Emergent BioSolutions Awarded Research and Development Option valued at $41.9 Million for continued Advanced Development and Procurement of Ebanga™ Treatment for Ebola

Rhea-AI Summary

Emergent BioSolutions Inc. (NYSE: EBS) has been awarded a $41.9 million contract modification by BARDA for the continued development of Ebanga™ (ansuvimab-zykl), a licensed treatment for Ebola virus disease. This option is part of a larger 10-year contract valued at approximately $121 million for advanced development and up to $583 million for procurement of Ebanga™ treatment.

The funding will support drug substance engineering, scale-up process validation, long-term stability studies, and commercial readiness. Emergent will also complete post-licensure commitments, including technology transfer for manufacturing scale-up and submission of a supplemental Biologics License Application to the FDA.

Positive

• Awarded $41.9 million contract modification for Ebanga™ development
• Part of a larger 10-year contract worth up to $704 million
• Advances Emergent's position as a leader in critical medical countermeasures
• Supports scale-up and commercial readiness of Ebola treatment

Negative

• None.

Insights

Medical Research Analyst

The $41.9 million contract modification for Emergent BioSolutions' Ebanga™ treatment is a significant development in the fight against Ebola. This funding will support important steps in scaling up production and ensuring commercial readiness, potentially increasing global preparedness against Ebola outbreaks. The focus on process validation and long-term stability studies is critical for ensuring consistent quality and efficacy of the treatment. This contract extension, part of a larger $121 million development agreement, demonstrates continued confidence in Emergent's capabilities. The potential for up to $583 million in procurement options over five years signals strong government commitment to stockpiling this vital treatment. For investors, this represents a stable revenue stream and reduced risk in Emergent's product pipeline.

Financial Analyst

This contract modification is a positive financial indicator for Emergent BioSolutions. The $41.9 million award provides immediate revenue recognition and supports ongoing R&D efforts without additional capital expenditure. The larger contract structure, including $121 million for development and up to $583 million for procurement, offers significant long-term revenue potential. This government backing reduces market risks associated with biotech investments. However, investors should note that future options are not guaranteed and depend on successful execution of current milestones. The contract's focus on scale-up and commercial readiness suggests Emergent is progressing towards higher-volume production, which could lead to improved margins and profitability if fully realized. Overall, this news reinforces Emergent's position in the biodefense sector and provides a solid foundation for future growth.

Pharmaceutical Industry Expert

The contract modification for Ebanga™ highlights the strategic importance of pandemic preparedness in the pharmaceutical landscape. Emergent's progress with Ebanga™ demonstrates the value of public-private partnerships in addressing global health threats. The focus on scale-up and commercial readiness is crucial, as it addresses one of the key challenges in biodefense: rapid production and deployment of treatments during outbreaks. This development could position Emergent as a key player in the Ebola treatment market, potentially leading to additional contracts for other infectious diseases. The involvement of BARDA and FDA in this process underscores the regulatory support for expediting critical medical countermeasures. For the industry, this sets a precedent for how companies can navigate the complex landscape of developing treatments for rare but deadly diseases, balancing commercial viability with public health needs.

GAITHERSBURG, Md., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) announced today that it was awarded a contract modification executing an option period by the Biomedical Advanced Research and Development Authority (BARDA), part of the Administration for Strategic Preparedness and Response (ASPR) within the U.S. Department of Health and Human Services (HHS), valued at $41.9 million, for drug substance engineering and scale-up process validation, long term stability, and commercial readiness in support of its ongoing scale-up program for Ebanga™ (ansuvimab-zykl), a licensed treatment for Ebola virus disease (EVD).

“Emergent is proud to continue to advance the Ebanga™ development and scale up to its next phase,” said Paul Williams, senior vice president, products business, Emergent. “We look forward to progressing the program with the goal of supplying treatment courses to enable preparedness against the Ebola virus. We believe this important work further demonstrates our position as a leader in providing critical medical countermeasures.”

The existing 10-year contract consists of a base period of performance with two option periods for advanced development valued at approximately $121 million, and option periods for procurement of Ebanga™ treatment over five years valued at up to $583 million. Execution of this option period is in line with Emergent’s planned program performance and critical path for development of the Ebanga™ treatment.   

Under the terms of the contract, Emergent will complete activities to advance the development of Ebanga™ treatment through post-licensure commitments, including the transfer of technology as part of manufacturing scale-up, submission of a supplemental Biologics License Application to the U.S. Food and Drug Administration (FDA), and completion of stability studies.

This project has been funded in whole or in part with federal funds from the Department of Health and Human Services; Administration for Strategic Preparedness and Response; Biomedical Advanced Research and Development Authority (BARDA) under contract 75A50123C00037.

About Ebanga™
Ebanga™ is a Zaire ebolavirus glycoprotein (EBOV GP)-directed human monoclonal antibody indicated for the treatment of infection caused by Zaire ebolavirus in adult and pediatric patients, including neonates born to a mother who is RT-PCR positive for Zaire ebolavirus infection.
Limitations of Use: The efficacy of Ebanga™ has not been established for other species of the Ebolavirus and Marburgvirus genera. Zaire ebolavirus can change over time, and factors such as emergence of resistance, or changes in viral virulence could diminish the clinical benefit of antiviral drugs. Consider available information on drug susceptibility patterns for circulating Zaire ebolavirus strains when deciding whether to use Ebanga™.

Hypersensitivity reactions including infusion-associated events have been reported with Ebanga™. These may include acute, life-threatening reactions during and after the infusion. Monitor patients and in the case of severe or life-threatening hypersensitivity reactions, discontinue the administration of Ebanga™ immediately and administer appropriate emergency care.
The most frequently reported adverse events (≥ 5%) after administration of Ebanga™ were pyrexia, tachycardia, diarrhea, vomiting, hypotension, tachypnea, and chills.

Please see Full Prescribing Information for Ebanga™ (ansuvimab-zykl) here.

About Ebola Virus Disease
Orthoebolavirus zairense, referred to as Ebola virus disease (EVD) is severe and often fatal with case fatality rates ranging from 25% to 90%, and is transmitted via bodily fluids, zoonotic transmission, or contact with contaminated surfaces. The U.S. Department of Homeland Security has determined that EVD poses a material threat to national health security. To augment the U.S. government’s response capabilities, BARDA is pursuing advanced development, licensure, and procurement of therapeutics that can be deployed in outbreaks.

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 agreement with BARDA for the advanced development, manufacturing scale-up, and procurement of Ebanga™ treatment, including the potential exercise of option periods and any payments in connection therewith, 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 Emergent’s current intentions, beliefs, and expectations regarding future events. Emergent cannot guarantee that any forward-looking statement will be accurate. Readers should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from Emergent’s 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, Emergent does not undertake to update any forward-looking statement to reflect new information, events or circumstances. There are a number of important factors that could cause Emergent’s actual results to differ materially from those indicated by any forward-looking statements.

Readers should consider this cautionary statement, as well as the risk factors identified in Emergent’s periodic reports filed with the U.S. Securities and Exchange Commission when evaluating Emergent’s 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 the contract modification awarded to Emergent BioSolutions (EBS) for Ebanga™ development?

Emergent BioSolutions (EBS) was awarded a $41.9 million contract modification by BARDA for the continued development of Ebanga™, a treatment for Ebola virus disease.

What is the total potential value of the Ebanga™ contract for Emergent BioSolutions (EBS)?

The total potential value of the 10-year contract is up to $704 million, including $121 million for advanced development and up to $583 million for procurement of Ebanga™ treatment.

What specific activities will Emergent BioSolutions (EBS) undertake with the new funding for Ebanga™?

Emergent BioSolutions will use the funding for drug substance engineering, scale-up process validation, long-term stability studies, commercial readiness, technology transfer for manufacturing scale-up, and submission of a supplemental Biologics License Application to the FDA.

When was the contract modification for Ebanga™ development awarded to Emergent BioSolutions (EBS)?

The contract modification for Ebanga™ development was announced by Emergent BioSolutions on September 12, 2024.