Emergent BioSolutions Reports Financial Results for Second Quarter and First Six Months of 2012
Emergent BioSolutions Inc.Robert G. BurrowsVice President, Investor Relations301-795-1877orTracey SchmittVice President, Corporate Communications301-795-1800
Emergent BioSolutions Inc. (NYSE: EBS) announced today its financial results for the second quarter and six months ended June 30, 2012.
Total revenues for Q2 and the first six months of 2012 were $70.4 million and $120.7 million, respectively. Net income for Q2 2012 was $7.6 million, or $0.21 per basic share. Net income for the first six months of 2012 was $0.8 million or $0.02 per share.
The company also provided a forecast for Q3 2012 revenues of $60 to $70 million and reaffirmed its full year 2012 guidance for total revenues of $280 to $300 million and net income of $15 to $25 million.
Daniel J. Abdun-Nabi, president and chief executive officer of Emergent BioSolutions, said, “The performance of our business during the second quarter and first half of 2012 was in line with expectations. We look forward to building on our year-to-date success and anticipate achieving key milestones in the near term, including — completing Building 55 consistency lot manufacture, reviewing preliminary efficacy data from our TB vaccine Phase IIb infant trial, concluding enrollment in our TRU-016 Phase II CLL combination study, and presenting data from our TRU-016 Phase Ib NHL combination study and Phase Ib CLL combination study.”
For Q2 2012, product sales were $53.2 million, a decrease from $71.5 million for Q2 2011. This decrease was primarily due to fewer doses of BioThrax delivered.
For the six month period of 2012, product sales were $87.5 million, an increase from $77.1 million in the comparable period of 2011. This increase was primarily due to more doses of BioThrax delivered, partially offset by a lower sales price per dose. Product sales revenues for the six month period of 2012 included BioThrax sales to HHS of $87.3 million.
For Q2 2012, contracts and grants revenues were $17.2 million, an increase from $16.7 million for Q2 2011.
For the six month period of 2012, contracts and grants revenues were $33.2 million, an increase from $29.6 million in the comparable period of 2011. This increase in both periods was primarily due to increased activity and associated revenue from the company’s development contracts.
For Q2 2012, cost of product sales was $13.2 million, a decrease from $16.1 million for Q2 2011. This decrease was attributable to fewer doses of BioThrax delivered.
For the six month period of 2012, cost of product sales were $20.7 million, an increase from $17.1 million in the comparable period of 2011. This increase was primarily attributable to the increase in the number of BioThrax doses delivered.
For Q2 2012, research and development expenses were $30.6 million, a decrease from $31.5 million for Q2 2011. Net of development contracts and grants revenue along with the net loss attributable to non-controlling interests, research and development expenses were $11.3 million for Q2 2012, a decrease from $13.1 million for the comparable period in 2011.
For the six month period of 2012, research and development expenses were $56.9 million, a decrease from $66.2 million in the comparable period of 2011. This decrease primarily reflects lower contract service and personnel-related costs. Net of development contracts and grants revenue along with the net loss attributable to non-controlling interests, research and development expenses were $20.4 million for Q2 2012, a decrease from $33.2 million for the comparable period in 2011.
For Q2 2012, selling, general and administrative expenses were $17.9 million, a decrease from $20.4 million for Q2 2011.
For the six month period of 2012, selling, general and administrative expenses were $37.4 million, a decrease from $38.6 million in the comparable period of 2011. This decrease in both periods was primarily due to charges incurred in 2011 related to the restructuring of the company’s UK operations.
Cash and cash equivalents combined with investments at June 30, 2012 was $161.8 million, compared to $150.4 million at March 31, 2012 and $145.9 million at December 31, 2011. Additionally, at June 30, 2012, the accounts receivable balance was $46.8 million, which is comprised primarily of unpaid amounts due for shipments of BioThrax to the US government.
For Q3 2012, the company anticipates total revenues of $60 to $70 million.
For full year 2012, the company is reaffirming its forecast of total revenues of $280 to $300 million, split between product sales of $220 to $230 million and contracts and grants revenue of $60 to $70 million. The company also reaffirms its forecast of net income of $15 to $25 million.
Company management will host a conference call at 5:00 pm Eastern on August 2, 2012 to discuss these financial results. The conference call will be accessible by dialing or (international) and providing passcode . A webcast of the conference call will be accessible from the company’s website at , under “Investors”. A replay of the conference call will be accessible, approximately two hours following the conclusion of the call, by dialing 888/286-8010 or 617/801-6888 and using passcode 35599950. The replay will be available through August 16, 2012. The webcast will be archived on the company’s website, , under “Investors”.
Emergent BioSolutions protects and enhances life by developing and manufacturing vaccines and therapeutics that are supplied to healthcare providers and purchasers for use in preventing and treating disease. Our marketed and investigational products target infectious diseases, oncology and autoimmune disorders. Additional information about us may be found at . Follow us on twitter: @emergentbiosolu.
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 our expected revenue growth and net earnings for full year 2012, and our expected revenue for Q3 2012, and any other statements containing the words “believes”, “expects”, “anticipates”, “plans”, “estimates” and similar expressions, are forward-looking statements. Such statements are based upon the current beliefs and expectations of management that are subject to risks, uncertainties and other 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 procurement; our ability to obtain new BioThrax sales contracts or modifications to existing contracts; our plans to pursue label expansions and improvements for BioThrax; our ability to perform under our current development contracts with the U.S. government; our plans to expand our manufacturing facilities and capabilities, including our ability to develop and obtain regulatory approval for manufacturing of BioThrax in our large-scale vaccine manufacturing facility in Lansing, Michigan; our ability to perform under our contract with the U.S. government to establish a Center for Innovation in Advanced Development and Manufacturing; the rate and degree of market acceptance of our products and product candidates; the success of preclinical studies and clinical trials of our product candidates and post-approval clinical utility of our products; the potential benefits of our existing collaborations and our ability to selectively enter into additional collaborative arrangements; the extent to which our licensing and acquisition activities are complementary to the company’s existing business and whether anticipated synergies and benefits are realized within expected time periods; our ability to identify and acquire or in-license products and product candidates; ongoing and planned development programs, preclinical studies and clinical trials; the timing of and our ability to obtain and maintain regulatory approvals for our 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, Quarterly Reports on Form 10-Q and subsequent reports filed with the SEC. Except as required by law, the company does not undertake any obligation to update any forward-looking statements as a result of new information, events or circumstances occurring after the date of this press release.