Emergent BioSolutions Q2 2022 Earnings Report
Key Takeaways
Emergent BioSolutions reported a decrease in total revenues by 39% compared to Q2 2021, driven by a decline in CDMO services. Net loss was $(56.4) million, compared to a net income of $4.6 million in Q2 2021. The company is focusing on combating critical public health threats with core medical countermeasure and commercial businesses and executing its growth strategy with M&A opportunities.
Executed an agreement to acquire TEMBEXA(R) from Chimerix, with closing anticipated in Q3 2022.
FDA accepted for review the BLA for AV7909, with a goal date for a decision in April 2023.
Announced a collaboration with Ridgeback Biotherapeutics to expand the availability of Ebanga™.
Initiated a phase 3 study to evaluate CHIKV VLP, the Company's single-dose chikungunya vaccine candidate.
Emergent BioSolutions
Emergent BioSolutions
Forward Guidance
The Company has resumed providing financial guidance for 2022.
Positive Outlook
- Anthrax vaccines revenues are expected to continue at similar levels to 2021 under the terms of the Company's existing contract with BARDA.
- 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 2021 deliveries.
- Nasal naloxone products revenues reflect the formation of a generic market and comprise revenues from a combination of NARCAN Nasal Spray and the authorized generic of NARCAN Nasal Spray, a product licensed to Sandoz and launched in late 2021 and one in which the Company retains a financial interest.
- Other Products + Contracts and Grants revenues: 1) other products revenues reflect continued procurement of other products not highlighted on a standalone basis from various government customers under existing multi-year contracts; 2) contracts and grants revenues reflect continued funding of select development programs from various government and other non-dilutive sources.
- Pipeline progress is expected across the R&D portfolio with the advancement of the CHIKV VLP Phase 3 clinical trials, the FDA acceptance of the Company's BLA filing for AV7909, and anticipated advancements of a number of early-stage programs.
Challenges Ahead
- CDMO revenues are expected to re-baseline throughout the year as the Company transitions the business to a focus on non-COVID projects and on expanding its drug product capabilities as it progresses toward a higher level of capacity utilization principally at the Camden, Rockville and Winnipeg sites.
- CDMO revenues exclude further contribution from Janssen.
- The updated forecasted ranges do not take into account the impact of the addition of TEMBEXA, the acquisition of which is expected to close in the third quarter of 2022.
- Uncertainty related to the ongoing impact of the COVID-19 pandemic on markets, operations, and employees.
- Dependence on U.S. government funding for contracts related to procurement of medical countermeasures.