Emergent BioSolutions Expands Manufacturing, Development Infrastructure

Emergent BioSolutions has executed multiple real estate transactions that will expand the company’s manufacturing and development infrastructure. The company expects that these transactions would broaden its manufacturing options. It would also help increase the flexibility with which the company uses its manufacturing assets, facilitate the continued growth of its product development programs, and reduce its overall debt and annual interest and operating expenses.

The company will sell its Frederick facilities, which consists of two 145,000 sq ft unimproved buildings acquired in 2004 and 2006. In turn, the company is in the process of acquiring a new Maryland manufacturing facility and a Gaithersburg laboratory facility.

Emergent BioSolutions said that the exchange of two Frederick facilities for both the Maryland manufacturing facility and the Gaithersburg lab, would be cash positive and reduce the company’s total debt and annual interest and operating expenses.

Kyle Keese, senior vice president manufacturing operations of Emergent BioSolutions, said: “These transactions represent an important step in the implementation of our manufacturing and development strategy. In relatively short order, we have optimized our manufacturing and development asset mix and, importantly, added to our portfolio a second site that could be used to produce rPA, thereby freeing up the facility in Lansing for the scale up of BioThrax, as well as to manufacture other pipeline products.”

The transaction is anticipated to close within the next three months.