Emergent BioSolutions To Cut Operations, Plans 400 Job Cuts; COO Adam Havey To Leave

(RTTNews) - Emergent BioSolutions (EBS) announced plans to reduce operations at certain of its facilities that will result in the reduction of 400 jobs. The company plans to reduce investment in and de-emphasizing focus on growth in its CDMO services business.

As a result of the strategic shift away from services business, Emergent said it is eliminating the chief operating officer role, and Adam Havey, executive vice president and current COO, will be leaving the company on September 30.

Bill Hartzel, senior vice president and head of bioservices, will assume responsibility for manufacturing operations and will join the executive management team reporting to the interim CEO.

Under the latest initiatives, the company said is reducing operations at its Bayview facility in Baltimore, Maryland.

Emergent will also reduce operations at its facility in Canton, Massachusetts, which will also result in a small reduction in operations at the company's Rockville, Maryland, drug product facility. The action in Canton plant is in response to changes in the volume of U.S. government procurements of medical countermeasures.

These strategic actions will result in a reduction of around 400 employees across all areas. The costs associated with these actions would be around $19 million to $21 million, which would be incurred in the third quarter.

The new actions, in combination with other cost reduction initiatives, would result in annualized savings of over $100 million when fully implemented.

Going forward, the company will focus on its core products business, on medical countermeasures and NARCAN Nasal Spray. It will also focus on delivering for its existing customers, including the U.S. and allied governments.

Emergent said it will maintain a level of operations at both Bayview and Canton to ramp up production in response to new demand.

Paul Williams, senior vice president, products, said, "Our focus is in the areas in which we are uniquely equipped to have a positive impact. We remain committed to partnering with the U.S. and allied governments to help address public health threats including anthrax, smallpox, and Ebola while also successfully increasing access to NARCAN Nasal Spray as an over-the-counter treatment to help address America's opioid overdose epidemic and give people in crisis a second chance."

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