Extending the Life of Anthrax Vaccines (EBS)

June 10, 2009 · Filed Under fda, vaccine 

Emergent BioSolutions Inc. (NYSE:EBS) announced that its BioThrax®, its anthrax vaccine adsorbed, has now been granted a shelf life extension from 3 to 4 years by the FDA.  This generates a contract milestone warranting a payment of approximately $30 million for doses previously delivered to the Strategic National Stockpile (SNS) with the Department of Health and Human Services.

The $30 million is expected to be recognized as revenue in the second quarter of 2009. In addition, FDA approval of 4-year expiry dating results in an immediate price increase for the future delivery of BioThrax doses under the current contract as well as under the follow-on multi-year contract, valued at $405 million, for the delivery of 14.5 million doses of BioThrax.

For a comparison, Emergent generated revenues of $178.55 million in 2008, $182.9 million in 2007, and $152.7 million in 2006.  Emergent has now supplied over 33 million doses of BioThrax to the U.S. government, with additional deliveries to the SNS scheduled through the third quarter of 2011.  BioThrax is the only FDA-licensed vaccine for the prevention of anthrax infection.

Emergent shares are up about 4% at $14.55 on the day, and its 52-week trading range is $9.15 to $27.00.

Jon C. Ogg
June 10, 2009

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