Biotechgate Global Database ›
Emergent BioSolutions Reports Fourth Quarter and Full Year 2024 Financial Results
- Fourth Quarter 2024 Total Revenues of $194.7 million; Full Year 2024 Total Revenues of $1.04 billion
- Fourth Quarter 2024 Net Loss of $31.3 million, decrease in Net Loss of 37% versus prior year
- Fourth Quarter 2024 Adjusted EBITDA of $21.0 million, increase of 518% versus prior year
- Full Year 2024 Adjusted EBITDA of $183.1 million, compares favorably to a loss of $22.3 million in 2023
- Guiding to 2025 Adjusted EBITDA of $150 - $200 million and improved gross margins
GAITHERSBURG, Md., March 03, 2025 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today reported financial results for the quarter and year ended December 31, 2024.
"As we close out 2024, I’m proud to share we delivered favorable full-year financial results driven by our core products, all the while, completing a series of strategic stabilization actions to strengthen our financial position ahead of plan," said Joe Papa, president and chief executive officer of Emergent. “This strong foundation enables Emergent to focus on profitable revenue growth and cash generation as we move forward with turnaround activities, a critical phase in our multi-year transformation plan. Our results and progress are a testament to the hard work and dedication of our entire team, and we believe Emergent’s future will be defined by the durability of our business, opportunities for new markets and innovation, and a steadfast commitment to protecting and saving lives."
FINANCIAL HIGHLIGHTS(1)
Q4 2024 vs. Q4 2023
| ($ 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 | % | ||||
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 | )% | ||
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 $1.3 million, or 19%, as compared with Q4 2023. The decrease was primarily attributable to the wind-down of various development initiatives.
Operating Expenses
| ($ in millions) | Q4 2024 | Q4 2023 | % Change | |||||
| Cost of Commercial product sales | $ | 33.2 | $ | 50.1 | (34 | )% | ||
| Cost of MCM product sales | 72.1 | 97.2 | (26 | )% | ||||
| Cost of Bioservices | 12.7 | 37.8 | (66 | )% | ||||
| Research and development (“R&D”) | 9.1 | 29.4 | (69 | )% | ||||
| Selling, general and administrative (“SG&A”) | 60.8 | 89.7 | (32 | )% | ||||
| Amortization of intangible assets | 16.3 | 16.2 | 1 | % | ||||
| Total operating expenses | $ | 204.2 | $ | 320.4 | (36 | )% | ||
Cost of Commercial Product Sales
For Q4 2024, cost of Commercial Product sales decreased $16.9 million, or 34%, as compared with Q4 2023. The decrease was primarily due to lower OTC NARCAN® unit volume.
Cost of MCM Product Sales
For Q4 2024, cost of MCM Product sales decreased $25.1 million, or 26%, as compared with Q4 2023. The decrease was primarily due to lower sales of CYFENDUS® and Anthrasil®, coupled with a reduction in Trobigard®-related costs due to the revocation of Trobigard's Marketing Authorization during the second quarter of 2024 and lower sales of RSDL®, which was sold to SERB during the third quarter of 2024. This decrease was partially offset by an increase in TEMBEXA® related costs and higher sales of ACAM2000®.
Cost of Bioservices
For Q4 2024, cost of Bioservices decreased $25.1 million, or 66%, as compared with Q4 2023. The decrease was primarily attributable to lower costs due to the sale of the Camden facility to Bora in the third quarter of 2024, coupled with a decrease in overhead costs at our Gaithersburg facility. The decrease was partially offset by higher costs at our Winnipeg facility due to an increase in production.
Research and Development Expenses
For Q4 2024, R&D expenses decreased $20.3 million, or 69%, as compared with Q4 2023. The decrease was primarily driven by prior period write-offs related to program terminations, a reduction in spend for certain funded and unfunded projects and a reduction in related overhead costs driven by headcount reductions.
Selling, General and Administrative Expenses
For Q4 2024, SG&A expenses decreased $28.9 million, or 32%, as compared with Q4 2023. The decrease was primarily due to lower legal services fees and consulting services fees for disputes and other corporate initiatives, coupled with lower employee related expenses and compensation as a result of restructuring initiatives during 2023 and 2024. The decrease was also driven by lower marketing fees related to the launch of OTC NARCAN® in the prior year.
ADDITIONAL FINANCIAL INFORMATION(1)
Capital Expenditures
| ($ in millions) | Q4 2024 | Q4 2023 | % Change | |||||
| Capital expenditures | $ | 1.7 | $ | 11.4 | (85 | )% | ||
| Capital expenditures as a % of total revenues | 1 | % | 4 | % | ||||
For Q4 2024, capital expenditures decreased largely due to lower development activities across the Company’s facilities.
SEGMENT INFORMATION
The Company manages the business with a focus on three reportable segments: (1) the Commercial Products segment consisting of NARCAN® and other commercial products that were sold as part of our travel health business in the second quarter of 2023; (2) the MCM Products segment consisting of Anthrax – MCM, Smallpox – MCM and Other products and (3) the services segment consisting of our Bioservices business (“Services”). The Company evaluates the performance of these reportable segments based on revenues and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales, but does not include inter-segment services. The Company does not allocate contracts and grants revenue, R&D, SG&A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments.
FOURTH QUARTER 2024 SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Quarter Ended December 31, | |||||||||||
| 2024 | 2023 | $ Change | % Change | ||||||||
| Revenues | $ | 65.1 | $ | 111.0 | $ | (45.9 | ) | (41 | )% | ||
| Cost of sales | 33.2 | 50.1 | (16.9 | ) | (34 | )% | |||||
| Intangible asset amortization | 9.5 | 9.4 | 0.1 | 1 | % | ||||||
| Gross margin** | $ | 22.4 | $ | 51.5 | $ | (29.1 | ) | (57 | )% | ||
| Gross margin %** | 34 | % | 46 | % | |||||||
| Add back: | |||||||||||
| Intangible asset amortization | $ | 9.5 | $ | 9.4 | $ | 0.1 | 1 | % | |||
| Segment adjusted gross margin(2) | $ | 31.9 | $ | 60.9 | $ | (29.0 | ) | (48 | )% | ||
| Segment adjusted gross margin %(2) | 49 | % | 55 |
By: GlobeNewswire
- 03 Mar 2025
Return to news
Partners
Upcoming Life Sciences Events
| |||||||
