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Jun 30, 2021
Emergent BioSolutions Q2 2021 Earnings Report
Emergent BioSolutions reported financial results for the second quarter of 2021, reaffirming its full-year forecast for revenues and profit.
Key Takeaways
Emergent BioSolutions reported a 1% increase in total revenues compared to Q2 2020, driven by growth in CDMO services and NARCAN® Nasal Spray, offset by declines in Anthrax vaccines and ACAM2000. Net income decreased significantly due to increased operating expenses, including inventory write-offs.
FDA informed the company that it can resume production of Johnson & Johnson’s COVID-19 vaccine bulk drug substance at the company's Bayview manufacturing facility.
The company is supporting U.S. government's smallpox preparedness efforts under contract options exercised by the Department of Health and Human Services (HHS) valued at approximately $182 million and $56 million to deliver ACAM2000® and VIGIV.
The company is supporting the Canadian government’s anthrax preparedness efforts under a new contract with the Public Health Agency Canada (PHAC) to deliver Anthrasil® through March 2023.
Received approval from the Federal Agency for Medicines and Health Products (FAMHP) of Belgium for Trobigard® Auto-injector, an emergency treatment product for known or suspected exposure to nerve agents or toxic organophosphates in adults over 18 years of age.
Emergent BioSolutions
Emergent BioSolutions
Emergent BioSolutions Revenue by Segment
Revenue by Segment
Anthrax MCM Revenue
CapyFin.comOther Products Revenue
CapyFin.comContracts and Grants Revenue
CapyFin.com Forward Guidance
The company reaffirmed its full year 2021 forecast for revenues and adjusted EBITDA.
Positive Outlook
- NARCAN® Nasal Spray revenues assume the naloxone market remains competitive and incorporates the impact of at least one new branded entrant into the market by year end, as well as that no generic entrant will enter the market prior to the anticipated appellate decision related to the pending patent litigation, which is expected in the second half of 2021.
- Anthrax vaccines revenues are expected to continue to primarily reflect procurement of AV7909 (Anthrax Vaccine Adsorbed, Adjuvanted) under the terms of the Company’s existing contract with BARDA at a more normalized annual level.
- ACAM2000®, (Smallpox (Vaccinia) Vaccine, Live) vaccine revenues incorporate the expected full delivery of product under the $182 million option exercise received in July 2021 as well as other international sales.
- CDMO services revenue reflects the successful manufacturing of Johnson & Johnson's COVID-19 vaccine bulk drug substance. On July 29, the Company announced that it was informed by the FDA that it can resume production at its Bayview manufacturing facility.
- R&D expenses are expected to reflect continued pipeline progress across the vaccines, therapeutics, and devices portfolios, including the assumption of at least one Phase 3 launch and one Biologics License Application (BLA)/Emergency Use Authorization (EUA) filing.
Challenges Ahead
- 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.
- Gross margin reflects the impact of the Q2 2021 performance as well as expectations for the remainder of the year.
- Unchanged Considerations
- 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.
- The company expects total revenues of $400 million to $500 million for Q3 2021
Revenue & Expenses
Visualization of income flow from segment revenue to net income