements.
Executive Vice President, CFO
Vice President, Communications