Q1 2025 Emergent BioSolutions Inc Earnings Call
Speaker Change: Good day, and thank you for standing by. Welcome to the first quarter, 2025, Emergent BioSolutions Inc. earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.
Speaker Change: To ask a question during the session, you will need to press star 11 on your telephone.
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To withdraw your question, please press star 1-1 again.
Please be advised that today's conference is being recorded.
Speaker Change: Oh, now I'd like to hand the comments over to your speaker today, Frank Vargo, Vice President, Assistant Trevor. Please go ahead.
Speaker Change: Good afternoon, everyone. Thank you for joining today as Emergent discusses their operational and financial results for the first quarter of 2025. As is customary, today's call is open to all participants. The call is being recorded and is copyrighted by Emergent BioSolutions.
Speaker Change: In addition to today's press release, there are a number of slides accompanying this webcast available to all webcast participants.
Speaker Change: Turning to Slide 2. During today's call, Emergent May make projections and other forward-looking statements related to their business, future events, their prospects or future performance. These forward-looking statements are based on their current intentions, beliefs, and expectations regarding future events.
Speaker Change: Any forward-looking statement speaks only as of the day of this conference call, and except as required by law, Emergent does not undertake to update any forward-looking statements to reflect new information events or circumstances.
Speaker Change: Investors should consider this cautionary statement, as well as the risk factors identified in Emergent Periodic Reports followed with the SEC when evaluating their forward-looking statements.
Speaker Change: During today's call, Emergent may also discuss certain on- GAAP financial measures that involve adjustments to gap figures in order to provide greater transparency regarding emergency operating performance. Please refer to the table's found in today's press release.
Speaker Change: Turning to slide three, the agenda for today's call will include Joe Papa, president and chief executive officer, who will comment on our turnaround progress in a high-level summary of Q-1 2025 performance.
Speaker Change: and Rich Lindahl, EVP and Chief Financial Officer who will provide further details on the first quarter of 2025 financials as well as provide full your guidance for 2025.
Speaker Change: Joe Papa will conclude by discussing the 2025 Business Outlook and key catalysts for growth followed by Q&A Finally for the benefit of those who may be listening to the replay of this webcast, this call is held and recorded on May 7, 2025
Speaker Change: Since then, Emergent May have made announcements related to topics discussed during today's call, and with that, I would now like to turn the call over to Joe Papa for opening remarks.
Speaker Change: Good afternoon, and thank you for joining us through our first quarter of 2025 earnings.
Speaker Change: This is Joe Papa, CEO of Emergent, and I'm joined today by Rich Lindahl, our Chief Financial Officer. I will provide brief comments on our progress with our multi-year turnaround plan in the first quarter results.
Speaker Change: Frank Benjamin will close with the Q&A. Turning to slide five, we continue to make great progress extruding on our multi-year plan to stabilize the company.
Speaker Change: Streamliner operations to improve profitability and transform the company to achieve long-term, sustainable growth, built-up, and emerging strength.
throughout the...
Speaker Change: Quarter, Emergent Colleges executed on our strategic plan, but they laser focus on improving operational efficiency and driving profitable growth.
Speaker Change: I'm going to call it three great Q1 achievements, all while keeping the Emergent Mission Statement to protect and save lives at the center of our work.
We delivered on our revenue and adjusted even that target.
While we further improve our cash in liquidity position,
Speaker Change: We partnered with the U.S. Government and Allidations to ensure preparedness with medical common measures and we delivered life-faving Marcan nasal spray across the U.S. and Canada to patients, customers and communities.
Speaker Change: In theory, we completed two strategic business development transactions that aligned with an enhanced, Emergent's core capabilities.
Speaker Change: Let's turn it to slide six for more detailed review of the great work of the Emergent Team in the first quarter. Based on a great team effort, we are reaffirming revenue and adjusted EBITDA guidance for 2025.
Speaker Change: At the end of the first quarter, we have cash of $149 million on the balance sheet, which includes approximately $36.59 for the sale of the baby site in Baltimore.
Speaker Change: Additionally, we have 50 million from Bavaria, Nordic, Milestone payments. 30 million was received in the first quarter, and 20 million in addition has already been received in second quarter. We also expected benefit from strong, receivable cash collections in the second quarter.
Speaker Change: Our net leverage is now 2.8 times the juked EBITDA, which is remarkable achievement since it was around 5.7 times back in the first quarter of 2024
Speaker Change: With our approved cash position and $100 million dollars of a fully undrawn revolver, we have a total of $250 million dollars in liquidity available to us for a strategic growth initiative both internally and for external business development.
Speaker Change: We have focused Emergent's business today to concentrate on our core strength of medical countermeasures and opioid overdose reversal treatment.
Speaker Change: We are committed to combat the opioid overdose epidemic and health-saving lives. We continue to meet the demand for Nalaxon with Narcan, Nagel Spray, which is by far the Category Leader.
Speaker Change: In the first quarter, we managed through two one-time events with Narcan, a third party Mr. Intercell, short-dated generic Nellaxum inventory at a reduced price.
Speaker Change: and State's proceeding with caution as it relates to federal funding process for Nalaxo. We now have greater clarity in our encourage the Narcan revenue progress we are seeing in the first six weeks of the second quarter.
Speaker Change: An NCM's, we had a very favorable quarter with a significant amount of international revenue while maintaining our strong relationship with the US and allied government partners.
Speaker Change: Through extended meetings with U.S. government stakeholders, we have a better transparency on expectations for 2025 deliveries, which supports our 2025 guidance ranges.
Speaker Change: From an R&D perspective, our new chief medical officer Simon Lowry has created his implementing a strategy that evaluates several of our current product line extensions. Two examples of that are a better understanding of the utility of 10-bexas in M-Pox treatment during the Africa CDC most of trial.
Speaker Change: and our efforts to facilitate the availability of AKM 2000 for the ongoing M Park's epidemic in Africa with World Health Organization.
Speaker Change: Let's shift to slide seven to look at our North America centric manufacturing model in more detail. Two key points related to our Emergent model.
Speaker Change: All of our MCM products are manufactured in the U.S. or Canada, and our U.S. MCA compliant, which means they are currently not subject to terror between U.S. Canada and Mexico.
Speaker Change: We are actively managing our future inventory orders to mitigate any material tariff, impact associated with component source in the European Union.
Speaker Change: Based on the US men's factory focus and existing information, we believe our business is relatively
Rich Lindahl: Now Elias is turning the call over to Richard to walk through the Q1 Financial Results.
Rich Lindahl: Thank you, Joe, and good afternoon, everyone. We appreciate you joining the call.
Rich Lindahl: As Joe has just highlighted, we are off to a strong start in 2025 as we continue to make progress on our multi-year transformation plan.
Rich Lindahl: Net income in the first quarter was $68 million, a 656% increase versus the first quarter of 2024.
Rich Lindahl: In addition, we saw a significant margin expansion, both on the gross margin and adjust the EBIT down margin lines versus the prior year.
Rich Lindahl: These metrics support our turnaround objective of focusing on highly profitable components of our business, while divesting non-core low-profit assets.
Rich Lindahl: Both our medical countermeasure and opioid overdose reversal products deliver sustainable revenue over time and garnered by partisan support at the U.S. government level.
Rich Lindahl: During the quarter, our portfolio of unique medical countermeasure and opioid overdose reversal products also continued to provide life-saving capabilities to people around the world.
Rich Lindahl: In the first quarter, we had $91 million of sales outside of the United States for our NCM products.
Rich Lindahl: As part of our multi-year transformation plan, we expect to remain focused on international expansion efforts and strengthening health preparedness at home and abroad. With that, let's move to the first quarter financials.
Rich Lindahl: As highlighted on slide 9, our key financial metrics are total revenues of $222 million down versus the prior year as lower Narcan and Bat sales, as well as the divestiture of RSDL and Camden, were partially offset by higher international smallpox sales.
Rich Lindahl: Adjust the EBITDA of $78 million, an increase of $11 million versus the prior year.
Rich Lindahl: Adjusted EBITDA on margin of 35%, an increase of 1300 basis points versus the prior year.
Rich Lindahl: Adjusted gross margin at 58%, improved 700 basis points a year every year, as a result of product mix as well as the improved cost structure stemming from our previously announced restructuring efforts.
Rich Lindahl: Note that beginning with this report, we are no longer reporting services as a separate segment given the divestitures of our cabinet and baby sites and de-emphasis of our CDMO business as a driver of growth.
Rich Lindahl: You will still find breakouts of our commercial product segment and MCM product segment results in our press release.
Rich Lindahl: And finally, operating expenses were down $32 million or 32% versus the prior year across R&D and SGNA.
Rich Lindahl: Transitioning to slide 10, our first quarter revenue highlights were total product sales of $202 million, a decline versus the prior year as increased smallpox revenue from both the U.S. government and international customers was offset by lower Narcan and bat sales.
Rich Lindahl: All other revenue comprised of our services and contracts and grants revenue was $20 million.
Rich Lindahl: The year-of-year decline is due to the sale of our Camden CDMO facility, which is partially offset by a higher level of CNG revenue year-over-year from the continued U.S. government funding of the Banger Program for Treatment Pabivola.
and finally, a few notes on Narcan.
Rich Lindahl: We continue to remain competitive on price and focus on our competitive advantages, including our brand recognition, market leading distribution capabilities and customer service.
Rich Lindahl: We attribute the year-rear decline in Narcan revenue to several factors. First, the full impact of reduced pricing in the public interest space that began to take effect in late 2Q24.
Rich Lindahl: Second, volume was impacted by what we believe was a one-time sale of short-dated inventory to the market by a third-party distributor of generic product. And finally, the Federal Administration transition caused some purchasing delays as states sought to access funding programs.
Rich Lindahl: Having said that, as we exited the first quarter, and thus far in the second quarter, we are seeing improved trends in unit volumes, which gives us confidence that a good portion of the first quarter decline was temporary in nature.
Rich Lindahl: On slide 11, you can see the continued improvements in our financial metrics.
Rich Lindahl: As of the first quarter of 2025, we had total liquidity of $249 million, comprised of $149 million of cash and $100 million of undrawn revolver capacity.
Rich Lindahl: Both liquidity and cash were significantly improved year-over-year and versus year-end 2024.
Rich Lindahl: Our improved cash position in Q1 2025 was aided by the receipt of the $30 million Bavarian Nordic milestone payment, as well as the sale of our baby manufacturing site for $36.5 million.
Rich Lindahl: We also collected the $20 million Bavarian Nordic milestone and a significant amount of our accounts receivables so far in Q2 further improving our overall cash position.
Rich Lindahl: Our net debt in Q1 2025 was $551 million, a $280 million reduction, or 34% since Q1 2024.
Rich Lindahl: And this outcome, coupled with our strong performance in the business, allowed us to cut our net leverage in half as we ended the first quarter at 2.8 times adjusted EBITDA.
Rich Lindahl: We believe that a net leverage ratio of two to three times adjusted EBITDA represents an appropriate capital structure target for the business, providing the ability to actively invest in strategic growth opportunities and ultimately drive further value to our shareholders.
Rich Lindahl: Please turn to slide 12 and I'll touch on our key capital allocation priorities in support of our multi-year transformation plan.
Rich Lindahl: First, we seek to maintain sufficient cash and liquidity to operate the business and manage the variability of working capital cash flows driven by the timing of MCM order deliveries.
Rich Lindahl: Next, the top priority is to deploy capital in an effective manner to drive growth. This is a critical component of our multi-year plan, and as Joe has highlighted, we'll focus on both organic and inorganic opportunities to drive near-term and long-term growth.
Rich Lindahl: Finally, we'll also consider debt repayments to strengthen our balance sheet and share with our repurchases to create incremental shareholder value.
Rich Lindahl: On March 31, 2025, we announced a $50 million share repurchase program which will expire in March of 2026. Accordingly, there were no purchases made in the first quarter, and we will provide further updates with our earnings releases going forward.
Rich Lindahl: Transitioning the slide 13, we are reaffirming our full year 2025 guidance as follows, total revenues of $750,000 to $850,000
Rich Lindahl: Adjust the EBITDA of $150 to $200 million reflecting improved year-over-year profit margins driven by lower costs in the business.
Rich Lindahl: Just a gross margin of 48% to 51%, roughly a 500 basis point extension at the midpoint versus 2024 results, aided by our leaner and more focused manufacturing footprint.
Rich Lindahl: Moving to segment level revenue guidance, MCM products sales of $435 to $485 million across the U.S. government and international orders, and commercial products, including Clark Sotto, in the range of $265 to $315 million.
Rich Lindahl: As part of this guidance, we expect Narcan to continue to maintain a leading market share of the growing total addressable in the lock zone nasal spray market.
Rich Lindahl: And for the second quarter of 2025, we are forecasting a total revenue range of 95 to 120 million dollars, as we anticipate that our full-year revenue will be weighted more to the second half of 2025 than to the first half.
Rich Lindahl: Accordingly, given this implied second quarter sequential revenue decline, you should also expect second quarter profitability to decline significantly versus the first quarter, and then improve meaningfully beginning in the third quarter.
Rich Lindahl: We are anticipating strong profit flow follow-through from 2024, even with lower
Our guidance therefore implies a very strong margin improvement story.
Rich Lindahl: and when combined with our expectations for continued positive operating cash flow but very in Nordic milestone payments and the baby manufacturing site sale, our performance positions us to capitalize on growth opportunities for the business and value creation for our shareholders.
Rich Lindahl: Finally, I would also like to mention that we have published our annual ESG report for 2024, which you can find under the Impact tab of our website, EmergentBioSolutions.com.
Rich Lindahl: As a company, we continue to prioritize quality and sustainability across multiple environmental social and governance pillars.
Rich Lindahl: We hope that you will review our ESG report and take note of our progress.
Rich Lindahl: I'll now turn the call back over to Joe to discuss our business outlook and growth catalysts. Joe
Rich Lindahl: Thank you, Rich. Turning to slide 16, I'd like to provide more detail about looking at our business and the growth catalyst.
Rich Lindahl: Following the rate of albeit-overdose steps, as reported by the CDC, is welcome news. At Emergent, we believe expanded OTP access to NARCN is an important factor in the reduced opioid overdose deaths. We are making progress.
Rich Lindahl: However, there still is a significant public health threat, and we want to make sure we continue to work with stakeholders to bring the open, overdosed death rate in the U.S. and Canada to zero.
Rich Lindahl: We believe the Galaxy market will continue to experience mid-single digit unit volume growth in the near future and the value of
Rich Lindahl: Three examples demonstrate Narcan's leadership value. Number one, we continue to add new public interest customers and regain and retain important state customers further demonstrate our ability to address competition.
Rich Lindahl: Second, we are currently in discussions with several major large employers including one major e-commerce giant to supply thousands of bucks to the Narcan Eagle Spray to their location.
Rich Lindahl: Third, our Narcane Direct Distribution Platform, and strong relationships with leading distributors represent significant growth potential for the product and an opportunity to help save more lives.
Speaker Change: The wool units pictured here on the page show our team has created and several floors have installed them in offices across the US and Canada. These can be purchased through our distributor partners so anyone can reach or get the help we spawn in the time of crisis.
Rich Lindahl: We believe every business will have an election available in the same manner as the Februaryers.
Rich Lindahl: Growth in the business to business and retail channels will make our team more widely available, however...
Rich Lindahl: The additional funding from the opioid litigation settlement is a large and impactful way to ensure our can get into the hands of those most in need.
Rich Lindahl: Also, just last week we announced a three-year agreement valued at approximately $65 million with the province of Ontario to supply our life-saving Narcan treatment.
Rich Lindahl: In March, Health Canada approved our recently licensed product, Quoxado Neinsel Spreading. This expands the emergency ability to distribute multiple life-saving opioid overdose emergency treatment patients' customer's immunity.
Rich Lindahl: Moving to slide 17, we have good visibility in the delivery time of our NCM products in 2025.
Rich Lindahl: during the first quarter of 2025, or NCN Court Fail, continue to deliver strong domestic and international sales.
Rich Lindahl: And expected during the first quarter, we recently completed our first shipment of Convexa to the Strategic National Stock Quile under our previously announced contract modification, as well as our first shipment of Convexa outside of the U.S.
Rich Lindahl: Between these shipments, the ongoing MPOX trial led by the AFCA CDC and our continued R&D work, we believe that 10 backs up represents the significant opportunity for potential organic
Rich Lindahl: In addition, we successfully delivered multiple international orders for five MCM products across smallpox and end-to-end products.
Rich Lindahl: Notably, as we consider our footprint in key areas where public health threats are on the rise, such as in Africa with the ongoing impact of growth.
Rich Lindahl: We continue to engage the World Health Organization on an emergency use listing for ATM 2000 vaccine, as well as key African country leaders to offer our assistance.
Rich Lindahl: Moving to slide 18, we've already begun deploying strategic capital for offers missed and growth through business development.
Rich Lindahl: First, our investment agreement to support the research, infrastructure development, and expansion of Swiss Rockets
The parent company of our Rocketvax Venture [inaudible]
Rich Lindahl: Additionally, as part of this endeavor, we intend to form a strategic partnership where Emergent will lead the U.S. manufacturing and commercialization of four of Rock Vaxis Python candidates.
Rich Lindahl: Second, our acquisition of exclusive commercial rights to Coxada nasal spray 8 milligrams is an added tool to fight the opioid crisis. We are also continuously, a lot of the opportunities to create line intentions, kits, and other solutions.
Rich Lindahl: Third, with our growth in the MCM in an Alexawood market, we have signed or in the process of negotiating contracts related to our MCM products with allies in the European Union, Middle East, Africa and Asia Pacific.
Rich Lindahl: Our expectation is significant cash generation through 2025, which is expected to fund future growth investments.
Rich Lindahl: On slide 19, we further illustrate the potential reach and validation of our plans for geographic expansion in an increasingly dangerous world.
Rich Lindahl: In closing, on July 20, our Emergent team has delivered a strong financial performance in the first quarter.
Rich Lindahl: and we reaffirm our full year revenue guidance of $750 million to $850 million and our adjusted EBITOP $150 to $200 million. We remain on track to execute our multi-year turnaround plan.
Rich Lindahl: While we strive for the highest enters of quality, ethics and compliance across the entire Emergent Enterprise.
Rich Lindahl: And with that, I look forward to taking your questions, operator, please open up the line for questions.
Rich Lindahl: As a reminder to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from Jessica Fye with JP Morgan, your line is open
Jessica Five: Hey guys, good afternoon. Thanks for taking your questions. I kind of have a handful.
Jessica Five: First on tariffs, I think you mentioned that you're not sort of subject to the existing tariffs. Can you just talk a little bit about your manufacturing footprint, including sources of API? Does any product cross a border to pass into the US for sale? No.
Jessica Five: Can you elaborate on what drove the gross margin improvement this quarter and how to think about that gross margin trajectory from this level that we saw in the first quarter?
Jessica Five: 3rd, when you provided the 1Q forecasted revenue range, I think it was 200 to 240, were some of those Narcan dynamics in motion, including that competitor selling short dated product that already contemplated.
Jessica Five: And then lastly, I think in the past you had expected the Naloxone market to grow mid to high single digits year over year, and I think on the call you said mid single digits. If I heard you correctly, what changed?
Jessica Five: and can you talk about how you see the various market segments contributing to that mid-single digital growth? Thank you.
Rich Lindahl: Sure, you had quite a few, so we'll try to make sure we get them all, but let me start with the tariffs, and then I think Richard you could take the greatest margin and I'll come back on the Narcan and the Lexo.
Richard Lindahl, M.D., Ph.D.
Rich Lindahl: through our U.S. Medical Network or in Canada, but in both cases they are what we refer to as USMCA compliant, so at the current time we don't expect a significant impact on the tariffs from our product portfolio. As I said, there is a device from Narcan Consum overseas, but we're going to give them a good shift relative to the inventory we have on hand of that device today.
Rich Lindahl: So that's part of the best way I can answer the first question on tariffs in terms of importantly, we've been out front of this and making sure that especially because of the medical power much of our infrastructure was US-based prior to this, based on just important bio-defense type of reasons.
Jessica Five: on the segment where it's the growth market? Sure, so there's a couple of factors that play here Jess. First is that as you know, as you're well aware, we've taken a lot of cost out of the business over the last year to half to two years.
Jessica Five: and by selling Camden, by selling Bayview, we have a lot less unutilized capacity and so that certainly has helped the gross margin side in of itself.
Jessica Five: Secondly, the product mix in the first quarter was favorable on that front. In particular, the large amount of international orders, which tend to be higher margin, was also a factor that contributed to that improvement.
Jessica Five: On the third question, my recollection was, do we contemplate some of the impacts on North-Hand as we were doing the first quarter? The answer was yes. We clearly used some of this. I was too exactly the magnitude and things like that. I think on these we got smarter as time went on in the quarter relative to the magnitude of what the third party distributor had on hand from a short-dated product. We didn't know the exact extent of it, we didn't know.
Jessica Five: Federal Funding for Narcant in the Continuing Resolution CR, the government, so we certainly know some piece of information, but time for you greater certainty and understanding as time went on. So we contemplated some of it, but clearly we got smarter as time went on.
Jessica Five: And then on the fourth question, I believe it was the now Lackzone market in terms of unit volume and we always felt pretty, you know, similar that it would be somewhere in that, you know, mid single digit type of growth rate, you know at some point it may be a slightly more slight less but always contemplated somewhere around that mid single digit growth rate for our belief on the overall Narcan and now Lackzone total market growth. So I think the total pie will continue to grow in terms of the total pie will continue to grow in terms of the total pie will continue to grow in terms of the total pie will continue to grow.
by that mid-single digit type growth rate.
Speaker Change: and then within the market can you talk about the growth for the different segments?
Speaker Change: Sure, thank you for reminding me about it. Far and away, the largest-
Speaker Change: is the public interest however. As a growth driver, we do expect the business to business activities as exemplified by some of the things I mentioned in the call what we're doing with the Narcan wall units making sure we have those available and putting together programs like that, working with a very large
Speaker Change: Businesses across the board. All those we think are going to drive and make the business of business segment, a factor growing segment, but it's far away the majority of the youth still will go through public interest.
Speaker Change: I might just add in, I think there's also opportunity in Canada and you saw that we announced that large contract just last week with the Province of Ontario, so I think that's an example of ways we can grow in Canada and then there are also some provinces that have much less procurement of North Canada today and so we're actively looking at opportunities there as well to expand our footprint.
Speaker Change: And as I mentioned, we do have that 65 million of incremental three-year contracts, so that's going to certainly help us as we, as Richard, for a good point now, thanks for bringing that forward, Richard.
Okay. Operator, time for another question, please.
Speaker Change: Again, to ask a question, please press store 1-1. Our next question comes from each end and see, Wayne Wright, your line is open.
Yifor Ramsevaraj: Thank you for taking the question. This is E for Runs of Arachwood at H.C. Greenwright.
I have a couple of questions. The first one is...
Yifor Ramsevaraj: Are the international customer reference in the March 20, 25 press release?
Yifor Ramsevaraj: pertaining to the 27-million medical countermeasure and incremental sales likely to place more orders before the end of this year, and if so, how much additional revenue could potentially accrue from these orders. And how might the 27-million come in? Will the sales be primarily recognized in the first half of the second half of 25?
and I hope to for all. Thank you.
Speaker Change: Sure, so great question. Maybe I'm just going to back a little bit before I answer the question. I'd say I remind you that a year ago, as we were thinking about the future of our business, we certainly focused on the international growth opportunity as an opportunity for us to continue to diversify our business. Fortunately, we're seeing exactly that happen. All told in the first quarter, we achieved about $91 million of international revenue.
Speaker Change: You know, some of the outbreaks of the N-pox that we're seeing in Africa just illustrates the point that you need to be prepared for any eventuality. And I think that's why we're seeing greater international revenue for us. We're certainly going to do more to try to work on that. We have a specific team that's been identified. They've been working on this project for about six months. [inaudible]
thinking about, what can we do?
to continue to expand.
I've probably not even made any civic comments about it
Speaker Change: You know, the exact magnitude of a lead are 27 million plus opportunities, but do I think there's more opportunities for 120,000,000? And there's absolutely yes.
Richard Lindahl. Richard Lindahl.
Richard Lindahl.
Speaker Change: Tell the revenue from the Ontario Ministry of Health be allocated over the next three years.
Speaker Change: Yeah, so it's a career contract, we'll see exactly how it comes in, but I think it's reasonable to assume that it could come in fairly evenly over those three years, so for modeling purposes I'd be comfortable with that.
Speaker Change: Okay, and is Emergent likely to benefit at all from pharmaceutical and biotechnology manufacturing onshoreing over the next course of coming quarters or at this Emergent Plan to sell a by best any of your manufacturing for structure.
Speaker Change: Very great question. Probably the way I factor is that...
Speaker Change: Emergent, at today, we are well positioned with our manufacturing network and it is, as I mentioned previously, predominantly US manufacturing or Canadian, but that's in the USMCA compliance. Do we have additional capacity for drug substance and they'll finish for, product is absolutely yes. So we do have capacity. Well, I will have pretty good as the buyer.
Speaker Change: Drug Substance, or ABI, and also her field finish. So we'll look to try to help. Relative to selling any additional facilities, I think at this point we like our footprint, but as a public company, if somebody puts a good price in the table for one of our facilities, of course we'd consider it, but we feel very good about what we've done so far. I think all told we invested sites in products that represent approximately $150 million of value. So... So, I think we're going to have a lot of money in the future, but we're going to have a lot of money.
Speaker Change: was a big important part of reducing our total debt and importantly putting us in a stronger position from a cash point of view today. We don't feel the need to make any more divestants but we certainly will catch them opportunistically if we can help others.
Thank you.
Speaker Change: Thank you. If I may ask briefly a last one, last question. Has the company being actively repurchased stock lately? Is there any chance that the repurchase program be marched? Thank you.
Speaker Change: We will comment on progress against the repurchase program each quarter and we'll just have to leave it at that at this point.
All right, thank you very much [inaudible]
Speaker Change: Thank you. We're very pleased. The catch generation we have, and you know, we'll have to make decisions as to how best you like that catch for the multiple objectives that we've reached talked about in the presentation.
Speaker Change: I'll further any other questions. I'm showing no further questions at this time. I would now like to turn it back to Joe Papa for closing remarks.
Joe Papa: Well, thank you everyone for joining us. With that ladies and gentlemen, we now conclude the call. Thank you for your participation. Please note there will be an archived version of the day's practice as well as the PDF version of the slide.
Speaker Change: You and use during today's call will be available later today and accessible through the Investors Laney page on the company website. Thank you again for joining us. We look forward to speaking with you all in the future. Goodbye everyone.
Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.