Emergent BioSolutions to Acquire Raxibacumab, an FDA-Approved Anthrax Monoclonal Antibody, From GSK
- All-cash transaction includes a
$76 million upfront payment and up to$20 million in product sale and manufacturing-related milestone payments - Addition of licensed anthrax therapeutic expands Emergent’s portfolio of approved medical countermeasures addressing public health threats
- Emergent plans to assume responsibility for a multi-year contract with BARDA, valued at up to approximately
$130 million , to supply raxibacumab to the SNS - Bulk and fill/finish manufacturing expected to be transferred to existing Emergent facilities located in
Baltimore, Maryland - Transaction expected to be accretive upon first product delivery under current BARDA contract anticipated within three to six months of closing
Upon the closing of the transaction, Emergent will:
- Acquire raxibacumab, including corresponding product rights, regulatory approvals and intellectual property rights; and
- Plan to assume responsibility for an existing contract with BARDA, a division of the
Office of the Assistant Secretary for Preparedness and Response at theU.S. Department of Health and Human Services , with a delivery order performance period throughNovember 2019 to supply raxibacumab to the SNS, with a remaining value of up to approximately$130 million .
Emergent expects to fulfill the deliveries of raxibacumab to the SNS by the end of 2019 under the current BARDA contract, subject to the availability of funding, and expects to negotiate a follow-on contract with the U.S. government to ensure the uninterrupted supply of this critical medical countermeasure to the SNS. Under the terms of the acquisition agreements, Emergent expects to purchase product from GSK to enable completion of deliveries to the SNS under the existing BARDA procurement contract.
In addition, Emergent intends to transfer all manufacturing related to raxibacumab to existing Emergent facilities in 2020. The company plans to transfer bulk manufacturing to its Bayview facility, also known as its
This transaction, which is subject to customary closing conditions including antitrust regulatory clearance, is anticipated to close in 2017. The company expects that this transaction will be accretive upon first product delivery under the current BARDA contract, which is anticipated within three to six months from closing.
Cowen is acting as financial advisor to Emergent in this transaction.
About raxibacumab
Raxibacumab is the first monoclonal antibody approved by the
Conference Call and Webcast
Emergent will host a conference call to discuss this acquisition on
A replay of the conference call will be accessible approximately one hour following the conclusion of the call by dialing 1.855.859.2056 and using the passcode 57876640. The replay will be available through
About
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 expected closing of the transaction, the potential opportunities and financial impact of the transaction, our plans to transfer the manufacturing and fill/finish processes to our Bayview and Camden facilities, respectively, and any other statements containing the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “targets,” “forecasts,” “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 uncertainties as to the satisfaction of closing conditions with respect to the transaction, such as the timing and receipt of antitrust regulatory clearance; our ability to successfully integrate the assets and realize the benefits of the transaction; the availability of funding and the placement of delivery orders under the current BARDA contract for raxibacumab; the availability of funding and the U.S. government’s support of our plans for the transfer of the manufacturing and fill/finish processes to our Bayview and Camden facilities, respectively, and the timing thereof; and our ability to secure a follow-on, multi-year contract with the U.S. government.
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
Acknowledgment of Federal Funding
The aforementioned activities relating to raxibacumab have been funded in whole or in part with Federal funds from the
Investor Contact:Robert G. Burrows Vice President, Investor Relations 240-631-3280 BurrowsR@ebsi.com Media Contact:Lynn Kieffer Vice President, Corporate Communications 240-631-3391 KiefferL@ebsi.com