GAITHERSBURG, Md., May 7, 2015 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE: EBS) reported financial results for the quarter ended March 31, 2015.
Financial highlights for Q1 2015 include:
- Total revenues of $63.6 million, up 18% versus Q1 2014
- Net loss of $21.5 million, or $0.57 per diluted share; Adjusted net loss of $18.8 million, or $0.50 per diluted share
- EBITDA of $(19.6) million, or $(0.52) per diluted share; Adjusted EBITDA of $(18.4) million, or $(0.48) per diluted share
2015 outlook:
- FY 2015 total revenues of $510-$540 million, net income of $50-$60 million (GAAP) and $60-$70 million (adjusted)
- Q2 2015 total revenues of $105 to $120 million
“Overall, our business performance in 2015 has been strong with FDA approvals of both Anthrasil and IXINITY, and initiating a Phase I trial for MOR209/ES414, our immunotherapeutic treatment for prostate cancer,” said Daniel J. Abdun-Nabi, President and Chief Executive Officer of Emergent BioSolutions. “We anticipate full year revenues of $510 to $540 million, net income of $50 to $60 million and adjusted net income of $60 to $70 million, as we continue to expand the product portfolios of both of our businesses and drive robust growth in revenue and net income.”
(I) 2015 FINANCIAL PERFORMANCE -- Quarter Ended March 31, 2015 (unaudited)
Revenues
Product Sales
For Q1 2015, product sales were $18.3 million, a decrease of 49% as compared to 2014. The decrease primarily reflects our decision to not make shipments of BioThrax to the CDC in the first quarter of 2015 due to the discovery of foreign particles in a limited number of vials in two manufactured lots of BioThrax in January 2015.
| (in millions) | Three Months Ended | ||
| March 31, | |||
| 2015 | 2014 | % Change | |
| Product Sales | |||
| BioThrax® | $ -- | $24.5 | (100)% |
| Other biodefense | 11.9 | 8.1 | 47% |
| Total Biodefense | $11.9 | $32.6 | (63)% |
| Total Biosciences | 6.3 | 3.3 | 91% |
| Total Product Sales | $18.3 | $35.8 | (49)% |
Contract Manufacturing
For Q1 2015, revenues from our contract manufacturing operations were $12.2 million, an increase of $9.5 million as compared to 2014. The increase primarily reflects the impact of a full quarter of contract manufacturing activities, which were acquired in Q1 2014, as well as revenue for manufacturing services related to an MVA Ebola vaccine candidate.
Contracts, Grants and Collaborations
For Q1 2015, revenues from our contracts, grants and collaborations were $33.1 million, an increase of 115% as compared to 2014. The increase primarily reflects additional development funding for product development programs that were acquired in Q1 2014 and the realization of a milestone payment related to the development of a partnered product within the Biosciences division.
Operating Expenses
Cost of Product Sales and Contract Manufacturing
For Q1 2015, cost of product sales and contract manufacturing was $18.7 million, a decrease of 1% as compared to 2014.
Research and Development (R&D)
For Q1 2015, gross R&D expenses were $38.7 million, an increase of 28% as compared to 2014. The increase primarily reflects additional R&D expenditures associated with product development programs that were acquired in Q1 2014. Gross R&D expenses include contract service costs and development expenses related to product candidates, technology platforms and manufacturing capabilities in both the Biodefense and Biosciences divisions.
Net R&D expenses, which are more representative of the company’s actual out-of-pocket investment in product development, are calculated as gross research and development expenses less contracts, grants and collaboration revenues. For Q1 2015, net R&D expenses were $5.6 million, a decrease of 62% as compared to 2014.
| (in millions) | Three Months Ended | ||
| March 31, | |||
| 2015 | 2014 | % Change | |
| Research and Development Expenses (Gross) | $38.7 | $30.3 | 28% |
| Adjustments: | |||
| Contracts, grants and collaborations revenues | 33.1 | 15.4 | 115% |
| Research and Development Expenses (Net) | $5.6 | $14.9 | (62)% |
Selling, General and Administrative
For Q1 2015, selling, general and administrative expenses were $34.5 million, an increase of 15% as compared to 2014. The increase primarily reflects additional post-acquisition selling, general and administrative costs that are largely associated with additional operations acquired in Q1 2014.
Net Loss (GAAP and Adjusted)
For Q1 2015, GAAP net loss was $21.5 million, or $0.57 per diluted share, as compared to a net loss of $20.2 million, or $0.55 per diluted share, in 2014. Q1 2015 adjusted net loss was $18.8 million, or $0.50 per diluted share, as compared to an adjusted net loss of $14.6 million, or $0.40 per diluted share, in 2014.
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