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Mar 31, 2020

Emergent BioSolutions Q1 2020 Earnings Report

Emergent BioSolutions reported financial results for Q1 2020.

Key Takeaways

Emergent BioSolutions reported total revenues of $192.5 million, a slight increase over 2019, driven by increases in CDMO and contracts and grants revenues offsetting a decline in product sales. The company recorded a net loss of $12.5 million, or $0.24 per diluted share, compared to a net loss of $26.0 million in 2019. Adjusted EBITDA was $15.3 million, compared to $8.4 million in 2019.

Reaffirmed full year 2020 financial forecast.

Signed a CDMO agreement with Johnson & Johnson valued at $135 million.

Initiated development of two investigational plasma-derived therapies.

Received EMA and FDA agreement on development plan for CHIKV VLP vaccine candidate.

Total Revenue
$193M
Previous year: $191M
+1.0%
EPS
$0.01
Previous year: -$0.13
-107.7%
Adjusted EBITDA
$15.3M
Previous year: $8.4M
+82.1%
Gross Profit
$116M
Previous year: $98.8M
+17.0%
Cash and Equivalents
$182M
Previous year: $137M
+32.3%
Free Cash Flow
$33.6M
Previous year: $83.4M
-59.7%
Total Assets
$2.28B
Previous year: $2.15B
+5.8%

Emergent BioSolutions

Emergent BioSolutions

Emergent BioSolutions Revenue by Segment

Forward Guidance

The Company reaffirms its expectation of the following forecasted financial metrics previously provided on February 20, 2020.

Positive Outlook

  • Full year total revenues are expected to be between $1,175 million and $1,275 million.
  • Adjusted net income is expected to be between $160 million and $210 million.
  • Adjusted EBITDA is expected to be between $300 million and $360 million.
  • NARCAN Nasal Spray sales are projected to be $285 million - $315 million.
  • Anthrax Vaccines sales are projected to be $270 million - $300 million.

Challenges Ahead

  • The outlook for 2020 does not include estimates for potential new corporate development or other M&A transactions.
  • ACAM2000 sales are projected to be $180 million - $200 million.
  • The financial forecast includes anticipated deliveries of raxibacumab to the Strategic National Stockpile (SNS) under the anticipated follow-on procurement contract with HHS.
  • Continued investment in internally funded development projects most notably the anticipated Phase 3 studies for the CHIKV VLP and FLU-IGIV product candidates as well as the Phase 1/2 study for COVID-EIG, among other R&D projects.
  • The Q2 2020, the Company forecast for total revenues is $270 million - $300 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income