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GAITHERSBURG, Md. - Emergent BioSolutions Inc. (NYSE:EBS), currently valued at $317 million in market capitalization, has finalized the sale of its Baltimore-Bayview drug substance manufacturing facility to Syngene International, a transaction that closed with Emergent receiving approximately $36.5 million. The deal, announced today, includes the transfer of assets and equipment associated with the Baltimore-Bayview facility to Syngene. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 3.69.
Emergent retains the option to utilize the facility’s manufacturing services and capacity for its future production needs, particularly for pandemic response. Joe Papa, president and CEO of Emergent, stated that the sale is part of the company’s efforts to streamline operations while preserving the flexibility to meet future product demands and support their long-term growth objectives.
Truist acted as the financial advisor and Covington & Burling LLP as legal counsel for Emergent in this transaction. The sale is subject to customary post-closing adjustments.
Emergent BioSolutions, with a mission to protect and enhance life, has been a key player in public health for over 25 years, providing solutions for health threats such as smallpox, mpox, botulism, Ebola, anthrax, and opioid overdoses.
This strategic move is aligned with the company’s multi-year transformation plan, aiming to improve performance by refining its manufacturing network. This press release is based on a press release statement and contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
In other recent news, Emergent BioSolutions announced its fourth-quarter results, reporting adjusted earnings per share of $0.05, surpassing analyst expectations of a $0.41 loss. However, the company’s revenue fell short, coming in at $194.7 million compared to the anticipated $243.33 million, marking a 30% year-over-year decline. This decline was largely due to a 41% drop in sales of NARCAN nasal spray and a 71% decrease in anthrax medical countermeasure revenues. Despite the revenue shortfall, smallpox countermeasure sales surged by 565% to $76.5 million, driven by increased international orders. Additionally, Emergent BioSolutions secured approximately $27 million in international orders for its medical countermeasures, aimed at enhancing global health preparedness against smallpox and anthrax threats. In a strategic move, the company sold its Baltimore-Bayview manufacturing facility to Syngene International for $36.5 million, while retaining the right to secure manufacturing services at the site. Analyst firm H.C. Wainwright maintained a Buy rating on Emergent BioSolutions, with a price target of $15, despite the mixed financial results. The company forecasts 2025 revenue between $750 million and $850 million, with expectations of achieving cash flow positivity and improved gross margins.
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