Emergent BioSolutions Inc. (EBS, Financial) filed Quarterly Report for the period ended 2009-03-31.
EMERGENT BIOSULUTIONS INC. is a leading biopharmaceutical company dedicated to one simple mission - to protect life. EBS develops manufactures and commercializes vaccines and therapeutics that assist the body?s immune system to prevent or treat disease. Their products target infectious diseases and other medical conditions that have resulted in significant unmet or underserved public health needs. Their marketed product BioThrax? (Anthrax Vaccine Adsorbed) is the only vaccine approved by the U.S. Food and Drug Administration for the prevention of anthrax infection. Emergent BioSolutions Inc. has a market cap of $290.3 million; its shares were traded at around $9.62 with a P/E ratio of 13.9 and P/S ratio of 1.6.
Product sales revenues increased by $20.2 million, or 49%, to $61.7 million for the three months ended March 31, 2009 from $41.5 million for the three months ended March 31, 2008. This increase in product sales revenues was primarily due to a 52% increase in the number of doses of BioThrax delivered. Product sales revenues for the three months ended March 31, 2009 consisted of BioThrax sales to HHS of $61.6 million and aggregate international and other sales of $54,000. Product sales revenues for the three months ended March 31, 2008 consisted of BioThrax sales to HHS of $41.1 million and aggregate international and other sales of $394,000.
Contracts and grants revenues increased by $1.6 million, or 134%, to $2.8 million for the three months ended March 31, 2009 from $1.2 million for the three months ended March 31, 2008. Contracts and grants revenues for the three months ended March 31, 2009 consisted of $2.8 million in development contract and grant revenue from NIAID and BARDA. Contracts and grants revenues for the three months ended March 31, 2008 consisted of $798,000 from the Sanofi Pasteur collaboration, related to recognition of deferred revenue associated with the upfront payment received in 2006 as well as development service revenue, and $418,000 from the NIH.
Research and development expenses increased by $4.4 million, or 39%, to $15.9 million for the three months ended March 31, 2009 from $11.5 million for the three months ended March 31, 2008. This increase reflects additional personnel and contract service costs, and includes increased expenses of $4.2 million on product candidates that are categorized in our biodefense segment and $827,000 in other research and development expenses, which are in support of technology platforms and central research and development activities, partially offset by a decrease of $612,000 on product candidates categorized in our commercial segment.
Selling, general and administrative expenses increased by $3.9 million, or 32%, to $16.0 million for the three months ended March 31, 2009 from $12.1 million for the three months ended March 31, 2008. The increase in selling, general and administrative expenses primarily reflects an increase of approximately $2.6 million resulting from the addition of personnel and increased professional services to support the overall growth of our business, and a $1.4 million charge for previously capitalized costs associated with acquisitions that were in progress but not complete as of December 31, 2008, partially offset by a decrease of $134,000 in sales and marketing expenses. The majority of the expense is attributable to the biodefense segment, in which selling, general and administrative expenses increased by $2.1 million, or 23%, to $11.4 million for the three months ended March 31, 2009 from $9.3 million for the three months ended March 31, 2008. Selling, general and administrative expenses related to our commercial segment increased by $1.8 million, or 64%, to $4.6 million for the three months ended March 31, 2009 from $2.8 million for the three months ended March 31, 2008.
Provision for income taxes increased by $2.6 million, or 53%, to $7.4 million for the three months ended March 31, 2009 from $4.8 million for the three months ended March 31, 2008. The provision for income taxes for the three months ended March 31, 2009 resulted primarily from our income before provision for income taxes plus net loss attributable to noncontrolling interest of $18.5 million and an effective annual tax rate of approximately 40%. The provision for income taxes for the three months ended March 31, 2008 resulted primarily from our income before provision for income taxes of $11.8 million and an effective annual tax rate of approximately 41%. The decrease in the effective annual tax rate is due primarily to the research and development tax credit being renewed in October 2008. The provision for income taxes reflects research and development tax credits of $77,000 for the three months ended March 31, 2009 and $0 for the three months ended March 31, 2008.
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EMERGENT BIOSULUTIONS INC. is a leading biopharmaceutical company dedicated to one simple mission - to protect life. EBS develops manufactures and commercializes vaccines and therapeutics that assist the body?s immune system to prevent or treat disease. Their products target infectious diseases and other medical conditions that have resulted in significant unmet or underserved public health needs. Their marketed product BioThrax? (Anthrax Vaccine Adsorbed) is the only vaccine approved by the U.S. Food and Drug Administration for the prevention of anthrax infection. Emergent BioSolutions Inc. has a market cap of $290.3 million; its shares were traded at around $9.62 with a P/E ratio of 13.9 and P/S ratio of 1.6.
Highlight of Business Operations:
In September 2007, we received a development contract from the National Institute of Allergy and Infectious Disease, or NIAID, valued at up to $9.5 million, in support of non-clinical and clinical studies of our anthrax immune globulin therapeutic candidate. Under the terms of the development contract, we are using the funds to conduct various studies on this product candidate, including non-clinical efficacy studies and clinical trials. In July 2008, we were awarded two grants from NIAID, totaling over $4.5 million, to support development of our recombinant botulinum vaccine and advanced anthrax vaccine candidates. In September 2008, we received a $24 million development contract from NIAID and the Biomedical Advanced Research and Development Authority, or BARDA, to fund continued development of our anthrax monoclonal antibody therapeutic candidate, and a development contract with NIAID and BARDA, valued at up to approximately $30 million, to fund development of our advanced anthrax vaccine candidate.Product sales revenues increased by $20.2 million, or 49%, to $61.7 million for the three months ended March 31, 2009 from $41.5 million for the three months ended March 31, 2008. This increase in product sales revenues was primarily due to a 52% increase in the number of doses of BioThrax delivered. Product sales revenues for the three months ended March 31, 2009 consisted of BioThrax sales to HHS of $61.6 million and aggregate international and other sales of $54,000. Product sales revenues for the three months ended March 31, 2008 consisted of BioThrax sales to HHS of $41.1 million and aggregate international and other sales of $394,000.
Contracts and grants revenues increased by $1.6 million, or 134%, to $2.8 million for the three months ended March 31, 2009 from $1.2 million for the three months ended March 31, 2008. Contracts and grants revenues for the three months ended March 31, 2009 consisted of $2.8 million in development contract and grant revenue from NIAID and BARDA. Contracts and grants revenues for the three months ended March 31, 2008 consisted of $798,000 from the Sanofi Pasteur collaboration, related to recognition of deferred revenue associated with the upfront payment received in 2006 as well as development service revenue, and $418,000 from the NIH.
Research and development expenses increased by $4.4 million, or 39%, to $15.9 million for the three months ended March 31, 2009 from $11.5 million for the three months ended March 31, 2008. This increase reflects additional personnel and contract service costs, and includes increased expenses of $4.2 million on product candidates that are categorized in our biodefense segment and $827,000 in other research and development expenses, which are in support of technology platforms and central research and development activities, partially offset by a decrease of $612,000 on product candidates categorized in our commercial segment.
Selling, general and administrative expenses increased by $3.9 million, or 32%, to $16.0 million for the three months ended March 31, 2009 from $12.1 million for the three months ended March 31, 2008. The increase in selling, general and administrative expenses primarily reflects an increase of approximately $2.6 million resulting from the addition of personnel and increased professional services to support the overall growth of our business, and a $1.4 million charge for previously capitalized costs associated with acquisitions that were in progress but not complete as of December 31, 2008, partially offset by a decrease of $134,000 in sales and marketing expenses. The majority of the expense is attributable to the biodefense segment, in which selling, general and administrative expenses increased by $2.1 million, or 23%, to $11.4 million for the three months ended March 31, 2009 from $9.3 million for the three months ended March 31, 2008. Selling, general and administrative expenses related to our commercial segment increased by $1.8 million, or 64%, to $4.6 million for the three months ended March 31, 2009 from $2.8 million for the three months ended March 31, 2008.
Provision for income taxes increased by $2.6 million, or 53%, to $7.4 million for the three months ended March 31, 2009 from $4.8 million for the three months ended March 31, 2008. The provision for income taxes for the three months ended March 31, 2009 resulted primarily from our income before provision for income taxes plus net loss attributable to noncontrolling interest of $18.5 million and an effective annual tax rate of approximately 40%. The provision for income taxes for the three months ended March 31, 2008 resulted primarily from our income before provision for income taxes of $11.8 million and an effective annual tax rate of approximately 41%. The decrease in the effective annual tax rate is due primarily to the research and development tax credit being renewed in October 2008. The provision for income taxes reflects research and development tax credits of $77,000 for the three months ended March 31, 2009 and $0 for the three months ended March 31, 2008.
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