EBS - Earnings call transcript Q3 2024 | Emergent BioSolutions Inc.

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Operator

Thank you for standing by. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2024 Emergent BioSolutions Inc. earnings conference call. [Operator Instructions] I would now like to turn the call over to Frank Vargo, Assistant Treasurer. ahead. go Please

Frank Vargo

Thank discussing everyone. third joining as today XXXX. Good operational you and is their the financial Emergent afternoon, for results quarter for

As all open and call copyrighted is being is BioSolutions. is recorded, to Emergent by customary, today's participants, is

release, press participants. webcast webcast slide presentation today's is to accompanying to available addition a In all this

Turning to Slide X.

consider current call, related future future their business, and prospects, this or with risk beliefs, to the performance. does based Emergent Emergent's forward-looking forward-looking to intentions, this not events, as statement filed except make well forward-looking factors are Emergent as of and statements. their periodic events, statements projections reports by regarding Any may today's reflect any the expectations as law, their During other date statements undertake new identified statements to should or in cautionary SEC These future of as forward-looking and required statement forward-looking the evaluating update only information, their call, on events. speaks when Investors circumstances.

call, Emergent may to refer financial adjustments the Please involve order operating in today's figures found press release. Emergent's certain today's discuss tables in regarding that provide GAAP measures to to non-GAAP performance. greater also transparency During

plan followed XXXX will agenda key well by be Financial Treasurer, the in Turning Officer Officer, President speak multiyear and on Chief product include who guidance. update results third EVP, and year This actions. to as Chief highlights, financial turnaround will Slide as key Lindahl, QX to quarter, will progress, Rich The Q&A. the full for call will for achievements company's the Executive X. and today's Joe Papa, provide an

Papa then, today's it replay webcast, like may during who to turn have benefit announcements Since over to listening now to Joe call held on related opening call. And made XXXX. November of remarks. the I'd for Joe? with of was may discussed be for to recorded and topics Finally, Emergent this X, this those the that,

Joseph Papa

and XXXX our today joining you Chief by to and results our outlook. thank financial joined our for today discuss Hello, Officer. Lindahl, us I'm Financial third quarter Rich

opening from the value third our leading close or of turnaround their Following X stabilize, our Emergent against will several growth multiyear like lives review as part business. I'd important plan quarter public our This to the team, completed turn the continue we question on to with quarter will plan phase, collective improvement Rich performance X, a the focus year, I demonstrated full we'll on recognize phase, on as will stabilize, to progress as path and expectations. as our the now Then as around, this call operational a guidance have to share I our the and turnaround, business. am save threats up from year we our our have around multiyear and the year stems well next forward as that I now transform Emergent our create for Emergent of is to Emergent to plan full embarked update. open on discussion my on continue ultimately driving to enhance, the turnaround well of our significant our make great our the embarking Based multiyear world. efforts. business. to We plan call and to transform pleased initiatives entire sustainable ahead updates Slide answers. Earlier we stabilization shareholders. Beginning the efforts. members mission health phase who of remarks, profitable on for the strengthen against and team and first to to efforts, all detail Emergent's delivering our protect, passion commitment transform

with paired raising emphasize position and midpoint revised quarter quarter Rich XXXX, strong another Emergent year-to-date. our full since we its that was like are XXXX. raising first in for results pleased finished adjusted a quarter walk X revenue financial XXXX the I'd months we strongest to with will details. of Reflecting on great third the and very XXXX our the our through again are quarter EBITDA financial strong the the year third performance, guidance. us First, once

expectations closing credit million bank Advisors amounts provide we for our agreement will repay have balance revolving a this with of using all facility than refinanced by million. to Oak $XXX $XXX loan senior year. and We of facility. an Wells reduce facility with loan debt, capital principal Fargo portion our strengthened and We We a new sheet to million more a and new ABL exceed will debt net successfully Hill the outstanding term of our and loan up commitments agreement $XXX amount under that aggregate term that a to our our into entered

and to contracts Secretary. for to we and by executive commitment of be as combat the secured overdose made we expanded management has the increased Officer, clarity as increases leaders flexible Head General indication as well third approval who a We U.S. streamlining customers. continues biotech our redefine nasal for Nasal Through leaner, government sales. From will we the of ACAMXXXX Jessica naloxone organization a experience continue the more August our promoted the volumes NARCAN pleased the announced on procure site medical execution countermeasures of countermeasure save Dr. cost strides relentless company regions. Simon and continue in lives, operational savings, that our increased Spray our working mpox of to plan to we increased also driven implemented the several as the scientific and as help demand in we Chief to and as our epidemic quarter. of to we our include international FDA network, public Medical government's health business of for products. Also, during we revenue in standpoint, expected, including We the decades received priorities great and improve for been a medical in platform Corporate Monday, result year-to-date, both meet by XXXX a asset capital, an outbreak also team Lowry, growth. pharma appointed across announce critical to Africa R&D Emergent's other and and move brings on Counsel forward. I'm to We Perl new number strategic Both

which status. received legacy FDA have million importantly, but which Lastly, legal now we a a progress our inspection we certain including Camden matters, $XX and substantial on for payment. received facility, settlement Also Janssen divested, successful made following the resolving at Emergent NAI the site compliance

our patient the that to shareholders, death well day We customers, business? it detail. that, including is, we of work Emergent remain your help has review all our to expect broad-based quality, to how biodefense. and deliver these compliance in from help confident in our are public We to health the election impact continue know to the Rich question value for programs operate what operations, striving positioned highest opioid at threats, we support. every hand more our over I'll financials bipartisan transcend protect day. I parties. With and of Both to overdose do safety, while catastrophic governments political we instill does of standards As patients, and the

Richard Lindahl

you Good Joe. We joining appreciate everyone. the call. afternoon, Thanks,

stabilization has significant enabling is our and to the operational the progress financial us against Joe priorities transition our As the discussed, just quarter, from turnaround coming to out phase third of phase.

to $XXX $XXX and Oak and same our million million, when XXXX. These the result has Moody's year. And our maturity These the sales foundation We $XXX XXXX. entered $XX our improvements in the major the debt to in beginning positive to profile. the to prior will million concern confidential million led credit are which rating following resulted million into Hill as credit by asset net our XXXX. strengthened approximately since you debt XX-Q, of of And million, on received of the improvement Advisors, respectively, in both quarter facility we million $XXX Wells from of compared the a from $XXX million in agreement. Janssen family our secured file based a activities as going qualification. financial also and XX improved was as the removed asset-backed BX million credit been working with the to Net we as loan cash extending capital closed $XXX term of following settlement through prior a the liquidity the have million note stable position, presentation. supported financial a our Fargo, a August Slide of prior flow And credit S&P enhancements September compared maturing Operating B-, upgraded we we $XX payment was meaningfully corporate $XXX year. new Our reduction of versus completed developments, revolving to prior an refinancing Pharmaceuticals result previous facility X $XXX as and highlighted earnings period a the reduced improved on that outlooks.

Now BAT, for contract shifting MCM, countermeasure modifications this of X. received million medical to highlights Anthrax over key revenue and on our business total MCM, diversification. Slide We depicted year $XXX further Smallpox strengthening

treatment for for exercise the of announced million Ebanga $XX also a Ebola. development continued We option

compared continues as proposition We strong, of NARCAN are license generic drive adjusted a acceptance $XX value on And the X guidance the the to further FDA up the XXXX. million vaccine for first Nordic due Chikungunya finally, EMA X% continues year-to-date, volume of EBITDA raising from as competition. our its midpoints price point and payment triggered remain and Bavarian by milestones we're applications. differentiated revenue and of to to

half upon third in Turning our built solid quarter. financial performance We strength first to our with results. continued the

the include improvement the EBITDA X% U.S. the the indicated year items margin lower $XXX $XXX note adjusted was strong stock-in the previously Anthrax volume and associated our versus highlights options of the public revenues, decrease announced interest previously to deliveries the XXXX, despite year-over-year. million, deeper Total OTC. sales revenues, sales included deliveries prior contract our XX%, year-over-year the $XX quarterly important on in and of prior of the with continued volume range BAT, of Price value driven $XXX $XX bioservices million, million, revenues to launch. year. Diving revenues total and upper a to included of our improvement of channel. divestitures of reflects in product, the As announced XX% at Slide reinforces million expenses million. ACAMXXXX launch This revenue growth diversification. Transitioning in Camden which sales significant a which by Other both Slide NARCAN result or decrease a guidance year third XX MCM antitoxin and the of of MCM product of of of government. It's sales in which our end operating gross year-over-year in outcome with of the of initial and million NARCAN price timing total botulism quarter September $XX XX, Slide Smallpox segment million, sequentially a of include was year-over-year. announced $XX into U.S. VIG that came as on prior X% adjusted of And that the revenues important an due $XX XXXX. over-the-counter the of versus and million, on our improvement XX. to total revenue Note RSDL.

matter. was was total segment Business and Our to normalized higher by the third quarter, gross gross adjusted to with performance sales And as previously or due suppliers, in XX%, trending driven expenses delivery breakeven. Total more quarter, and charge is by key follows: the was negative initiatives previously gross lower highlights level improved initiatives, a and also pandemic. cash internal cost XX% margin adjusted lower products the our our channel. prior onetime legal restructuring reduced in approaching which in well fees the R&D with expenses. adjusted directionally This in reduced $XX segment basis, million as profit litigation to on disputes. million, includes MCM margin our price implemented products performance were significant $X and Total key offsetting reduced SG&A expenses excluding development gross reduction the to consistent million QX the operating as project influenced XXXX year-over-year. actions to depreciation, resulting research the the was settlement interest of by fully related the announced compensation public $XX which was margin facilities. announced a a improvement in partially was XXXX was cost Commercial a and by due Adjusted manufacturing shareholder XX% volumes within SG&A Services settlement XX% and

and So rate on SG&A actions the and date. realize basis, further exit the $XX prior cost taken versus run expect reductions a we normalized improved to XXXX we as of full year, million the impact

U.S. of now be versus expenses shown million, the take was our the Revenue moment earnings Slide Additional summarize to up and adjusted on will of efforts appendix prior international well government our 'XX reflecting detail adjusted driven the versus $XXX was a improvement prior prior timing. found costs Year-to-date $XXX $XXX year-to-date margin as $XXX our gross as XX%, year. deck. I was as MCM medical operating XX. countermeasures. year, performance, in million sales by an to or million on XX% And million, reduce EBITDA the can

earlier, million year-over-year. made This to was aided million Slide cash $XXX cash was the the to to operating like highlight as we've Turning $XXX our an financial At XX. total end of significant metrics. generating said $XXX of which, We'd of million. flow, third the improvement improvements by I quarter, was

net reduction business, We our coupled adjusted a capital a net X.Xx reduction also prior the performance The and our working our in leverage the achieved debt with to versus efforts XXXX. improvement has of in EBITDA, lowered $XXX asset-backed quarter. strong of the $XXX million $XX refinancing of million second increase as million QX to an $XXX quarter undrawn And quarter approximately the with available of fully total at compared was of revolver, liquidity end versus the the third million, XXXX. material

Please $XXX XXXX revenues adjusted midpoint year-to-date, Slide EBITDA continued appendix. product billion follows, on strong Total in million. shown guidance With of we're billion. the and revenue guidance. is year $X.XXX are XXXX further Slide as full of to million Commercial performance the see raising to details of XX guidance. sales $X.XXX Turning the our our to $XXX and XX.

announced million XXXX. Services to approach forecasting $XXX $XXX environment. metrics. segment MCM to million. well $XXX the profitability recently to of includes majority sales vast This for versus to on of guidance $XXX This our the see the of We prior previously continue revenue of this the reflects increase the million, lower NARCAN is all takes for sale August in MCM at revised the strong and at to expenses. our announced revenue And volume $XXX balanced account guidance a as Shifting million modifications. of of as million facility demand in due product our the the competitive a million. the of Camden decrease continued MCM into contract point, EBITDA to midpoint realization awards XX. operating $XXX We're adjusted committed products

I'll to we're forecasting total For adjusted back XX% segment turn the it XXXX, the margin for full over of year XX%. That's gross of to now the Joe. financial call update.

Joseph Papa

you, Thank Rich.

meaningful As we world. potential we Emergent's for the impact drivers to that growth around in-line forward, have future the look see opportunity products lives and

with around Let key on Slide deeper me highlights Nasal XX dive Spray. NARCAN

first death preliminary tragic of the a the meaningful fentanyl number still for heroin, from decades. to time in points CDC data deaths there's by recent in caused a decline overdose While opioid the or U.S. in

across people However, U.S. various rates particularly of the among remain regions and of overdose still high demographics deaths

NARCAN and support believe competitively point we course. business-to-business retail our public on proposition We for So broadening Nasal this affordability public increasing and NARCAN, continue and product. Spray. To from continues Nasal we awareness, maintain must Spray demand a NARCAN partners of differentiated to remain remains focused like categories NARCAN to especially access, channels for price interest value on our price helping customers, intend to end, expanded efforts interest and to the

deaths. in significant we strides more customers. ] Canada, efforts. Across NARCAN customer-focused In We kits increase in are are where and believe further [ and naloxone new available also a in becoming perfect for differentiated August, readiness center Canada, our access our a demonstrate Columbia take-home Nevada overdose is continued to British approach distribution supply readily capability Western to Direct best-in-class service, announced investments making to our NARCAN we

from safety keep broaden efforts in safe These through measures, Our lives ensure to and announced home, workplace. our safety workplace and want help to work at save partners plans pledge educate with Safety school, channels to specifically We access OTC that the include and House the at U.S. National to individuals efforts to NARCAN. acknowledge in publicly our continued include through businesses. the Amazon to White the to overdose encourage employees public their support reach challenge other at has engagement Council

through Ready of particularly among young month, NARCAN, to we to continued Rescue expand And donated vulnerable Our in educate awareness campaign commitment XX,XXX of need. NARCAN to additional our to this in communities. adults doses organizations

we epidemic. combat to will strong stated, bipartisan this multipronged As save focused a remain upon to effort on lives while tragic strategy relying and support help

Turning portfolio to countermeasures XX. medical on Slide our

We are our to threats engagement starts international diversification, through prepare This respond U.S. to government continued position public follow and approach. and customers. to maintaining with seeing we'll our benefits our and continue with this tangible unique from health product

approval the international have broadens our of smallpox quarter, countries third enabled During very indication with important to for to infection, strengthens outbreak. ACAMXXXX a Africa. the we potential portfolio. Also further we in ACAMXXXX to doses Central gained This August, treat expanded table use leaders mpox seat which help of and donated at for the respond FDA has to XX,XXX mpox across us proudly deployment in the

be we available forward, if countermeasure million medical medical scale a biodefense from on engaging positioned sponsored and highlights product the to the for to response develop quarter, Ebanga, believe led proud and support we contract or CDC Ebola. Africa announced development world. BARDA around health TEMBEXA Africa. In One we inventory ability safety evaluate we actively to trusted look supply promising treating $XX and across mpox just the deploying global our health are of trial brincidofovir with countermeasures preparedness by support a PANTHER needed. with in are the we Earlier summary, a the we licensed efficacy infections this increase option partner to and by to recently, work As announced for supply or by needs well based the to product world leaders, to treatment and with a today clinical

stabilize to line strives XX. that anticipate a efforts across several maintaining Slide strategically like company international our diversification we our we shareholders. On on a focus growth XX, Slide of strategic and excited in about on lead and value turnaround areas the creating progress current I'd for touch to to summary be as a and that mission-driven of their enter drivers. focusing for how provide to a and operational of changes to future health, growth phase outline revenue future the leader XX, our our and on markets, indications, position, sustainable future opportunities. On to be financial Turning products, can and a phase of expansion our long-term we turnaround are on will public I'm growth. our focus Slide level we our of we significant positioned product a current extensions new products, Continuing

products. And quarter confidence reduction the the of addition year-to-date XX is our the new our as and team over our to Lowry on stability leadership in in our to financial with preparedness R&D, we our our Officer, have the Our next our I quantum the health Nasal medical our capabilities XX third of NARCAN right Dr. of debt to Spray goals countermeasure and Head commitment public months. with believe results, strong I turnaround total and as mentioned, accomplish of Medical based Chief importantly, generation, and significant ensuring cash

Thank turn and exciting question we enter I'd phase we accomplish to now our to can team grateful their I our of the and updated to for and for this seeing what for together. you. And on back operator, else company. like Emergent answer. forward continue Emergent date turnaround all to look keeping entire are continued forward it transform progress strengthen look We and work to as to you to you

Operator

with & [Operator line from Folkes Renshaw. Instructions] first Rodman And comes question of the your Brandon

Brandon Folkes

about good. Obviously, just at talk Congratulations looks on me. was all progress. it It very Maybe term? X this Can quarter. about the margin NARCAN think the gross from on we of just XX% longer sort I

afterwards. then about NARCAN? ask do second think And well, that one how pieces -- maybe moving we my stop I'll -- with Just that the let's on and

Richard Lindahl

this Rich. Brandon, Hello, is Sure.

reductions I has the call. responded gross think price that on the we margin earlier to certainly, referenced the

starting there some to well. goods we're think I the the sold environment. look in stabilization to to continuing improve cost as also of see for pricing We're ways

at I while margin give long-term that the think this I a So margin specific hesitate level. gross we're on gross there, guide somewhere to the stabilizing you in area

Brandon Folkes

capabilities? this then you get not Is here. to that development obviously, additions stage 'XX? the And can seeking bringing in the that's something just on just on should priority list? opportunities on elaborate progress And team? how any about Joe, And there commercial in at think greedy, the new on to all infancy additional the then your aligned exploration Is maybe, congratulations the internal And stage? we assets given to versus of high that but your in preference

Joseph Papa

great Sure. there. A lot of comments

$XXX the Let and, We're one me We're the approximately think delighted the great. try delighted that's to pay been coming to we're by debt million. Certainly, we've debt them take results. down with able delighted one. of by We progress. financial down all down at certainly, to the look pay net to

though we for much we're resource future. growth and growth to and future And the very on can forward, think about to the can we for growth. -- focused the where the we go ensure allocations increase make what As do the

So that's focused what on. we're

both going it's and internally come think development to I through deals. business

you've side, with Clearly, about the the clearly, made with about internal government and PANTHER there we're what we're Rich what comments and working doing some I TEMBEXA Ebanga. have BARDA. with the the and we're we doing seen today doing and talked what On trial of with U.S. opportunities

there are we is a on we that do where internally. our we infrastructure countermeasure medical have leverage side. opportunities one another of there's clear those that existing Raxibacumab are lot A for anthrax. the So things of ones lot think projects can

you it the lives. on are a a a on NARCAN, opportunities all more $X,XXX. wall save restaurant, at clearly defibrillator clearly X,XXX go kits other the We doing that from We with year. that the kits we're to there's product side, NARCAN, could be we $XX together lives. save into put cost believe kit our mentioned another everything clearly NARCAN product defibrillators time. what to lives can about about the could last save we wall. I NARCAN expand a as On That -- of They somewhere into seen cost the go infinitely on think with We've the around that think business.

So people know, there product those the have we the can we if access example. But with we patient. need. need, If we that's we about, there what so existing can of that we think thousands do that lives people can also as of high example kits, product be another of lives. only do school we simple of time can to we are to save that that we time the have the better students, opportunities the of we the deaths capabilities today, know available, leverage job an is line often, we're And think at a with have as see extension beyond trying there's at very beneficial. are occurring college Especially saving unfortunately, students, just

NARCAN, And also to medical part formulation, new what look more I of of are of to it. So new time terms the countermeasures spend about mentioned in on that all kits, talking then, course, geographic us expansion.

for our opportunities hundreds the And first responders other what those products development, else that them dollars need. business. help side We'll to NARCAN do the think help development some government I'm the the that we're do and to There's really On for look medical around capabilities other the with we world look but to medical what use can millions and their us develop business within products business we also on to fit there's responders countermeasures, products about I get governments opportunities, talking going development U.S. do to to do products to distribution look of and business the they side, countermeasures. not need to first of the to them. for of for approach

explain So having on look there's to near the a in forward to front think of chance we future. us, in opportunities lot elaborate and those and more I them of

Brandon Folkes

Congrats again progress. on all the

Operator

the next with Fye your comes from Jessica And question of line JPMorgan.

Unknown Analyst

interest on went is is more more expected Jess. volumes? on on into that lowering revs little competitive also, Nick then you an a how NARCAN provide you NARCAN. we it talk on ex-U.S. revs This of evolve that and that driven maybe could in Two-parter lower more the some expect public bit across what the here mix of for over markets, Canada should update those it guidance? and factors then Or Is OTC NARCAN time? by is pricing the Can latest pressures? of And the to

Joseph Papa

We're terms seeing at Sure. a NARCAN. that with start the of looking one we're in what first of the doing expanded I'll we're at at volume NARCAN. looking are couple #X, factors. with we

versus last we're numbers. seen volume Rich XX%, of that seeing we've both year about think growth space, I X% And mention those made year-to-date though interest in with NARCAN. then about public within

have we volumes. to to So on be our capability. of leader. want make ability the we've we competitive intend hold as obviously to for say and our we're We our can just pricing to doesn't other to because NARCAN. to product mean we the match have simply of and the We NARCAN. name have obviously other competitive, the think going be product increase price manufacturing said that that brand we're value on competitively provide to we'll it But players, those very capabilities distribution holding We but don't said us before volume we all that realizing market so the in seeing again, available good to we sure clear. Having ballpark want the that are that, we're to volumes beyond

$XX companies settlement the that the to for that the have pharma opioid as the are important expanding education -- awareness the the years billion future. fund to And to all and goes expenditures those is believe lot the next that volume area, the the that opioid is into to year, we look view this factors our of amount we going next at beyond that are So future think by and also over the that this fund overdose. the XX going certainly do a will we about

caused are the quarter. given too, happening where think that was portfolio, We're we on NARCAN manage what's sales this it into in at we by we it lot felt time and at it. the NARCAN, that initiatives offset the year of a -- our that. one of seeing prudent some all of took So what versus there think also to sales. strength, example, factors we're that was the year, to also but to we the what to Canada at last said could and we are other we looked as there's the around OTC look the issues of face? diversity upside going of get things But different question be. opportunity the Rx discontinued a that was of could did I sure thought that for prescription lot and some that ago we want your at that the we that, clearly, a account something we to about go into other to we some impact It looking number, that part in we want be do There's table. Having -- that manage we to NARCAN want -- make And to

well? got I as first I there part question. of the a Was second the part think

Richard Lindahl

was It that he to mix know wanted betweenâ€¦

Unknown Analyst

yes, Yes, -- the betweenâ€¦ part the second mix

Richard Lindahl

of I you kind on touched But it. think

Joseph Papa

range of the is PIP Yes. of the business. the the The far the totality in business somewhere business, still is majority by XX%

your think I that's question, right?

Unknown Analyst

what states saw just unfolding dynamics between then bit a similar market, you there. In PIP a mean, in about about talk of more could competitors just some can to you're of of the follow-up California? contract state in little thinking any competitive the the we that be seeing kind I there? And Yes.

Joseph Papa

Yes. Sure.

well. have that, but in all would some very But we We and in have exactly, one least. across I Clearly, seeing don't competitor the closely, I different at up doing you stabilize doing very followed are recall I we're mentioned, did are states, imagine, the ] and we're probably [ as co-Rx like business. the that that there overall program the The should pick business, thing said well. NARCAN pricing

follow has we imagine, the follow, as we things been But it would pricing through XXXX, weekly October on the stable. relatively of basis. from a One you July

And change amount volume dramatically have, of pricing terms we're last anything total in seeing tell can growing as not we business volumes, the with X% the by versus the up you we're So environment. year. for of

prices stable the going -- up X% relatively for numbers. about I'm environment. pricing is year-to-date a volume sorry, The So

Unknown Analyst

I if maybe one And in smallpox. one could last just squeak on

or down On that more of the I September, believe i.e., end is period, that XQ. through in $XXX announced million the that $XXX that $XXX of -- million is hit it orders end you There a was like noted through so of million XXXX? back remaining you or we to the broken being early of you the also weighted that quarters. about maybe over how that's talk and, XQ of across how of expected maybe hit And Can couple next products? between say, kind months various think course just about should

Joseph Papa

Yes. it, Do to you take or? want Rich

Richard Lindahl

-- that's updated. hit Sure. XXXX, in it's Yes. of I certainly, going mean is portion it a that will our of to into we've guidance say quarter. in but baked it that I hit fourth all Most would

Operator

[Operator comes your Fargo. Alex the from next with Instructions] And line Wells question [indiscernible] of

Unknown Analyst

percent it, one year-over-year, out is XX-odd of how of the the from can I there's headwind think more question performing been time. to sense figure, has for initial OTC? year-to-date ramp the able was that declines of are QX, or know much it increase? NARCAN If figure segment any of if referenced to organic guys the was in much you helpful. I but the quarter, pricing very be How that have decline a the bucket sequentially, call how you Of reference I and that belabor how can just get you would of that much

Richard Lindahl

Yes.

was the million. between to the year by The million so. around $XX probably more It -- or last and the $XX million in impacts. rest overall $XX think in mix driven was is from pricing revenue I really it stock-in of really

Unknown Analyst

then think And I that down pricing was pricing August went to more competitive and year with it drug last guys you be since a you've of back like It the sounds assumption? taken took reasonable when know I down Is generics. OTC.

Richard Lindahl

be competitive. said, Yes. as Joe been We've responding, to

had haven't a the that additional marketplace. the in And business competition good Joe said, we success competitive we've keeping but been we us remained lot of resulted have had being, We pricing, some in of of in that been in that's there. some matching as very even the light has out

Unknown Analyst

a XX also the terms you else still for Professional job that expect is? still have great the progress on on have on Camden, Any you around you next months, thoughts XXX million warehouse, of sales, those far. Bayview. whatever we asset have done sales gears, obviously, you Drive, asset should $XXX it just you've anything properties? But Switching so Rockville, you or still in updates have extra have there Any still

Joseph Papa

knowing That any specific is to on to the any of reduced site as you sites. make we -- Rich I But compliment as we clear, expense looking that we absolutely all and entire are significantly the business, something don't about individual time. mentioned, have comments our be want I I at network. operating First, mentioned. Yes. our

this some in in to But what with flexibility those growth. operating portfolio development believe we we're that of can as do sure about our terms can sites into it. thinking down terms long-term expense we we business things for that be other within little opportunities bring managing bit bring especially them, are we of of So to activities, the we now a more make manage have

So I I little are absolutely got think you -- of you latitude. we the more some mean sites, a them. about them know talked bit

manage sites, could have we operational of of but some -- manufacturing talk us, to the that. need, in certainly just to try centers to about them, they going terms don't Others you more we're don't Some we'll when be important a and more warehouse of The on in divested warehouse can obviously, types our those shareholders. the investment we Massachusetts, an potentially that return things, as don't divest example, locations Camden, one need. unused that like we for We better warehouse. an do was certain of

So we're that. specific where when want going make prognosis any do But I to on of be it. to and we'll focused don't

Unknown Analyst

GLP-Xs? Could used manufacture Bayview be to

Joseph Papa

has And of other agencies. terms an and in I of site government that the by been in been that -- opportunities capabilities, extraordinary lot significant has of in Emergent is substance, amount invested a Bayview for don't drug site but we want terms think site a there's a is over probably XX a years. business unique. but state-of-the-art. I've very specifically talk pharmaceutical for any had in And of -- significant chance site. product, to it's phenomenal opportunity to is It's hundreds is and everything I've been individual about different Bayview through sites, a be

to very So there capability. a lot site. right We've off there. a kick just We it some really But of good got is capabilities is find got to unique place significant the opportunities there.

Unknown Analyst

big earnings plus of of business, just we year-to-date with, XXXX like or or looking side things ask obviously, But uplift in. I anybody, start the to the like anything, of years the CDMO X, of you I profit if understand of to beyond, kind were even a business? where come there's guide, like this you cost have guys EBITDA guys to kind as if and undertaking and I the like big if If power million. taken a if to one, given and Last $XX EBITDA you forward? EBS just still right long-term big of beyond, for can. look and about come lumpiness XXX the well Not stabilize call XXX, is as business midpoint the in I think how mean, the forward there. And that's XXXX guidance but XXX, do look approaching don't is Or business it, on gross and that's orders

Joseph Papa

we're certainly probably can make of I think things said we answer that the business. the that, you comments XXXX. going expect from that expenses million say ballpark is Having I not $XXX did we specifically that took one operating out about of to my

was the just If the last quarter, you expense even versus the absent in year $XX at quarter. look operating impairment the in reductions, million just

all all and number with the expense, taking steps ability so have of down our maintain to tells and network. bring operating we several to the we're got to the are products even to you the years, make this and streamlining of the the reduction to over #X, products in we next sites I've understands, of manufacture #X. capabilities to manufacture say products site the availability have continuing have everyone it our expectations that that our So the the

I probably expenses operating that can best question is significantly. So way we've in terms brought the down the answer of

to As next of is the said, -- I quarter the still we although maintain streamlined, year million ago. question? make the products. Operator, maintain versus $XX course, capabilities still And all in of we then, network a our

Operator

to closing Vargo are there no Frank for the time. questions will at this I turn And remarks. over now back call

Joseph Papa

Papa. this closing remarks. Hello, is Joe the I'll make

with all be us, the and to for will we a more everyone again forward I to forward of to very joining near chance chance out Rich We you. and having appreciate to you much to talking to near in a in your Emergent. future and thank interest talk look investors in catch having very you look So the of any up future.

again everyone. today. us for day, thanks joining So great Have a

Operator

concludes call. you joining. This today's all for conference Thank

disconnect. now may You

Emergent BioSolutions (EBS) 6 Nov 242024 Q3 Earnings call transcript