Emergent Biosolutions Inc. · NYSE:EBS
Emergent Biosolutions — 42nd Annual J.P. Morgan Healthcare Conference 2024
28 slides from Emergent Biosolutions's conference presentation, Jan 9, 2024
Slide 1: 42nd Annual J.P. Morgan Healthcare Conference January 2024
42nd Annual J.P. Morgan Healthcare Conference January 2024 Haywood Miller Interim CEO Rich Lindahl CFO
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 our business strategy, future operations
Slide 3: Non-GAAP financial measures
This presentation contains financial measures (Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted Gross Margin, Adjusted Gross Margin %, Adjusted Revenues, and Adjusted Cost of Sales) that are considered “non-GAAP” financial measures under applicable Securitie
Slide 4: About Emergent
About Emergent 4
Slide 5: Our Leadership in Public Health
• At Emergent, our mission is simple – to protect and enhance life • For 25 years, we’ve been at work helping protect people from things we hope will never happen—so we are prepared, just in case they ever do • We provide solutions for complex and urgent public health threats through a portfolio of
Slide 6: Emergent At-a-Glance
Emergent At-a-Glance 6 PUBLIC HEALTH THREAT PREPAREDNESS AND RESPONSE SOLUTIONS PRODUCTS BUSINESS G O V E R N M E N T / M C M C O M M E R C I A L C O N T R A C T D E V E L O P M E N T & M A N U F A C T U R I N G ( C D M O ) BIOSERVICES BUSINESS A N T H R A X (VACCINES AND THERAPEUTICS) S M A L L P O
Slide 7: 2023 Key Milestones
2023 Key Milestones 7 Strengthened Portfolio • Launched NARCAN® Nasal Spray over-the-counter opioid reversal treatment • New $379.6 million U.S. Dept. of Defense contract for RSDL® • Received U.S. FDA approval of CYFENDUS® (formerly AV7909), a two-dose anthrax vaccine for post-exposure prophylaxis u
Slide 8: Our Products Business
PROPRIETARY AND CONFIDENTIAL 8 Our Products Business
Slide 9: Our Products
Our Products 9 *EbangaTM is a trademark of RIDGEBACK BIOTHERAPEUTICS L.P. **The Trobigard Auto-injector is approved by the Federal Agency for Medicines and Health Products of Belgium. It is not approved by the U.S. Food and Drug Administration or the health regulatory authority of any other jurisdic
Slide 10: State of the Opioid Crisis & Our Response
State of the Opioid Crisis & Our Response 10 • Drug overdose deaths have reach record levels – more than 109,000 deaths in 2022.¹ • In 2022, approximately one life was lost every seven minutes due to opioid overdose. Today it is the leading cause of accidental death in the U.S.¹ • More than 64 milli
Slide 11: OTC Designation for NARCAN Nasal Spray
OTC Designation for NARCAN® Nasal Spray 11 • Began shipping hundreds of thousands of two-dose cartons of NARCAN® Nasal Spray to retailers nationwide in August • Announced suggested MSRP of $44.99 and lowered public interest price to $41 per two-dose carton • Widespread availability across 32,000 loc
Slide 12: Bioservices Business
PROPRIETARY AND CONFIDENTIAL 12 Bioservices Business
Slide 13: Bioservices Overview
13 Contract Development & Manufacturing (CDMO) offerings: Development services Drug substance Drug product & packaging Mammalian Plasma Protein Viral Technology Platforms: Bioservices Overview Molecule-to-market drug substance and drug product development and manufacturing services to biopharma inno
Slide 14: Emergent Financial Results
EMERGENT Financial Results
Slide 15: Notable Revenue Elements Q3 2023 vs. Q3 2022
Notable Revenue Elements Q3 2023 vs. Q3 20221 15 ($ in millions) 1. All financial information incorporated within this presentation is unaudited. 2. Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with U
Slide 16: Key Financial Performance Metrics Q3 2023 vs. Q3 2022
Key Financial Performance Metrics Q3 2023 vs. Q3 2022 16 R&D $ --- R&D Margin %1 SG&A $ --- SG&A Margin %2 Adjusted Corporate Gross Margin3 Corporate Gross Margin ($ in millions) 21% 8% 33% 1. R&D Margin is calculated as Gross R&D Expense divided by Total Revenues. 2. SG&A Margin is calculated as Gr
Slide 17: Segment Reporting Q3 2023 vs. Q3 2022
Segment Reporting Q3 2023 vs. Q3 20221 17 Revenue Adjusted Gross Margin2 --- Adjusted Gross Margin2 % Adjusted Gross Margin2 --- Adjusted Gross Margin2 % Revenue ($ in millions) PRODUCTS SEGMENT SERVICES SEGMENT 62% 56% 1. For additional detail related to the method and specific inputs by which both
Slide 18: Balance Sheet & Cash Flow Metrics
Balance Sheet & Cash Flow Metrics 18 As of September 30, 2023 For the Nine Months Ended September 30, 2023 CASH $87.8 ACCOUNTS RECEIVABLE, NET $216.5 INVENTORIES, NET $354.1 TOTAL DEBT1 $866.3 NET DEBT2 $778.5 CASH USED IN OPERATING ACTIVITIES $(238.4) CASH PROVIDED BY INVESTING ACTIVITIES $223.7 CA
Slide 19: Historical Revenues 2017-2023
Historical Revenues — 2017-2023 ($ IN MIL L IONS) $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2017 2018 2019 2020 2021 2022 2023F PRODUCTS CDMO C&G $561 $782 $1,106 $1,555 $1,793 $1,050 1 $1,121 • Continued focus on Core Products (MCM & NARCAN® Nasal Spray) • De-emphasis on CDMO
Slide 20: 2023 Guidance
2023 Guidance – Consistent with Q3 Earnings on 11/8/23 1. See the Appendix for the "Reconciliation of Loss before income taxes to Adjusted EBITDA" and "Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gros
Slide 21: Key Takeaways
Continued to achieve important milestones across our Products business • Significant opportunities to expand access and increase awareness of NARCAN® Nasal Spray • Increased demand – seeking preparedness for threat of opioid overdoses • Expanded addressable market through OTC availability • Continue
Slide 22: Appendix
22 Appendix
Slide 23: Reconciliation of Loss before Income Taxes to Adjusted EBITDA Q3 2023
Reconciliation of Loss before Income Taxes to Adjusted EBITDA – Q3 2023 vs. Q3 2022 23 APPENDIX ($ in millions) Three Months Ended September 30, 2023 2022 Loss before income taxes $ (265.9) $ (67.2) Adjustments: Depreciation & amortization $ 27.9 $ 32.2 Total interest expense, net 19.4 7.9 Impairmen
Slide 24: Reconciliation to Adjusted EBITDA FY 2023 Forecast
Reconciliation of Loss before Income Taxes to Adjusted EBITDA – FY 2023 Forecast 24 APPENDIX ($ in millions) 2023 Full Year Forecast Loss before income taxes $(726) - $(626) Adjustments: Depreciation & amortization $122 Total interest expense, net 81 Impairments 525 Inventory step-up provision 2 Sev
Slide 25: Reconciliation of Revenues and Gross Margin Q3 2023
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q3 2023 vs. Q3 2022 25 APPENDIX ($ in millions) Three Months Ended September 30, 2023 2022 Total revenues $ 270.5
Slide 26: Reconciliation of Revenues and Gross Margin FY 2023 Forecast
Reconciliation of Total Revenues to Adjusted Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – FY 2023 Forecast 26 APPENDIX ($ in millions) 2023 Full Year Forecast Total Revenues $1,000 - $1,100 Contracts and
Slide 27: Segment Level Reconciliation Q3 2023
Reconciliation of Segment Level (Products and Services) Revenues, Cost of Sales to Adjusted Cost of Sales, and Gross Margin and Gross Margin % to Adjusted Gross Margin and Adjusted Gross Margin % – Q3 2023 vs. Q3 2022 27 APPENDIX ($ in millions) Products Services Quarter Ended September 30, Quarter
Slide 28: www.emergentbiosolutions.com
www.emergentbiosolutions.com 28
Emergent BioSolutions — 42nd Annual J.P. Morgan Healthcare Conference 2024 on 6ix