Here are 1-3 brief analogies to describe Emergent BioSolutions (EBS):

• Like a specialized Moderna or Pfizer, but intensely focused on developing and manufacturing vaccines and treatments primarily for public health emergencies and biodefense, often for government stockpiles.
• Consider them the Lockheed Martin or Northrop Grumman of biopharmaceuticals, providing critical medical countermeasures and vaccines for government biodefense and national security, rather than military hardware.
• Imagine a highly specialized version of 3M Healthcare that focuses exclusively on creating critical medical countermeasures and vaccines for government stockpiles and public health emergency response, like anthrax vaccines and opioid overdose treatments.

• NARCAN® Nasal Spray: A medication used for the emergency treatment of known or suspected opioid overdose.
• Anthrax Vaccines (BioThrax® and AV7909): Vaccines developed for the prevention of anthrax disease.
• ACAM2000® (Smallpox Vaccine): A live viral vaccine indicated for active immunization against smallpox disease.
• Botulism Antitoxin Heptavalent (BAT®): A therapeutic used for the treatment of botulism.
• Contract Development and Manufacturing Organization (CDMO) Services: Provides specialized manufacturing and development services for vaccines and therapeutics to other biopharmaceutical companies.

Major Customers of Emergent BioSolutions (EBS)

Emergent BioSolutions (EBS) primarily sells its products to government entities and other companies, particularly large pharmaceutical wholesalers and distributors. These entities then distribute the products to hospitals, pharmacies, emergency medical services, and other end-users.

The major customers include:

• U.S. Government: While not a private company, the U.S. Government, through agencies such as the Biomedical Advanced Research and Development Authority (BARDA), the Department of Defense (DoD), and the Centers for Disease Control and Prevention (CDC), is a consistent and primary customer for Emergent BioSolutions' medical countermeasure products (e.g., anthrax and smallpox vaccines).
• McKesson Corporation (Symbol: MCK): One of the largest pharmaceutical wholesalers and distributors in North America.
• Cardinal Health, Inc. (Symbol: CAH): A major global healthcare services and products company, including pharmaceutical distribution.
• Cencora, Inc. (Symbol: COR): Formerly AmerisourceBergen Corporation, it is a leading global pharmaceutical sourcing and distribution services company.

Joseph Papa President and Chief Executive Officer
Joseph Papa has over 35 years of experience in the healthcare and pharmaceutical industry. He was appointed President and CEO of Emergent BioSolutions in February 2024. Prior to joining Emergent, Mr. Papa served as CEO and Chairman at Bausch and Lomb Corporation, where he successfully led the company's IPO in May 2022, raising $630 million. Before that, he was CEO and Chairman of Bausch Health (formerly Valeant Pharmaceuticals International, Inc.). Mr. Papa also served as Chairman and CEO of Perrigo, a private-label over-the-counter pharmaceuticals manufacturer, from 2006 to 2016. He has held significant leadership positions at other companies, including President of Pharmaceutical and Technologies Services at Cardinal Health, President and Chief Operating Officer at Watson Pharmaceuticals, Chief Operating Officer of DuPont Pharmaceuticals, and Vice President of Marketing at Novartis Pharmaceuticals. He also previously served on the board of directors of Prometheus Biosciences until its sale to Merck in 2023.

Richard S. Lindahl Executive Vice President, Chief Financial Officer, and Treasurer
Richard S. Lindahl joined Emergent BioSolutions in March 2018. Before his tenure at Emergent, Mr. Lindahl served as the Chief Financial Officer at CEB Inc., a best practice insight and technology company, for eight years, where he was instrumental in developing the finance organization and supporting growth that led to a four-fold increase in market capitalization. His extensive financial career also includes roles as Senior Vice President and Treasurer of Sprint Nextel Corporation, and Vice President and Treasurer of Nextel Communications, Inc. He also held various finance and management positions at Nextel, Pocket Communications, Inc., MCI Communications Corp., Deloitte & Touche LLP, and Casher Associates, Inc.

Coleen Glessner Executive Vice President Quality and Ethics and Compliance

Simon Lowry, M.D. Chief Medical Officer, Head of Research and Development

Paul Williams Senior Vice President, Products Business
Paul Williams is described as an inspiring and strategic executive leader with an extensive career in healthcare and pharmaceuticals, dedicated to driving change in how global public health threats, including infectious diseases and substance use disorders, are prevented and treated.

Emergent BioSolutions (EBS) faces several significant risks to its business operations and financial stability:

1. Reliance on Government Contracts and Revenue Volatility: A primary risk for Emergent BioSolutions stems from its substantial dependence on government contracts for its medical countermeasures, such as those for anthrax, smallpox, and opioid overdoses. This reliance leads to considerable revenue volatility and uncertainty. Changes in government procurement priorities, reductions in funding, or the failure to renew key contracts could severely impact the company's revenue streams.
2. Manufacturing and Quality Control Issues: Emergent BioSolutions has a documented history of significant manufacturing and quality control problems. Notably, issues at its Baltimore facility included the accidental mixing of COVID-19 vaccine ingredients, leading to widespread contamination, a halt in production by the FDA, the destruction of millions of vaccine doses, and the cancellation of a major government contract. These past issues have resulted in substantial financial penalties, a significant drop in stock price, and shareholder lawsuits, highlighting ongoing operational risks.
3. High Debt and Liquidity Concerns: The company is described as "heavily indebted," with concerns regarding "onerous debt repayments." A high debt-to-equity ratio and potential liquidity challenges pose a risk to the company's financial flexibility and its ability to fund operations and future growth initiatives. Missed revenue and income targets could further endanger the company's financial future.

Emergent BioSolutions (EBS) faces the following clear emerging threats:

• **Opvee (nalmefene HCl) nasal spray by Indivior:** Approved by the FDA in May 2023, Opvee is a novel opioid overdose reversal medication that competes directly with NARCAN®. While NARCAN® uses naloxone, Opvee utilizes nalmefene, offering an alternative mechanism for the emergency treatment of opioid overdose. This introduces a new, distinct therapeutic option into the market that could capture market share from NARCAN®.
• **RiVive (naloxone HCl) nasal spray by Harm Reduction Therapeutics (HRT):** Approved by the FDA for over-the-counter (OTC) use in July 2023, RiVive is a direct OTC competitor to NARCAN® (which also transitioned to OTC in March 2023). Its emergence means NARCAN® now faces immediate OTC competition from another naloxone product, which could lead to market share erosion and pricing pressure in the accessible, non-prescription market.

• NARCAN® (naloxone HCl) Nasal Spray:
  • The U.S. naloxone market is estimated to be valued at approximately USD 607.7 million in 2025 and is projected to reach USD 1,215.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 10.4% from 2025 to 2032. North America is the largest market for naloxone, with the U.S. accounting for approximately 80% of the market share.
  • Globally, the naloxone market is estimated at approximately USD 1.45 billion in 2025 and is projected to grow to USD 3.407 billion by 2035, with a CAGR of 8.92% during the forecast period of 2025-2035. Another estimate places the global market at USD 1.33 billion in 2024, expected to reach USD 3.48 billion by 2035 at a CAGR of 9.15% between 2025 and 2035.
• Anthrax Medical Countermeasures (MCMs) (e.g., BioThrax®, CYFENDUS®, Anthrasil®, Raxibacumab):
  • The addressable market for these products is primarily defined by government procurement and stockpiling efforts, particularly by the U.S. government.
  • For BioThrax®, contracts with the U.S. government have been substantial, including a previous contract of about $911 million through September 2021 for the Strategic National Stockpile (SNS) and an indefinite-delivery, indefinite-quantity (IDIQ) contract worth up to $235.8 million over five years (ending September 30, 2028) with the U.S. Department of Defense.
  • CYFENDUS® received a $30 million contract modification from the U.S. government.
  • The broader global biodefense market, which includes various countermeasures for biological threats, is valued at USD 18.80 billion in 2025 and is projected to reach USD 37.78 billion by 2035, growing at a CAGR of 7.3%. The U.S. remains a leader in biodefense investments.
• Smallpox/Mpox Medical Countermeasures (MCMs) (e.g., ACAM2000®, CNJ-016® (VIGIV), TEMBEXA®):
  • Similar to anthrax countermeasures, the market for these products is predominantly driven by government contracts for strategic national stockpiles.
  • ACAM2000® has been part of significant contracts, including a U.S. government contract worth approximately $2 billion over 10 years (starting in 2019). More recently, Emergent secured approximately $400 million in orders for its vaccinia, smallpox, and mpox product portfolio (including ACAM2000® and VIGIV) in 2024 and 2025 from the U.S. government. Projected sales for ACAM2000® and ancillary products are expected to exceed $120 million in 2025 from diverse customers in the U.S., Canada, Australia, and Singapore.
  • CNJ-016® (VIGIV) also received a $51.9 million contract modification from the U.S. government in 2025 for biodefense preparedness.
  • TEMBEXA® secured a $17 million contract from the U.S. Biomedical Advanced Research and Development Authority (BARDA).
  • These products also fall under the broader global biodefense market.
• Botulism Medical Countermeasures (e.g., Botulism Antitoxin Heptavalent - BAT®):
  • The global botulism market size is expected to be around USD 7.1 billion in 2022 and is projected to reach approximately USD 13.5 billion by 2032, growing at a CAGR of 6.8% during the forecast period of 2023-2032. The anti-toxin segment is a dominant part of this market.
  • Emergent BioSolutions secured a $62.4 million contract modification for BAT® from the U.S. Administration for Strategic Preparedness and Response (ASPR) for U.S. stockpiling purposes in 2025. In 2024, the U.S. Department of Health and Human Services allocated $28 million for botulism countermeasure procurement and maintenance for the Strategic National Stockpile.
• Contract Development and Manufacturing Organization (CDMO) Services:
  • The global biologics CDMO market size is estimated at approximately USD 25.32 billion in 2025 and is forecast to reach USD 36.51 billion by 2030, growing at a CAGR of 7.59%. Other estimates suggest the global biologics CDMO market could reach around USD 92.37 billion by 2034.
  • The U.S. biologics CDMO market was estimated at USD 5.53 billion in 2024 and is projected to reach around USD 23.60 billion by 2034, with a CAGR of 15.62% from 2025 to 2034.
  • The overall global CDMO market (including small molecules) is estimated to be approximately $220 billion USD in 2025. It is expected to grow from $136.6 billion in 2024 to $191.6 billion by 2029, at a CAGR of 7.0%.

1. Continued Growth of Naloxone Products (NARCAN and KLOXXADO): Emergent BioSolutions anticipates sustained revenue from its naloxone franchise, particularly NARCAN Nasal Spray, where it maintains market leadership. Despite some fluctuations, the company has reported sequential growth in NARCAN unit volume and revenue. The addition of KLOXXADO (naloxone HCI) Nasal Spray, a higher-dose option, also contributes to this segment's growth potential.
2. Expansion of Medical Countermeasures (MCM) and International Sales: The company is focused on its Medical Countermeasures business, which includes products like anthrax and smallpox vaccines. International sales for MCMs have been a significant growth driver in 2025, representing a meaningfully higher percentage of total MCM sales compared to previous years. Emergent is actively engaged in contract negotiations and securing additional product orders with international government partners, bolstering its global presence.
3. New and Modified Government Contracts: Emergent BioSolutions has consistently secured new U.S. government contracts and modifications, as well as orders from international government partners, for its biodefense products. These contracts provide a stable and recurring revenue stream for its MCM segment. For instance, the company secured approximately $155 million in new U.S. government contracts and an incremental $29 million in MCM product orders with an international government partner in Q3 2025 alone.

Share Repurchases

• Emergent BioSolutions authorized a new share repurchase program of up to $50 million on March 31, 2025, slated for completion by March 27, 2026.
• The company repurchased $82.1 million in shares during 2022.
• Year-to-date through Q3 2025, the company repurchased $15.8 million of common stock, including $6.9 million in Q2 2025.

Share Issuance

• No significant dollar amounts of new share issuances for capital raising were identified within the last 3-5 years.

Inbound Investments

• In 2025, Emergent BioSolutions secured new purchase orders valued at $29 million from an international government partner for medical countermeasures, with approximately $26 million expected to be received in 2025.
• The company received a $56 million contract modification to supply ACAM2000 vaccine to the U.S. government and a $17 million contract modification for TEMBEXA oral suspension in 2025.
• In 2024, Emergent was awarded a $50 million contract option for CYFENDUS® Anthrax Vaccine.

Outbound Investments

• In Q2 2025, the company acquired the U.S. and Canada commercial rights for KLOXXADO Nasal Spray 8 mg.
• Emergent BioSolutions finalized the sale of its Baltimore-Camden drug product facility to Bora Pharmaceuticals in August 2024, receiving approximately $30 million at closing.
• The company sold its Travel Health business in the second quarter of 2023.

Capital Expenditures

• Capital expenditures for Q1 2024 were $10.8 million, a 28% decrease from $15.1 million in Q1 2023, largely due to lower product development activities across the company's facilities.
• For Q4 2024, capital expenditures decreased primarily due to lower development activities across the company's facilities.
• The company's strategic plans for 2020-2024 and 2023-2025 have focused on investing in existing manufacturing sites to strengthen operational systems and build scalable capabilities.