Emergent BioSolutions Inc. (NYSE:EBS) announced today that it has
entered into multiple real estate transactions that will expand the
Company’s manufacturing and development infrastructure. These
transactions should broaden the Company’s manufacturing options and
increase the flexibility with which it uses its manufacturing assets,
facilitate the continued growth of its product development programs, and
reduce the Company’s overall debt and annual interest and operating
expenses.
Specifically, the Company is selling its Frederick facilities, which
consists of two 145,000 sq. ft. unimproved buildings acquired in 2004
and 2006. In turn, the Company is in the process of acquiring a new
Maryland manufacturing facility and a Gaithersburg laboratory facility.
With respect to manufacturing, the Company plans to use the proceeds
from the sale of one of its unimproved facilities in Frederick to
acquire another facility in Maryland that is suitable for cGMP
manufacture within a time frame and at a cost that should be
significantly below what would be required to build out the Frederick
site. The Maryland facility includes several suites suitable for cGMP
manufacturing of multiple products as well as space for process
development and administrative functions. Strategically, the new
Maryland manufacturing facility broadens Emergent’s options in that it
enables the Company to offer to the U.S. government another site wherein
rPA manufacturing could be accomplished, while freeing up Building 55 in
Lansing for BioThrax® scale up. In addition, this new
facility creates greater manufacturing flexibility for the Company and
positions it well to build value from its manufacturing assets in a more
timely fashion and at a lower cost.
With respect to product development, the Company plans to use the
proceeds from the sale of the other unimproved facility in Frederick to
acquire a laboratory facility in Gaithersburg suitable for the Company’s
growing product development programs. The new laboratory facility
includes space for product development, process development, assay
development and administrative functions.
The exchange of the two Frederick facilities for both the Maryland
manufacturing facility and the Gaithersburg lab, in aggregate, should be
cash positive as well as reduce the Company's total debt and annual
interest and operating expenses.
It is anticipated that these transactions will close within ninety days,
at which time additional details on each site will be provided, as
appropriate.
Kyle Keese, senior vice president manufacturing operations of Emergent
BioSolutions, commented, "These transactions represent an important step
in the implementation of our manufacturing and development strategy. In
relatively short order, we have optimized our manufacturing and
development asset mix and, importantly, added to our portfolio a second
site that could be used to produce rPA, thereby freeing up the facility
in Lansing for the scale up of BioThrax, as well as to manufacture other
pipeline products.”
About Emergent BioSolutions Inc.
Emergent BioSolutions Inc. is a biopharmaceutical company focused on the
development, manufacture and commercialization of vaccines and
therapeutics that assist the body’s immune system to prevent or treat
disease. Emergent’s marketed product, BioThrax® (Anthrax
Vaccine Adsorbed), is the only vaccine licensed by the U.S. Food and
Drug Administration for the prevention of anthrax disease. Emergent’s
development pipeline includes programs focused on anthrax, botulism,
tuberculosis, typhoid, hepatitis B and chlamydia. Additional information
may be found at www.emergentbiosolutions.com.
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 our strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and
objectives of management, including any potential future securities
offering, our expected revenue growth and net earnings for 2009, and any
other statements containing the words "believes”, "expects”,
"anticipates”, "plans”, "estimates” and similar expressions, are
forward-looking statements. There are a number of important factors that
could cause the Company’s actual results to differ materially from those
indicated by such forward-looking statements, including appropriations
for BioThrax® procurement; our ability to obtain new BioThrax®
sales contracts; our ability to obtain an rPA development and
procurement contract; our plans to pursue label expansions and
improvements for BioThrax®; our plans to expand our
manufacturing facilities and capabilities; the rate and degree of market
acceptance and clinical utility of our products; our ongoing and planned
development programs, preclinical studies and clinical trials; our
ability to identify and acquire or in license products and product
candidates that satisfy our selection criteria; the potential benefits
of our existing collaboration agreements and our ability to enter into
selective additional collaboration arrangements; the timing of and our
ability to obtain and maintain regulatory approvals for our other
product candidates; our commercialization, marketing and manufacturing
capabilities and strategy; our estimates regarding expenses, future
revenue, capital requirements and needs for additional financing; and
other factors identified in the Company’s Quarterly Report on Form 10-Q
for the quarter ended March 31, 2009 and subsequent reports filed with
the SEC. The Company disclaims any intention or obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release.
