Emergent BioSolutions Q1 2023 Earnings Report
Key Takeaways
Emergent BioSolutions reported Q1 2023 total revenues of $165 million, exceeding prior guidance. However, the company experienced a net loss of $183 million and an adjusted EBITDA of negative $101 million. The company updated its FY 2023 guidance and provided initial Q2 2023 guidance.
Received Notices of Intent from the U.S. government to procure medical countermeasures for smallpox and botulism.
Announced FDA approval of NARCAN® Nasal Spray 4 mg as an over-the-counter emergency treatment for opioid overdose.
Announced an agreement to sell the travel health business to Bavarian Nordic for up to $380 million.
Taking strategic actions to stabilize and strengthen core businesses.
Emergent BioSolutions
Emergent BioSolutions
Forward Guidance
Emergent BioSolutions provided updated financial forecast for the full year 2023 and Q2 2023.
Positive Outlook
- Total Revenues - Unchanged, reflecting the neutral impact of the overall updates across all sources of revenues.
- Anthrax MCM - Unchanged, reflecting assumptions that have remained constant regarding procurement and delivery of the Company's related products to the U.S. and allied governments.
- NARCAN - Revised, primarily reflecting robust demand from the U.S. PIP (public interest) channel and Canadian market.
- Smallpox MCM - Unchanged, reflecting assumptions that have remained constant regarding procurement and delivery of the Company's related products to the U.S. and allied governments.
- Adjusted Net Loss - Revised, reflecting the impact of higher NARCAN sales and the Travel Health business divestiture, offset by lower CDMO revenues and an increase in the tax valuation allowance.
Challenges Ahead
- Other Products - Revised, reflecting the removal of the Travel Health products, Vaxchora and Vivotif, following the anticipated completion of the divestiture of this business.
- CDMO - Revised, reflecting the impact of recent changes to customer requirements for COVID-related products coupled with continued remediation costs and investments to improve quality and compliance across the Company's manufacturing network.
- Adjusted EBITDA - Revised, reflecting the impact of higher NARCAN sales and the Travel Health business divestiture, offset by lower CDMO revenues.
- Adjusted Gross Margin - Revised, reflecting the impact of overall revenue mix.
- Net Loss - Revised