Emergent BioSolutions Sells Device Unit for $100M

TL;DR

Emergent selling device biz to Fresenius Kabi for $100M to focus on core products.

AI Summary

Emergent BioSolutions Inc. announced on July 3, 2024, that it has entered into a definitive agreement to sell its device and services business to Fresenius Kabi for $100 million. This strategic divestiture is expected to close in the fourth quarter of 2024 and aims to streamline Emergent's focus on its core biologics and medical countermeasures businesses.

Why It Matters

This sale allows Emergent BioSolutions to concentrate on its core biologics and medical countermeasures, potentially improving its financial flexibility and strategic direction.

Risk Assessment

Risk Level: medium — The sale price and the company's ability to execute its new strategic focus will be key factors influencing future performance.

Key Numbers

• $100 million — Sale Price (Proceeds from the sale of the device and services business to Fresenius Kabi.)

Key Players & Entities

• Emergent BioSolutions Inc. (company) — Seller
• Fresenius Kabi (company) — Buyer
• $100 million (dollar_amount) — Sale price
• July 3, 2024 (date) — Announcement date
• fourth quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share EBS New York Stock
• $50 million — Agreement, Janssen will pay the Company $50 million on or before the later of (a) July 31,

Filing Documents

• ebs-20240703.htm (8-K) — 26KB
• 0001367644-24-000118.txt ( ) — 149KB
• ebs-20240703.xsd (EX-101.SCH) — 2KB
• ebs-20240703_lab.xml (EX-101.LAB) — 22KB
• ebs-20240703_pre.xml (EX-101.PRE) — 13KB
• ebs-20240703_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. On July 3, 2024, Emergent BioSolutions Inc. (the "Company"), its wholly owned subsidiary, Emergent Manufacturing Operations Baltimore, LLC ("EMOB"), and Janssen Pharmaceuticals, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson ("Janssen") (collectively, the "Parties") executed a confidential Settlement Agreement and Release (the "Settlement Agreement") to resolve all claims among the Parties arising from a manufacturing services agreement (as amended, the "MSA") between EMOB and Janssen for large-scale drug substance manufacturing of Johnson & Johnson's investigational SARS-CoV-2 vaccine, Ad26.COV2-S, recombinant based on the AdVac technology (the "Product"). The Settlement Agreement also resolves the Parties' related and previously disclosed arbitration. Pursuant to the terms of the Settlement Agreement, Janssen will pay the Company $50 million on or before the later of (a) July 31, 2024 and (b) 28 calendar days following the effective date of the Settlement Agreement. In addition, the Settlement Agreement contains broad releases of the Parties, their affiliates and subsidiaries, representatives, officers, directors and shareholders, including releases of all claims related to the manufacture of the Product by EMOB, the MSA, or any agreement or understanding between the Parties concerning the Product, and the matters at issue in the arbitration.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EMERGENT BIOSOLUTIONS INC. Dated: July 8, 2024 By: /s/ RICHARD S. LINDAHL Name: Richard S. Lindahl Title: Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR