Emergent Gets Favorable IRS Private Letter Ruling On Biosciences Unit Spin-Off

(RTTNews) - Emergent BioSolutions Inc. (EBS) said that it has received a favorable private letter ruling from the Internal Revenue Service related to the planned spin-off of its biosciences business.

Subject to its terms, the ruling confirms that certain aspects of the planned transaction, including those related to the qualification of the business as an active trade or business, will not preclude the spin-off from qualifying as tax-free to Emergent and its stockholders.

Daniel Abdun-Nabi, President and Chief Executive Officer of Emergent BioSolutions stated, "Since announcing our intention to pursue a tax-free spin-off of our biosciences business last August, we have chosen Aptevo Therapeutics Inc. as the new company's name, identified its board of directors, and now received a favorable IRS ruling. These are significant milestones towards completing the spin-off. Our next steps include selecting the Aptevo senior management team, filing with and obtaining clearance from the Securities and Exchange Commission of a Form 10 Registration Statement, and completing the distribution of Aptevo shares to our stockholders, which we expect to be completed by the middle of 2016."