Emergent BioSolutions Reports Prelim. 2022 Results; Announces Organizational Changes

(RTTNews) - Emergent BioSolutions (EBS) said it expects fiscal 2022 adjusted net loss of $90 million to $70 million, compared to 2021 adjusted net income of $325.7 million. Prior guidance range was a loss of $100 million to $70 million.

Adjusted EBITDA is anticipated in a range of $20 million to $40 million, a decrease at the midpoint of $487.6 million or 94% as compared to 2021.

Total revenues are expected to be in the range of $1.10 billion to $1.12 billion, a decrease at the midpoint of 38% as compared to 2021. The prior guidance range for revenues was $1.05 billion to $1.10 billion.

Emergent BioSolutions also announced a sharpened strategic focus on protecting and enhancing life through its core businesses, consisting of medical countermeasures and commercial products, including NARCAN Nasal Spray, as well as contract development and manufacturing services. The company announced organizational changes as part of sharpened strategic focus. This includes the elimination of 132 roles related to the S&D consolidation and other organizational changes representing approximately 5% of the current corporate workforce.

Emergent BioSolutions said the actions, in combination with other cost reduction initiatives, are expected to result in annualized savings of over $60 million when fully implemented. The costs associated with these actions are estimated to be approximately $9 million - $11 million and are anticipated to be incurred in the first quarter of 2023.