Emergent BioSolutions Announces Exercise of $20 Million Option to Supply U.S. Department of Defense with BioThrax® (Anthrax Vaccine Adsorbed)

Rhea-AI Summary

Emergent BioSolutions (NYSE: EBS) announced a $20 million contract option exercise from the U.S. Department of Defense (DoD) for supplying BioThrax® (Anthrax Vaccine Adsorbed). The first delivery, valued at approximately $7 million, began in December 2024, with remaining deliveries scheduled for 2025.

The option is part of an existing indefinite-delivery, indefinite-quantity (IDIQ) procurement contract with the DoD, providing BioThrax® for pre-exposure prophylaxis across all U.S. military branches. This follows a recent $50 million contract option from BARDA for CYFENDUS® procurement announced on December 16, 2024.

The company's anthrax franchise includes four products: BioThrax®, CYFENDUS®, and two treatments - Anthrasil® and raxibacumab.

Positive

• Secured $20 million DoD contract option for BioThrax® supply
• Additional $50 million BARDA contract for CYFENDUS® announced in December 2024
• Deliveries already initiated with $7 million worth completed in December 2024

Negative

• None.

Insights

Government Contracts Specialist

The $20 million DoD contract option exercise for BioThrax® represents a strategic continuation of Emergent's long-standing relationship with the military sector. This follows closely on the heels of their $50 million BARDA contract for CYFENDUS®, demonstrating strong federal commitment to maintaining anthrax countermeasures. The timing of deliveries, with $7 million already initiated in December 2024 and the remainder scheduled for 2025, provides predictable revenue streams.

The IDIQ contract structure (W911SR24D0001) offers potential for additional orders, providing revenue stability and operational predictability. When combined with their comprehensive anthrax franchise including Anthrasil® and raxibacumab, EBS maintains a dominant position in the biodefense sector. For context, this $20 million contract represents approximately 3.5% of their market capitalization, making it a meaningful but not transformative deal.

Biodefense Market Analyst

The contract exercise validates EBS's continued relevance in the biodefense sector, particularly noteworthy given recent market dynamics. BioThrax® remains the only FDA-licensed anthrax vaccine for pre-exposure prophylaxis, giving EBS a protected market position. The dual-contract scenario with both DoD and BARDA ($70 million total) signals robust government commitment to maintaining stockpiles of both traditional (BioThrax®) and next-generation (CYFENDUS®) anthrax vaccines.

The comprehensive anthrax portfolio strategy - spanning both preventive vaccines and therapeutic treatments - creates significant barriers to entry for competitors. This market positioning is important for maintaining pricing power and contract renewals in the biodefense sector, where government agencies typically prefer established suppliers with proven track records.

GAITHERSBURG, Md., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) today announced the exercise of contract option and modification valued at approximately $20 million to supply BioThrax® (Anthrax Vaccine Adsorbed) to the U.S. Department of Defense (DoD). The first delivery, which was valued at approximately $7 million began in December 2024, and remaining deliveries are expected in 2025.

“We’re pleased to continue our work with the U.S. Department of Defense to supply BioThrax® to protect our nation’s service members who have a high risk of exposure to anthrax,” said Paul Williams, senior vice president, products head at Emergent. “This procurement ensures a continued supply of this important medical countermeasure to the U.S. military and demonstrates our commitment to delivering solutions that address our customers’ needs to prepare for public health threats.”

This option is under Emergent’s existing indefinite-delivery, indefinite-quantity (IDIQ) procurement contract (W911SR24D0001) with the DoD and led by the Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense to supply BioThrax® for use by all branches of the U.S. military as pre-exposure prophylaxis (PrEP) for anthrax disease.  

On December 16, 2024, Emergent announced a $50 million contract option from the Biomedical Advanced Research and Development Authority (BARDA) to procure doses of CYFENDUS® (Anthrax Vaccine Adsorbed, Adjuvanted). In addition to BioThrax® and CYFENDUS®, Emergent’s anthrax franchise includes two treatments, Anthrasil® [Anthrax Immune Globulin Intravenous (Human)], a polyclonal antibody therapeutic, and raxibacumab, a monoclonal antibody therapeutic.

About BioThrax® (Anthrax Vaccine Adsorbed)

Indication

BioThrax® (Anthrax Vaccine Adsorbed) is a vaccine indicated for the active immunization for the prevention of disease caused by Bacillus anthracis in persons 18 through 65 years of age.

BioThrax® is approved for: (1) Pre-exposure prophylaxis of disease in persons at high risk of exposure. (2) Post-exposure prophylaxis of disease following suspected or confirmed Bacillus anthracis exposure, when administered in conjunction with recommended antibacterial drugs.

The efficacy of BioThrax® for post-exposure prophylaxis is based solely on studies in animal models of inhalational anthrax.

Important Safety Information

Contraindications: Severe allergic reaction (e.g., anaphylaxis) after a previous dose of BioThrax® or a component of the vaccine.

Latex: The stopper of the vial contains natural rubber latex and may cause allergic reactions in latex sensitive individuals.

Pregnancy: Avoid use in pregnancy unless the potential benefit outweighs the potential risk to the fetus.

History of Anthrax Disease: History of anthrax disease may increase the potential for severe local adverse reactions.

Altered Immunocompetence: If BioThrax® is administered to immunocompromised persons, including those receiving immunosuppressive therapy, the immune response may be diminished.

Limitations of Vaccine Effectiveness: Vaccination with BioThrax® may not protect all individuals.

Adverse reactions: The most common (>10%) local (injection-site) adverse reactions observed in clinical studies were tenderness, pain, erythema, edema, and arm motion limitation. The most common (≥5%) systemic adverse reactions were muscle aches, fatigue, and headache.

U.S. Prescribing Information
The full Prescribing Information for BioThrax® vaccine can be found here.

About Emergent BioSolutions
At Emergent, our mission is to protect and enhance life. For 25 years, we’ve been at work defending people from things we hope will never happen—so we are prepared just in case they ever do. We provide solutions for complex and urgent public health threats through a portfolio of vaccines and therapeutics that we develop and manufacture for governments and consumers. We also offer a range of integrated contract development and manufacturing services for pharmaceutical and biotechnology customers. To learn more about how we plan to protect or enhance 1 billion lives by 2030, visit our website and follow us on LinkedIn, X, Instagram, Apple Podcasts and Spotify.

Safe Harbor Statement
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding the development, availability, supply and government procurement of BioThrax® vaccine and the continued development of Emergent’s anthrax franchise, are forward-looking statements. We generally identify forward-looking statements by using words like “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “should,” “will,” “would,” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. Forward-looking statements are based on our current intentions, beliefs, and expectations regarding future events based on information that is currently available. We cannot guarantee that any forward-looking statement will be accurate. Readers should realize that if underlying assumptions prove inaccurate or if known or unknown risks or uncertainties materialize, actual results could differ materially from our expectations. Readers are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, we do not undertake to update any forward-looking statement to reflect new information, events, or circumstances. Readers should consider this cautionary statement, as well as the risk factors identified in our periodic reports filed with the U.S. Securities and Exchange Commission, when evaluating our forward-looking statements.

Investor Contact:
Richard S. Lindahl
Executive Vice President, CFO
lindahlr@ebsi.com

Media Contact:
Assal Hellmer
Vice President, Communications
mediarelations@ebsi.com

FAQ

What is the value of Emergent BioSolutions' (EBS) new DoD contract option for BioThrax®?

The Department of Defense contract option for BioThrax® is valued at approximately $20 million.

When will EBS complete the BioThrax® deliveries to the Department of Defense?

The first delivery worth $7 million began in December 2024, with remaining deliveries expected throughout 2025.

How many anthrax-related products does Emergent BioSolutions (EBS) currently have?

EBS has four anthrax-related products: BioThrax®, CYFENDUS®, Anthrasil®, and raxibacumab.

What was the value of the BARDA contract option for CYFENDUS® announced by EBS in December 2024?

The BARDA contract option for CYFENDUS® announced on December 16, 2024, was valued at $50 million.

What is the purpose of the BioThrax® supply to the Department of Defense?

BioThrax® is supplied to the DoD for use as pre-exposure prophylaxis (PrEP) for anthrax disease across all branches of the U.S. military.