EBS - Earnings call transcript Q3 2018 | Emergent BioSolutions Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. And welcome to Emergent BioSolutions Inc.

Third Quarter 2018 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]. to Vice conference President like host, to now Burrows, Bob of would turn over the your I Investor Relations.

begin. may You

Bob Burrows

Thank the third everyone. afternoon, and nine today the and XXXX. for quarter and Nicole, of operational for us discuss as Thank results financial months joining we you, you good

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

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

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

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

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

Dan Abdun Nabi

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

our market, for months our first financial provide the I'll focus quarter full year, Bob our global summarize Rich will updates and revisions the financial trends the on of year guidance the operations. on today's performance and threats and call, health public During to XXXX. the will discuss nine then in recent for third

seeing at release States health is are the XXth, programs we public September President's well on to PaxVax HHS recently, year, the all acquisitions. Sates this and United funded in level XXXX. performance million. were in million incremental million to the bio education the year line requested market into million, fund above across influenced confident The have bill as primarily President policy legislation, law at expectations. federal, And to finish $XXX SNS and included from included infectious funding, This strong the signed threats Key state fiscal in greatly and by both response local at of progress United the $XX of third to $XXX and security for is HHS also and saw you and our quarter business, in labor project the above to we levels. The Bioshield as bill and establish In XXXX impact solidly rapid the the appropriations pandemic. $XXX significant disease year-to-date internationally. allow the a press by As driven quickly growth at the fronts. afternoon, with respond our a these organic or BARDA during reserve And an

research, streamlines to and Patients is law opioids opioid the in Grant, opioid the for XXth, the mental Naloxone intended to health or to into Assistant opioid the address administration leadership and also advanced medical public move active health ingredient and Nasal X, countermeasures epidemic, the of and NARCAN services of the The substance access the October Opioid for the bill including Response. includes appropriations and recovery Preparedness The medical prevention, opioid are of to to October on of which that is emergencies. reduce Spray. around consolidates epidemic. now countermeasures Communities as State agency's other overdose part nimble decision-making XXXX under addition procurement responses opioid strategic assets the SUPPORT related funding Secretary the substantial $X.X development and overdose and Naloxone. treatment and development reduce stockpiling SAMHSA services. treatment, expand and treatments, deaths billion of to In and included supply To and further see Response office by to for in abuse which funding combat mechanisms to President enable funding Act, our This signed

aimed programs of and Emergent and level, a few to signing the detail of the opioid actions support legislation launch an of higher prescribing for risk physicians more addressing to Nasal overdose. risks the guidelines expand awareness with to new the Texas the Naloxone will policy ceremony, risk two momentum in During states the an use announced in these At co-prescribe December goal public and passed from was consolidate meeting to government regarding House advice effective the importance including enterprise. prescriptions to the opioid legislation education advisory biodefense community. prescriptions. Virginia. is a Currently, At of which on federal more opioids. this gaining biodefense protecting national initiatives associated legislative community of eight component biological White discuss of in been strategy Spray level the of co-prescription biopreparedness Bob, has access important government. and NARCAN resilient the adoption the California, Naloxone intended in patients These moments. September the state solicit In increased clinical just increase as strategy and at with FDA's products at upcoming and the input will Naloxone strategies to develop on American another XXth, threats committee U.S. published development, all to for U.S. The availability activities of the is demonstrates to and implement of the

government's past biodefense the biological to this security on of aligned annual for with counter lessons an calls U.S. back biological of and which that can changing the strategy Importantly, strategy, build effectively from national new government the rapidly needs help landscape is evaluation threats incidents. ensure learned biodefense

that the increasingly mechanism, role action has In plan, the played We’re EU responding on several committee. Emergent civil an preparedness policy course for protection and declaration action the action also in medical cooperation, CBRN similar vaccination on were joint and the include the plan witnessing of Europe, terrorism The past time be influential EU the native momentum led to forth put commitment. for policy specific months. contributing all four joint first which internationally. These proposes by and initiatives priority the the over action of attacks a CBRN CBRN EU

need are their member or of endorses discussing be and preparedness possible EU incidents that medical industry need dealing the medical implementation countermeasures. in goes countermeasures for the are are action It with responders arena ensuring countermeasures, entering solution for level, to they're stockpiles further Europe establish needed that CBRN available. recognizing civil of plan, ensure role attack. at by and that protected the ideal that that the the through the when supplying Specifically, -- on regional procurement the protection by adequately focuses CBRN states CBRN would to first plan important stressing a industry The the closer mechanism medical of improved of also relationships

the medical policy matter threat growing. commitment In incidents. medical countermeasures As policy action Bob are the solutions U.S diseases in cooperation government, published public declaration summary, EU's by that XX to health the stay urgency. of third the over citizens importance the I'd stockpiling leadership well remain a action President health of national recommends our our the as joint a both continued part and well-positioned from threats Kramer, like Last recommendations. to of threats, of into President EU the partners, that protect and supports program, and portfolio This Emergent our joint CBRN essential and related week, commercial was as and was including countermeasures operations. for our legislative biological those biological well that, and commission and President as European addressing commenced we of of Taking cross-border health of and market year discussions and growing provider legislation invited the Emergent CBRN threats, native of the the that implementing NGO, of and of Council, that call to COO, account industry health threats EU threats. internationally. communicable chemical declaration General the the preparedness, our countermeasures EU funding a JV and medical market, levels is public especially the for a turn and demonstrate as to medical at development work by serious the increased health joint NATO. these only efforts leading health was to to firmly of discuss our Bob? resilience network NATO to is record health the to the EU global established on member vaccine belief EU address importance witnessing to public of plan further A services strength with Secretary inventories a response preparedness which to and European review risks track With for the convened the global the among representative stockpile and other as to EU on of an supports Commission and public vaccination customers in raise and things, progress aims other threats, caused on countermeasures

Bob Kramer

good our afternoon, call. to Dan everyone you and you, thank Thank for and joining

recently the on so, and doing I units. before acquisitions my each PaxVax would of our Pharma. a on today, to brief update But give comments the on a business operations in updates focus like closed I'll moment For summary prepared take of Adapt and four

two important months accretive operational With closing. our we closing completing exceeded will that of within the transactions, an and point, of these To generate that XX expect have acquisition to and XXXX be be goal between XXXX that continue and we adjusted revenue PaxVax to revenue combined in income the and will operations contribute year adjusted $XXX $XXX EBITDA. the million and range in of million net Adapt accretive full of XXXX

we've CDMO infectious on Xth, the sights business business both well October as first vaccine acquisition, and PaxVax pipeline Focusing into as and products, of the our our our integration since PaxVax's closing in unit. the begun unit,

Canada The team strategic addressing Europe. the chikungunya two developed our our Pharma X well vaccine salesforce also in our FDA the now as network, Types product, On employees the we Vivotif customers growing devices the and Vaxchora X view They with specialty spray on typhoid Switzerland, as step an As focused Adapt X NARCAN facility in addition footprint of being Ireland U.S., Adapt's to two adenovirus for marketing vaccines, in a announced expands adds unit. bring our and significant the and which this the vaccine reminder, workforce needs also flagship Defense. portfolio cholera, to in nasal international of with XX important into Department transaction and travelers the Bern, development market. a candidates, begun and for we October of integration distribution manufacturing Biologics PaxVax Phase and acquisition cGMP in acquisition. as an approach of U.S. and global of experienced to in Shifting collaboration have and closing XXth, of business the approved

treatments organization, in the opioid their As delivery R&D spray is Drug only presentation of and is approved the of which U.S. experienced and developing the by overdoses. Canada first Health all We Administration known emergency a commercial nasal NARCAN currently treatment suspected overdose. focused on or for reminder, welcome team needle-free covering new XX opioid Adapt’s and Food naloxone options and Canada and states for

Going awareness strategic easy and to emergency nasal and to strengthening affordable NARCAN availability commitment access forward, administer will convenient, of as Adapt’s we continue a spray expanding treatment.

in earlier, As United announced opioid with all for nasal Communities in spray States. of a public a the the on concurrent of prepared offer awareness eight focuses NARCAN without members to Dan Patients opioid broad to program how in communities risks with signing support opioid respond of includes those emergency. direct an Also and we as thousands and libraries pharmacies insurance Act, and launched and the the mentioned the populations cities. about in YMCAs, them, NARCAN campaign both reaching family to spray educating to well October, throughout campaign consumer education the associated free awareness at campaign in This of This public we education coverage. prescription risk nasal friends on use, be with in also including availability event a supporting to as

Committee, some have spray has a of including of health initiatives NARCAN stated, insurance waiving position the entirely. crisis, public of legislation. of support health strategies a Act; we increase and next prescriptions a intended and our the covered $XX to Appropriations less adapt co-prescription insurers XX% to scheduled private solutions As the our at community; co-pays which for address opioid very use the significantly with majority both of the Patients as summary, to XXXX members federal dispensed statement under commercial for the capabilities month federal threat previously having and public the In to funding complement acquisitions product Grants SAMHSA efforts availability evaluate for with and finally, to initiatives products Advisory PaxVax being names and access the in These Naloxone nasal customers. further broaden provider co-pay and or broad various leading Communities FDA’s coverage the state-level Bill; governments federal and broader to and is solidify

targeting candidates. operations business Now, and unit vaccines PaxVax each of and NuThrax development well a development anti-infectives, in with portfolio influenza drug quarter, as will the into this plus four and of let unit vaccines me includes programs, turn in Zika, the as incorporated anti-infective business to our BioThrax Beginning products marketed state ACAMXXXX and including fourth of units. Starting well. pipeline as be the in this business

year. towards During deliveries completing both into quarter, of the by and the third continued ACAMXXXX working SNS BioThrax we the end of the

In looking continued year to ACAMXXXX addition, the their issuance programs, in end NuThrax. a pre-solicitation SNS. pre-solicitation the CDC of the negotiation issued outlining this completing In the process, beginning by we of contract of work the marks procurement the development to interest which continue notice context first future The at notice XXXX. of toward

EUX are final the by efforts. the full XXXX. to package PPQ We target end continue of we lots, development The or process FDA qualification of advance to the the and to continue runs, product submission performance, in process, the

it EUA $X.X while and be billion BARDA advancement the preapproval Regarding the development under as NuThrax significant to procure our enables will preapproval, contract. procurement EUA receiving

deliver also Biologics NuThrax As progress In also options procurement a to the reminder, or million contract parallel BLA doses up to to eventual the of this further License includes SNS. EUA $XX NuThrax's on submission, made Application. we to

required be an will for approval. that decision for notification animal that studies a on important product for candidate no the received additional efficacy would we data non-clinical Specifically, BLA, rely

beginning half X and Additionally, X in the XXXX. submitted of the on to remain we phase to the phase the protocol first target initiate FDA study

including of marketed immune well hyper and as Anthrasil, unit. targeting This Next those candidates, consists Zika. Raxibacumab, DIGIV influenza and BAT, portfolio is of business the a four including products, as unit antibody therapeutic

to quarter, fulfill DRG the continued of to During and deliveries we Raxibacumab the SNS.

important its continued tech of also Baltimore of licensed medical Emergent this CIADM supply of in We strategy transfer anchor to facilities to a for continued product to advance ensure countermeasure. and Raxibacumab the our the as provide part facility Bayview,

customers. CIADM for reminder, needs a pandemic tech facility. government we emerging CIADM build recently, were U.S. intended capabilities More negotiate the existing transfer the to contract to infectious include the the to our Bayview our with Raxibacumab response partnership disease with government a able has the modification As of to to BARDA funding of meet emergency a to and

on our In to addition, customer continue we make growing international progress base.

remains Botulism successfully or phase expanded study target FLU-IGIV for are and programs, this sites half XX X Therapeutics, XXXX. our first Shifting the Specifically, in Immune agreement sales open. territories the this the distribution to BAT of patients season development Globulin Antitoxin we continue influenza in being Clinical of of product, the new signed we clinical this flu a study added and completion for product or EU. in for to

a Therapeutic in and the initiated first virus Zika our X and data of Globulin XXXX. clinical continue, Phase quarter also We completion Immune for anticipate availability we study

Turning beginning will quarter, programs DX the incorporated the the injector. be fourth the unit, auto intranasal our cyanide business as as development and TROBIGARD into unit Adapt business next notably, and well devices auto-injector to chamber RSDO devices platform, alongside antidote in the Pharma’s dual spray operations

During TROBIGARD contracts deliver customers. to under the U.S. existing RSDO and continued quarter, and we third with international

We expectation the to development submission we IND medical countermeasures. and the these BARDA initial our contracts testing we SIAN respectively. with prototypes customers with to of an XXXX. completed functional Specific DX From development projects also make in a progress efforts to and continued DX, under for and continue both feasibility in DoD perspective, expand important

business as development unit units, manufacturing all This through both customers external development. and manufacturing and Turning internal, well provides downstream phases as or drug operations the of upstream last contract CDMO. for to services

from principally third our of on to the quarter, fill/finish we customers, Camden continued revenue facility. During behalf commercial generate

we’re years. will as next our upgrades the expansion, additional progress We and we over three expansion on board, strong as goals remain for we operations all summary, our across In capacity and upgrade capability year. also investing meet that of Camden in further where remain the of the our site made operational confident well

contract For to the next to of our execute third with for contract on year; newly of the successful Pharma the on acquired on U.S. next our all remainder candidates. on deliverables; NuThrax; government Emergent; development businesses are Adapt negotiations and to PaxVax application the procurement and first, a ensure the our finally clinical EUA to follow advance to complete U.S. seamless and priorities ACAMXXXX integration new government into submit

to opportunistically and continue also With over will our health I’d focus the our our We for acquisitions core call of to to public threats. area that, into review criteria our financial meet fit evaluate Lindahl, that CFO, like of performance. Rich? Rich turn

Rich Lindahl

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

on today, comments the state quarter, performance well balance prepared I the to walk wrap sheet my our of our period, P&L For and shift will the the through with capital will as comments I address year-to-date third then for and structure. up the as then XXXX both of of the With third at our the let's our our operational revised as business. ongoing execution continued first for nine as reflect that, quarter guidance. look against XXXX Results performance. strong third diversification were goals, financial and well and first quarter and months

during $XX total highlights year. as XXXX, higher first, primarily customers manufacturing existing partially contracted follows; consistent quarter BioThrax second, increased in facility; to our sales. with at Third sales million, the due quarterly substantially primarily offset product are increased revenue prior in the and with the same $XX research million quarter development the were Compared $XXX million, revenues XXXX, contract revenue to contracting due were were quarter $X for to which Product quarter third, primarily to than period our XX%. programs. manufacturing C&G $XXX the were associated margin over million, fourth revenues, grants. due million, development contract schedule; CMO $XX by Gross acquired reimbursable Baltimore year-over-year ACAMXXXX commercial lower services. sales up of and $X was for services product Raxibacumab, and were million with million Camden activities up which delivery revenues both up

significantly our we influences As product before gross of CMO stated margin. the revenue mix blended and

non-cash gross reflects in costs. basis the headwind amortization point third from In addition, our margin XXX quarter

which in Canton, to After or contracting up million currently not by $XX for grant or year-over-year. third-party the quarter, expense, associated Pharma contracting Massachusetts over XXXX, whole expenses. primarily program. XX% an our funded million costs process million, $XX quarter the as were legal expenses SG&A million, improvements revenue, programs FLU-IGIV $X.X net our for that was operating of related reflects grants X expenses in in of R&D revenue. for $XX million clinical adapt site, in reflects R&D to as in well due part and up million are less $X made $XX the and mainly Gross spend with net related associated total and increase our investments investments Turning Phase to is with is ACAMXXXX million costs, the PaxVax of revenue, $XX was recent This primarily revenue increased acquisition trial partners diligence adjusting transactions. at which metric

third As SG&A expenses of revenue, XX%. percentage were quarter a total

the tax For an quarter third expense resulting was the effective for in in the X% quarter. of of XXXX, $XXX,XXX, rate tax provision

tax includes activity. as state stock finalizing the primarily million, discrete quarterly to U.S. benefit as and XXXX provision of filings, taken $X.X federal positions of Our the related Company's compensation impact tax well income on a

$XX and million. was $XX million profitability measures, quarter net income was In net income of adjusted third terms our

Third million. allow of as gain the are economics additional to investors a EBITDA business adjusted the the believe adjusted to for that was will integration such We our as important transaction quarter continued EBITDA our M&A costs. Note was $XX and metric, adjusted $XX million reintroducing company. as we another of contribution insight when this ongoing EBITDA given and metric use items growth and of

$XXX XX% quarter includes up year; XX%. year million of million, Raxibacumab, other total an which highlights not business last the million, of XXXX, revenue the over which of increase year. is reflects the expected to $XX Services fourth and point the as of primarily where or million million, compared Key did Gross generate $XXX this efforts incremental sales XX%, be million, at increase total our last $XXX our and of is to well Turning first product to figure it sales This include; revenue is we XX% is right products nine $XXX Through performance. performing $XXX or year-to-date months the in of influence of our million revenue year. $XXX sources. or target prior indicative million, last but still was mix margin continue of CMO until revenue us same versus $XX and our which ACAM to to diversify year. below contribution and up the our period was range, the of for revenue

Our a the also non-cash year-to-date gross point headwind in margin period costs. reflects amortization XXX from basis

revenue. margins $XX versus versus with net $XXX respectively. associated critical additional net non-cash system of improvements reflecting as adjusted and million For as other $XXX expense million was XX%. $XX note acquisition compensation higher of expense. million of BioThrax associated XX% million, was or respectively. context; and $XX XX% income EBITDA that was net with And Adapt and million XX%, costs income of Pharma income percentage XX% transactions development and XX%, higher total reflecting products and $XX SG&A than million a adjusted third net revenue, and reflecting or was XX% related stock was margins well noncapitalized million, $XX $XXX IT and EBITDA research XX%, Net net as expense quarter, the and PaxVax adjusted the was Net incurred X% of costs prior was through the revenue, higher million year, and CMO

the to sheet. balance Turning

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

That million PaxVax hand. After As and amended on needs, Bob million acquisitions we these you, our under under opportunistically of we investment $XXX expanded credit we first flexibility concurrently over in just the flow when closed have road. now additional review restated activity, combined October. fund $XXX of quarter our our half $XXX the of of the also reminded retain in ensures the service and our and debt Adapt transactions, factoring the down the undrawn cash to finance we we and consider profile, and our cash as move incurred financial To this which debt M&A with facility Pharma capacity year-to-date. completes both used revolver, of million operating

to now our me turn Let guidance.

reflect our highlight of forecast We have the XXXX factors. financial revised full the updated forecast impact in business. of a context, I PaxVax trends to the as current as and number in To Adapt Pharma of our will year put well our rest acquisitions, key the

remained strong Adapt, the expected anticipate beginning revenues the the in of the of and Accordingly, this to revenue business estimate will similar organic of of at Included very and year. our fourth forecasts. on BioThrax higher excluding much Emergent’s the anticipated PaxVax track. expectations we in that in results, financial our previous be the is First, end This consistent level to BioThrax are deliveries established quarter quarter is XXXX. that XXXX with XXXX be level the fourth BioThrax for of at

be acquisitions modestly recent the income and XXXX. positive on will EBITDA in impact our adjusted net of combined Second, adjusted

describe we that recall margin as Adapt not profile business. when these a and August, comparable yet PaxVax in announced to our You'll profitable existing acquisitions we is having

accretive the are we accretive by Adapt the impact PaxVax XXXX. these forward, of throughout become anticipate that exit operations measures that time we the to Looking and these will measures XXXX, to operations

a and approximately Third, press in integration highlighted pretax and in costs, forecast net net of transaction these contained reconciliation incorporates additional income our purchase total adjusted of items income related million release. accounting of in preliminary acquisitions. $XX to interest Several these the impacts are expense our

for revised rate of an XX%. approximately tax forecast to continues year effective Finally, to XX% estimated the reflect the

EBITDA net million million; pretax $XX to adjusted of and to $XXX of of million revised the total $XX revenue now are to million of forecasting $XX terms million; million income we million; $XXX In income $XXX to $XXX million; to of guidance; $XXX $XX net $XXX million. million of income

adding acquisitions, create operator PaxVax together. EBITDA prepared of we of move And strategy Therefore, closing ongoing To begin $XXX of with completes the our team are an results. Pharma to my its list and I entire the year-to-date organic XXXX the $XXX quarter to periods forward turn the to million excited again, importance recent are reflecting and adjusted now over reported we will and in our the M&A in about adjusted growth We are integration million. is That the on to EBITDA, Operator? forecasting business. estimate the to value adapt session. actively our impact call and also question-and-answer strength demonstrates to our for engaged the and conclude, remarks. performance the

Operator

Brandon [Operator Folkes Instructions] our from Fitzgerald. first Cantor And question comes from

Brandon Folkes

access Naloxone just overall two, that the I'd get patients? just into branded and then more I've the you. fits NARCAN? your guidance how we And markets of shaping of like to Thank OTC a competitive providing do to think around goal up affordability recently the little the potential with bit thoughts to could coming that one, you and on landscape saw secondly, a see the you with got Naloxone to the how compete color provide you

Dan Abdun Nabi

the Thanks Brandon question. for for and participating

prescription. on product to Bob those there prepared a that prescriptions keys the his our product So, it’s is on to affordability really a observation around approach into walk are without an need pharmacy in And raised, because interesting ensure it. that secure securing individuals now individualized actually that mentioned remarks, who OTC access and affordability, standing right you as and the and are assets receiving to unable and and are

coverage, many addition, by providing about or seeing companies insurance less. of local pay we’re $XX and In XX% coverage predominantly at

think, right access underway. in So OTC is strategy are ensure the really availability. enabling I programs public the Company place, an importance really now, the programs with to And that of education have whole that

availability. about expand thoughts can that on how we Additional

the to being to present want -- we the area Bob. current continue it's access something anything evaluate. you on think addressed So Bob the availability that add programs. to is I'll that circumstances and ask I is with an But that given

Bob Kramer

I recently were taking are in that management reinforcing education Dan. The that’s under and program, the put program, they’re place co-prescription awareness standing think access we and the Adapt announced. complete the they’re programs affordable Whereas have accurate, No, that the hold, the working and order programs principals.

to our this to forward. from with what are continue So need evaluate we things will and working well perspective, do going product we

Brandon Folkes

guys And on you landscape, shaping are up? the just maybe how competitive

Dan Abdun Nabi

branded the little maybe Doug, a naloxone. of We Doug Business on is have who White, for Head Unit the just Devices. perspective

Doug White

Yes, and enter marketplace understand to the to market. that studies with we other evaluate doing there that and the are companies work plans continue are

very through We current and NARCAN of on and we about brand the maintain believe our position in the strongly that strong we marketplace. feel valuation our position, part very analysis and ability have a to anticipated our a as that that initial is strong based acquisition

Dan Abdun Nabi

we And for healthcare and a those is this at the federal static crisis for way NARCAN for I crisis utilization grant the the see we fixed. in when an This particularly allocating growing of states funds address Spray to experienced thing of education, expanding landscape, country the that not and real government add marketplace. the grants to initiatives increased market. they increase awareness, It's is And -- the as the states increased the and the state to a and this some see we've And think the before block opioid other is a as by a money a Nasal fit. not this be need products to is is, availability, look to avenues there like available. crisis

So it's affects market an prospects or not coming NARCAN into for the actually product whereby additional the the growth two Nasal static Spray.

So to you of terms well. in those think have it as

Operator

Sachs. our from Thank And comes Flanders Dana next Goldman from you. question

open. now line is Your

Dana Flanders

again, launch And the it's achieve? market quick of you're you thinking What's Hi, thank how I a by you margins mode, think you specifically; speak for long-term have questions. think much how operating that is profile can said business. take And 'XX. the to you I where PaxVax opportunity? first you follow-up. just, about very just Vaxchora in you year-end then you maybe long-term My can kind can accretive I you think margin that on and know then, know for but or

Dan Abdun Nabi

for question. So Dana, the thanks

ongoing having our in going for with profitability process, the consistent been unit and both when that ago has hands wheel profile, talk of on terms gotten who you specific Knowing But transition the we just I'd think Abi profile needs its -- of on through PaxVax announced our several Abi opportunities that of and so years thinking process Jenkin, as is color what we general, it profile thinking about time. we a always bit we our in that expectations the that not there. has the business. XXXX less a Adapt it the there quite contribution, any continue for changed I But Vaccine transaction, be expected of integration spoke, are business anything it's to we than as for profile assessment a in profitability runs an some the Vaxchora. to operating ago I'll consistent this for with our as the say financial add? transaction terms month is well to let our with the want established

Abigail Jenkin

Vaxchora market vaccine are units the growing, Vaxchora Bob, a a the factors Health Vaxchora only numbers We've and is, think approved it got of and with relationship of in as growth In specifically, I the terms you and mentioned way strong are physician US. increasing. prescribers is Passport per and great using the who of travelers number unit; cholera and under

to that a for just of for continue sure. we and lot So, of into behind launch 'XX momentum expect remainder the 'XX, the

Dana Flanders

passed? incremental know opportunity, upcoming should an basis, but of a naloxone much I adopt panel pick legislation state state state the or it that or I the volume And is point have mean mentioned states co-prescribing up I have states happened the state example other legislation you Thanks. on how a how and mean to Okay. this when you you to we about then, this? think through those of for I in volumes that if goes can volumes curious it's that assuming by with couple example discuss and to what's opioids. adopted already that what's know

Bob Kramer

is. it Sure,

by provide there terms two now is be those has to some state in But and Doug, of states You're are want co-prescription you There are are correct. others six so the been It impact that on sales. where on specific implemented maybe the experience program scheduled to soon. implemented. the state color far

Doug White

Absolutely.

been after in that into goes happens states increase on in the where maintenance see shortly do of -- weekly in has and a volume a on state in terms that legislation prescription. the co-prescription implemented, place spike So continued we very legislation basis then we a see

all does have of with that have it legislation. the an seen and initiated consistently states impact have demonstrated that we So

Bob Kramer

exactly, days percentage impact date enactment, will XX of the old, be And prescriptions tell, of old, there that that on maybe what to old. it's days a days XX XX are knowing certain Dana the little a difficult

there the So from may the delay be will impact through channel. felt a bit be program co-prescription seen in or of the a when

basis. almost So patient by a by state, state it's really on patient

Operator

Thank from Peaker from Boris you. our question Cowen. comes And next

now is line Your open.

Boris Peaker

to able us smallpox on on With are with key the BioThrax little. be negotiating maybe what as the vaccine, focus more want just future that for I report to contracts be will more a you'll some of visible to ACAMXXXX, and timelines milestones investors? that key

Bob Kramer

we think and with now for good remarks, our government that as their said pre-solicitation have out proposal I Boris, the came a indication which So, in request we responded. to it's notice their

So opens to us more around what have the it ultimate solution long-term transparent conversations like. door an for looks

visible contract announce when is think when award. I we going -- when of progress evidence a realistically, you or be will get tangible to

Dan Abdun Nabi

that's right, think I Bob.

government been progress highest visible to the to every vaccine countermeasure of has there. their the next the milestone the that's decades. back stockpiles child see for that's for been country And and priority. available I of think the in woman to I a a priorities them have say been investors protect that's one US going this will man, that the in has

going back said, I decades. As

that well immune as all remains. seen, looking indications they're and available commitment compromised in that expect as protected. fully with to be you've being expand we So to fact, are populations And

a is is there. so, is the capability expect this certainly fully being a is unique priority. in key the and that's we we see It's this commitment there; funding -- the So country there, will

times so undertaken government. to US the contract much the So, similar very with negotiation process many we've

Boris. for little So, color a you, just there

Boris Peaker

Thank my or if we PaxVax question ex-US for you. the on, in products, these products? is opportunity next is at look Europe what And

Dan Abdun Nabi

So want Abi, on to you that? comment

Abigail Jenkin

Sure.

the it's So terms XXXX for area they total products estimate we they about of product other the sell which the -- because States, PaxVax the travelers the Vivotif, United vaccines, through that's distribute our both yet, sales, of companies' is products PaxVax available but XX% where hasn't and main we for relationships like and partner and where product growth represent, Vaxchora sales for an for in outside launched also sell of product ours. also

especially So an continued launch Vaxchora to United that's intend in States growth area the we definitely as outside forward as moving of well, XXXX.

Operator

Keay from question Thank next Chardan. comes you. And from Nakae our

line is Your open. now

Keay Nakae

be? you completed. interest depreciation quarterly expect also amortization both expect of you the to the an quarterly you us do what Can and A couple estimate that to you've give questions related recent acquisitions the of be to expense what and

Rich Lindahl

What roughly quarter in see XXXX. of we're million expecting D&A additional the you'll that $XX of to we've is got fourth $XX million

move far for is initial million that's little $X that's bit, estimate. a in of quarter interest So but per some you as -- and to purchase based that accounting roughly terms that estimate as, on concerned, of preliminary $X it so as of a could reasonable estimates million should again, think is now. a And reasonable expense

Operator

Fye Jessica from from comes question Morgan. next our And you. Thank J.P.

Your line is now open.

Jessica Fye

what now You've or a help be you as And about mean, well. want I mean might I XXXX talked couple how SG&A? you to and to off can us one. about some growth them you by think NARCAN, rattle the me one aggressive that of investment have support go for if others

Bob Kramer

put will we deploy to support think resources best evaluate and I carefully programs to that So programs. they how use Adapt had the place in those has the that Pharma made

they the revenue. as in $XXX million to XXXX XX think earlier I and supporting with said revenue worldwide organization on anticipate going base between is $XXX fairly employees lean for somewhere we've million call, that are just land we

step chain been principal we we that supporting evaluate access accelerate scrappy. and plus They've ensure durable and is to that back they've three affordable how robust, that So effective that, extremely and supply awareness and those initiatives can been a around now have there product.

think I is we'll opportunity careful business overall. boost some to an to that, there make the really but carefully So be investments about additional

maybe Some and of be impacts this SG&A related. capital will investment

Jessica Fye

this quarter? say revenues BioThrax product then, And ones was much how this what close? us Raxi to quantify not, like have is you those Sees give ACAMXXXX it is least if the second largest been smaller Okay. on the were can it one a to of like, relative possible quarter? at and could where sense And of,

Bob Kramer

product those revenue this We're out just We haven't disclosing the broken sales BioThrax really typically other revenue. at point.

under of trade to to to other it a we time. used other we bio-defense in about case schedule out talked as bit they and past the over they off where we've are Jess, the They're per them products revenues those delivery year kind for be refer delivery lumpy. As contract subject and those may smooth timing-wise; -- one have product

the look historically to it of is you So at point, again, smooth out, I basis, your it and trailing you but question, bit lumpy. contribution a if think XX-months BioThrax other a revenue on quarter-by-quarter, product

Jessica Fye

question, and what that's hits lines quarter on if hit? And of then respect you already is the versus of with on kind like you of can to million $XX XQ? just that in transaction about color the curious I much million can sort more in talk in following think how the And prior give $XX integration up this it of lastly, costs, fourth that components any will pre-tax and that

Rich Lindahl

If highlighted. you a couple are you of will components at look reconciliation tables, see the

expense. of and you've interest and $X addition in of million step-up $XX we another about interest roughly million integration have expenses, So got; you've got $X.X $XX inventory million about got of incremental amortization; you've $X million, transaction of expense, million

the how that's that So get nearly quarter. of $XX million fourth in and all to you is the

Jessica Fye

the Nearly all quarter. of it's fourth in

it. Okay, you. Thank got

Operator

from And next David Fargo. from question comes our Maris you. Wells Thank

open. now is line Your

David Maris

I have naloxone a few questions.

plan So, an support naloxone. participate EBS opportunity; is do first, idea that of would on over-the-counter the that in OTC naloxone and something to the

on strengths pricing? The that those current guidance of are you second be strengths in for X FDA the do dosage the within? delivered that's certain fall -- milligrams the do could X use of any impact And is, around naloxone questions. IP think have to dosage what you Also, my nasally

Dan Abdun Nabi

real this. place $XX. to in such benefit to hard we availability. paradigm, it and above imagine than we've a access pay ensure coverage, we're have over have what's insurance the OTC standing available So, for of been not implemented, products $XX OTC I'll and come have programs co-pays being would and that OTC provided, benefit prescriptions, the patients because instances perceiving or patients is are the less given the and nothing back a that product significant the to could in and I And that now adopted answer be systems or the where provided under as remember to It's paying many be nothing that today, for earlier in

terms not really really we're the -- think in our I seeing of availability. increasing accessibility or benefit So affordability and --

product the really real that answer. for is that's-- OTC that sure not be thing OTC for I'm around has provides to the the opioid So driver the addressing And I crisis crisis, benefit the think the and other the

David Maris

don't mean, So standpoint, see be any access you you? I downside to from detrimental, it wouldn't an it do

Dan Abdun Nabi

detrimental. well take that the be It would patient recipient It pharmacist the between that on Not sure a conversations appropriate with side. the the isn't well effort be that would to covered could improving very between the There co-pay. and to Yeah. very no little that discussions effort. appropriate rather could certainly up end opportunity sure are than hurting by not or -- insurance it have place physician economic take patient might place and the

at to We're hard might stages. in early It's actually a have impact predict point. still it reduce this So the overall. and negative

distribution people priority. affordability, sure right convinced the not that to accessibility I'm if here, the play and the if address So, importance the are totally of OTC is crisis is

Advisory Committee up. do have We lot think I coming learned. a So be remains to the FDA

think a be robust to I understanding. going more discussions gaining these comprehensive, very important are to

participate to hearings. in those expect We

an detriments, can ways have the voice naloxone in which treatments the to in the and active crisis. address expect various benefits perspective Advisory on to Committee enabling understand We our

an no address how the are the there. multifaceted, as and see fixed it. at reduce is It's initiatives and answer that problem. this this emerging to is is on various So, numerous to legislative There government firm by The out you ways looking space. crisis can best

construed be such. So not shouldn't OTC bullet a is silver and as

guess-- I So

David Maris

milligram I and to the the the X X had questions dosing. IP around asked

Dan Abdun Nabi

the Saran us that room you is if question, that? the in for have IP. Atul. Who So to General we Counsel, answer on one our the so Okay, person Atul. IP Atul best do could tackle

Atul Saran

to during NARCA the the with away course patents that came that and we acquisition are the level that protecting Nasal does range it of the have marketplace. NARCAN that something a been continue of And include comfort help There are strong to in evaluated different will doses, protect kind it questions. product closely as issued a response It's the branded of Spray. process your Spray Nasal in a

David Maris

that and draft said Yes, about the a specific but IP to milligram guidance I the the strengths your because -- competitor with a out just you be the to dose Company came has X be IP that that that just to that your has And may out, FDA following dose level, -- believe by do gives at put X the this, you if actually draft -- a that want be violating would guidance? case? the is

Atul Saran

are particular to the assess come mean, have law or not it product, area, on may a a up. to may David, there I case-by-case if as patent we'd speculate products is complex that to whether it infringe. basis can't I as any

Operator

comes last from Singular Lisa our And Springer Instructions] from Research. [Operator question

line Your now is open.

Lisa Springer

it project and the Thank you. fully Camden really use is quick spent facility. the to won't be incremental million about approximately for XXXX tell much I expansion just $XX completed? wanted available is in how the that us of expansion a you to going until question be the of Could of going or ask site is to be the

Bob Kramer

our that bit $XX -- doing investment will, there about build. of -- as million. we're expansion same, is if of initiative remarks just And we That is said capability a more the both number prepared you Lisa, as capacity well several clear, the be to in making a a as

which we So new that know are that build demand business to we is looking customers there additional capabilities with for to heavy a for. --

Lisa Springer

Will that available at XXXX? capacity site in there be additional

Bob Kramer

be of of not online portion it, clearly all A will 'XX; in Lisa. and it available

scheduled think closer now on of I to the it's to probably board XXXX. middle be all

Operator

like call I'm Investor And back for this the questions Vice to time, I at turn Burrows, any President, no further to you. showing remarks. Thank would now Relations, Bob further

Bob Burrows

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

Operator

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

have disconnect. Everyone You day. may a all great

Emergent BioSolutions (EBS) 1 Nov 182018 Q3 Earnings call transcript