Emergent BioSolutions Bags 5-year Contract To Supply BioThrax To U.S. Defense Dept.

(RTTNews) - Drug manufacturer, Emergent BioSolutions Inc. (EBS) announced on Thursday that it has secured an indefinite-delivery, indefinite-quantity, or IDIQ procurement contract worth up to $235.8 million to supply BioThrax to the U.S. Department of Defense for five years ending on September 30, 2028.

The company said that BioThrax will be used as Pre-Exposure Prophylaxis for anthrax disease by the U.S. military.

The contract, which is led by the Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense, can be extended further for an additional five-year period ending on September 30, 2033.

The company further stated that the initial five-year contract requires a guaranteed purchase of a minimum value of $20.1 million along with at least $20 million worth of purchases for each following year in the future.

In the pre-market activity, Emergent's stock is gaining 5.07%, to $2.28 from previous close of $2.17 on the New York Stock Exchange.