Emergent BioSolutions (EBS) Receives Positive Data From FDA for its BioThrax - Achieves $30 Million Milestone Payment

June 10, 2009 12:45 PM EDT

Emergent BioSolutions Inc. (NYSE: EBS) announced that BioThrax (Anthrax Vaccine Adsorbed), has been granted a shelf life extension from 3 to 4 years by the U.S. Food and Drug Administration (FDA).

Based on this approval, Emergent has achieved a contract milestone warranting a payment of approximately $30 million for doses previously delivered to the Strategic National Stockpile (SNS) under the terms of the company's existing BioThrax procurement contracts with the Department of Health and Human Services (HHS). This amount is expected to be recognized as revenue in the second quarter of 2009. In addition, FDA approval of 4-year expiry dating results in an immediate price increase for the future delivery of BioThrax doses under the current contract as well as under the follow-on multi-year contract, valued at $405 million, for the delivery of 14.5 million doses of BioThrax.

Emergent BioSolutions Inc. is a biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and immune-related therapeutics that assist the body’s immune system to prevent or treat disease. [SM]

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