Emergent BioSolutions Reports $190.6 Million Net Loss for Fiscal Year 2024

Emergent BioSolutions Inc. reported a net loss of $190.6 million for the fiscal year ending December 31, 2024, compared to a net loss of $760.5 million in 2023. Total revenues for 2024 were $1.04 billion, a slight 1% decrease from 2023's $1.05 billion. This decrease in overall revenue was primarily due to a significant drop in Commercial Product sales, specifically NARCAN®, which decreased by $88.6 million (18%) to $398.9 million. However, this was partially offset by increases in MCM Product sales (up 14% to $509.8 million) and Services revenue (up 34% to $104.9 million).

Significant changes compared to the previous fiscal year include a substantial reduction in operating expenses, decreasing by $623.4 million (35%) to $1.15 billion. This reduction stemmed from various factors, including the sale of the travel health business to Bavarian Nordic, the sale of the RSDL® product line to SERB Pharmaceuticals, and organizational restructuring plans that resulted in a workforce reduction of approximately 700 employees. The company also received $50 million in a settlement agreement with Janssen Pharmaceuticals, Inc. and $30 million in milestone payments related to the Bavarian Nordic transaction.

Strategic developments during the year included the divestitures mentioned above, resulting in a gain on the sale of the RSDL® business and a loss on the sale of the Baltimore-Camden Drug Product facility. The company also refinanced its credit facility, securing a $250 million term loan and a revolving credit facility of up to $100 million. Additionally, the company settled securities litigation for $40 million, with $30 million covered by insurance proceeds. The company also completed the FDA establishment registration to distribute imported convenience kits containing medical devices in the U.S. and received the MDEL in Canada to distribute similar kits.

Key operational developments included the continued growth of OTC NARCAN® Nasal Spray sales and the receipt of approximately $223 million in new U.S. government orders across several products, including ACAM2000®, VIGIV CNJ-016®, and BAT®. The company also secured the exercise of an additional option for Ebanga™. As of December 31, 2024, Emergent BioSolutions had approximately 900 employees globally, a decrease of 700 employees from the prior year.

Looking ahead to 2025, Emergent BioSolutions plans to focus on several priorities, including reinforcing patient safety and quality, leveraging bipartisan support, enabling growth in existing segments, seeking new opportunities, strategically focusing on international expansion, and elevating its business lines to meet competitive pressures. The company anticipates receiving further milestone payments from Bavarian Nordic in the first half of 2025. The company also notes several risk factors, including reduced demand for its products, inability to secure follow-on contracts, manufacturing risks, and competition from generic and branded products.