Staff and Wire Reports
Monday, 03 October 2011 08:29
Emergent BioSolutions Inc. (NYSE:EBS) said Monday that the U.S. government is formally ordering 44.8 million doses of the company's BioThrax anthrax vaccine in an agreement worth as much as $1.25 billion over five years.
The company had said in May that the government was planning to make the order.
“Emergent is proud to be able to contribute to the U.S. government’s program of protecting the nation from the threat of anthrax,” said Fuad El-Hibri, chairman and chief executive officer of Emergent BioSolutions. “This 5-year award provides for uninterrupted supply of this critical biodefense countermeasure while addressing the government’s mandate to reduce spending across all programs. In coming to agreement, Emergent and the Centers for Disease Control and Prevention worked diligently to establish business terms that incorporate substantial price concessions.”
Shares of Emergent BioSolutions closed at $15.43 Friday and have traded between $14.90 and $26.41 over the last 12 months.
Initial deliveries under this award are expected to commence in 2011 with 8.5 million doses scheduled to be delivered during the first contract year. Deliveries are scheduled to continue, subject to availability of funding, through September 2016. The company retains the ability to modify the timing of deliveries depending on manufacturing yields and other factors.
BioThrax is the only FDA-licensed vaccine for the prevention of anthrax infection. It is indicated for the active immunization of adults who are at high risk of exposure to anthrax. BioThrax is manufactured from a culture filtrate, made from a non-virulent strain of Bacillus anthracis. To date, Emergent has delivered over 55 million doses of BioThrax to the U.S. government and continues to deliver additional doses under active procurement contracts. Since 1998, over 10 million doses have been administered to more than 2.6 million military personnel. For full prescribing information, please visit www.biothrax.com/prescribinginformation_biothrax_us.pdf.
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