Emergent BioSolutions (EBS) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Turnaround strategy and business focus

• Completed stabilization phase ahead of schedule by fall 2024, entering multi-year turnaround and transformation through 2026 and beyond.

• Streamlined operations by consolidating manufacturing to Lansing and Winnipeg, closing or divesting Maryland and other facilities.

• Reduced net debt by over $200 million, with a 27% reduction in 2024, and gross debt by 19%.

• Divested non-core assets, including RSDL, Baltimore-Camden, a Canton warehouse, and settled litigation with J&J for $50 million.

• Focused on opioid overdose solutions (Narcan, Kloxxado) and medical countermeasures/biodefense, leveraging bipartisan support and strong government relationships.

Product and market developments

• Expanded opioid overdose portfolio by acquiring exclusive commercial rights to Kloxxado 8mg, distributed through NarcanDirect™, complementing Narcan 4mg.

• Narcan volumes grew 7% year-to-date, with public interest channel up 14%; over-the-counter availability and settlement funds expected to drive further adoption.

• Medical countermeasures business secured ~$550M in new contract modifications in 2024, including a $235.8M BioThrax contract and a 10-year BARDA contract for Ebanga™.

• FDA approved ACAM2000® for expanded Mpox indication; WHO EUL submission and international donations support global preparedness.

• Pursuing international growth, line extensions, and new partnerships for Narcan, Kloxxado, and MCM products.

Financial performance and outlook

• Achieved a $377 million swing in operating cash flow and reduced working capital by $100 million from Q3 2023 to Q3 2024.

• Q3 2024 revenues grew 9% YoY to $293.8M; adjusted gross margin up $68M and adjusted EBITDA up $85M YoY.

• Net leverage ratio reduced to 3.3x in Q3 2024 from 42.8x in Q3 2023; credit ratings upgraded and going concern qualification removed.

• 2025 revenue base will be lower by about $100 million due to one-time items and divestitures, but margin expansion is expected from cost reductions.

• OPEX and SG&A are expected to decrease in 2025, with continued investment in R&D for organic growth.