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|Emergent BioSolutions Reports Financial Results for First Quarter 2010|
ROCKVILLE, Md., May 05, 2010 (BUSINESS WIRE) --Emergent BioSolutions Inc. (NYSE: EBS) announced today its financial results for the first quarter ended March 31, 2010.
For the first quarter 2010, total revenues were $46.8 million as compared to $64.5 million in 2009, and net income was $2.5 million, or $0.08 per share, as compared to $11.1 million, or $0.37 per share, in 2009. The 2010 performance was primarily driven by sales of BioThrax(R) (Anthrax Vaccine Adsorbed) based on scheduled deliveries to the Strategic National Stockpile.
R. Don Elsey, chief financial officer of Emergent BioSolutions, stated, "Our 1Q 2010 financial results were in line with our internal expectations and we remain on track to achieve our guidance for the year. For the remainder of 2010, we anticipate strong financial performance as evidenced by our reaffirmed forecast of total revenues of $235 to $255 million and net income of $20 to $30 million. This forecast does not reflect the revenue impact for 2010 associated with the anticipated awards of a multi-year development contract for BioThrax scale-up with potential funding in excess of $100 million and a multi-year development contract for our rPA vaccine candidate with potential funding in excess of $250 million."
1Q 2010 Key Financial Results
For 1Q 2010, product sales were $38.9 million, a decrease of $22.8 million, or 37 percent, from $61.7 million in 1Q 2009, primarily due to a 47 percent decrease in the number of doses of BioThrax(R) delivered related to the timing of scheduled deliveries under our contract with HHS, partially offset by an 18 percent increase in the sales price per dose. Product sales revenues in 1Q 2010 consisted of BioThrax(R) sales to HHS of $38.8 million and aggregate international and other sales of $37,000.
Contracts and Grants Revenues
For 1Q 2010, contracts and grants revenue was $7.9 million, an increase of $5.1 million, or 180 percent, from $2.8 million in 1Q 2009. Contracts and grants revenue for 2010 primarily consisted of development contract revenue from NIAID and BARDA.
Cost of Product Sales
For 1Q 2010, cost of product sales was $7.5 million, a decrease of $7.9 million, or 51 percent, from $15.4 million in 1Q 2009. This decrease was attributable to the 47 percent decrease in BioThrax(R) doses sold.
Research and Development
For 1Q 2010, research and development expenses were $19.9 million, an increase of $4.0 million, or 25 percent, from $15.9 million in 1Q 2009. This increase reflects higher contract service costs, and includes increased expenses of $5.3 million on product candidates in our biodefense programs, primarily product candidates within our anthrax franchise, decreased expenses of $2.3 million related to our commercial product candidates, and increased expenses of $1.0 million in other research and development, which are in support of technology platforms and central R&D activities.
Selling, General and Administrative
For 1Q 2010, selling, general and administrative expenses were $16.2 million, an increase of $0.2 million, or 1 percent, from $16.0 million in 1Q 2009. This increase includes a $0.5 million non-cash charge associated with our Frederick, Maryland facilities and increased personnel costs related to the growth of the Company, partially offset by a $1.4 million non-cash charge during 1Q 2009 associated with acquisitions that were in progress but not completed as of December 31, 2008.
Financial Condition and Liquidity
Cash and cash equivalents at March 31, 2010 was $116.4 million compared to $102.9 million at December 31, 2009. Additionally, at March 31, 2010, the accounts receivable balance was $33.4 million, which is comprised primarily of unpaid amounts due related to shipments of BioThrax(R) received and accepted by the US government in the first quarter of 2010.
For 2010, the Company is reaffirming its financial forecast of total revenues of $235 to $255 million and net income of $20 to $30 million.
Total revenue for 2010 is expected to be driven by, among other things:
Conference Call and Webcast
Company management will host a conference call at 5:00 pm Eastern on May 5, 2010 to discuss the financial results for the first quarter of 2010, recent business developments and the forecast for 2010. The conference call will be accessible by dialing 888/713-4199 or 617/213-4861 (international) and providing passcode 20683157. A webcast of the conference call will be accessible from the Company's website at www.emergentbiosolutions.com, under "Investors".
A replay of the conference call will be accessible, approximately one hour following the conclusion of the call, by dialing 888/286-8010 or 617/801-6888 and using the passcode 26100735. The replay will be available through May 19. The webcast will be archived on the company's website, www.emergentbiosolutions.com, under "Investors".
About Emergent BioSolutions Inc.
Emergent BioSolutions Inc. is a biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and antibody therapies that assist the body's immune system to prevent or treat disease. Emergent's marketed product, BioThrax(R) (Anthrax Vaccine Adsorbed), is the only vaccine approved by the U.S. Food and Drug Administration for the prevention of anthrax disease. Emergent's product pipeline targets infectious diseases and includes programs focused on anthrax, tuberculosis, typhoid, flu and chlamydia. Additional information may be found at www.emergentbiosolutions.com.
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 our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, including any potential future securities offering, our expected revenue growth and net earnings for 2010, and any other statements containing the words "believes", "expects", "anticipates", "plans", "estimates" and similar expressions, are forward-looking statements. 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 appropriations for BioThrax(R) procurement; our ability to obtain new BioThrax(R) sales contracts; our plans to pursue label expansions and improvements for BioThrax(R); our ability to win a development award with the U.S. government for our recombinant protective antigen anthrax vaccine candidate; our plans to expand our manufacturing facilities and capabilities; the rate and degree of market acceptance and clinical utility of our products; the success of our ongoing and planned development programs, preclinical studies and clinical trials; our ability to identify and acquire or in license products and product candidates that satisfy our selection criteria; the potential benefits of our existing collaboration agreements and our ability to enter into selective additional collaboration arrangements; the timing of and our ability to obtain and maintain regulatory approvals for our other product candidates; our commercialization, marketing and manufacturing capabilities and strategy; our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; and other factors identified in the company's Annual Report on Form 10-K for the year ended December 31, 2009 and subsequent reports filed with the SEC. The company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
SOURCE: Emergent BioSolutions Inc.
Emergent BioSolutions Inc.