EBS - Earnings call transcript Q2 2018 | Emergent BioSolutions Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 Emergent BioSolutions Inc Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Robert Burrows, Vice President of Investor Relations.

begin. may You

Bob Burrows

XXXX and us Soniya, financial everyone. you months Thank for Thank as good we joining of six and today, second and Emergent discuss for BioSolutions. the you, quarter afternoon, for the results operational

and is customary, and Dan participants, recorded and present Rich to is Kramer, with be by copyrighted Nabi, Emergent the Financial that As President Chief and during comments. Officer prepared appointed of Chief on open Executive the our is our prepared Officer; Chief Lindahl, Operating the will Officer. the addition, call call Bob all newly Abdun call today's senior and being is in Q&A BioSolutions. members Other Participating follow team comments will are available

on date risk evaluating forward-looking Investor statement SEC any circumstances. statement the from filed update do our our of new to will we our events statement. reflect today's looking on during forward as factors our I future Any as beginning, on make should call this Investors the to We our session, that or to accurate. not only required forward and cannot reliance as everyone unknown when prepared uncertainties results prospects statements are our future any except materially and These management inaccurate events. periodic differ in regarding if statements assumptions this be that remind related will prove law; undertake business, either projections materialize, the our undue expectations expectations. and forward based statements reports or Investors Q&A forward-looking may consider or underlying statement caution looking press cautionary are with could place comments or identified forward-looking statements. to by performance. not realize guarantee future events; or any looking that should risks forward-looking or well other speaks release Before beliefs intentions, therefore of as actual current information,

Q&A Please prepared session, that our During in the to refer also involve during non-GAAP regarding performance. the release our order today's measures GAAP financial to transparency between may adjusted measures certain we our net regarding EBITDA to figures, of adjustments as comments as use provide greater found tables Emergent's and well press to financial in income operating reconciliations financial non-GAAP and the refer and GAAP measures. these

webcast, have to benefit held the the X, who may listening topics replay related For and on be XXXX. those made during this announcements to discussed today's was may Emergent of then, a recorded August call. call of Since

encouraged again page once the You're to like turn most with which that refer our be on may website. home CEO. SEC Abdun to over Nabi, Emergent call the recent press Dan would all of BioSolutions' and of to And found our introduction, Dan? I to releases now filings, Investors

Dan Abdun Nabi

Thank Good us. joining you you, Bob. afternoon, for everyone thank and

and financial today, During then will performance quarter first operation. in the call provide on half I'll health our focus global discuss recent guidance. summarize our progress our Rich my for the while and Bob the trends will financial year in threats, our of public our second remarks

developments financial I'd As like the States. believe in health the the our track highlight public we we and solidly Europe remain threats, from and this for is in in the achieve with to line that With release you specifically trends year. afternoon, saw in performance expectations targeted on operational and press to United and recent goals

enacted the developments Hazards supply. advanced Preparedness each these original health capabilities improve of was countermeasures. whether solutions by surge continues the the medical plan security protect countermeasures to their in joint level, State timing funding major are also international emergencies and the to spectrum the It plans to. Council preparedness reauthorization and at established aimed United medical published move to and in Pandemic stockpiles. formally The or in PAHPA ASPR the threats need communication signatories for procurement the topic, joint to stockpiles countermeasures nerve steps expeditiously the is would Response Secretary for momentum. the for CBRNE June to established countermeasures. populations, of agent as urge the XX of first capacity, forces of and contemplates referred threats plan. the mechanism improved Act in member has development light agreement, medical possible full office joint particularly procurement stress CBRNE of member establish nation's natural the response that of authorities to implementation the medical These EU highest that commonly causes. as Europe. the threats summit which market new XX state, preparedness for to these in the the seriousness public support military access and At of and which that threats. medical for of created advance XXXX PAHPA from will a well stockpiling view of That those states strategy each stockpiles member During and the and is important of now summit enhance States, with within rapid take or territories securing of medical The health attacks dealing CBRNE were Kingdom. specific The deliberate, access accelerate Congress Assistant acquisitions the stressed and up and need deployment the All- the legislation and CBRNE of of our endorsement EU Commission the to or for of This public full endorsed threat In enable implement to CBRNE Preparedness of this was for The political HHS. European growing state to recent action EU European accidental United Heads

no To provide threats. Zika during among threats research ready SEPI would and threat for or oversight accelerated MCX and mission control with and by includes the a and of enterprise of with logistics BARDA. that infectious this curative also expanding of project emergent seeing What ASPR. seeing end, The of and of to these continue emerging for bacteria which its emerging nature sponsored the program as BioSciences Sciences the operational recreating twelfth CDC the the and to development And and This We're the biological that Nipah response state diseases. nimble local will and Aligned bio an SEPI is of priorities we and and result legislation a sustain an a R&D the vaccine government's was such the Marburg, and decreasing vaccines a of examples willingness response vaccine more are increase efforts. pursue This in infectious reauthorization will required there changing governments countermeasures These synthetic synthetic with viruses for range Profectus which the funding fever, manufacture and possibility the regard, NGOs exists. defense emergency advanced support Domestic, on these are concluded that or in report of published early and Earlier dangerous domestic ongoing the shift The PAHPA highest to resources is their that of change preparedness the ASPR. increases is so list was of and advancing for virus. the for threats. influenza SNS. initiatives. as research in studies reinforce which urgent necessary and the included to of by Strategic BARDA age threats unlocking priority with response known will The focused emerging bio insufficient emergency The preparedness align under among and or In threat authorizes weapons report represent medical concern the SEPI our development exploring its new Preparedness the enhance response Epidemic SEPI therapeutics emergency chemical key and Bioshield diseases provided commitment via of defense chemicals others. Congress that and concern and that globe. biology. threat engineering it a noted National against that preventive demonstrate Based broad and time the level an programs, To strategies to development address employing existing defense study's others. DoD longevity is synthesis applicable growing. and WHO innovative posed SNS organisms. continued this public of for and established from on to funding the Stockpile to Academies diseases. efforts collaboration outbreak. now funding the and the biology is biological that the efficacy funding study address diseases Ebola, and Coalition NGOs last The allow while to Innovations Chem-bio are in organizations SNS the are The within year the health partners viruses, list Department significant year a resources preparedness making international assess vaccines the the BARDA, to development. making public intended for and health solutions blueprint potential CBRNE Finally, public the governments the PAHPA is for need development five-year and potential well for are pathogenic generate Lassa the this also creating Defense. and for of of authorize legislation approach health view, its of to across updated assessment, wide pandemic Nipah by recommends June for National firmly are market which preparedness to major the established the view focus expands

that countermeasures, a experience XXXX a it operational and A dual Emergent's NGOs, When leverage countermeasures, design developing, in manufacturing portfolio contracting are a capabilities we including health threats. a through marketed public market on our We public advanced these strong XX solutions product a manufacturing, to includes year positioned towards funded our plan focus We of public record We're Bob? by research assets, governments, and experienced Kramer, and driven field. center call of generating program that candidates. and importance, and dedicated threats track I'll with broad to goals. during and acquisitions decades turn to this of in unit countermeasures our organic focus global development the addressing and our externally revenue and forward President be medical manufacturing partnering perhaps of halfway you emergencies, these was and pipeline on to established uniquely robust pleased and innovation delivering business plan, health achievement structure our team. progress with growth R&D provider longer-term and are Given on of we now address optimized greatest of trajectory and academia industry. our and manufacturing growth, look now for with Bob of our efforts updating near COO. health to and our the over growth advancing

Bob Kramer

you everyone. joining Thank call. thank And you, Dan and good afternoon, the for

CDMO reminder, my and then comments contract antibody as business operations include development unit, units. or state on and therapeutic business vaccines the our and manufacturing today, our For of infectious, NI to going the these each unit. our four a across I'm focus business of devices current And units

and update on candidates. with our plus me as BioThrax during quarter. and unit second well infectious notably the consists new Let of a NuThrax ACAMXXXX an business vaccine the of and programs As development Zika and business the This NI vaccines antimicrobial begin flu portfolio

at of quarter, doses catching the successfully ACAMXXXX from level the as the anticipated quarter, the anticipated we first for beginning second well quarter up year. both During those delivered the doses delayed as thus the

XXXX, contract populations expect delivery complete US in stockpile. place expect previously have of supply advance ACAMXXXX orders year-end government threat open Similarly, an customers discussions against national stockpiling the for further a to with smallpox. the discussions US year to all government strategic their military we into who of ensuring by like this protect strategy continue thereby of to in We our with of countermeasure new to part ACAMXXXX country's critical uninterrupted with and civilian engage goal global and a this as procured the the

those we anticipated quarter, both delayed quarter second at the successfully quarter to the year. the of as as first BioThrax doses level the the from the anticipated During beginning up catching well also delivered for the thus

across recognition of the On front, which this Europe, market authorization the our an program for completion have of mutual of update mid BioThrax April international we we year. on in successful announced

official five other generating of as authorization of total in highlighted XXXX. in BioThrax of member four received April a to excess the We our longer-term leverage on that today, by execute release. market outside were EU goal markets in look concerned press XX% states the revenue countries across of revenue the As from now success the has US of we

of the this manufacturing is runs, next our we process end a we Use program, to key vaccine or of the initiation XXXX. anthrax which the engineering anticipate progress trial of of the by submission continue Authorization year, of our Activities the quarter For quarter. center FDA generation toward by This we the validation supporting in fulfilling submission Emergency NuThrax, half an in the around first to second of this year. EUA which anticipate Phase EUA supporting X end initiation to continued the completing

business our on we important and each own, in to move partnered our in conducted these the both being Regarding along we various make initiatives case this clinical continue unit, path. progress programs development as

as the as is four Zika flu of programs a products hyper development This portfolio candidates. business and BAT, notably Raxibacumab, antibio well and Next immune therapeutic including the marketed BU consists Anthrasil, VIGIV of unit.

antibody only During access select Bat, as customers. well outbreak note, existing antitoxin our under medical an all sales this quarter, been as ensure countermeasure. expanded critical delivered we response to Ukraine, health with four the botulism units with have of to Nations United working we international products threat to closely therapeutic in-class in contracts, public the botulism to in portfolio to ongoing the in treatment deliver our Of

year facilities. transferring our antibody to Next, in progress last we to the therapeutically make Raxibacumab of continue the manufacturer from Baltimore monoclonal acquired GSK

we prior will an in we GSK C continue quarter, until in Notably, complete as type FDA meeting stated project. the completed tech As transfer. important the the our this to act product supporting for this during calls, milestone CMO

the candidate upcoming we XX In the benefit. flu which terms trial for recruitment working and for has X resume trial, population to patients of important FLU-IGIV this evaluating recruit total Phase patients our safety, once will clinical stand initiatives, other development ready for open this season to remains pharmacokinetics of be of We're begun. a trial and

expect trial complete the XXXX. We to in

trial we've are As just candidate for week on the Phase our our Tuesday same completion Zika we targeting this launched hyper platform, that XXXX. announced X immune of and in

business as to stemming in a the turn I'll Next This from Emergard development programs RSDL of includes and devices notably well TROBIGARD business SIAN as portfolio unit. use the device constructs various platform. auto-injector

RSDL with and and well We expanding on as existing both to and customers. adding customers contracts continue TROBIGARD new against international working domestic as actively deliver existing are

the pre and development injector quarter, to projects. on During to SIAN our Specific IND package chamber the we made progress dual we DX auto a submitted DX, FDA. or

threats. Additionally, based other number chemical we RSDL a injector studies addressing variety clinical both of continue to alternative auto conduct select on well constructs of we're assessing a as where API's as

to as CDMO unit, I'll well external or customers. contract our Lastly, business both serves internal which manufacturing as turn development and

at a advance expansion to government Bayview a US of investment and needs And core site infectious our pilot in our partnership continue our component disease government CIADM support capabilities establishing pandemic of CIADM customers. reminder the response We key Baltimore. with of in joint our this through facility, as again in emerging the is plant

or This over and $XX the and plan in of expansion new success effort unit commercial our addition our fill/finish aligned growing million initiated investing business growth capacity capabilities also needs continued next our the in of the three with We through customers. CDMO years. Camden up enable to will current

it development to provide continued will my unit Bayview a the virus candidates BioSciences, support with in that Innovations infrastructure Emergent as concludes who demonstrated quality Preparedness chain under driven driven consortium vaccine Camden. progress as supply a And in the numbers Profectus or over expectations, including Epidemic operations prepared through business reliable, and to That summary, against for technical portfolio, business In needs, remarks. pursuit of includes Nipah investments of unit continue manufacturing now and development and I'll in us operations of well margin the This will take Emergent. SEPI, rich line performance well Coalition support turn in Lastly. by Rich? growth manufacturing across as perform today the our

Rich Lindahl

call. Good for and afternoon, the you, Thank Bob. everyone, joining you thank

comments address I our of the For performance my as sheet balance through prepared today, will and the structure. walk P&L capital shift well year-to-date for quarter, as the second the the Then state to period.

finish on let's comments I'll at and with With second our quarter performance. guidance. full first Finally, third year up look quarter that

strong earnings reflect shifted expectations quarter had now quarter, timing original and to As you disclosed up very second of previously were the release, first As BioThrax the through results that in second and of delivery our shipments can we the quarter both result, to see ACAM across board, are a impact is our the June. from press caught our

numbers. now Turning to the

revenues substantially XXXX XXXX same quarter follows. $XXX Second are revenue the period higher to year, total compared quarter were highlights than the second in prior million as

the sales. during both First catch million you to Product BioThrax as sales shipments product which higher were know XXXX. the as in quarter of and ACAM Raxibacumab principally quarter were in a the fourth due of acquired well as up $XXX sales

from our and nerve RSDL, our injector contributions device Anthrasil TROBIGARD. auto Additional antidote agent of came sales

came you XX% in over XXXX. $XX represented where due the on quarter, And for of a second performed total. certain reduced XX% Contract driven in and were to by Services. revenue our Gross down sales period. at sequential we the clearly development while product market we blended Grants. of gross XXXX. and to first accounted for margin sales with margin acquisition programs XX% product select will October product the facility reporting contract the improvement accounted of in level to million, came with ACAM recall XX%. R&D other of of with Second, grew for a CMO in XX% associated showed which activities XX% revenues Massachusetts total to impact On have Total CNG in third the Contracts an mix for was quarter revenue significant CMO funding. and receive Manufacturing XX% our margin Canton CMO sales. as basis, due activities continues $XX manufacturing The of gross primarily any BioThrax margin at product the increase along revenues by million revenue, completion higher which from

operating adjusting net was expand down R&D Turning expenses. revenue, or Gross million, and net. our contracts $XX $X to expense of X%. After million, X% grants for was R&D

As a less reminder, contracts calculated grants net as revenue and revenue is revenue. total

expand programs primarily product to services As not funding were partners. million that SG&A third-party manage supported development investments, the discretionary million, and through $X currently our further R&D by costs. up expenses for investment additional related select we pipeline driven by in continue to look we our $XX and compensation are quarter professional

of revenue, quarter versus percentage in of XX% first quarter the expenses a XXXX. total As SG&A XX% in XX% XXXX second and were

We and pursue financial and to will as goals. operational our the XXXX operating grow manage business expenses our continue carefully we

Jobs rate the For year. QX, compensation XXXX, primarily the stock tax provision million related late line in Tax last amount estimated in Cuts discrete of $XX.X includes an for is effective $XXX,XXX Act which of tax we activity of with expense XX% in resulting the improvement and the in benefit quarter, of following the a to

income measures, of both million, a quarter the of million In Raxibacumab. terms over contribution and and of significantly of result XXXX was second of increased was ACAM our net up deliveries income BioThrax and and acquisitions net adjusted reflecting $XX profitability as sizeable profitability the our $XX

was in up EBITDA million in $XX period million, the the quarter same second Finally, $XX over XXXX.

be performing where performance. XXXX, is to and Through this the of expect six months year-to-date the is well our right we business year. to first in at Turning point it

other same of are but contribution of XX%. million, was million, in increase products a sales year other incremental almost margin up below versus product CMO key some last and Total prior is XX% sales over or an million, TROBIGARD in target sales realized figure million, which $XXX $XXX effect above Here year. $XXX million, This quarter period XX%, up did the year. $XXX highlights. of increase prior is have or million not Raxibacumab prior margin of of Gross due the includes year. of The the which reflecting increase ACAM, entirely the or Total in the of $XXX revenue $XXX range the to XX% services the revenue period. our first blending $XX XXXX. still sales lower was million, gross product

R&D in expense anti $XX have or Our the pipeline, investments therapeutics our controlled development. microbials as we well X% as the net antibody continued in net of million revenue, principally was reflecting portfolios in

higher XXXX spend is SG&A than of at below total a as but percentage XX%. million revenue of which is is Our prior $XX year total of XX%, substantially

income million and first is million is million and over generated of we XX% of income $XX at margins $XX XX% versus net finally adjusted million $XX reflecting adjusted Our in $XX to mid-year the $XX net net six XXXX, million, million net and months have in XXXX. $XX versus EBITDA compared income respectively. And

the sheet. to balance Turning

We are a cash as we million. ended with receivables liquidity a $XXX position a another million balance June of $XXX strong and of maintaining

a our of necessary Accordingly, operations completes to and year-to-date. have quarter in to the also resources capital the to both opportunities. of review and We million That borrowing place facility capacity. support a pursue we that provides continue $XXX credit up M&A have

me now Let to turn guidance. our

million have our million; million. income to between of We guidance $XX million and $XXX $XXX revenue of year financial million. full million and million EBITDA $XXXo to adjusted total $XXX income reaffirmed between XXXX million. $XXX to of Net Pre-tax $XXX and $XXX $XXX of $XXX million; income million net

transactions M&A diligence expenses support for As include potential or efforts. M&A required related outlook always, specific ongoing our not to the corporate estimates development for except other new does

now $XXX our prepared guided of services our I'll the execution Operator? That reflecting operator million to $XXX the begin turn product across in and CDMO my assets as we BioThrax, over Lastly, to of session. the quarter concludes third other question-and-answer revenue the million remarks. ACAM as deliveries to call to business. portfolio, And have continued total well

Operator

Dana question first comes of Sachs. Goldman Our Instructions] [Operator from Flanders

Your line is open. now

Dana Flanders

a expecting you questions. It that's see plus Can bit next here one to like evidence sounds moving are capitalize to is you Thank you I you just going? for much just the And I the some right are Hi. on elaborate tangible up the there's little of some that My first your comments with? very call on on Europe. opened over in XX months that you to the direction. a that? there get mean really positioned what really then How have follow-up. guys

Dan Abdun Nabi

Yes. for Thank health landscape call stockpile afternoon one by you a of It EU the exciting such seen most is the for joining number that in this the the the time and of globally. for preparedness really really our the in maintenance, threats is actively and question. importance regarding developments first involved public solutions. we've has team And something a been strong candidly Commission quite affairs of establishment it's years. government statement the It

event. this watershed see a we So as

it. to shifts now states each the exactly determine they to responsibility Of implement of how the course, intend member to

engage we So stockpiling efforts might their within each member threats how to be, about the various intend requirements the they their to understand for what particular timing their the that want and the exist with addressing jurisdictions. stockpile, of for go states, understand

a needs going be can timelines you their their their different, going be to appreciate are and different. As are priorities and bit to

with what gradual their unique expansion on plans. of to would rolling So see the forward each expect market jurisdiction is I a individual based

how unfold, states directives get have months. the better to we XX course they'll to with So don't into We actually stay understanding of much next have going as but of is a details the be lot member launching this deeper will on the we over XX that policy for tuned. conversation

Bob Kramer

add the other would to guess Dana, I thing, comments. Dan's I

with and what talked shared maturing see carefully international of we market as you, development the As we've environment. been we've about monitoring a

ramped We make don't in made expanded manufacturing our are any carefully and European countries. infrastructure, concerns. we And already presence to and investments have have selected constraints with clearly or supply up sales some preparing

on as Dan think well mentioned to capitalize those we they that again opportunities positioned mature. we're So

Dana Flanders

anything Okay, teed what that on maybe great Thank bit on are landscape? yet. you high, for out you. Are opportunities. deal. seeing prices do front. kind M&A to there up update I give just on about of then that you a haven't there a just touch too dual a you of us thanks just flavor an color. a I Can here. are little give know follow or And us you're maybe thinking guys the on assets seen And market up how

Dan Abdun Nabi

Thanks for believe are funnel, we investors of the number I think the do way there. Sure. opportunities our with in the out past, question. and Yes, stage. through opportunities early shareholders of early a as everything to all discussed have we a robust we've And there from negotiations, later identification

various as execute business So are business in the well able to opportunities confident my be products at that an goal year. the sense is units. we we'll on of acquisition this And as looking we're

business capabilities focused the and expanding product on units. of on are offerings the We the

we're months that As for an XX within about we've can business past, or be to accretive and revenue said the the looking opportunities generators in targeting so.

advance those this we to efforts we confident acquisition an So on execute year. can and that continue remain

it it market, we get the specialty specialty into as of a always of of not market capabilities priority, But those talked terms the business, to identify can we available. would targeted it's opportunities that is terms about is extent like offerings and medical that dual or diversification in we practices. have it's whether dual clinics something In for opportunities that us, commercial

about of the in business. --I that us, about priorities the operations think think we is a For diversification

Operator

Thank you.

Fitzgerald. Brandon of from comes Cantor question next Our Folkes

Your line is open.

Brandon Folkes

guys, see have you lumpy that quarter-to-quarter business expand on my outside your Hi, you do for margin forward? talk Thank question. taking operation XXXX know leverage you based to product thanks about it's mix, now and Could business your your obviously but in you. margin I between of profile going development? organically the

Rich Lindahl

think Rich Lindahl. is for there do an margins improve our opportunity We is This the a Thanks hi, Yes, Brandon. time. to organically question. over

there's there. think are I to we a number areas be think that going of potential

services the well sales, revenue. higher lower both of know, you margin gross margin a reflects product as as mix our As margin our

in margin. margin products XXX always going non-cash factor. in would Raxi the our product and with does the increasing that improve the driving basis goes in-house scale gross case about our point of of efficiencies along amortization we ways revenues the that. grow increased months like a And that's operating capacity intangible the that number efficiencies, amount in I ACAM that So margins from be by some that. and Raxibacumab the both year addition, points that But by production to reflect we some those the out utilization other a expense of then the to drag should a on as of first in represented bringing see six on facilities items see of by

we I think we'll are drive up. So time margins over confident that

Operator

you. Thank

Fye, comes next from JPMorgan. Our question Jessica

Your now open. line is

Yuko Oku

Yuko this you Hi, questions. Jessica. is our call the taking for Thank for on

would talk plan With that segment fill you the target facility the expansion of of Baltimore announcement customer to to that the the additional fill/finish you about capacity? potential

Bob Kramer

joining Yes, This the Bob. Yuko, call. is for thanks

capacity As we demand we make investments our that knowing look do that currently fill/ to exceeds again business, that today. finished strategically we that have in

support internal of adding And that at as being the it's looking today, a serve we also for new customers our able own So capability. capacity products. portfolio to both increasing growing the well as

all three that a to of So it's looking there. we're achieve combination really

Operator

Thank you.

Chardan. Our question of Nakae Keay comes next from

is line Your now open.

Keay Nakae

two questions. Yes,

to wondering to you the for your us second if question timing any a baseline First today? And international updates Raxi are facility. on sales transfer can give where

Dan Abdun Nabi

Yes.

why you don't handle that could the and maybe talk about then Rich for you Raxi on transfer, one. that Bob timing international So

Bob Kramer

Everything's to Keay. plan. in So the we progress. Hi, We're to are be good going that XXXX able tech you? expect How Raxi time transfer Sure. of period. making complete somewhere according to

for the that transfer. said, contract product, as use As GSK to manufacturer do while continue the we tech we we

in So you should timeframes. expect those something

Dan Abdun Nabi

can address Maybe international or sales. OE Rich the you

Rich Lindahl

Sure.

know, steady by we've you but As goal of to sales. that towards of coming set XX% getting from at this we're a stage. progress XXXX least revenue not goal. making there international that below at We're We're level, our

to next to watch move continue that years. for the so And over couple towards us goal

Operator

you. Thank

next Brisebois Laidlaw. Our of from question François comes

line is open. Your now

François Brisebois

taking question. thanks Hi, the for

of terms or was the stronger terms in here, couple numbers? other in guys all revenue a what defense breakout Just you of at maybe bio weaker

Dan Abdun Nabi

which don't out products revenue actually lumped about Bob product other talk other product breaking other -- think really we are break we could out. and you revenue Yes. under BioThrax sales. actually the so that I describing together are product maybe other the whether

Bob Kramer

see both breaking ACAM which think All it obviously contributor you It's as gotten which there, as schedule we're TROBIGARD the to first largely in in other the the that you product comparison as the mean largest additional out year I then press right. release. really can BioThrax some the well That's the ACAM incremental contribution I sales driven suffice is and in that impact six well. we've and Raxibacumab year-over-year really the by see of in this say months.

that. kind how So I that's describe of

François Brisebois

then the there's that you. production Can guys in just you terms to the thank around? sure great, And break the that no in of just discuss How make table discuss get for for this Okay, process to comes contract? ACAM contract. you follow-on and how

Dan Abdun Nabi

Yes.

the It's of color. additional how could many, a terms contracts Bob and response government maybe maybe you and portfolio some but the the It's similar granularity years over goes of in I'll that. So across to contracting that add the many practice Bob terms past all the the little bit and in RFP the we've pretty very process. about standard executed start greater

Bob Kramer

Yes.

I Franc will that are we will contract publishing way to I spot-on comments think think respond their I Dan's negotiation follow mean it, standard and and requirements the for for So it. joining it's fairly a thanks RFP procuring call. be going process. by CDC an to the

into negotiations. We will enter contract

prepared I quarter and of of down have with sitting the more government those right follow deliveries to delivery on around as look in current So that in contract conversations on the getting focused substantial and contract orders completing the the to this for in we're year. now remarks, by end said forward placed my something preparation

François Brisebois

missed with guys then last [XXXX] And don't goal? I it if you top comfortable excellent. line just but one, know Okay, are one the I still billion

Dan Abdun Nabi

we is goal something remains with achieve. target comfortable company. that to that think remain I the and That the for moving

Operator

Thank you.

Our come Boris Cowen. Peaker next question of

Your now line is open.

Boris Peaker

Great. you Hello, can afternoon. me? Good hear

just maybe vaccine. start I Zika So with

is a curious And or that vaccine? seasonal the for commercial potential Just not? that what vaccine with be

Dan Abdun Nabi

in thinking and of something question. be. what we've lot for is that market might might population what opportunity it the a is Thanks target terms And the the be been about

authorities a it undertaken government also health some think how In lot about about disease. US is with we've indication, global beyond just the there indication be in think about requirement am age think what point and is to manage that preparedness the particular, optimal. also when we of of term public about speaking it they target that that from potential So US might but requirement. discussions right the age emerging for for now the we what infectious I And vaccine

framed actually haven't the juncture commercial us. at this for entire opportunity we So out

that of continue it. the significant end to in will a thinking the believe commercial and Our it exact but there this is advance be day, product do so contours to the is at remain and we of refined formative we do stages opportunity, as develop the

Boris Peaker

a procured been European room specific body process and for Great opportunity the timeline there least have mean larger that for second agents. agents. defense of we sounds of the countries are reference the use I'm that I in such any question or products buy some to a could or exciting that curious a programs use as --at very my the European like are Europe on it And expansion.

Bob Kramer

this Boris, is Yes, Bob.

in that that countries you So expect these developed respond most process be that of we should tender typical that will there the to. will more happens

countries from stay mature as And prepared populations that strategy these making chemical stand and is we and military decisions biologic threats. their protecting informed again they interest civilian these aligned Our their for make. support to sure the that and

some by The XX these to do should to visibility them standing side to their initiate you could think with responsive with they process we're working and tenders. countries side I take have again months, needs. X be when to So but expect

Dan Abdun Nabi

add many they're the just And specific countries products portfolio. what it's that I'll for. And as of to already in to unique again country each looking number countermeasure the procured a European have of

relationships starting will it's-- established have have to been expand be we're some we those There that number an start. from opportunity with the of relationships that customers. not already a a further standing So and us established it gives

Operator

question Singular next from Research. Springer Lisa comes of Our

Your line now open. is

Lisa Springer

question there? the there the contract in And award that your likely May. regards Was contract organization? that afternoon. opportunities of to you one first $XX SEPI from take this Thank are form more like the collaboration announced you, Are million My future in the they good did?

Dan Abdun Nabi

EVP has Yes. Thanks greatest that. around to detailed He the and that. Havey, for was with going discussions Adam Adam? the ask We're to SEPI information respond to the of involved Operations in question.

Adam Havey

our companies. we this answer for different is contract Lisa other potential are proof-of-concept partnership is go-around first also one but vaccines portfolio ideas with structuring that for have, Thank The question. We other working short first like both the in this SEPI. and Yes. deals think there with in opportunities and our

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Operator

for Thank gentlemen, our closing remarks. back ladies any the and like call turn Robert to would you. conclude Burrows question-and-answer And over this I does session. now to

Bob Burrows

will look forward through now version the speaking Thank in available the your ladies conclude that participation. webcast today you later bye. to the With note archived website. today's of be and we an of and call accessible the you future. we of gentlemen, again Thank company Sonia. you for you, Good Thank and all with call. Please

Operator

concludes thank in and gentlemen, for Ladies you program. participating today's This the conference.

have Everyone disconnect. all a day. may great You

Emergent BioSolutions (EBS) 2 Aug 182018 Q2 Earnings call transcript