GAITHERSBURG, Md., June 03, 2019 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today announced a contract award by the Office of the Assistant Secretary for Preparedness and Response (ASPR) in the U.S. Department of Health and Human Services (HHS) valued at approximately $535 million over 10 years for the continued supply of Vaccinia Immune Globulin Intravenous (VIGIV) into the U.S. Strategic National Stockpile (SNS) in support of smallpox preparedness.
“Emergent is pleased to continue its successful track record of being a solutions provider to governments to help address serious public health threats such as smallpox,” said Robert G. Kramer Sr., president and chief executive officer of Emergent BioSolutions. “VIGIV is the only product licensed by the U.S. Food and Drug Administration (FDA) for the treatment of complications due to smallpox vaccination. We look forward to delivering on this long-term $535 million contract to supply VIGIV, which, together with our ACAM2000®, (Smallpox (Vaccinia) Vaccine, Live) smallpox vaccine, are integral to the government’s overall preparedness and response strategy to have a sustainable and sufficient supply of medical countermeasures in the SNS to protect the U.S. population against the threat of smallpox.”
The contract consists of a one-year base period of performance valued at $23 million and nine option years that, when exercised, would bring the total contract value to approximately $535 million. The scope of work under the contract includes the collection of plasma, manufacturing, and delivery of finished drug product. During year one, Emergent will use plasma provided by the U.S. government to manufacture VIGIV doses, while all subsequent years will involve Emergent-led plasma collection and production efforts resulting in higher annual revenue potential. VIGIV is the only therapeutic licensed by the FDA for the treatment of complications due to smallpox vaccination and has been stockpiled at a ratio of one dose of VIGIV per 10,000 doses of first or second generation smallpox vaccine (https://www.cdc.gov/mmwr/pdf/rr/rr6402.pdf). This multi-year contract follows the conclusion of a one-year, $26 million procurement contract signed with the U.S. government in February 2018.
“Through this 10-year contract with HHS, Emergent is honored to continue its long-term partnership with the U.S. government, whose support of the VIGIV program reflects its commitment to protect the population against serious public health threats,” said Dr. Laura Saward, senior vice president and antibody therapeutics business unit head at Emergent. “The VIGIV product has been a critical component of the government's preparedness strategy, dating back to 2002 when it was first procured for inclusion in the stockpile.”
The VIGIV product was developed on Emergent's hyperimmune platform, on which several marketed antibody therapeutics have been licensed, including Emergent's Anthrasil® [Anthrax Immune Globulin Intravenous (Human)]. VIGIV was licensed in the U.S. by FDA in 2005 and in Canada by Health Canada in 2007.
Contract 75A50119C00037 for the advancement of the VIGIV program is funded by the Office of the Assistant Secretary for Preparedness and Response in the U.S. Department of Health and Human Services.
About Emergent BioSolutions
Emergent BioSolutions Inc. is a global life sciences company seeking to protect and enhance life by focusing on providing specialty products for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats. We aspire to be a Fortune 500 company recognized for protecting and enhancing life, driving innovation, and living our values. Additional information about the company may be found at www.emergentbiosolutions.com. Find us on LinkedIn and follow us on Twitter @emergentbiosolu and Instagram @life_at_emergent.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including statements regarding the total potential realizable value of the contract, higher annual revenue potential and continuing our successful track record, and any other statements containing the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions, are forward-looking statements. These forward-looking statements are based on our current intentions, beliefs and expectations regarding future events. We cannot guarantee that any forward-looking statement will be accurate. Investors should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from our expectations. Investors are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, we do not undertake to update any forward-looking statement to reflect new information, events or circumstances.
There are a number of important factors that could cause the company's actual results to differ materially from those indicated by such forward-looking statements, including the availability of funding for our U.S. government grants and contracts, decisions by HHS to exercise options under the contract and our manufacturing capabilities and strategy. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. Investors should consider this cautionary statement, as well as the risk factors identified in our periodic reports filed with the SEC, when evaluating our forward-looking statements.
Robert G. Burrows
Vice President, Investor Relations
Vice President, Corporate Communications