GAITHERSBURG, Md., February 15, 2023 (GLOBE NEWSWIRE) — Emergent BioSolutions EBS announced today that it has entered into an agreement to sell its travel health business to Bavarian Nordic (BVNRY) for a total consideration of up to $380 million, including possible downstream payments. Under the terms of the definitive agreement, Bavarian Nordic will acquire the rights to VIVOTIF®, indicated for active immunization to prevent typhoid fever, and VAXCHORA®, indicated for active immunization to prevent cholera, as well as the development-stage vaccine against chikungunya candidate CHIKV VLP. Bavarian Nordic will also acquire Emergent’s factory in Bern, Switzerland, and development facilities in San Diego, California. Approximately 280 current Emergent employees are expected to join Bavarian Nordic as part of the transaction.
“This agreement allows these important vaccines to continue to reach the patients and customers who need them, allowing us to further sharpen our focus on protecting and improving lives through our core products and third-party manufacturing services business,” said Robert G. Kramer, Emergent President and Chief Executive Officer. “I want to thank our emerging teammates who will join Bavarian Nordic for their dedication to developing and delivering these products that address global health needs.”
The sale of its travel health business builds on Emergent’s previously announced strategic prioritization of its medical countermeasures products such as ACAM2000® (live smallpox (vaccinia) vaccine), TEMBEXA® (brincidofovir), RSDL® (vaccinia for reactive skin decontamination), various anthrax products and opioid overdose reversal drug NARCAN® (naloxone HCl) Nasal Spray, and contract development and manufacturing services companies. Together, these actions will improve profitability and position Emergent for stable and sustainable long-term growth.
Emergent will discuss this transaction further during the conference call associated with the announcement of its fourth quarter and full-year 2022 financial results, scheduled for post-market close on February 27, 2023.
transaction details
Upon closing of the transaction, Bavarian Nordic will pay Emergent US$270 million in cash upfront. In addition, Bavarian Nordic will pay Emergent up to $30 million in sales-based milestones associated with commercial products and up to $80 million in development-based milestones associated with the CHIKV VLP program. The transaction is expected to close in the second quarter of 2023, subject to regulatory clearance and customary closing conditions.
For Emergent BioSolutions, Wells Fargo Securities, LLC acted as financial advisor and Barnes & Thornburg LLP acted as legal counsel for this transaction.
About Emergent BioSolutions
At Emergent, our mission is to protect and improve lives. For over 20 years, we’ve worked to defend people from things we hope will never happen, so we’re prepared just in case they do. We provide solutions to complex and urgent public health threats through a portfolio of vaccines and therapeutics that we develop and manufacture for governments and consumers. We also offer a range of integrated development and contract manufacturing services for pharmaceutical and biotechnology customers. To learn more about how we plan to protect or improve 1 billion lives by 2030, visit our website and follow us on LinkedIn, Twitter and Instagram.
About VIVOTIF® (Typhoid Vaccine Live Oral Ty21a)
VIVOTIF is a live attenuated vaccine for oral administration indicated for the immunization of adults and children over 6 years of age against diseases caused by salmonella typhi. VIVOTIF is licensed in the US and other major markets, including Europe. The vaccine is marketed in Germany under the name Typhoral® L.
Not all VIVOTIF recipients will be fully protected against typhoid fever. Vaccinated individuals should continue to take personal precautions against exposure to typhoid organisms. VIVOTIF should not be taken during an acute gastrointestinal illness. The most common adverse effects reported during previous clinical trials include abdominal pain, nausea, diarrhea and vomiting.
See the complete US prescribing information for VIVOTIF.
About VAXCHORA® (cholera vaccine, live, oral)
VAXCHORA is a single-dose live attenuated vaccine for oral administration. VAXCHORA is indicated for active immunization against diseases caused by Vibrio cholerae serogroup O1 for cholera prevention among travelers aged 2 to 64 years to an area with active cholera transmission. VAXCHORA is licensed in the USA, Europe and Great Britain.
The effectiveness of VAXCHORA has not been established in people living in areas affected by cholera or in people with pre-existing immunity due to previous exposure to V. cholerae or receive a cholera vaccine. VAXCHORA has not been shown to protect against diseases caused by V. cholerae serogroup O139 or other non-O1 serogroups. VAXCHORA is contraindicated in persons with a history of a severe allergic reaction to any ingredient in VAXCHORA or to a previous dose of any cholera vaccine. The most common adverse reactions include tiredness, headache, abdominal pain, nausea/vomiting, lack of appetite and diarrhea.
See complete US prescribing information for VAXCHORA.
About CHIKV VLP
In 2022, Emergent announced two-year persistence data from its CHIKV VLP Phase 2 safety and immunogenicity study in 415 healthy adults. The CHIKV VLP vaccine candidate continued to demonstrate a favorable safety profile. Two years after vaccination, SNA responses were 19 times higher than pre-vaccination titers after a single 40 µg dose of adjuvanted CHIKV VLP vaccine candidate, supporting the persistence of the immune response. All subjects on the single-dose regimen remained seropositive at their one- and two-year visits. The candidate vaccine was well tolerated and no significant concerns related to vaccine safety were identified. Most requested adverse events were of mild or moderate severity and the most frequent was pain at the injection site.
DECLARATION OF SAFE HARBOR
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact, including statements about the potential benefits of the transaction to Emergent, Emergent’s strategic prioritization of its medical countermeasure products, the ability of the parties to consummate the transactions contemplated in the contract, the ability of the parties to meet expectations regarding the conditions, timing and completion of the transactions contemplated in the contract, and any other statements containing the words “believe”, ” expects,” “anticipates,” “intends,” “plans,” “estimates” and similar expressions are forward-looking statements. These forward-looking statements are based on Emergent’s current intentions, beliefs and expectations regarding future events. Emergent cannot guarantee that any forward-looking statements are accurate. The reader should realize that if underlying assumptions prove to be inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from expectations. The reader is therefore cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statements speak only as of the date of this press release and, except as required by law, Emergent does not undertake to update any forward-looking statements to reflect new information, events or circumstances.
There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. The reader should consider this cautionary statement, as well as the risk factors identified in Emergent’s periodic reports filed with the SEC, when evaluating the forward-looking statements contained herein.
Emergent BioSolutions contacts:
Media:
Matt Hartwig
Senior Director, Media Relations
240-760-0551
[email protected]
Investors:
Robert G. Burrows
Vice President, Investor Relations
240-631-3280
[email protected]