Emergent BioSolutions Q1 2021 Earnings Report
Key Takeaways
Emergent BioSolutions reported a significant increase in total revenues for Q1 2021, driven primarily by contract development and manufacturing services. Net income and adjusted EBITDA also saw substantial growth compared to the same period last year. However, the company revised its full-year 2021 financial forecast downwards, mainly due to adjustments in CDMO services revenues.
Total revenues increased by 78% to $343.0 million compared to Q1 2020.
Net income was $69.7 million, a significant improvement from a loss of $12.5 million in Q1 2020.
CDMO services revenue increased substantially to $183.8 million, driven by the public-private partnership with BARDA.
The company revised its 2021 revenue forecast to $1.7 billion - $1.9 billion, primarily due to adjustments in CDMO services revenues.
Emergent BioSolutions
Emergent BioSolutions
Forward Guidance
Emergent BioSolutions revised its full-year 2021 financial forecast, with total revenues now expected to be between $1.7 billion and $1.9 billion. This revision primarily reflects adjustments in CDMO services revenues and the timing of a new raxibacumab contract.
Positive Outlook
- Anthrax vaccines revenues are expected to continue to primarily reflect procurement of AV7909 under the terms of the Company’s existing contract with BARDA at a more normalized annual level.
- ACAM2000 vaccine deliveries are expected to continue under the terms of the Company’s existing contract with the U.S. Department of Health and Human Services (HHS) at unit volume levels consistent with 2020 deliveries.
- Narcan revenues assume the naloxone market remains competitive, that at least one new entrant will enter the market by year end.
- Pipeline progress is expected across the vaccines, therapeutics, and devices portfolios, anticipating at least one Phase 3 launch.
- Pipeline progress is expected across the vaccines, therapeutics, and devices portfolios, anticipating at least one Biologics License Application (BLA)/Emergency Use Authorization (EUA) filing.
Challenges Ahead
- CDMO services revenues have been reduced primarily due to the hold of certain COVID-19 vaccine bulk drug substance lots.
- CDMO services revenues have been reduced commitment not to initiate new manufacturing at Bayview pending further review by the U.S. Food and Drug Administration (FDA).
- Total revenues, specifically other product sales, are expected to be impacted due to the Company's assumption that a new raxibacumab contract will be awarded later than previously planned.
- Capital expenditures, net of reimbursement, are expected to be in a range of 8% to 9% of total revenues, reflecting ongoing investments in capacity and capability expansions in support of the Company's CDMO services business and product portfolio.
- Even assuming FDA concurrence to re-initiate new manufacturing and/or release of lots, the Company expects a delay in the timing of expected revenue.