Emergent BioSolutions (EBS) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Emergent BioSolutions Inc.
Entity Central Index Key	1,367,644
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		38,943,247
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 308,718	$ 280,499
Accounts receivable	57,037	58,834
Inventories	80,070	65,674
Deferred tax assets, current portion, net	1,483	1,710
Income tax receivable, net	3,433	1,357
Prepaid expenses and other current assets	22,749	24,101
Total current assets	473,490	432,175
Property, plant and equipment, net	327,643	313,979
In process research and development	42,501	60,628
Intangible assets, net	59,738	58,344
Goodwill	52,585	52,585
Deferred tax assets, long-term portion, net	13,747	12,764
Other assets	6,844	8,216
Total assets	976,548	938,691
Current liabilities:
Accounts payable	41,248	40,930
Accrued expenses and other current liabilities	4,214	6,274
Accrued compensation	30,089	31,654
Contingent consideration, current portion	2,490	6,487
Provision for chargebacks	1,950	2,246
Deferred revenue	8,734	5,345
Total current liabilities	88,725	92,936
Contingent consideration, net of current portion	22,271	34,599
Long-term indebtedness	253,000	251,000
Deferred revenue, net of current portion	5,987	5,713
Other liabilities	1,253	1,242
Total liabilities	$ 371,236	$ 385,490
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at both September 30, 2015 and December 31, 2014	$ 0	$ 0
Common stock, $0.001 par value; 100,000,000 shares authorized, 39,305,269 shares issued and 38,885,080 shares outstanding at September 30, 2015; 38,129,872 shares issued and 37,709,683 shares outstanding at December 31, 2014	39	38
Treasury stock, at cost, 420,189 common shares at both September 30, 2015 and December 31, 2014	(6,320)	(6,320)
Additional paid-in capital	297,953	274,222
Accumulated other comprehensive loss	(4,152)	(3,008)
Retained earnings	317,792	288,269
Total stockholders' equity	605,312	553,201
Total liabilities and stockholders' equity	$ 976,548	$ 938,691

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	39,305,269	38,129,872
Common stock, shares outstanding (in shares)	38,885,080	37,709,683
Treasury stock ( in shares)	420,189	420,189

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Product sales	$ 123,953	$ 84,457	$ 224,267	$ 198,493
Contract manufacturing	11,341	9,433	32,443	21,346
Contracts, grants and collaborations	29,646	44,064	97,975	82,324
Total revenues	164,940	137,954	354,685	302,163
Operating expenses:
Cost of product sales and contract manufacturing	38,511	32,423	84,525	85,927
Research and development	41,868	44,207	121,511	111,864
Selling, general and administrative	31,556	30,292	102,502	90,936
Income from operations	53,005	31,032	46,147	13,436
Other income (expense):
Interest income	104	59	459	130
Interest expense	(1,635)	(1,810)	(4,923)	(7,066)
Other income, net	602	420	205	2,254
Total other expense, net	(929)	(1,331)	(4,259)	(4,682)
Income before provision for income taxes	52,076	29,701	41,888	8,754
Provision for income taxes	15,134	7,869	12,365	2,129
Net income	$ 36,942	$ 21,832	$ 29,523	$ 6,625
Net income per share - basic	$ 0.95	$ 0.58	$ 0.77	$ 0.18
Net income per share-diluted	$ 0.79	$ 0.49	$ 0.69	$ 0.17
Weighted-average number of shares - basic (in shares)	38,831,341	37,507,220	38,423,715	37,261,357
Weighted-average number of shares - diluted (in shares)	47,784,550	46,557,163	46,958,179	37,885,194

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net income	$ 36,942	$ 21,832	$ 29,523	$ 6,625
Foreign currency translations, net of tax	(495)	(559)	(1,144)	(345)
Comprehensive income	$ 36,447	$ 21,273	$ 28,379	$ 6,280

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 29,523	$ 6,625
Adjustments to reconcile to net cash provided by (used in) operating activities:
Stock-based compensation expense	11,802	9,454
Depreciation and amortization	25,859	24,286
Income taxes	15,904	1,817
Change in fair value of contingent consideration	(10,898)	3,216
Write off of debt issuance costs	0	1,831
Impairment of in-process research and development	9,827	0
Excess tax benefits from stock-based compensation	(8,002)	(5,566)
Other	197	541
Changes in operating assets and liabilities:
Accounts receivable	1,749	36,106
Inventories	(14,396)	4,729
Income taxes	(22,707)	(4,447)
Prepaid expenses and other assets	1,010	(10,845)
Accounts payable	1,902	(11,176)
Accrued expenses and other liabilities	(2,060)	1,026
Accrued compensation	(1,688)	(208)
Provision for chargebacks	(296)	(308)
Deferred revenue	3,663	3,416
Net cash provided by operating activities	41,389	60,497
Cash flows from investing activities:
Purchases of property, plant and equipment	(33,631)	(14,621)
Acquisition of Cangene Corporation, net of acquired cash	0	(178,167)
Net cash used in investing activities	(33,631)	(192,788)
Cash flows from financing activities:
Proceeds from convertible debenture, net of debt issuance costs	0	241,654
Proceeds from other long-term debt obligations	2,000	1,000
Issuance of common stock upon exercise of stock options	15,902	10,656
Excess tax benefits from stock-based compensation	8,002	5,566
Principal payments on long-term indebtedness	0	(62,000)
Contingent obligation payments	(5,427)	(1,691)
Net cash provided by financing activities	20,477	195,185
Effect of exchange rate changes on cash and cash equivalents	(16)	17
Net increase in cash and cash equivalents	28,219	62,911
Cash and cash equivalents at beginning of period	280,499	179,338
Cash and cash equivalents at end of period	$ 308,718	$ 242,249

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Sep. 30, 2015
Summary of significant accounting policies [Abstract]
Summary of significant accounting policies	1. Summary of significant accounting policies Basis of presentation and consolidation The accompanying unaudited consolidated financial statements include the accounts of Emergent BioSolutions Inc. (the "Company" or "Emergent") and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited consolidated financial statements are of a normal recurring nature, and are necessary to present fairly the financial position of the Company as of September 30, 2015; the results of operations and comprehensive income for the three and nine months ended September 30, 2015 and 2014; and cash flows for the nine months ended September 30, 2015 and 2014. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. During the nine months ended September 30, 2015, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2015
Acquisitions [Abstract]
Acquisitions	2. EV-035 series of molecules On December 17, 2014, the Company acquired the EV-035 series of molecules from Evolva Holding SA ("Evolva") for $1.5 million in cash along with contingent value right obligations to Evolva. The EV-035 series is a group of novel small molecule broad spectrum antibiotics of the 4-oxoquinolizine class and targets bacterial type IIa topoisomerase. The lead molecule in the series, GC-072, had demonstrated protection in vivo B. pseudomallei B. pseudomallei B. pseudomallei The contingent value rights to Evolva are based on the novation of the DTRA contract ($4.0 million) along with the achievement of certain development ($15.0 million) and regulatory filing ($50.0 million) milestones. In addition, the Company is required to make sales-based royalty payments of between 5% - 10% through December 2036, based on levels of annual net sales. During the first half of 2015, based on facts that existed at the date of acquisition, the Company obtained additional information and analysis and recast the fair value of the total purchase consideration transferred to Evolva via a measurement period adjustment, as follows. (in thousands) Purchase Price Measurement Period Adjustment Recast Purchase Price Amount of cash paid to Evolva Holding SA $ 1,500 $ - $ 1,500 Fair value of contingent consideration 28,200 (6,571 ) 21,629 Total purchase price $ 29,700 $ (6,571 ) $ 23,129 In conjunction with the revision to the total purchase price and based on this same information and analysis, the Company has recast its estimates of the fair value of the in-process research and development ("IPR&D") asset attributed to the EV-035 series of molecules, via a measurement period adjustment through June 30, 2015. The table below summarizes the recast allocation of the purchase price based upon fair values of assets acquired. (in thousands) Purchase Price Allocation Measurement Period Adjustment Recast Purchase Price Allocation Acquired in-process research and development assets $ 27,700 $ (17,172 ) $ 10,528 Goodwill 2,000 10,601 12,601 Total purchase price $ 29,700 $ (6,571 ) $ 23,129 The recast fair value was determined using the income approach, which discounts expected future cash flows to present value. The Company estimated the fair value using a discount rate of 12%. The Company believes this rate is comparable to the estimated internal rate of return for the acquisition and represents the rate that market participants would use to value this IPR&D asset. The projected cash flows for EV-035 series of molecules were based on key assumptions including: estimates of revenues and operating profits considering its stage of development on the acquisition date; the time and resources needed to complete the development and approval of the product candidate; the life of the potential commercialized product and associated risks, including the inherent difficulties and uncertainties in developing a product candidate, such as obtaining marketing approval from the U.S. Food and Drug Administration ("FDA") and other regulatory agencies; and risks related to the viability of and potential for alternative treatments in any future target markets. IPR&D assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. The Company recorded approximately $12.6 million in goodwill related to the EV-035 series of molecules, representing the purchase price paid in excess of the fair value of the IPR&D assets acquired. None of the goodwill generated is expected to be deductible for tax purposes. The Company has recast, in this filing, the historical December 31, 2014 balance sheet line items for in-process research and development, goodwill and contingent consideration. (in thousands) Balance as of December 31, 2014 EV-035 Purchase Price Adjustments Adjusted Balance as of December 31, 2014 Assets: In-process research and development $ 77,800 $ (17,172 ) $ 60,628 Goodwill 41,984 10,601 52,585 Total assets $ 119,784 $ (6,571 ) $ 113,213 Liabilities: Contingent consideration, net of current portion $ 41,170 $ (6,571 ) $ 34,599 Total liabilities $ 41,170 $ (6,571 ) $ 34,599 In addition, the Company has reflected the impact of the above adjustments to the disclosures in Notes 3 and 6. In September 2015, the Company received data for the leading molecule in the series, GC-072, that indicated a potential toxicity issue. The Company considered this information an indicator of impairment of the related EV-035 series of molecules IPR&D asset, and completed an impairment assessment of this asset. As a result of the impairment of the EV-035 series of molecules IPR&D asset, the Company also performed an interim qualitative impairment assessment of the Biodefense vaccines and therapeutics reporting unit, which contains $22.0 million of the goodwill reported on the Company's consolidated balance sheets as of September 30, 2015. Based on the assessment, the Company concluded that the goodwill was not impaired. The fair value of contingent consideration obligations are based on management's assessment of certain development and regulatory milestones, along with updates in the assumed achievement of potential future net sales for the EV-035 series of molecules, which are inputs that have no observable market (Level 3). For the three and nine months ended September 30, 2015, the contingent consideration obligation decreased by $9.9 million and $9.5 million, respectively. These changes are primarily due to the estimated timing and probability of success for certain development and regulatory milestones and the estimated timing and volume of potential future sales of EV-035. For both the three and nine months ended September 30, 2015, $3.2 million of the adjustment was recorded in the Company's statement of operations as a reduction in selling, general and administrative expense. For the three and nine months ended September 30, 2015, $6.7 million and $6.3 million, respectively, of the adjustment was recorded in the Company's statement of operations as a reduction in research and development expense. During the nine months ended September 30, 2015, the Company received novation of the DTRA contract and paid the $4.0 million milestone to Evolva in the second quarter of 2015.

Fair value measurements

Fair value measurements	9 Months Ended
	Sep. 30, 2015
Fair value measurements [Abstract]
Fair value measurements	3. Fair value measurements The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis: September 30, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 207,076 $ - $ - $ 207,076 Total assets $ 207,076 $ - $ - $ 207,076 Liabilities: Contingent consideration $ - $ - $ 24,761 $ 24,761 Total liabilities $ - $ - $ 24,761 $ 24,761 December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 111,912 $ - $ - $ 111,912 Total assets $ 111,912 $ - $ - $ 111,912 Liabilities: Contingent consideration $ - $ - $ 41,086 $ 41,086 Total liabilities $ - $ - $ 41,086 $ 41,086 (1) Included in cash and cash equivalents in the accompanying consolidated balance sheets. During the nine months ended September 30, 2015, the Company did not have any transfers between Level 1 and Level 2 assets or liabilities. In addition to the contingent obligations to Evolva, the fair value of contingent consideration obligations changes as a result of management's assessment of adjustments to the discount rates and updates in the assumed and actual achievement of future net sales for RSDL and HepaGam B, which are inputs that have no observable market (Level 3). For the three and nine months ended September 30, 2015, the contingent purchase consideration obligations decreased by $1.8 million and $1.4 million, respectively. For the three and nine months ended September 30, 2014, the contingent purchase consideration obligations increased by $1.6 million and $3.2 million, respectively. The decreases and increases are primarily due to an adjustment to the actual and expected timing and volume of RSDL and HepaGam B sales. These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing. The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2015: (in thousands) Balance at December 31, 2014 $ 41,086 Income included in earnings (10,898 ) Settlements (5,427 ) Purchases, sales and issuances - Transfers in/(out) of Level 3 - Balance at September 30, 2015 $ 24,761 Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of September 30, 2015, the EV-035 series of molecules IPR&D asset was measured at fair value on a non-recurring basis due to the toxicity issue. As of September 30, 2014, the assets acquired and liabilities assumed as part of the February 2014 acquisition of Cangene Corporation were measured at fair value on a non-recurring basis.

MorphoSys Collaboration Agreeme

MorphoSys Collaboration Agreement	9 Months Ended
	Sep. 30, 2015
Morphosys Collaboration Agreement [Abstract]
Morphosys Collaboration Agreements	4. MorphoSys collaboration agreement In August 2014, the Company entered into a collaboration agreement ("MorphoSys Agreement") with MorphoSys AG ("MorphoSys") for the joint worldwide development and commercialization of MOR209/ES414, a targeted immunotherapeutic protein, which activates host T-cell immunity specifically against cancer cells expressing prostate specific membrane antigen, an antigen commonly overexpressed on prostate cancer cells. MOR209/ES414 was constructed using the Company's proprietary ADAPTIR technology platform. The collaboration provides for sharing of development and clinical costs, with the Company responsible for 36% of such costs and MorphoSys responsible for the remainder. For the three and nine months ended September 30, 2015, the Company has recorded a reduction to research and development expense of $1.0 million and $3.7 million, respectively, for the reimbursement of amounts greater than 36% of the total costs incurred for the periods. For the three and nine months ended September 30, 2014, the Company has recorded a reduction to research and development expense of $0.5 million. During the nine months ended September 30, 2015, the Company received a $5.0 million milestone payment from MorphoSys reflecting the initiation of a Phase I clinical study to evaluate the safety, tolerability, and clinical activity of MOR209/ES414 in patients with metastatic castration-resistant prostate cancer. The Company recorded this payment in contracts, grants and collaborations revenue within the Company's statement of operations. As of September 30, 2015, accounts receivable related to the MorphoSys Agreement were $2.0 million. As of September 30, 2015, deferred revenue related to the MorphoSys Agreement consisted of $0.8 million and $3.1 million of current and long-term deferred revenue, respectively.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Inventories	5. Inventories Inventories consisted of the following: September 30, December 31, (in thousands) 2015 2014 Raw materials and supplies $ 21,124 $ 17,375 Work-in-process 34,323 33,477 Finished goods 24,623 14,822 Total inventories $ 80,070 $ 65,674

Intangible assets, in-process r

Intangible assets, in-process research and development and goodwill	9 Months Ended
	Sep. 30, 2015
Intangible assets, in-process research and development and goodwill [Abstract]
Intangible assets, in-process research and development and goodwill	6. Intangible assets, in-process research and development and goodwill On April 29, 2015, the FDA approved IXINITY for the treatment of Hemophilia B. As a result of the approval, the $8.3 million IXINITY IPR&D asset Intangible assets consisted of the following: Biosciences Biodefense (in thousands) Segment Segment Total Cost basis Balance at December 31, 2014 $ 19,500 $ 48,799 $ 68,299 Additions 8,300 - 8,300 Balance at September 30, 2015 $ 27,800 $ 48,799 $ 76,599 Accumulated amortization Balance at December 31, 2014 $ (2,135 ) $ (7,820 ) $ (9,955 ) Amortization (2,228 ) (4,678 ) (6,906 ) Balance at September 30, 2015 $ (4,363 ) $ (12,498 ) $ (16,861 ) Net balance at September 30, 2015 $ 23,437 $ 36,301 $ 59,738 Amortization expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Biosciences segment $ 832 $ 620 $ 2,228 $ 1,548 Biodefense segment 1,533 1,595 4,678 4,536 Total amortization expense $ 2,365 $ 2,215 $ 6,906 $ 6,084 As of September 30, 2015, the weighted average amortization period remaining for intangible assets in the Biosciences and Biodefense segments was 93 and 90 months, respectively. The following table is a summary of changes in goodwill: (in thousands) Biosciences therapeutics Biosciences contract manufacturing Biodefense vaccines and therapeutics Biodefense medical device Total Cost Basis Balance at December 31, 2014 $ 13,902 $ 6,736 $ 22,031 $ 9,916 $ 52,585 Additions - - - - - Balance at September 30, 2015 $ 13,902 $ 6,736 $ 22,031 $ 9,916 $ 52,585

Equity awards

Equity awards	9 Months Ended
	Sep. 30, 2015
Equity awards [Abstract]
Equity awards	7. Equity awards As of September 30, 2015, the Company had two stock-based employee compensation plans, the Third Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "2006 Plan") and the Emergent BioSolutions Employee Stock Option Plan (the "2004 Plan") (together, the "Emergent Plans"). The following is a summary of stock option award activity under the Emergent Plans: 2006 Plan 2004 Plan Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2014 3,837,993 $ 20.04 43,156 $ 10.28 $ 29,181,534 Granted 690,221 29.03 - - Exercised (867,486 ) 17.44 (13,457 ) 10.28 Forfeited (147,287 ) 23.95 - - Outstanding at September 30, 2015 3,513,441 $ 22.27 29,699 $ 10.28 $ 22,745,170 Exercisable at September 30, 2015 1,908,456 $ 19.16 29,699 $ 10.28 $ 18,343,578 The following is a summary of restricted stock unit award activity under the 2006 Plan: Number of Shares Weighted-Average Grant Price Aggregate Intrinsic Value Outstanding at December 31, 2014 927,356 $ 22.44 $ 25,251,904 Granted 468,591 29.56 Vested (407,354 ) 20.66 Forfeited (62,481 ) 25.02 Outstanding at September 30, 2015 926,112 $ 26.65 $ 26,384,931

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 2015
Earnings per share [Abstract]
Earnings per share	8. Earnings per share For the three and nine months ended September 30, 2015 and 2014, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. For the three and nine months ended September 30, 2015 and 2014, diluted earnings per share is computed using the if-converted method by dividing the adjusted net income by the weighted average number of shares of common stock outstanding during the period. The adjusted net income is adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the Company's 2.875% Convertible Senior Notes due 2021 ("Notes"). The weighted average number of diluted shares is adjusted for the potential dilutive effect of the exercise of stock options and the vesting of restricted stock units along with the assumption of the conversion of the convertible obligations, at the beginning of the period. The following table presents the calculation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2015 2014 2015 2014 Numerator: Net income $ 36,942 $ 21,832 $ 29,523 $ 6,625 Interest expense, net of tax 786 917 2,378 - Amortization of debt issuance costs, net of tax 215 203 671 - Adjusted net income $ 37,943 $ 22,952 $ 32,572 $ 6,625 Denominator: Weighted-average number of shares—basic 38,831,341 37,507,220 38,423,715 37,261,357 Dilutive securities—equity awards 1,232,684 954,639 813,939 623,837 Dilutive securities—convertible debt 7,720,525 8,095,304 7,720,525 - Weighted-average number of shares—diluted 47,784,550 46,557,163 46,958,179 37,885,194 Net income per share-basic $ 0.95 $ 0.58 $ 0.77 $ 0.18 Net income per share-diluted $ 0.79 $ 0.49 $ 0.69 $ 0.17 For the three and nine months ended September 30, 2015, substantially all of the outstanding stock options to purchase shares of common stock were included in the calculation of diluted earnings per share. For the three months ended September 30, 2014, approximately 1.5 million stock options were excluded from the calculation of diluted earnings per share. For the nine months ended September 30, 2014, there were no adjustments to adjusted net income or dilutive securities associated with the Company's Notes as such adjustments would have been anti-dilutive. For the nine months ended September 30, 2014, outstanding stock options to purchase approximately 1.5 million shares of common stock, along with 8.1 million shares related to the Company's Notes, were excluded from the calculation of diluted earnings per share.

Segment information

Segment information	9 Months Ended
	Sep. 30, 2015
Segment information [Abstract]
Segment information	9. Segment information For financial reporting purposes, the Company reports financial information for two business segments: Biodefense and Biosciences. The Company's two business segments, or divisions, engage in business activities for which discrete financial information is provided to and resources are allocated by the chief operating decision maker. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company's reportable segments offer different products, product candidates, manufacturing processes and services, development processes, sales and marketing processes, and are managed separately. The Biodefense division is a specialty biopharmaceutical business focused on countermeasures that address Chemical, Biological, Radiological, Nuclear and Explosive threats, as well as intentional and naturally occurring emerging infectious diseases and consists of two business units: vaccines and therapeutics, and medical devices. is a specialty biopharmaceutical business focused on therapeutics and vaccines in hematology/oncology, transplantation, infectious diseases and autoimmunity Reportable Segments (in thousands) Biodefense Biosciences All Other Total Three Months Ended September 30, 2015 External revenue $ 147,016 $ 17,924 $ - $ 164,940 Net income (loss) 50,208 (11,241 ) (2,025 ) 36,942 Three Months Ended September 30, 2014 External revenue $ 104,130 $ 33,824 $ - $ 137,954 Net income (loss) 25,182 (496 ) (2,854 ) 21,832 Nine Months Ended September 30, 2015 External revenue $ 300,819 $ 53,866 $ - $ 354,685 Net income (loss) 74,263 (38,560 ) (6,180 ) 29,523 Nine Months Ended September 30, 2014 External revenue $ 243,162 $ 59,001 $ - $ 302,163 Net income (loss) 56,305 (43,321 ) (6,359 ) 6,625 On March 25, 2015, the Company received FDA approval of Anthrasil and recorded a $7.0 million milestone payment from the U.S. government, which is recorded as product sales revenue in the Company's Biodefense segment.

Summary of significant accoun16

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of significant accounting policies [Abstract]
Basis of presentation and consolidation	Basis of presentation and consolidation The accompanying unaudited consolidated financial statements include the accounts of Emergent BioSolutions Inc. (the "Company" or "Emergent") and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited consolidated financial statements are of a normal recurring nature, and are necessary to present fairly the financial position of the Company as of September 30, 2015; the results of operations and comprehensive income for the three and nine months ended September 30, 2015 and 2014; and cash flows for the nine months ended September 30, 2015 and 2014. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. During the nine months ended September 30, 2015, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC.

Acquisitions (Tables)

Acquisitions (Tables) - EV 035 [Member]	9 Months Ended
	Sep. 30, 2015
Business Acquisition [Line Items]
Preliminary Purchase Price	During the first half of 2015, based on facts that existed at the date of acquisition, the Company obtained additional information and analysis and recast the fair value of the total purchase consideration transferred to Evolva via a measurement period adjustment, as follows. (in thousands) Purchase Price Measurement Period Adjustment Recast Purchase Price Amount of cash paid to Evolva Holding SA $ 1,500 $ - $ 1,500 Fair value of contingent consideration 28,200 (6,571 ) 21,629 Total purchase price $ 29,700 $ (6,571 ) $ 23,129
Purchase Price Allocation	In conjunction with the revision to the total purchase price and based on this same information and analysis, the Company has recast its estimates of the fair value of the in-process research and development ("IPR&D") asset attributed to the EV-035 series of molecules, via a measurement period adjustment through June 30, 2015. The table below summarizes the recast allocation of the purchase price based upon fair values of assets acquired. (in thousands) Purchase Price Allocation Measurement Period Adjustment Recast Purchase Price Allocation Acquired in-process research and development assets $ 27,700 $ (17,172 ) $ 10,528 Goodwill 2,000 10,601 12,601 Total purchase price $ 29,700 $ (6,571 ) $ 23,129

Fair value measurements (Tables

Fair value measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair value measurements [Abstract]
Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis: September 30, 2015 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 207,076 $ - $ - $ 207,076 Total assets $ 207,076 $ - $ - $ 207,076 Liabilities: Contingent consideration $ - $ - $ 24,761 $ 24,761 Total liabilities $ - $ - $ 24,761 $ 24,761 December 31, 2014 (in thousands) Level 1 Level 2 Level 3 Total Assets: Investment in money market funds (1) $ 111,912 $ - $ - $ 111,912 Total assets $ 111,912 $ - $ - $ 111,912 Liabilities: Contingent consideration $ - $ - $ 41,086 $ 41,086 Total liabilities $ - $ - $ 41,086 $ 41,086 (1) Included in cash and cash equivalents in the accompanying consolidated balance sheets.
Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)	The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2015: (in thousands) Balance at December 31, 2014 $ 41,086 Income included in earnings (10,898 ) Settlements (5,427 ) Purchases, sales and issuances - Transfers in/(out) of Level 3 - Balance at September 30, 2015 $ 24,761

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Inventories	Inventories consisted of the following: September 30, December 31, (in thousands) 2015 2014 Raw materials and supplies $ 21,124 $ 17,375 Work-in-process 34,323 33,477 Finished goods 24,623 14,822 Total inventories $ 80,070 $ 65,674

Intangible assets, in-process20

Intangible assets, in-process research and development and goodwill (Tables)	9 Months Ended
	Sep. 30, 2015
Intangible assets, in-process research and development and goodwill [Abstract]
Intangible Assets	Intangible assets consisted of the following: Biosciences Biodefense (in thousands) Segment Segment Total Cost basis Balance at December 31, 2014 $ 19,500 $ 48,799 $ 68,299 Additions 8,300 - 8,300 Balance at September 30, 2015 $ 27,800 $ 48,799 $ 76,599 Accumulated amortization Balance at December 31, 2014 $ (2,135 ) $ (7,820 ) $ (9,955 ) Amortization (2,228 ) (4,678 ) (6,906 ) Balance at September 30, 2015 $ (4,363 ) $ (12,498 ) $ (16,861 ) Net balance at September 30, 2015 $ 23,437 $ 36,301 $ 59,738
Finite-lived Intangible Assets Amortization Expense	Amortization expense consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Biosciences segment $ 832 $ 620 $ 2,228 $ 1,548 Biodefense segment 1,533 1,595 4,678 4,536 Total amortization expense $ 2,365 $ 2,215 $ 6,906 $ 6,084 As of September 30, 2015, the weighted average amortization period remaining for intangible assets in the Biosciences and Biodefense segments was 93 and 90 months, respectively.
Goodwill	The following table is a summary of changes in goodwill: (in thousands) Biosciences therapeutics Biosciences contract manufacturing Biodefense vaccines and therapeutics Biodefense medical device Total Cost Basis Balance at December 31, 2014 $ 13,902 $ 6,736 $ 22,031 $ 9,916 $ 52,585 Additions - - - - - Balance at September 30, 2015 $ 13,902 $ 6,736 $ 22,031 $ 9,916 $ 52,585

Equity awards (Tables)

Equity awards (Tables)	9 Months Ended
	Sep. 30, 2015
Equity awards [Abstract]
Option Award Activity	The following is a summary of stock option award activity under the Emergent Plans: 2006 Plan 2004 Plan Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2014 3,837,993 $ 20.04 43,156 $ 10.28 $ 29,181,534 Granted 690,221 29.03 - - Exercised (867,486 ) 17.44 (13,457 ) 10.28 Forfeited (147,287 ) 23.95 - - Outstanding at September 30, 2015 3,513,441 $ 22.27 29,699 $ 10.28 $ 22,745,170 Exercisable at September 30, 2015 1,908,456 $ 19.16 29,699 $ 10.28 $ 18,343,578
Restricted Stock Units Activity	The following is a summary of restricted stock unit award activity under the 2006 Plan: Number of Shares Weighted-Average Grant Price Aggregate Intrinsic Value Outstanding at December 31, 2014 927,356 $ 22.44 $ 25,251,904 Granted 468,591 29.56 Vested (407,354 ) 20.66 Forfeited (62,481 ) 25.02 Outstanding at September 30, 2015 926,112 $ 26.65 $ 26,384,931

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings per share [Abstract]
Summary of Basic and Diluted Net Income (Loss) per Share	The following table presents the calculation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2015 2014 2015 2014 Numerator: Net income $ 36,942 $ 21,832 $ 29,523 $ 6,625 Interest expense, net of tax 786 917 2,378 - Amortization of debt issuance costs, net of tax 215 203 671 - Adjusted net income $ 37,943 $ 22,952 $ 32,572 $ 6,625 Denominator: Weighted-average number of shares—basic 38,831,341 37,507,220 38,423,715 37,261,357 Dilutive securities—equity awards 1,232,684 954,639 813,939 623,837 Dilutive securities—convertible debt 7,720,525 8,095,304 7,720,525 - Weighted-average number of shares—diluted 47,784,550 46,557,163 46,958,179 37,885,194 Net income per share-basic $ 0.95 $ 0.58 $ 0.77 $ 0.18 Net income per share-diluted $ 0.79 $ 0.49 $ 0.69 $ 0.17

Segment information (Tables)

Segment information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment information [Abstract]
Segment Information	The Biodefense division is a specialty biopharmaceutical business focused on countermeasures that address Chemical, Biological, Radiological, Nuclear and Explosive threats, as well as intentional and naturally occurring emerging infectious diseases and consists of two business units: vaccines and therapeutics, and medical devices. is a specialty biopharmaceutical business focused on therapeutics and vaccines in hematology/oncology, transplantation, infectious diseases and autoimmunity Reportable Segments (in thousands) Biodefense Biosciences All Other Total Three Months Ended September 30, 2015 External revenue $ 147,016 $ 17,924 $ - $ 164,940 Net income (loss) 50,208 (11,241 ) (2,025 ) 36,942 Three Months Ended September 30, 2014 External revenue $ 104,130 $ 33,824 $ - $ 137,954 Net income (loss) 25,182 (496 ) (2,854 ) 21,832 Nine Months Ended September 30, 2015 External revenue $ 300,819 $ 53,866 $ - $ 354,685 Net income (loss) 74,263 (38,560 ) (6,180 ) 29,523 Nine Months Ended September 30, 2014 External revenue $ 243,162 $ 59,001 $ - $ 302,163 Net income (loss) 56,305 (43,321 ) (6,359 ) 6,625

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Dec. 17, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Estimated Purchase Price [Abstract]
Goodwill		$ 52,585	$ 52,585		$ 52,585
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)			9,827	$ 0
Net book value of intangible assets		59,738	59,738
EV 035 [Member]
Estimated Purchase Price [Abstract]
Amount of cash paid to Evolva Holdings SA	$ 1,500
Contingent purchase consideration	21,629
Acquired intangible assets	10,528
Goodwill	12,601
Total purchase price	$ 23,129
Present value discount rate (in hundredths)	12.00%
DTRA contract revenues	$ 15,000
Contingent value rights based on the novation of the contract	4,000
Contingent value rights based on the achievement of certain development	15,000
Contingent value rights based on the regulatory filing milestones	50,000
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)			9,800
Net book value of intangible assets		700	700
Change In Fair Value Of Contingent Obligations		(9,900)	(9,500)
EV 035 [Member] | Preliminary Purchase Price [Member]
Estimated Purchase Price [Abstract]
Amount of cash paid to Evolva Holdings SA	1,500
Contingent purchase consideration	28,200
Total purchase price	29,700
EV 035 [Member] | Preliminary Allocation [Member]
Estimated Purchase Price [Abstract]
Acquired intangible assets	27,700
Goodwill	2,000
Total purchase price	29,700
EV 035 [Member] | Measurement Period Adjustment [Member]
Estimated Purchase Price [Abstract]
Amount of cash paid to Evolva Holdings SA	0
Contingent purchase consideration	(6,571)
Acquired intangible assets	(17,172)
Goodwill	10,601
Total purchase price	$ (6,571)
EV 035 [Member] | Minimum [Member]
Estimated Purchase Price [Abstract]
Sales-based royalty payments	5.00%
EV 035 [Member] | Maximum [Member]
Estimated Purchase Price [Abstract]
Sales-based royalty payments	10.00%
EV-035 Selling, General and Administrative Member [Member]
Estimated Purchase Price [Abstract]
Change In Fair Value Of Contingent Obligations		(3,200)	(3,200)
EV-035 Research and Development [Member]
Estimated Purchase Price [Abstract]
Change In Fair Value Of Contingent Obligations		$ (6,700)	$ (6,300)

Fair value measurements (Detail

Fair value measurements (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period				$ 41,086,000
Expense included in earnings				(10,898,000)
Settlements				(5,427,000)
Purchases, sales and issuances				0
Transfers in/(out) of Level 3				0
Balance, end of period		$ 24,761,000		24,761,000
RSDL and HepaGam [Member]
Unobservable Input Reconciliation [Roll Forward]
Change in fair value of contingent obligations		(1,786,000)	$ 1,600,000	(1,400,000)	$ 3,200,000
Fair Value, Measurements, Recurring [Member]
Assets:
Investment in money market funds (1)	[1]	207,076,000		207,076,000		$ 111,912,000
Total assets		207,076,000		207,076,000		111,912,000
Liabilities:
Contingent consideration		24,761,000		24,761,000		41,086,000
Total liabilities		24,761,000		24,761,000		41,086,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in money market funds (1)	[1]	207,076,000		207,076,000		111,912,000
Total assets		207,076,000		207,076,000		111,912,000
Liabilities:
Contingent consideration		0		0		0
Total liabilities		0		0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in money market funds (1)	[1]	0		0		0
Total assets		0		0		0
Liabilities:
Contingent consideration		0		0		0
Total liabilities		0		0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in money market funds (1)	[1]	0		0		0
Total assets		0		0		0
Liabilities:
Contingent consideration		24,761,000		24,761,000		41,086,000
Total liabilities		$ 24,761,000		$ 24,761,000		$ 41,086,000
[1]	Included in cash and cash equivalents in accompanying consolidated balance sheets

MorphoSys Collaboration Agree26

MorphoSys Collaboration Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Collaborative arrangements [Line Items]
Collaborative Arrangement, Rights and Obligations			The collaboration provides for sharing of development and clinical costs, with the Company responsible for 36% of such costs and MorphoSys responsible for the remainder.
Current deferred revenue	$ 8,734		$ 8,734		$ 5,345
Long-term deferred revenue	5,987		5,987		$ 5,713
Morphosys [Member]
Collaborative arrangements [Line Items]
Reduction to research and development expense	1,000	$ 500	3,700	$ 500
Accounts receivable	2,000		2,000
Current deferred revenue	800		800
Long-term deferred revenue	$ 3,100		3,100
First contingent payment received based upon development and regulatory milestones			$ 5,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Raw materials and supplies	$ 21,124	$ 17,375
Work-in-process	34,323	33,477
Finished goods	24,623	14,822
Total inventories	$ 80,070	$ 65,674

Intangible assets, in-process28

Intangible assets, in-process research and development and goodwill (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Cost Basis [Abstract]
Intangible Assets, Beginning Balance			$ 68,299,000
Additions			8,300,000
Intangible Assets, Ending Balance	$ 76,599,000		76,599,000
Accumulated Amortization [Abstract]
Accumulated Amortization, Beginning Balance			(9,955,000)
Amortization	2,365,000	$ 2,215,000	6,906,000	$ 6,084,000
Accumulated Amortization, Ending Balance	(16,861,000)		(16,861,000)
Net book value of intangible assets	59,738,000		59,738,000
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance			52,585,000
Goodwill, Additions	0
Goodwill, Ending Balance	52,585,000		52,585,000
Goodwill, net book value	52,585,000		52,585,000		$ 52,585,000
Biosciences [Member]
Cost Basis [Abstract]
Intangible Assets, Beginning Balance			19,500,000
Additions			8,300,000
Intangible Assets, Ending Balance	27,800,000		27,800,000
Accumulated Amortization [Abstract]
Accumulated Amortization, Beginning Balance			(2,135,000)
Amortization	832,000	620,000	2,228,000	1,548,000
Accumulated Amortization, Ending Balance	(4,363,000)		$ (4,363,000)
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			93 months
Net book value of intangible assets	23,437,000		$ 23,437,000
Biosciences [Member] | Biosciences Therapeutics [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance			13,902,000
Goodwill, Additions	0
Goodwill, Ending Balance	13,902,000		13,902,000
Biosciences [Member] | Biosciences contracts manufacturing [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance			6,736,000
Goodwill, Additions	0
Goodwill, Ending Balance	6,736,000		6,736,000
Biodefense [Member]
Cost Basis [Abstract]
Intangible Assets, Beginning Balance			48,799,000
Additions			0
Intangible Assets, Ending Balance	48,799,000		48,799,000
Accumulated Amortization [Abstract]
Accumulated Amortization, Beginning Balance			(7,820,000)
Amortization	1,533,000	$ 1,595,000	4,678,000	$ 4,536,000
Accumulated Amortization, Ending Balance	(12,498,000)		$ (12,498,000)
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			90 months
Net book value of intangible assets	36,301,000		$ 36,301,000
Biodefense [Member] | Biodefense therapeutics [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance			22,031,000
Goodwill, Additions	0
Goodwill, Ending Balance	22,031,000		22,031,000
Biodefense [Member] | Biodefense medical devices [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance			9,916,000
Goodwill, Additions	0
Goodwill, Ending Balance	$ 9,916,000		$ 9,916,000

Equity awards (Details)

Equity awards (Details)	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Stock Options Member [Member]
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of period | $	$ 29,181,534
Outstanding, end of period | $	22,745,170
Exercisable, end of period | $	$ 18,343,578
2006 Plan [Member] | Restricted Stock Units (RSUs) [Member]
Restricted stock unit award activity [Roll Forward]
Outstanding, beginning of period (in shares) | shares	927,356
Granted (in shares) | shares	468,591
Vested (in shares) | shares	(407,354)
Forfeited (in shares) | shares	(62,481)
Outstanding, end of period (in shares) | shares	926,112
Weighted-Average Grant Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 22.44
Granted (in dollars per share)	29.56
Vested (in dollars per share)	20.66
Forfeited (in dollars per share)	25.02
Outstanding, end of period (in dollars per share)	$ 26.65
Aggregate intrinsic value [Abstract]
Outstanding, beginning of period | $	$ 25,251,904
Outstanding, end of period | $	$ 26,384,931
2006 Plan [Member] | Stock Options Member [Member]
Options outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	3,837,993
Granted (in shares) | shares	690,221
Exercised (in shares) | shares	(867,486)
Forfeited (in shares) | shares	(147,287)
Outstanding, end of period (in shares) | shares	3,513,441
Exercisable, end of period (in shares) | shares	1,908,456
Weighted-Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 20.04
Granted (in dollars per share)	29.03
Exercised (in dollars per share)	17.44
Forfeited (in dollars per share)	23.95
Outstanding, end of period (in dollars per share)	22.27
Exercisable, end of period (in dollars per share)	$ 19.16
2004 Plan [Member] | Stock Options Member [Member]
Options outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	43,156
Granted (in shares) | shares	0
Exercised (in shares) | shares	(13,457)
Forfeited (in shares) | shares	0
Outstanding, end of period (in shares) | shares	29,699
Exercisable, end of period (in shares) | shares	29,699
Weighted-Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 10.28
Granted (in dollars per share)	0
Exercised (in dollars per share)	10.28
Forfeited (in dollars per share)	0
Outstanding, end of period (in dollars per share)	10.28
Exercisable, end of period (in dollars per share)	$ 10.28

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net income	$ 36,942	$ 21,832	$ 29,523	$ 6,625
Interest expense applicable to convertible debt, net of tax	786	917	2,378	0
Amortization of debt issuance costs, net of tax	215	203	671	0
Adjusted net income	$ 37,943	$ 22,952	$ 32,572	$ 6,625
Denominator:
Weighted-average number of shares-basic (in shares)	38,831,341	37,507,220	38,423,715	37,261,357
Dilutive securities-equity awards (in shares)	1,232,684	954,639	813,939	623,837
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	7,720,525	8,095,304	7,720,525	0
Weighted-average number of shares-diluted (in shares)	47,784,550	46,557,163	46,958,179	37,885,194
Net income per share - basic	$ 0.95	$ 0.58	$ 0.77	$ 0.18
Adjusted net income per share-diluted	$ 0.79	$ 0.49	$ 0.69	$ 0.17
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation (in shares)		1,500,000		1,500,000
Convertible debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation (in shares)			0	8,100,000

Segment information (Details)

Segment information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)SegmentBusinessUnit	Sep. 30, 2014USD ($)	Mar. 25, 2015USD ($)
Segment Reporting Information [Line Items]
Number of business segments | Segment			2
External revenue	$ 164,940	$ 137,954	$ 354,685	$ 302,163
Net income	36,942	21,832	$ 29,523	6,625
Biodefense [Member]
Segment Reporting Information [Line Items]
Number of business units | BusinessUnit			2
External revenue	147,016	104,130	$ 300,819	243,162
Net income	50,208	25,182	$ 74,263	56,305
Contingent payment received based upon development and regulatory milestones					$ 7,000
Biosciences [Member]
Segment Reporting Information [Line Items]
Number of business units | BusinessUnit			3
External revenue	17,924	33,824	$ 53,866	59,001
Net income	(11,241)	(496)	(38,560)	(43,321)
All Other [Member]
Segment Reporting Information [Line Items]
External revenue	0	0	0	0
Net income	$ (2,025)	$ (2,854)	$ (6,180)	$ (6,359)