Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — 43rd Annual J.P. Morgan Healthcare Conference (January 2025)
41 slides from Emergent Biosolutions's conference presentation, Jan 15, 2025
Slide 1: 43rd Annual J.P. Morgan Healthcare Conference
January 15, 2025 43rd Annual J.P. Morgan Healthcare Conference Joe Papa President & CEO Exhibit 99.1
Slide 2: Forward-looking statements
This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the future performance of the Company or any of our businesses, our business stra
Slide 3: About Emergent
About Emergent
Slide 4: Emergent's Executive Management Team
Joseph Papa President and Chief Executive Officer Richard Lindahl EVP, Chief Financial Officer and Treasurer Jessica Perl SVP, General Counsel and Corporate Secretary Paul Williams SVP, Products Business Coleen Glessner EVP, Quality, Ethics and Compliance Simon Lowry, M.D. Chief Medical Officer, Hea
Slide 5: 25+ Year Track Record in Public Health
25+ Year Track Record in Public Health At Emergent, our mission is to protect, enhance, and save lives. We provide solutions for complex and urgent public health threats through a portfolio of medical countermeasures and treatments that we develop, manufacture and distribute to governments and consu
Slide 6: Emergent At-a-Glance
Emergent At-a-Glance PRODUCTS BUSINESS GOVERNMENT/MCM Commercial BIOSERVICES SERVICES BUSINESS DEVELOPMENT SERVICES (DVS) DRUG SUBSTANCE (DS) DRUG PRODUCT (DP) Technology Platform Mammalian Plasma Protein Viral Smallpox ACAM2000® (Smallpox and Mpox (Vaccinia) Vaccine, Live) TEMBEXA® (brincidofovir)
Slide 7: Our Multi-Year Transformation
Our Multi-Year Transformation
Slide 8: Three-Step Transformation Plan
Three-Step Transformation Plan Key Financial Stabilization Priorities STEP 01 STEP 02 STEP 03 Turnaround - EXECUTING 2024 & 2025 focused on profitable growth and improved operating performance Enable growth and seek new opportunities aligned with our internal capabilities Elevate our business lines
Slide 9: Achieved Critical Stabilization Milestones in 2024
Achieved Critical Stabilization Milestones in 20241 Successfully Achieved Objectives Results Thru Q3 Reduced net debt versus 2023 year-end Gross debt lowered $167M, or 19%; Net debt2 lowered $206M, or 27% Refinanced debt and extended maturity New term loan $250M due 2029; satisfied prior credit faci
Slide 10: Stronger Financial Position Driven By 2024 Achievements
Stronger Financial Position Driven By 2024 Achievements1 Key Accomplishments Positive Outcomes Streamlined Business & Completed $117M of Asset Sales $75M for the sale of RSDL® to SERB $35M for the sale of Baltimore-Camden facility to Bora, plus significant headcount reduction $7M for the sale of an
Slide 11: Streamlined Toward a Leaner Site Network
Streamlined Toward a Leaner Site Network, While Maintaining Capabilities to Meet/Exceed All Customer and Product Demand PROPRIETARY AND CONFIDENTIAL
Slide 12: Strengthened Product Portfolio & Future Growth Drivers
Strengthened Product Portfolio & Future Growth Drivers
Slide 13: Expanding Naloxone Distribution with KLOXXADO Nasal Spray
New Announcement: Expanding Naloxone Distribution with KLOXXADO® Nasal Spray Secured commercial rights to KLOXXADO® Nasal Spray 8 mg from Hikma Pharmaceuticals in U.S. and Canada Broadens access, availability and distribution of intranasal naloxone to help save lives from opioid overdose Will soon b
Slide 14: Opioid Overdose Epidemic Remains Top Priority in U.S. & Canada
Opioid Overdose Epidemic Remains Top Priority in U.S. & Canada PROPRIETARY AND CONFIDENTIAL Opioid settlement $54+B flowing into states over next 10-15 years Demand for naloxone is expected to increase as the epidemic continues and federal/state programs prioritize the crisis In terms of programs th
Slide 15: NARCAN Nasal Spray – Increased Access and Awareness
NARCAN® Nasal Spray – Making Progress Through Increased Access and Awareness Efforts NARCAN® Nasal Spray Impact: Public interest channel volume is up 14% YTD vs. last year NARCAN® Nasal Spray volumes up 7% YTD Strive to offer best-in-class NARCANDirect™ distribution network; opened new West Coast Di
Slide 16: Commercial Products | Future Growth Drivers
Commercial Products | Future Growth Drivers Acquired commercial rights to KLOXXADO® Nasal Spray 8 mg naloxone product Naloxone line extensions; kitting opportunities Potential international partnership ventures; market expansion PROPRIETARY AND CONFIDENTIAL
Slide 17: U.S. Government | Preparedness Strategy
U.S. Government | Preparedness Strategy PROPRIETARY AND CONFIDENTIAL On-Going High-Risk Threat Preparedness Final FY 2024 Congressional Funding Figures Key PHEMCE Priority Threats Strategic National Stockpile (SNS) $1.015 Billion $980 Million $825 Million Administration for Strategic Preparedness &
Slide 18: Medical Countermeasures – Critical to Public Health Preparedness
Medical Countermeasures – Critical to Public Health Preparedness & Response The world is facing an ever-growing number of public health threats; WHO declares 2024 Mpox surge a ‘public health emergency of international concern.’ Trust for America's Health’s new report entitled "Blueprint for Strength
Slide 19: MCM Products | Future Growth Drivers
MCM Products | Future Growth Drivers PROPRIETARY AND CONFIDENTIAL
Slide 20: Summary Financials & 2025 Turnaround Plan
Summary Financials & 2025 Turnaround Plan
Slide 21: Significantly Improved Financial Metrics in Q3
Significantly Improved Financial Metrics in Q31, 4 $ in Millions + $377 ($98) Cash Cash $100 Revolver Availability $12 Revolver Availability $82 $250 +$168 Turned Around Operating Cash Flow2 Much Lower Net Leverage3,4 Stronger Liquidity Reduced Net Working Capital4 All financial information incorpor
Slide 22: 2025 Catalysts to Enable Growth
2025 Catalysts to Enable Growth Internal Capabilities: Mpox public health threat – ACAM2000® Emergency Use Listing with the WHO Bavarian Nordic Chikungunya approval milestone payments U.S. & International MCM orders and opportunities Business Development: KLOXXADO® Nasal Spray 8 mg nasal naloxone PR
Slide 23: Advancing Our Turnaround Plan in 2025
Advancing Our Turnaround Plan in 2025 Reinforcing the highest standards of patient safety, quality and compliance Leveraging bipartisan support to drive our business forward Enabling growth of existing segments to maintain revenue diversification Seeking new opportunities aligned to our internal cap
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: End Notes: Non-GAAP Financial Measures
In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Certain of these financial measu
Slide 27: End Notes: Non-GAAP Financial Measures (Continued)
End Notes: Non-GAAP Financial Measures (Continued) We have included the definitions of Segment Gross Margin and Segment Gross Margin %, which are GAAP financial measures, below in order to more fully define the components of certain non-GAAP financial measures presented in this presentation. We defi
Slide 28: Product Portfolio | Key Product Details
Product Portfolio | Key Product Details PROPRIETARY AND CONFIDENTIAL * Procurement based on annual options being exercised Product FDA Approved Production Contract Terms 2024 Award Current Markets NARCAN® Nasal Spray - Opioid Overdose 3rd party In-Year Procurement US | CAN ANTHRASIL® - Anthrax Winni
Slide 29: Key Financial Performance Metrics Q3 YTD 2024 vs. Q3 YTD 2023
Total Segment Adjusted Gross Margin2 Total Segment Adjusted Gross Margin %2 Key Financial Performance Metrics Q3 YTD 2024 vs. Q3 YTD 20231 Total Revenues Adjusted EBITDA2 YTD 2023 YTD 2024 YTD 2023 YTD 2024 + 10% YoY + $131M & + 1,300 bps YoY + $188M YoY 33% 46% YTD 2023 YTD 2024 ($ in millions) YTD
Slide 30: Notable Revenue Elements Q3 2024 vs. Q3 2023
Notable Revenue Elements Q3 2024 vs. Q3 20231 All financial information incorporated within this presentation is unaudited. Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with U.S. generally accepted ac
Slide 31: Key Financial Performance Metrics Q3 2024 vs. Q3 2023
Key Financial Performance Metrics Q3 2024 vs. Q3 20231 Total Revenues Adjusted EBITDA2 FINANCIALS ($ in millions) Q3 2023 Q3 2024 All financial information incorporated within this presentation is unaudited. See "End Notes: Non-GAAP Financial Measures" and "Appendix" for the definitions of non-GAAP
Slide 32: Segment Reporting Q3 2024 vs. Q3 2023
Segment Reporting Q3 2024 vs. Q3 20231 Revenue Segment Adjusted Gross Margin 2 --- Segment Adjusted Gross Margin % 2 Segment Adjusted Gross Margin 2 --- Segment Adjusted Gross Margin % 2 Revenue APPENDIX ($ in millions) COMMERCIAL PRODUCTS SEGMENT MCM PRODUCTS SEGMENT All financial information incor
Slide 33: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) - Q3
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) - Q3 2024 vs. Q3 2023 APPENDIX (unaudited, $ in millions) Three Months Ended September 30, 2024 2023 Source Net income (loss) $114.8 $(263.4) Adjustments: Non-cash amortization charges $9.7 $21.9 Amortization of intangible assets (IA)
Slide 34: Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023
Reconciliation of Net Loss to Adjusted Net Loss – YTD 2024 vs. YTD 2023 APPENDIX (unaudited, $ in millions) Nine Months Ended September 30, 2024 2023 Source Net loss $(159.3) $(711.0) Adjustments: Non-cash amortization charges $54.0 $65.0 Amortization of intangible assets (IA), Other Income Changes
Slide 35: Reconciliation of Net Income (Loss) to Adjusted EBITDA - Q3
Reconciliation of Net Income (Loss) to Adjusted EBITDA - Q3 2024 vs. Q3 2023 APPENDIX (unaudited, $ in millions) Three Months Ended September 30, 2024 2023 Net income (loss) $114.8 $(263.4) Adjustments: Depreciation & amortization $26.4 $27.9 Income taxes 27.6 (2.5) Total interest expense, net 7.7 1
Slide 36: Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023
Reconciliation of Net Loss to Adjusted EBITDA – YTD 2024 vs. YTD 2023 APPENDIX (unaudited, $ in millions) Nine Months Ended September 30, 2024 2023 Net loss $(159.3) $(711.0) Adjustments: Depreciation & amortization $82.8 $95.5 Income taxes 44.0 34.3 Total interest expense, net 54.8 59.9 Impairments
Slide 37: Reconciliations of Total Revenues to Total Segment Revenues - Q3
Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % - Q3 2024 vs. Q3 2023 APPENDIX Three Months Ended September 30, 2024 (unaudited, in millions) Co
Slide 38: Reconciliations of Total Revenues to Total Segment Revenues - YTD
Reconciliations of Total Revenues to Total Segment Revenues and of Segment and Total Segment Gross Margin and Gross Margin % to Segment and Total Segment Adjusted Gross Margin and Adjusted Gross Margin % – YTD 2024 vs. YTD 2023 APPENDIX Nine Months Ended September 30, 2024 (unaudited, in millions) C
Slide 39: Reconciliation of Total Debt to Net Debt and Net Leverage Ratio
Reconciliation of Total Debt to Net Debt1 and Leverage Ratio to Net Leverage Ratio APPENDIX (unaudited, $ in millions) As of As of As of September 30, 2024 September 30, 2023 December 31, 2023 Total debt $700.8 $866.3 $868.4 Less: Cash and cash equivalents 149.9 87.8 111.7 Net debt $550.9 $778.5 $75
Slide 40: Reconciliation of Working Capital to Net Working Capital
Reconciliation of Working Capital to Net Working Capital APPENDIX (unaudited, $ in millions) As of As of As of September 30, 2024 June 30, 2024 September 30, 2023 Working Capital $431.5 $34.8 $56.8 Less: Cash and cash equivalents 149.9 69.7 87.8 Add: Debt, current portion1 0.8 415.2 413.6 Net workin
Slide 41: Emergent
EMERGENT
Emergent BioSolutions — 43rd Annual J.P. Morgan Healthcare Conference (January 2025) on 6ix