Emergent BioSolutions Q4 2020 Earnings Report
Key Takeaways
Emergent BioSolutions reported a strong financial performance for Q4 2020, with a 62% increase in total revenues compared to Q4 2019, driven primarily by increased contract development and manufacturing (CDMO) services revenues. Net income and adjusted EBITDA also saw significant increases. The company reaffirmed its full year 2021 forecast.
Total revenues for Q4 2020 were $583.0 million, a 62% increase compared to Q4 2019.
Net income for Q4 2020 was $185.4 million, a significant increase from $46.9 million in Q4 2019.
Revenue from CDMO services was $199.1 million, a substantial increase compared to $25.5 million in Q4 2019.
The company reaffirms its forecast of the following financial metrics, originally announced on January 10, 2021.
Emergent BioSolutions
Emergent BioSolutions
Emergent BioSolutions Revenue by Segment
Forward Guidance
For full year 2021, the Company reaffirms its forecast of the following financial metrics, originally announced on January 10, 2021:Total Revenues $1,950 - $2,050 million, Adjusted EBITDA $750 - $810 million and Gross Margin 65%.
Positive Outlook
- Anthrax vaccine revenues are expected at a more normalized annual level and continue to primarily reflect procurement of AV7909 (Anthrax Vaccine Adsorbed, adjuvanted) under the Company’s existing contract with the Biomedical Advanced Research and Development Authority (BARDA).
- ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) 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.
- CDMO Services assume continued performance of contracted services for Development Services (DVS), Drug Substance (DS) manufacturing, and Drug Product (DP) manufacturing and Packaging for both clinical- and commercial-stage projects on behalf of a growing list of pharmaceutical and biotechnology innovators and government/NGO customers.
- 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
- Narcan® (naloxone HCl) Nasal Spray revenues assume an appellate decision related to its pending patent litigation in the second half of 2021 followed by the entry of at least one competitor.
- Global economic conditions and public health crises and epidemics, such as the global pandemic that arose from COVID-19, on the markets, our operations, and employees as well as those of our customers and suppliers
- Negotiation of further commitments or contracts related to the collaboration and deployment of capacity toward future commercial manufacturing under our CDMO contracts
- Ability to perform under our contracts with the U.S. government and our CDMO clients, including the timing of and specifications relating to deliveries
- Ability to successfully appeal the patent litigation decision related to NARCAN® Nasal Spray 4mg/spray
Revenue & Expenses
Visualization of income flow from segment revenue to net income