Emergent BioSolutions secures $250M for medical countermeasures

The U.S. Department of Health and Human Services' Administration for Strategic Preparedness and Response has modified four existing contracts with Emergent BioSolutions. The total value of these modifications exceeds $250 million, signifying an enhanced partnership between the government and Emergent BioSolutions, a long-time supplier of medical countermeasures.

The contract modifications aim to bolster the national stockpile of specific medical products in preparation for potential biological threats and emergencies. According to a press release from Emergent, the company will supply millions of doses of its adjuvanted anthrax post-exposure prophylaxis vaccine Cyfendus, its smallpox vaccine Acam2000, its vaccinia immune globulin intravenous drug product (VIGIV), and its botulism antitoxin heptavalent (BAT). These products are crucial for combating complications related to smallpox vaccination and symptomatic botulism.

One of the modifications involves a $30 million contract for Cyfendus, which builds upon an existing 10-year contract with the Biomedical Advanced Research and Development Authority. This new agreement requires the delivery of the vaccine within this year. Additionally, the $99.9 million contract modification for Acam2000 expands a 10-year agreement Emergent already has with ASPR, also requiring delivery within the current year.

The remaining $122 million from the modifications will be allocated to purchase VIGIV and BAT. These purchases are part of two new contract options under existing agreements with ASPR, with the drug supplies expected to be delivered through early 2025.

Paul Williams, the head of Emergent's products division, stated in the press release that securing multiple contract modifications with the U.S. government underscores Emergent's role as a trusted biodefense partner. He added that these agreements demonstrate the strength and sustainability of the company’s product portfolio.

In addition to these recent contract modifications, Emergent has previously secured significant agreements in the field of anthrax countermeasures. Earlier this year, the U.S. Department of Defense awarded Emergent a five-year, $235.8 million contract to supply its anthrax immunization BioThrax. This deal includes a five-year option that could extend the supply agreement until 2033. Additionally, in 2016, the company signed a $911 million agreement with the Centers for Disease Control and Prevention.

These contract updates and new agreements come at a pivotal time for Emergent BioSolutions. In May, the company’s CEO announced an organizational restructuring plan intended to save approximately $80 million annually. This restructuring involves several hundred layoffs. Moreover, Emergent recently sold a site in Baltimore to CDMO Bora Pharmaceuticals for $30 million, a move that aligns with the company's strategy to streamline its operations and focus on core competencies.

Overall, the enhanced collaboration between the U.S. government and Emergent BioSolutions highlights the critical role the company plays in national biodefense and preparedness for biological threats and emergencies.