Emergent BioSolutions Q4 2021 Earnings Report
Key Takeaways
Emergent BioSolutions reported financial results for the fourth quarter and year ended December 31, 2021. The company's performance in 2021 is attributed to their strategic focus and capable team. The company is encouraged by the stability and durability of their diversified business lines and R&D portfolio.
Total revenues for Q4 2021 were $723.2 million, a 24% increase compared to Q4 2020.
Net income for Q4 2021 was $189.3 million, a 2% increase compared to Q4 2020.
Adjusted EBITDA for Q4 2021 was $347.9 million, a 20% increase compared to Q4 2020.
The company updated its full year 2022 guidance and provided guidance on Q1 2022 total revenues.
Emergent BioSolutions
Emergent BioSolutions
Forward Guidance
For full year 2022, the Company provides the following update to its forecast of key financial metrics, which were originally announced on January 9, 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® (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 2021 deliveries.
- Nasal naloxone products revenues reflect the formation of a generic market and comprise revenues from a combination of NARCAN®(naloxone HCl) 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 revenues reflect continued procurement of other products not highlighted on a standalone basis from various government customers under existing multi-year contracts
- Contracts and grants revenues reflect continued funding of select development programs from various government and other non-dilutive sources.
Challenges Ahead
- The revision to total revenues, CDMO services revenue, Adjusted EBITDA and adjusted net income reflect the impact of the Company's decision to take the opportunity to initiate a maintenance period that it would normally plan for the Bayview facility earlier than anticipated and also extend it in order to make additional improvements and modifications that will better position Bayview for future non-pandemic work.
- Total Revenues: $1,300 - $1,400 million (previous: $1,400 - $1,500 million)
- Adjusted EBITDA: $240- $300 million (previous: $280 - $340 million)
- Adjusted Net Income: $95 - $140 million (previous: $135 - $180 million)
- CDMO Services: $330 - $380 million (previous: $430 - $480 million)