On March 3, 2025 Emergent BioSolutions Inc. (NYSE: EBS) reported financial results for the quarter and year ended December 31, 2024 (Press release, Emergent BioSolutions, MAR 3, 2025, View Source [SID1234650833]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
"As we close out 2024, I’m proud to share we delivered favorable full-year financial results driven by our core products, all the while, completing a series of strategic stabilization actions to strengthen our financial position ahead of plan," said Joe Papa, president and chief executive officer of Emergent. "This strong foundation enables Emergent to focus on profitable revenue growth and cash generation as we move forward with turnaround activities, a critical phase in our multi-year transformation plan. Our results and progress are a testament to the hard work and dedication of our entire team, and we believe Emergent’s future will be defined by the durability of our business, opportunities for new markets and innovation, and a steadfast commitment to protecting and saving lives."
FINANCIAL HIGHLIGHTS(1)
Q4 2024 vs. Q4 2023
($ in millions, except per share amounts) Q4 2024 Q4 2023 % Change
Total Revenues $ 194.7 $ 276.6 (30) %
Net Loss $ (31.3) $ (49.5) 37 %
Net Loss per Diluted Share $ (0.58) $ (0.95) 39 %
Adjusted Net Income (Loss)(2)
$ 2.6 $ (40.0) 107 %
Adjusted Net Income (Loss) per Diluted Share(2)
$ 0.05 $ (0.77) 106 %
Adjusted EBITDA(2)
$ 21.0 $ 3.4 518 %
Total Segment Gross Margin %(2)
29 % 25 %
Total Segment Adjusted Gross Margin %(2)
40 % 32 %
Year to Date ("YTD") 2024 vs. YTD 2023
($ in millions, except per share amounts) YTD 2024 YTD 2023 % Change
Total Revenues $ 1,043.6 $ 1,049.3 (1) %
Net Loss $ (190.6) $ (760.5) 75 %
Net Loss per Diluted Share $ (3.60) $ (14.85) 76 %
Adjusted Net Loss(2)
$ (12.1) $ (319.0) 96 %
Adjusted Net Loss per Diluted Share(2)
$ (0.23) $ (6.23) 96 %
Adjusted EBITDA(2)
$ 183.1 $ (22.3) 921 %
Total Segment Gross Margin %(2)
26 % 25 %
Total Segment Adjusted Gross Margin %(2)
45 % 33 %
1
emergentlogograycarminera.jpg
SELECT 2024 FULL YEAR BUSINESS UPDATES
•Appointed industry leader Joseph C. Papa as President, CEO and Director
•Appointed Dr. Simon Lowry as Chief Medical Officer and Head of Research and Development
•Received approximately $550 million of Medical Countermeasure Contract Modification Awards
•Awarded procurement contract valued up to $235.8 million to supply BioThrax (Anthrax Vaccine Adsorbed) to the U.S. Department of Defense
•FDA approved sBLA for expansion of the indication for ACAM2000 to include prevention of mpox disease in individuals determined to be at high risk
•Repaid $168 million of debt and extended maturities to 2029 with new $250 million secured term loan and $100 million asset-backed revolving credit facility
•Completed $117 million of targeted asset divestitures and streamlined manufacturing footprint
•Resolved legacy legal disputes including receipt of $50 million settlement payment from Janssen
•Received $30 million in development milestone payments from Bavarian Nordic as part of the sale of the Travel Health Business
•Returned to strong, positive operating cash flow
FOURTH QUARTER 2024 FINANCIAL PERFORMANCE(1)
Revenues
The Company uses the following categories in discussing product/service level revenues:
•NARCAN — comprises contributions from NARCAN Nasal Spray
•Anthrax MCM — comprises contributions from CYFENDUS, previously known as AV7909, BioThrax, Anthrasil and Raxibacumab
•Smallpox MCM — comprises contributions from ACAM2000, VIGIV CNJ-016 and TEMBEXA
•Other Products — comprises contributions from BAT and RSDL
•Bioservices — comprises service and lease revenues from the Bioservices business
($ in millions) Q4 2024 Q4 2023 % Change
Product sales, net:(3)
NARCAN
$ 65.1 $ 111.0 (41) %
Anthrax MCM 32.5 111.6 (71) %
Smallpox MCM 76.5 11.5 565 %
Other Products 7.8 15.0 (48) %
Total Product sales, net $ 181.9 $ 249.1 (27) %
Bioservices:
Services $ 6.8 $ 20.6 (67) %
Leases 0.6 0.2 200 %
Total Bioservices revenues $ 7.4 $ 20.8 (64) %
Contracts and grants $ 5.4 $ 6.7 (19) %
Total revenues $ 194.7 $ 276.6 (30) %
2
emergentlogograycarminera.jpg
Product Sales, net
NARCAN
For Q4 2024, revenues from NARCAN (naloxone HCl) Nasal Spray decreased $45.9 million, or 41%, as compared with Q4 2023. The decrease was primarily driven by lower sales of over-the-counter ("OTC") NARCAN, coupled with lower revenues for Canadian retail sales.
Anthrax MCM
For Q4 2024, revenues from Anthrax MCM products decreased $79.1 million, or 71%, as compared with Q4 2023. The decrease reflects the impact of timing of sales related to CYFENDUS, Anthrasil, and BioThrax. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the U.S. government (the "USG"). Fluctuations in revenues result from the timing of USG purchases and the exercise of annual purchase options, the availability of governmental funding and the Company’s delivery of orders that follow.
Smallpox MCM
For Q4 2024, revenues from Smallpox MCM products increased $65.0 million, or 565%, as compared with Q4 2023. The increase was primarily due higher ACAM2000 sales to non-U.S. customers and timing of USG purchases of VIGIV CNJ-016. Fluctuations in revenues result from the timing of USG purchases and the exercise of annual purchase options in existing procurement contracts, the availability of governmental funding and Company delivery of orders that follow.
Other Products
For Q4 2024, revenues from Other Product sales decreased $7.2 million, or 48%, as compared with Q4 2023. The decrease was due to lower sales of RSDL, which was sold to SERB during the third quarter of 2024, and lower product sales of BAT, due to timing of deliveries.
Bioservices Revenues
Services
For Q4 2024, revenues from Bioservices services decreased $13.8 million, or 67%, as compared with Q4 2023. The decrease was primarily attributable to the sale of the Camden facility to Bora Pharmaceuticals Injectables Inc., a subsidiary of Bora Pharmaceuticals Co., Ltd ("Bora"), during the third quarter of 2024, coupled with lower revenue from the Company’s Bayview facility as a result of the prior year resolution of a customer’s outstanding obligation, partially offset by higher production from the Company’s Winnipeg facility.
Leases
For Q4 2024, revenues from Bioservices leases increased $0.4 million, or 200%, as compared with Q4 2023. The increase was attributable to an increase in lease revenue associated with SERB at our Winnipeg facility.
Contracts and Grants
For Q4 2024, revenues from contracts and grants decreased $1.3 million, or 19%, as compared with Q4 2023. The decrease was primarily attributable to the wind-down of various development initiatives.