Full Press Release Details
January 15, 2025 43rd Annual J.P.
Morgan Healthcare Conference Joe Papa President & CEO Exhibit 99.1
This presentation 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 future performance of the Company or any of our
businesses, our business strategy, future operations, future financial position, future revenues and earnings, our ability to achieve the objectives of our restructuring initiatives and divestitures, including our future results, projected costs,
prospects, plans and objectives of management, are forward-looking statements. We generally identify forward-looking statements by using words like "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, but these terms are not the exclusive means of
identifying such statements. Forward-looking statements are based on our current intentions, beliefs, assumptions and expectations regarding future events based on information that is currently available. 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 statement contained
herein. Any such forward-looking statement speaks only as of the date of this presentation, 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 our actual results to differ materially from those indicated by such forward-looking statements, including, among others, the availability of USG funding for contracts related
to procurement of our medical countermeasure ("MCM") products, including CYFENDUS (Anthrax Vaccine Adsorbed (AVA) Adjuvanted), previously known as AV7909, BioThrax (Anthrax Vaccine Adsorbed), and ACAM2000 (Smallpox (Vaccinia)
Vaccine, Live) among others, as well as contracts related to development of medical countermeasures; the availability of government funding for our other commercialized products, including EbangaTM (ansuvimab-zykl) and BAT (Botulism Antitoxin
Heptavalent (A,B,C,D,E,F,G)-(Equine)); our ability to meet our commitments to quality and compliance in all of our manufacturing operations; our ability to negotiate additional USG procurement or follow-on contracts for our MCM products that have
expired or will be expiring; the commercial availability and acceptance of over-the-counter NARCAN (naloxone HCl) Nasal Spray; the impact of a generic and competitive marketplace on NARCAN Nasal Spray and future NARCAN Nasal Spray
sales; our ability to perform under our contracts with the USG, including the timing of and specifications relating to deliveries; our ability to provide Bioservices (as defined below) for the development and/or manufacture of product and/or product
candidates of our customers at required levels and on required timelines; the ability of our contractors and suppliers to maintain compliance with current good manufacturing practices and other regulatory obligations; our ability to negotiate
further commitments related to the collaboration and deployment of capacity toward future commercial manufacturing under our existing Bioservices contracts; our ability to collect reimbursement for raw materials and payment of service fees from our
Bioservices customers; the results of pending government investigations and their potential impact on our business; our ability to obtain final court approval of the proposed settlement agreement relating to the stockholder litigation, including our
ability to satisfy the conditions of the proposed settlement, and the source of funds to be used to resolve the litigation, and the potential impact of the settlement agreement, if approved, on our business; our ability to comply with the operating
and financial covenants required by our term loan facility under a credit agreement, dated August 30, 2024, our revolving credit facility under a credit agreement, dated September 30, 2024, and our 3.875% Senior Unsecured Notes due 2028; our ability
to maintain adequate internal control over financial reporting and to prepare accurate financial statements in a timely manner; our ability to successfully manage our liquidity in order to continue as a going concern; the procurement of our product
candidates by USG entities under regulatory authorities that permit government procurement of certain medical products prior to FDA marketing authorization, and corresponding procurement by government entities outside the United States; our ability
to realize the expected benefits of the sale of our travel health business to Bavarian Nordic, the sale of RSDL to SERB Pharmaceuticals and the sale of our drug product facility in Baltimore-Camden to Bora Pharmaceuticals Injectables Inc.; the
impact of the organizational changes we announced in January 2023, August 2023, May 2024 and August 2024; our ability to identify and acquire companies, businesses, products or product candidates that satisfy our selection criteria; the impact of
cyber security incidents, including the risks from the unauthorized access, interruption, failure or compromise of our information systems or those of our business partners, collaborators or other third parties; the success of our commercialization,
marketing and manufacturing capabilities and strategy; failure to successfully commercialize KLOXXADO ; and the accuracy of our estimates regarding future revenues, expenses, capital requirements and need for additional financing. The foregoing
sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. Readers should consider this cautionary statement, as well as the risks identified in our periodic reports
filed with the Securities and Exchange Commission, when evaluating our forward-looking statements. Trademarks Emergent , BioThrax , BaciThrax , BAT , Trobigard , Anthrasil , CNJ-016 , ACAM2000 ,
NARCAN , CYFENDUS , TEMBEXA and any and all Emergent BioSolutions Inc. brands, products, services and feature names, logos and slogans are trademarks or registered trademarks of Emergent BioSolutions Inc. or its subsidiaries
in the United States or other countries. All other brands, products, services and feature names or trademarks are the property of their respective owners, including RSDL (Reactive Skin Decontamination Lotion), which was acquired by SERB on
July 31, 2024. Safe Harbor Statement/Trademarks PROPRIETARY AND CONFIDENTIAL
Joseph Papa President and Chief
Executive Officer Richard Lindahl EVP, Chief Financial Officer and Treasurer Jessica Perl SVP, General Counsel and Corporate Secretary Paul Williams SVP, Products Business Coleen Glessner EVP, Quality, Ethics and Compliance Simon Lowry, M.D. Chief
Medical Officer, Head of Research and Development Stephanie Duatschek SVP, Chief Strategy and Transformation Officer Michelle Pepin SVP, Chief Human Resources Officer Bill Hartzel SVP, Manufacturing and Bioservices Emergent's Executive
25+ Year Track Record in Public Health
At Emergent, our mission is to protect, enhance, and save lives. We provide solutions for complex and urgent public health threats through a portfolio of medical countermeasures and treatments that we develop, manufacture and distribute to
governments and consumers worldwide. We also offer targeted contract development and manufacturing services for pharmaceutical and biotechnology customers. PROPRIETARY AND CONFIDENTIAL Marketed Products & Employee data as of 12/31/24
Emergent At-a-Glance PRODUCTS BUSINESS
GOVERNMENT/MCM Commercial BIOSERVICES SERVICES BUSINESS DEVELOPMENT SERVICES (DVS) DRUG SUBSTANCE (DS) DRUG PRODUCT (DP) Technology Platform Mammalian Plasma Protein Viral Smallpox ACAM2000 (Smallpox and Mpox (Vaccinia) Vaccine, Live)
TEMBEXA (brincidofovir) VIGIV [Vaccinia Immune Globulin Intravenous (Human)] MPOX ACAM2000 (Smallpox and Mpox (Vaccinia) Vaccine, Live) EBOLA Ebanga * (ansuvimab-zykl) BOTULISM BAT [Botulism Antitoxin Heptavalent (A, B,
C, D, E, F, G) - (Equine)] OPIOID OVERDOSE EMERGENCY NARCAN Nasal Spray 4 mg (naloxone HCl) KLOXXADO Nasal Spray 8 mg (naloxone HCl) ANTHRAX ANTHRASIL [Anthrax Immune Globulin Intravenous (Human)] BioThrax (Anthrax
Vaccine Adsorbed) CYFENDUS (Anthrax Vaccine Adsorbed, Adjuvanted), formerly AV7909 raxibacumab injection A fully human monoclonal antibody PUBLIC HEALTH THREAT PREPAREDNESS AND RESPONSE SOLUTIONS
Three-Step Transformation Plan Key
Financial Stabilization Priorities STEP 01 STEP 02 STEP 03 Turnaround - EXECUTING 2024 & 2025 focused on profitable growth and improved operating performance Enable growth and seek new opportunities aligned with our internal capabilities Elevate
our business lines for today's competitive landscape Create long-term and sustainable value for shareholders Continue to be a leader in public health Transform 2026+ strategic transformation for long-term growth and profitability Stabilize -
Complete Strengthened engagement across internal and external stakeholders around our mission Stabilized profitability and balance sheet financials; reduce debt Exceeded expectations of timeline for completing stabilize phase
Achieved Critical Stabilization
Milestones in 20241 Successfully Achieved Objectives Results Thru Q3 Reduced net debt versus 2023 year-end Gross debt lowered $167M, or 19%; Net debt2 lowered $206M, or 27% Refinanced debt and extended maturity New term loan $250M due 2029;
satisfied prior credit facility New ABL revolver due in 2029 provides access to $100M of additional liquidity Improved operating performance and profitability Realization of cost-savings & financial efficiencies ($130M annualized savings)
Improved net working capital $98M reduction vs. prior quarter; $100M reduction YoY2 Conducted asset divestitures $117M in completed asset sales of Camden, RSDL, Canton Facility Streamlined site network Significant restructuring efforts;
optimization/focus on Winnipeg & Lansing Continued focus on MCM and NARCAN Nasal Spray as core business drivers Several new contract awards and orders across majority of MCM portfolio Continued performance in public interest and retail
channels for NARCAN Nasal Spray Sharpened strategy on growth drivers Mpox expanded indication FDA approval for ACAM2000 Appointed new SVP, Head of R&D, CMO executive leader Resolved certain legal & quality legacy matters;
continued to lead with integrity through quality & compliance enterprise values and actions Received $50M in Janssen settlement Successfully achieved NAI status for Baltimore-Camden facility and for Baltimore-Bayview facility Granted preliminary
approval by the Court regarding the settlement of legacy COVID securities class action litigation Financial Stabilization Priorities All financial information incorporated within this presentation is unaudited. See "End Notes: Non-GAAP Financial
Measures" and "Appendix" for the definitions of non-GAAP terms and reconciliations to the most directly comparable GAAP financial measures. PROPRIETARY AND CONFIDENTIAL
Stronger Financial Position Driven
By 2024 Achievements1 Key Accomplishments Positive Outcomes Streamlined Business & Completed $117M of Asset Sales $75M for the sale of RSDL to SERB $35M for the sale of Baltimore-Camden facility to Bora, plus significant headcount
reduction $7M for the sale of an underutilized warehouse in Canton, MA $50M received from Janssen Settlement $98M improvement in Net Working Capital versus Q2 20242 ~$250M of Cost structure optimization savings since January 2023 $130M of annualized
savings announced in 2024 $30M across two milestone payments from Bavarian Nordic Refinanced Debt & Extended Maturity until 2029 Entered into $250M Term Loan with Oak Hill Advisors Closed $100M ABL Revolver led by Wells Fargo Material Debt
Reduction ($ Millions) Credit Rating Upgrades Moody's B3 from Caa1 S&P Global B- from CCC Removed Going Concern Qualification (2) ($167)/(19%) ($206)/(27%) Gross Debt Net Debt PROPRIETARY AND CONFIDENTIAL All financial information incorporated
within this presentation is unaudited. See "End Notes: Non-GAAP Financial Measures" and "Appendix" for the definitions of non-GAAP terms and reconciliations to the most directly comparable GAAP financial measures.
Streamlined Toward a Leaner Site
Network, While Maintaining Capabilities to Meet/Exceed All Customer and Product Demand PROPRIETARY AND CONFIDENTIAL
Strengthened Product Portfolio
& Future Growth Drivers
New Announcement: Expanding
Naloxone Distribution with KLOXXADO Nasal Spray Secured commercial rights to KLOXXADO Nasal Spray 8 mg from Hikma Pharmaceuticals in U.S. and Canada Broadens access, availability and distribution of intranasal naloxone to help save
lives from opioid overdose Will soon be available through Emergent's proprietary and best-in-class NarcanDirect distribution network Creating a seamless "purchasing experience" for customers NARCAN Nasal Spray 4 mg
remains a critical tool in the fight and KLOXXADO Nasal Spray 8 mg is an additional naloxone solution PROPRIETARY AND CONFIDENTIAL
Opioid Overdose Epidemic Remains
Top Priority in U.S. & Canada PROPRIETARY AND CONFIDENTIAL Opioid settlement $54+B flowing into states over next 10-15 years Demand for naloxone is expected to increase as the epidemic continues and federal/state programs prioritize the crisis
In terms of programs that facilitate access to naloxone, the following figures were allocated in 2024: Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG): $1.928B State Opioid Response Grants: $1.575B Greater policy focus
to stock naloxone in public buildings, such as schools, as seen in many states Strong Ongoing Bipartisan Support Centers for Disease Control and Prevention. Provisional Drug Overdose Death Counts.
https://www.cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm. Accessed September 26, 2024. Opioid- and Stimulant-related Harms in Canada. 2024; Research and Data report. Available at:
https://health-infobase.canada.ca/substance-related-harms/opioids-stimulants/. Accessed October 4 2024. CDC reports overdose deaths decreased by 3% between May '23-'24; Making progress, but opioid overdose deaths remain high with 80,000+
American lives lost. 1 Opioid poisonings are the leading cause of accidental death in the U.S. 105,000+ lives lost in 2023, of which 8 in 10 were opioid related. In 2023, approximately 230 lives lost each day due to opioid overdose. PHAC
reports in January to March 2024, 84% of apparent opioid poisoning deaths occurred in British Columbia, Alberta and Ontario with approximately 72% of these in males, 31% in the age 30-39 years age range.2
NARCAN Nasal Spray -
Making Progress Through Increased Access and Awareness Efforts NARCAN Nasal Spray Impact: Public interest channel volume is up 14% YTD vs. last year NARCAN Nasal Spray volumes up 7% YTD Strive to offer best-in-class NARCANDirect
distribution network; opened new West Coast Distribution Center Serve 18,000 end points within 2 days delivery Broadened OTC access via retailers, public places, businesses and workplaces Support of White House Challenge to Save Lives from
Overdose' through workplace and public safety measures Expanding public awareness and education through Ready to Rescue campaign PROPRIETARY AND CONFIDENTIAL All volume data as of 9/30/24 Centers for Disease Control and Prevention.
Provisional Drug Overdose Death Counts. Available at: https://www.cdc.gov/nchs/nvss/vsrr/drug-overdose-data.htm. Updated May 2024. Accessed Jan 2025.
Commercial Products | Future Growth
Drivers Acquired commercial rights to KLOXXADO Nasal Spray 8 mg naloxone product Naloxone line extensions; kitting opportunities Potential international partnership ventures; market expansion PROPRIETARY AND CONFIDENTIAL
U.S. Government | Preparedness
Strategy PROPRIETARY AND CONFIDENTIAL On-Going High-Risk Threat Preparedness Final FY 2024 Congressional Funding Figures Key PHEMCE Priority Threats Strategic National Stockpile (SNS) $1.015 Billion $980 Million $825 Million Administration for
Strategic Preparedness & Response (ASPR) Biomedical Advanced Research and Development Authority (BARDA) Project BIOSHIELD Special Reserve Fund (SRF) Anthrax Smallpox Botulism Strong Ongoing Bipartisan Support Department of Defense (DOD)
Mandatory funding for BioThrax
Medical Countermeasures -
Critical to Public Health Preparedness & Response The world is facing an ever-growing number of public health threats; WHO declares 2024 Mpox surge a public health emergency of international concern.' Trust for America's
Health's new report entitled "Blueprint for Strengthening Public Health 2024"discussed MCMs as a crucial aspect of health security preparedness and calls for new investments in the development, production, and distribution of vaccines,
therapeutics, and other essential tools needed to combat public health emergencies. WHO_https://www.who.int/publications/m/item/multi-country-outbreak-of-mpox--external-situation-report-40--13-october-2024' accessed October 30. Key Highlights:
Received ~$550M in new MCM contract modification awards during 2024 Awarded procurement contract valued up to $235.8M to supply BioThrax (Anthrax Vaccine Adsorbed) - Pre & Post exposure military personnel U.S. FDA approval of
ACAM2000 vaccine for expanded Mpox indication WHO EUL submission for Mpox response Donated 50,000 doses of ACAM2000 to Direct Relief Awarded 10-year contract by BARDA for development, manufacturing scale-up, and procurement of
Ebanga , a treatment for Ebola: $41M contract modification awarded in 2024 for continued development $16.7M contract modification awarded in 2025 for continued development TEMBEXA (brincidofovir) Panther, Africa CDC MOSA (MpOx) Study
Ongoing USG and allied government discussions with stakeholders surrounding sustainment of product and preparedness capabilities PROPRIETARY AND CONFIDENTIAL
MCM Products | Future Growth
Drivers PROPRIETARY AND CONFIDENTIAL