Emergent BioSolutions Inc. (NYSE: EBS) announced today a growth plan designed to advance the company’s leadership position in the biodefense field and expand its product offerings in specialty pharma markets, thereby expanding revenues, growing net income and creating shareholder value. Under the plan, the company has established the following key financial and operational goals to be achieved by year end 2015:
- Generate annual product revenue of greater than $500 million;
- Achieve a three-year (2012-2015) compound net income growth rate of greater than 15%; and
- Secure diversified revenues from at least three marketed specialty products.
- The company’s recognized leadership position in the biodefense field, which can be leveraged to advance its existing pipeline and to acquire new products for this specialty market;
- The company’s breadth and depth of resources and expertise in biologics manufacturing and advanced-stage product development;
- The company’s expertise and capabilities in government and NGO contracting and partnering; and
- The company’s experience and expertise in structuring and closing acquisition transactions.
1) Acquire synergistic revenue generating products in biodefense and other specialty markets. This approach is designed to advance the company towards the achievement of the 2015 goals by:
- increasing revenue through product acquisitions addressing specialty markets where existing capabilities can improve product performance and financial returns;
- enhancing contributions to net income growth; and
- providing product revenue diversification.
- advancing only those programs that have achieved clinically important milestones that justify further research and development investments;
- enhancing the value of development expenditures by focusing on products that have the potential for nearer term regulatory approval; and
- minimizing early stage research and development costs that are not funded by third parties.
- mitigating operational risk through the knowledge, capabilities and expertise provided by partners and collaborators; and
- offsetting development expenditures through non-dilutive funding.
There are a number of important factors that could cause the company’s actual results to differ materially from those indicated by such forward-looking statements, including appropriations for BioThrax ® procurement; our ability to obtain new BioThrax ® sales contracts; our plans to pursue label expansions and improvements for BioThrax ®; our ability to identify and acquire or in license products and product candidates that satisfy our selection criteria; the potential benefits of our existing collaboration agreements and our ability to enter into selective additional collaboration arrangements; our ability to expand our manufacturing facilities and capabilities; the rate and degree of market acceptance and clinical utility of our products; the success of our ongoing and planned development programs; the timing of and our ability to obtain and maintain regulatory approvals for our product candidates; and our commercialization, marketing and manufacturing capabilities and strategy. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. Investors should consider this cautionary statement, as well as the risk factors identified in our periodic reports filed with the SEC, when evaluating our forward-looking statements.