Emergent BioSolutions to Spin Off Immuno-Oncology Company in 2016
August 6, 2015
By Alex Keown, BioSpace.com Breaking News Staff
GAITHERSBURG, Md. -- Emergent BioSolutions will spin off its biosciences business into a separate publicly-traded entity to spur growth and operational priorities, the company announced this morning.
The new biosciences entity, which has yet to be named, will focus on developing oncology and hematology therapeutics, Emergent said. The new entity will begin with a cash infusion of $50 million to $70 million from Emergent. Additional funding to support future research and development will include commercial product sales and partnership funding, the company said.
The biosciences business will adopt the company’s existing ADAPTIR platform, which will be applied to immuno-oncology. The spin-off is expected to be completed sometime in 2016, the company said.
rose this morning as news of the split was announced. The stock was up more than 2 percent to $33.60 from Wednesday’s closing price of $32.73 per share.
As it spins off, the new company will launch with four of Emergent’s established drugs – Ixinity, WinRho, HepaGam B, and Varizig. The drugs treat blood multiple diseases, including hemophilia, chickenpox and hepatitis B.
“The proposed spin-off recognizes that our two operating divisions have evolved into distinct business and investment opportunities,” Daniel J. Abdun-Nabi, president and chief executive officer of Emergent, said in a statement.
The new entity will allow for the full exploration of the exploding immuno-oncology field. The new Emergent entity will be helmed by Marvin L. White who currently serves as a member of Emergent's board of directors.
The new spinoff company will allow Emergent BioSolutions to continue to focus on product solutions for intentional and unintentional public health solutions, including responses to possible terrorist attacks with biological weapons. This week Emergent announced the launch of a military-grade auto-injector device, known as Emergard, which is designed for intramuscular self-injection of antidotes and other emergency response medical treatments that can address exposure to certain chemical agents and other similar emerging threats. Emergard is designed to be transported, stored, and operated in a military environment and to ensure needle penetration and successful injection through chemical protective gear.
Emergent, which developed the anthrax vaccines following attacks in 2002, will retain the bio-defense marketed products and development programs, platform technologies, and manufacturing infrastructure.
The bio-defense market makes up the bulk of Emergent’s revenues, particularly BioThrax, the company’s vaccine for biological disease. The Washington Post noted bio-defense products garnered $72 million in sales for the three month period ending June 30, while its bio-sciences products earned about $7 million.