Q2 2025 Emergent BioSolutions Inc Earnings Call
As is customary today's call is open to all participants.
On the call is being recorded and is copyrighted by emergent bio solutions.
In addition to today's press release, there are a series of slides accompanying this webcast available to all webcast participants.
Turning to slide two.
During today's call emergent may make projections and other forward looking statements related to their business future events, there are prospects or future performance.
Speaker #1: Able to hold on to the share and expect to hold on the share in the future. I think you wanted to ask also about Q2 run rate, right?
Speaker #1: finished.
These forward looking statements are based on their current intentions beliefs and expectations regarding future events.
Speaker #2: Yeah. and hi, Jessica. Thanks for the estion. I would say, yeah, I think it's a pretty decent run rate for the rest of the year, plus minus maybe 5%, something like .
Any forward looking statement speaks only as of the date of this conference call.
Speaker #3: Great. And just sorry, coming on the naloxone market growth, low to mid-single digits, was that volume of the market or overall market revenue?
Except as required by law, a merchant does not undertake to update any forward looking statement to reflect new information events or circumstances.
Speaker #2: So we are referring mostly to the volume of the market to be clear. But as long as pricing stays relatively stable, it should translate to that.
Investors should consider this cautionary statement as well as the risk factors identified in emergence of periodic reports filed with the SEC when evaluating their forward looking statements.
Speaker #2: But you know, obviously, we're going keep a close eye on what's happening with the pricing. But as said, over the last several months, naloxone.
Speaker #1: Good
Speaker #1: afternoon, everyone. Thank you for joining
Speaker #1: today as Emergent BioSolutions.
During today's call emergent may also discuss certain non-GAAP financial measures that involve adjustments to GAAP figures in order to provide greater transparency.
Speaker #1: discusses their
Speaker #2: And Narcan pricing has been relatively stable.
Speaker #1: operational and financial release, there are
Speaker #1: results for the second quarter a series of slides
Speaker #1: 2025. As is customary,
Speaker #3: Great. Thank ou.
Speaker #1: Thank you for the estion. Operator, next estion.
Speaker #1: today's call is open to
Speaker #1: all slide
Speaker #1: participants. The call is being two, during today's
Speaker #4: Thank you. Our xt question comes from the line of Raguram Silvaraju. Of HC Ringwright and Company, please go ahead, Raguram.
Regarding our merchants operating performance.
Speaker #1: recorded and is call, Emergent may
Speaker #1: copyrighted by Emergent make projections and other
Speaker #1: BioSolutions. In
Please refer to the tables found in today's press release.
Speaker #1: addition, to today's
Speaker #1: press release, there events, their are a series of
Turning to slide three.
Speaker #1: slides accompanying this webcast available to all prospects, or future
Speaker #5: Hi. This is Eduardo on for Ram. just a quick question, maybe talk a little bit about, Narcan. Have you seen, is the market demand, have you seen any changes given the recent influence of some the new synthetic opioid-like abuse agents?
The agenda for today's call will include Joe Papa President and Chief Executive Officer, who will provide an update on the company's transformation plan and highlight key results and.
Speaker #1: Turning to
Speaker #1: slide two, during today's call, Emergent statement as well as may make projections and other forward-looking statements related to their business, future events, their prospects, or future performance.
And rich lindahl.
T and Chief Financial Officer, who will provide details on the second quarter and year to date 2025 financial results as well as provide an update on full year 2025 guidance.
Speaker #5: like these niazines and how they're stronger than fentanyl. Are ou guys seeing any responses? The public health officials in response to that?
Speaker #1: These forward-looking statements are based on their current intentions, beliefs, and
Speaker #1: expectations regarding future events. Any forward-looking
Speaker #1: statements speak only as of the date of this conference call. And except as required
Speaker #2: Yeah. Well, we've obviously been following this very closely. We a way to continually look at what's appening from the reports. Obviously, following the presses, I'm sure you have as well.
Joe Papa will conclude by discussing the company's business performance and key catalyst for growth followed by Q&A.
Speaker #1: by law, Emergent with the SEC
Speaker #1: does not undertake to when evaluating their
Speaker #1: update any forward-looking forward-looking
Finally for the benefit of those who may be listening to the replay of this webcast. This call was held and recorded on August 6th 2025.
Speaker #1: statement to reflect statements.
Speaker #2: what I would say is that, we're we're obviously concerned about this, and we we believe, because of the strength of products, that even more reasons to have Narcan available for every every household because you just never know when some problem's going be happen.
Speaker #1: new information,
Speaker #1: events, or Emergent may also
Speaker #1: circumstances. Investors
Speaker #1: should consider this cautionary statement as well as the risk factors identified in Emergent's periodic reports filed with the SEC when evaluating their forward-looking statements.
Since then emergent may have made announcements related to topics discussed during today's call and with that I'll.
Speaker #2: And obviously, we hope that no one overdoses on opioids. But fortunately, it's happening. So we want to make re that Narcan's available to help these patients, and get to a point where you ow they you know, they can get treatment, they they will they can survive rather than, unfortunately, not having access to to Narcan and, unfortunately, you ow, time goes very ickly with.
I'd now like to turn the call over to Joe Papa Joe.
Thank you operator.
And thank you for joining our second quarter 2025 earnings call. This is Joe topper CEO of emergent <unk>.
Dave I, originally Chief Financial Officer, let's turn to slide five.
I am pleased to report that we are making great progress and continue to execute our plan and are on track with our multiyear transformation first I wanted to thank all of our emerging colleagues for their great work.
Speaker #2: Don't have the product. I'm worried they can you know run into the opioid overdose problem. So we're we're eking to increase access to Narcan and all the naloxone products for that matter, we believe that's an important initiative.
Speaker #1: three, the agenda for today's call will include Joe Papa, President and Chief Executive Officer who will provide an update on the
Speaker #1: company's transformation plan guidance.
Speaker #2: And and we're ing diligently with everybody you know, I think we won't rest until we feel that Narcan's available in every first aid kit because we believe that's the kind of situation, unfortunately, we find ourselves in, and Narcan is a very cost-effective way to save lives and, unfortunately, there's a lot of people dying.
On our mission to protect and save lives, while advancing our turnaround priority among.
Speaker #1: and highlight Joe Papa will conclude
Speaker #1: key by discussing the
Speaker #1: results. And Rich
Speaker #1: Lindahl, in key catalysts
Among our key goals for 2025, Arctic pursue strategic investment opportunities, both internal and externally through business development that will position to emerge at a long term stable growth, while creating significant value for our shareholders throughout the quarter we focus.
Speaker #1: EVP, and Chief Financial for growth followed by
Speaker #1: Officer who will provide
Speaker #1: details on the second quarter Finally, for the
Speaker #1: and year-to-date benefit of those who may be
Speaker #1: 2025 financial listening to the replay of this
Speaker #1: results as well as webcast, this
Speaker #1: provide an update on call was held and
Speaker #1: guidance. Joe Papa will
Speaker #2: So we're working on making Narcan more accessible, because we passionately believe it save lives.
Speaker #1: conclude by discussing the 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.
Speaker #1: company's business performance in key catalysts for growth followed by Q&A. Finally, for benefit of those who may be listening to the replay of this webcast, this call was held and recorded on August 6th, 2025.
Increased operational efficiency and driving profitable growth as well as maintaining our market leadership position and a critical biodefense and public health sectors, where we have strong established customer relationships turning to slide six we are presenting more detailed look at the second quarter I could not be prouder.
Speaker #5: Got it. That's helpful. And switching over to MCM, do you have any updated thoughts about the competitive landscape for smallpox antivirals, specifically in the potential for ring seed of fear use?
Speaker #5: Especially in light from the cent findings about the limitations of tickle omat.
Our second quarter performance, where we beat our internal guidance on both the top and bottom line.
Speaker #2: Sure. So we're tracking that as well. What we obviously, as I mentioned in the comments, that we are initiating working Panther to do clinical trials to show the effectiveness of our Temdexa product.
Speaker #1: Joe?
Speaker #2: Thank you. Operator, good afternoon, and thank you for joining our second quarter 2025 earnings call. This is Joe Papa, CEO of Emergent, and I'm joined today by Rich Lindahl, our Chief Financial Officer.
Second quarter revenues of $141 million came in $21 million above our guidance range of $95 million to $120 million, even more impressively year to date, we have achieved $106 million and adjusted EBITDA based on our stronger than expected gross margins in light of this we are raising the low end and the midpoint.
Speaker #2: Let's turn to slide five. I am pleased to report that we are making great progress and continue to execute our plan and our on-track with our multi-year transformation.
Our 2025, adjusted EBITDA guidance $175 million to $200 million.
Speaker #2: First, I want to thank all of our Emergent colleagues for their great work staying focused on our mission to protect and save lives while advancing our turnaround priorities.
150 to 200 million previously.
Year to date, we have increased our liquidity by $297 million and now have access to $367 million and financial capacity to invest in growth opportunities. This includes $267 million of cash on our balance sheet and also includes our undrawn $100 million revolver.
Speaker #2: Among our key goals for 2025, our pursuit of strategic investment opportunities both internal and externally through business development that will position Emergent for long-term stable growth while creating significant value for our shareholders.
Speaker #2: Throughout the quarter, we focused on increased operational efficiency, driving profitable growth, as well as maintaining our market leadership position in a critical bio-defense and public health sectors where we have strong established customer relationships.
Our net leverage has now improved to one nine times debt to adjusted EBITDA is down from nine nine times in the second quarter of 2024, and our stock has rebounded to qualify for inclusion in the Russell 3000 Index. These financial achievements represent the evidence of our progress to date.
Speaker #2: Turning to slide six, we present a more detailed look at the second quarter. I could not be prouder of our second quarter performance where we beat our internal guidance on both the top and bottom line.
As you can see from the slide we executed separate revenue producing contract modifications year to date and we are clearly an industry leader in medical countermeasures are 2024 investments in international programs outside the U S has already generated great results as you can see our <unk>.
Speaker #2: Second quarter revenues of $141 million came in $21 million above our guidance range of $95 to $120 million. Even more impressively, year to date, we have achieved $106 million in adjusted EBITDA based on our stronger-than-expected gross margins.
International MCM sales represent 40% of the revenues year to date.
Speaker #2: In light of this, we are raising the low-end and the midpoint for 2025 adjusted EBITDA guidance to $175 to $200 million from $150 to $200 million previously.
We are committed.
As ever to help combat, the albeit overdose epidemic and saving lives our position as the market leader than naloxone category remains very strong as our business rebounded over 50% since the first quarter of 2025 following the onetime events, we experienced in the first quarter of the year.
Speaker #2: Year to date, we have increased our liquidity by $297 million and now have access to $367 million in financial capacity to invest in growth opportunities.
I'll share more on <unk> later in the presentation lastly.
Lastly, we are looking at multiple levers to create growth and drive shareholder value. We've already done this through cash generating divestitures, while preserving our EBITDA. We are also making progress in evaluating our internal R&D efforts are.
Speaker #2: This includes $267 million of cash on our balance sheet and also includes our undrawn $100 million revolver. Our net leverage now improved to $1.9 times debt to adjusted EBITDA.
Are exploring synergistic external bolt on opportunities like rocket backs in the cloud side of nasal spray.
Speaker #2: That's down from $9.9 times in the second quarter 2024. And our stock has rebounded to qualify for inclusion in the Russell 3000 index. These financial achievements represent the evidence of our progress to date.
Finally, we implemented a 12 month share repurchase program of $50 million and we have repurchased one 1 million shares in the second.
Speaker #2: As you can see from the slide, we executed seven revenue-producing contract modifications year to date and we are clearly an industry leader in medical countermeasures.
We believe emergent is well positioned for a strong second half of 2025.
On slide seven emerged as a business founded over 25 years ago, we are an established and reliable partner to both U S government and other allied governments.
Speaker #2: Our 2024 investment in international programs outside the US has already generated great results. As you can see, our international MCM sales represent 40% of the revenues year to date.
This is unlike that of traditional pharmaceutical companies are minus in factory model is north American centric and in other words, we have a durable supply chain because our MTM products are manufactured in the U S or in the U S. MCA compliant facility in Canada.
Speaker #2: We are committed to, as ever, help combat the opioid overdose epidemic and saving lives. Our position as the market leader in naloxone category remains very strong.
Furthermore, emergent remains committed to our historical practice of offering the most favorite pricing for our medical countermeasure products to the U S. Government. We believe this pricing model reflects our role as a trusted partner with the current administration supports long term collaboration with the U S government.
Speaker #2: As our business rebounded over 50% since the first quarter of 2025, following the one-time events we experienced in the first quarter of the year, I'll share more on the naloxone business and MCM later in the presentation.
Speaker #2: Lastly, we are looking at multiple levers to create growth and drive shareholder value. We have already done this through cash-generating divestitures while preserving our EBITDA.
Yeah.
Now I'd like to turn the call over to rich to walk through our second quarter financial results.
Speaker #2: We are also making progress in evaluating our internal R&D efforts while we are exploring synergistic external bolt-on opportunities like RocketVacs and the CloudSato nasal spray.
Thanks, Joe Good afternoon, everyone. We appreciate you joining the call.
<unk> second quarter results reflect continued strong execution and progress on our multiyear transformation plan.
Speaker #2: Finally, we implemented a 12-month share repurchase program of $50 million and we have repurchased $1.1 million shares in the second quarter. We believe Emergent is well-positioned for a strong second half of 2025.
Our second quarter revenue came in at $141 million exceeding the top end of our guidance range by $21 million.
The second quarter performance was driven by both pillars of our core business medical countermeasures and Narcan.
Speaker #2: On slide seven, Emergent is a business founded over 25 years ago and is an established and reliable partner to both the U.S. government and other allied governments.
We have meaningfully strengthened our cash position and materially reduced our net leverage to one nine times from nine nine times a year ago.
Speaker #2: Our business is unlike that of traditional pharmaceutical companies. Our manufacturing model is North American-centric. In other words, we have a durable supply chain because our MCM products are manufactured in the US or in a US-MCA compliant facility in Canada.
Adjusted net income for the second quarter was $9 million.
Presenting a substantial improvement compared to the $122 million loss in the same period until 2024.
Additionally, we saw significant year over year improvements in both adjusted gross margin and adjusted EBITDA margin driven by strategic divestitures cost reduction actions and the continued execution of government contracts over the past year.
Speaker #2: Furthermore, Emergent remains committed to our historical practice while offering the most favored pricing for our medical countermeasure products to the US government. We believe this pricing model reflects our role as a trusted partner in the current administration and supports long-term collaboration with the government.
These results underscore the progress we are making in reshaping the business towards sustained profitability.
Both our medical countermeasure and opioid overdose reversal products continued to deliver solid performance with consistent demand supported by strong bipartisan backing.
Speaker #2: Now I'd like to turn the call over to Rich to walk through our second quarter financial results.
Speaker #3: Thanks, Joe. Good afternoon, everyone. We appreciate you joining the call. Emergent's second quarter results reflect continued strong execution and progress on our multi-year transformation plan.
Our leadership in MCM remains a strategic priority with both U S government and international partners relying on our proven capabilities to enhance health security and emergency preparedness.
Speaker #3: Our second quarter revenue came in at $141 million exceeding the top end of our guidance range by $21 million. The second quarter performance was driven by both pillars of our core business, medical countermeasures and Narcan.
With that let's move to the second quarter financials.
As highlighted on slide nine our key financial metrics, our total revenues of $141 million, which came in above our initial guidance range of $95 million to $120 million.
Speaker #3: We have meaningfully strengthened our ash position and materially reduced our net leverage to $1.9 times from $9.9 times a year ago. Adjusted net income for the second quarter was $9 million, representing a substantial improvement compared to the $122 million loss in the same period in 2024.
Note that the second quarter of 2024 had revenues from several streams that are not recurring in 2025.
These include our divested RSD El product.
Revenue from our divested and Camden <unk> facility.
And the one time Jensen $50 million settlement revenue.
Speaker #3: Additionally, we saw significant year-over-year rovements in both adjusted gross margin and adjusted EBITDA margin driven by strategic divestitures, cost reduction actions, and the continued execution of government contracts over the past year.
All of these were partially offset by higher smallpox sales in Q2 2025.
Adjusted EBITDA was $29 million, an increase of $39 million versus negative $10 million the prior year.
Speaker #3: These results underscore the progress we are making in reshaping the business towards sustained profitability. Both our medical countermeasure and opioid overdose reversal products continue to deliver solid performance with consistent demand, supported by strong bipartisan backing.
Adjusted EBITDA margin of 20%, an increase of 2400 basis points versus the prior year.
Adjusted gross margin of 49% improved two 300 basis points year over year, driven by favorable product mix expanded international sales of MCM products and a leaner manufacturing cost structure stemming from our previously announced restructuring initiatives and divestitures.
Speaker #3: Our leadership in MCM remains a strategic priority. With both US government and international partners relying our proven capabilities to enhance health security and emergency preparedness.
And finally operating expenses were down $63 million or 53% versus the prior year across R&D and SG&A.
Speaker #3: With that, let's move to the second quarter financials. As highlighted on slide nine, our key financial metrics are total revenues of $141 million, which came in above our initial guidance range of $95 to $120 million.
Transitioning to slide 10, our second quarter revenue highlights, where total product sales of $126 million.
Down year over year as higher smallpox revenue offs was offset by lower <unk> sales.
Speaker #3: Note that second quarter 2024 had revenues from several streams that are not recurring in 2025. These include our divested RSDL product, revenue from our divested Camden CDMO facility, and the one-time Janssen $50 million settlement revenue.
All other revenue comprised of services as well as contracts and grants revenue was $15 million.
In the second quarter of 'twenty four revenues for this segment included $50 million from the Yadkin settlement as well as sales from our Camden <unk> facility.
Speaker #3: All of these were partially offset by higher smallpox sales in Q2 2025. Adjusted EBITDA was $29 million, an increase of $39 million versus negative $10 million the prior year.
Total sales were $141 million and again $21 million above the high end of our guidance range. This was driven primarily by smallpox revenue timing and also a stronger than expected rebound in narcan public interest sales.
Speaker #3: Adjusted EBITDA margin of 20%, an increase of $2,400 basis points versus the prior year. Adjusted gross margin of 49% improved to $2,300 basis points year over year, driven by favorable product mix, expanded international sales of MCM products, and a leaner manufacturing cost structure stemming from our previously announced restructuring initiatives and divestitures.
Turning to Narcan sales saw a roughly 50% increase in revenue in the second quarter as compared to the first quarter of 2025, following the onetime disruption of a distributor selling short dated generic naloxone at discounted pricing.
With that event now behind us and improved clarity around federal funding state level purchasing a stabilized supporting consistent demand across both the public interest and retail channels.
Speaker #3: And finally, operating expenses were down $63 million or 53% versus the prior year, across R&D and SG&A. Transitioning to slide 10, our second quarter revenue highlights were total product sales of $126 million, down year over year as higher smallpox revenue was offset by lower Narcan and Antrax sales.
To further highlight the improved performance of Narcan in the second quarter of 'twenty five.
If you exclude the sales to California in second quarter of 'twenty for U S. Public interest volume was flat year over year, highlighting our market leading position in this channel.
In addition, we improved access and operational efficiency by integrating <unk> into our Narcan direct platform streamlining procurement put both narcan influx auto for first responders and public health partners.
Speaker #3: All other revenue, comprised of services as well as contracts and grants revenue, was $15 million. In the second quarter of '24, revenues for this segment included $50 million from the Janssen settlement as well as sales from our Camden CDMO facility.
We believe that this will further reinforce our leadership position.
Turning to slide 11, and I'll walk through our performance for the first half of 2025.
Speaker #3: Total sales were $141 million, and again, $21 million above the high end of our guidance range. This was driven primarily by smallpox revenue timing and also a stronger-than-expected rebound in Narcan public interest sales.
Total revenue was $363 million the decrease versus the first half of 'twenty four primarily reflects divestitures onetime services revenue as well as some strategic pricing actions taken on narcan to maintain competitiveness within institutional and government channels in the evolving dynamics.
Speaker #3: Turning to Narcan, sales saw roughly 50% increase in revenue in the second quarter as compared to the first quarter 2025. Following the one-time disruption of a distributor selling short-dated generic naloxone at discounted pricing.
Adjusted EBITDA was $106 million or 29% of total revenue an improvement of approximately $49 million in 1900 basis points year over year.
Speaker #3: With that event now behind us and improved clarity around federal funding, state-level purchasing has stabilized, supporting consistent demand across both the public interest and retail channels.
This illustrates our strong operating leverage and cost reductions taken last year.
Adjusted gross margin of 54% improved 500 basis points compared to the prior year.
This expansion was driven by a more favorable product mix and continued operational efficiencies stemming from the 2020 for restructuring initiatives.
Speaker #3: To further highlight the improved performance of Narcan in the second quarter of '25, if you exclude the sales to California, in second quarter of '24, US public interest volume was flat year over year, highlighting our market-leading position in this channel.
Operating expenses totaled $124 million, a $95 million reduction from the prior year.
Speaker #3: In addition, we improved access and operational efficiency by integrating CloudSato into our Narcan Direct platform, streamlining procurement of both Narcan and CloudSato for first responders and public health partners.
This meaningful decrease reflects the successful execution of our 2020 for cost optimization strategy, which has materially streamlined our expenses and improved our financial flexibility.
Moving to slide 12, the first half of 2025 total product sales were $328 million.
Speaker #3: We believe that this will further reinforce our leadership position. Turning to slide 11, I'll walk through our performance for the first half of 2025.
Breaking that down by key product Narcan revenue totaled $113 million and tracts medical countermeasure revenue was $60 million influenced by timing of government procurement orders smallpox revenue grew to $147 million material year over year improvement, reflecting deliveries under our multi year contracts and a significant increase in <unk>.
Speaker #3: Total revenue was $363 million, the decrease versus the first half of '24 primarily reflects divestitures, one-time services revenue, as well as some strategic pricing actions taken on Narcan to maintain competitiveness with an institutional and government channels in the evolving dynamics.
National demand.
And finally, all other revenues were $35 million, reflecting our contract and grants revenue from the U S government funded.
Speaker #3: Adjusted EBITDA was $106 million, or 29% of total revenue. An improvement of approximately $49 million and $1,900 basis points year over year. This illustrates our strong operating leverage and cost reductions taken last year.
<unk> <unk> development program.
2020 for revenue also included the one time $50 million in Yens and settlement and Camden <unk> business routers.
Speaker #3: Adjusted gross margin of 54%, improved $1,500 basis points compared to the prior year. This expansion was driven by a more favorable product mix and continued operational efficiency stemming from the 2024 restructuring initiatives.
Turning to slide 13, I am pleased to report continued progress in strengthening our financial position.
As of the second quarter of 2025 total liquidity reached $367 million comprised of $267 million of cash and $100 million of Undrawn revolver capacity.
Speaker #3: Operating expenses totaled $124 million and $95 million reduction from the prior year. This meaningful decrease reflects the successful execution of our 2024 cost optimization strategy, which has materially streamlined our expenses and improved our financial flexibility.
Both liquidity and cash was significantly improved year over year.
Our net debt in the second quarter of 'twenty, five was $433 million, a $361 million reduction or 45% year over year.
Speaker #3: Moving to slide 12, the first half of 2025 total product sales were $328 million. Breaking that down by key product, Narcan revenue totaled $113 million, Antrax medical countermeasure revenue was $60 million, influenced by a timing of government procurement orders.
Operating cash flow also improved $110 million driven by strong improvements in our network with Apple.
And coupled with our improved profitability, we reduced our net leverage significantly year year over year ending at one nine times adjusted EBITDA in the second quarter of 2005.
Speaker #3: Smallpox revenue grew to $147 million, material year over year improvement, reflecting deliveries under our multi-year contracts and a significant increase in international demand. And finally, all other revenues were $35 million, reflecting our contracting grants revenue from the US government-funded Ibanga development program.
With an enhanced cash position and increased financial flexibility. We believe we are well positioned to evaluate strategic growth initiatives, while continuing to drive long term value for shareholders.
Please turn to slide 14, and I'll touch on our key capital allocation priorities in support of our multi year transformation plan.
We're primarily focused on three key areas growth debt repayment and share repurchases.
Speaker #3: 2024 revenue also included the one-time $50 million in Janssen settlement and Camden CDMO business revenues. Turning to slide 13, I'm pleased to report continued progress in strengthening our financial position.
First we're investing in both organic and inorganic opportunities to strengthen our core businesses and drive future revenue expansion.
Speaker #3: As of the second quarter of 2025, total liquidity reached $367 million, comprised of $267 million of cash, and $100 million of undrawn revolver capacity.
We're focused on increasing international revenue from our medical countermeasures segment. We're also expanding our commercial reach through clock sought our nasal spray, which was recently integrated into our sales platform Narcan direct we also made an investment into rocket backs and are evaluating investments into key internal R&D programs.
Speaker #3: Both liquidity and cash were significantly improved year over year. Our net debt in the second quarter of '25 was $433 million, a $361 million reduction, or 45% year over year.
Going forward, we plan to continue to assess business development opportunities that align with our core markets and long term growth strategy to effectively deploy investment capital.
Speaker #3: Operating cash flow also improved $110 million, driven by strong improvements in our networking capital. And coupled with our improved profitability, we reduced our net leverage significantly year over year, ending at 1.9 times adjusted EBITDA in the second quarter of 25.
Next we'll consider debt repayment to strengthen our balance sheet and improve financial flexibility.
We're also committed to exploring additional ways to create shareholder value. We previously announced a $50 million share repurchase program in March 2025, which is active through March of 2026 and.
Speaker #3: With an enhanced cash position and increased financial flexibility, we believe we are well positioned evaluate strategic growth initiatives while continuing to drive long-term value for shareholders.
In the second quarter of 'twenty, five we repurchased one 1 million shares for $6 $9 million, we will continue to evaluate the timing and amount of future share repurchases based on market conditions and other factors.
Speaker #3: Please turn to slide 14 and I'll touch on our key capital allocation priorities and support of our multi-year transformation plan. We're primarily focused on three key areas: growth, debt repayment, and share urchases.
Transitioning to slide 15, we are raising the low end and midpoint of our full year 2025, adjusted EBITDA guidance and narrowing the 2025 revenue range based on performance year to date.
Speaker #3: First, we're investing in both organic and inorganic opportunities to strengthen our core businesses and drive future revenue expansion. We're focused increasing international revenue from our medical countermeasures segment.
Full year 2025 guidance is as follows.
Total revenues of $765 to $835 million for.
For the first half of the year, we reported revenues of $363 million and are still expecting a stronger back half of the year.
Speaker #3: We're also expanding our commercial reach through CloudSato nasal spray, which was recently integrated into our sales platform, Narcan Direct. We also made an investment into RocketVacs and are evaluating investments into key internal R&D programs.
Adjusted EBITDA of $175 million to $200 million.
Which is an increase of approximately $13 million at the midpoint, reflecting year over year margin improvement driven by a more efficient cost structure across the business.
Speaker #3: Going forward, plan to continue to assess business development opportunities that align with our core markets and long-term growth strategy to effectively deploy investment capital.
Adjusted gross margin of 50% to 52%, which is a roughly 600 basis points expansion at the midpoint versus 2024 results, primarily driven by restructuring initiatives improved utilization across our streamlined manufacturing network and a growing contribution from international partnerships.
Speaker #3: Next, we'll consider debt repayment to strengthen our balance sheet and improve financial flexibility. We're also committed to exploring additional ways create shareholder value. We previously announced a $50 million share repurchase program in March 2025, which is active through March of 2026.
Moving to segment level revenue guidance for MTM product sales, we're anticipating $440 million to $475 million across U S government and international orders.
Speaker #3: In the second quarter of '25, we repurchased $1.1 million shares for $6.9 million. We will continue to evaluate the timing and amount of future share repurchases based on market conditions and other factors.
Commercial products, including clock Sato are expected in the range of $265 million to $300 million.
And for the third quarter of 25, we're forecasting total revenue of $180 million to $210 million driven by ongoing strength across both our commercial and MCM portfolios.
Speaker #3: Transitioning to slide 15, we are raising the low-end and midpoint of our full year 2025 adjusted EBITDA guidance and narrowing the 2025 revenue range based on performance year to date.
The outlook reflects our visibility into the timing of MCM deliveries with the majority expected in the second half of the year. Additionally, Narcan continues to perform well supported by consistent demand.
Speaker #3: Full year 2025 guidance is as follows. Total venues of $765 to $835 million. For the first half the year, we reported revenues of $363 million and are still expecting a stronger back half of year.
We believe that the intranasal naloxone market will grow in the low to mid single digits supported by ongoing public health initiatives and strong demand across both commercial and public interest channels. We continue.
Speaker #3: Adjusted EBITDA of $175 to $200 million dollars, which is an increase of approximately $13 million at the midpoint, reflecting year-over-year margin improvement driven by a more efficient cost structure across the business.
To maintain our market leading position in this space, which we think further reflects the resilience of our brand and the trust we built with key stakeholders.
Speaker #3: Adjusted gross margin of $50 to 52%, which is a roughly $600 basis point expansion at the midpoint versus 2024 results. Primarily driven by restructuring initiatives, improved utilization across our streamlined manufacturing network, and the growing contribution from international partnerships.
In closing on slide 15, we're making solid progress on the turnaround phase of our multiyear plan with strong execution through the first half of 'twenty five.
Our 2025 revenue outlook remains focused on our core business across both the medical countermeasures and commercial segments.
Of note. We are also seeing strong demand for our MCM products internationally key strategic focus with year to date sales of $102 million or 48% of total MCM revenue.
Speaker #3: Moving to segment-level revenue guidance, for MCM product sales, we are anticipating $440 to $475 million across US government and international borders. Commercial products, including CloudSato, are expected in the range of $265 to $300 million.
Utilization has improved across our manufacturing network and streamlined operating expenses are driving sustained positive operating cash flow and robust cash generation year to date.
Speaker #3: And for the third quarter of '25, we're ecasting total revenue of $180 to $210 million, driven by ongoing strength across both our commercial and MCM portfolios.
The improved profitability of our business coupled with the significant improvement in cash has resulted in a material deleveraging of the business again net leverage ended at one nine times adjusted EBITDA in the second quarter of 'twenty five down from nine nine times in the prior year.
Speaker #3: This outlook reflects our visibility into the timing of MCM deliveries with the majority expected in the second half of year. Additionally, Narcan continues to perform well, supported by consistent demand.
Looking forward, we remain committed to pursuing strategic growth investments, while actively identifying opportunities to deliver value to our shareholders.
Speaker #3: We believe that the intranasal naloxone market will grow in the low to mid-single digits, supported by ongoing public health initiatives and strong demand across both commercial and public interest channels.
I'll now turn the call back over to Joe to discuss our business outlook and catalysts Joe.
Thank you rich and turning to slide number 18, I'd like to provide a more detailed outlook on our business segments and our future growth drivers, let's start with Narcan, we work relentlessly to help save lives through our efforts to increase access and awareness and interaction of helping domain affordability for Narcan four milligrams in class eight.
Speaker #3: We continue to maintain a market-leading position in this space, which we think further reflects the resilience of our brand and the trust we've built with key stakeholders.
Speaker #3: In closing on slide 15, we're making solid progress on the turnaround phase of our multi-year plan with strong execution through the first half of 25.
Speaker #3: Our 2025 revenue outlook remains focused our core business across both the medical countermeasures and commercial segments. Of note, we are also seeing strong demand for our MCM products internationally, a key strategic focus, with year-to-date sales of $102 million or 48% of total MCM revenue.
We are closely following the positive impact net narcan nasal spray as having an opioid overdose deaths.
Third party sources have now confirmed the association between the year over year decline overdose guests and the over the counter availability of Narcan starting in the third quarter of 2023. We know there are a variety of factors that claimed his tremendous reduction, but we are proud to be a contributor to help save lives.
Speaker #3: Utilization has improved across our manufacturing network and streamlined operating expenses are driving sustained positive operating cash flow and robust cash generation year to date.
During our first quarter earnings call, we experienced some short term one time headwinds demand for Narcan I want to reiterate that Nokia volumes grew this quarter by 50% versus the first quarter of 2025, indicating we believe these one off events now be behind us our leadership in the public interest channel remains strong.
Speaker #3: The improved profitability of our business, coupled with the significant improvement in cash, has resulted in a material deleveraging of the business. Again, net leverage ended at $1.9 times adjusted EBITDA in the second quarter of 25, down from $9.9 times in the prior year.
Speaker #3: Looking forward, we remain committed to pursuing strategic growth investments while actively identifying opportunities to deliver value to our shareholders. I'll now turn the call back over to Joe to uss our business outlook and catalysts.
We have several new and returning customers, which we believe is driven by our market leading solutions and a competitive pricing on the retail side, we gained additional visibility through our participation in the Amazon Prime day in July and our business efforts are showing progress as we added several new partners this quarter.
Speaker #3: Joe?
Speaker #2: Thank you, Rich. Turning to slide number 18, I'd like to provide a more detailed outlook on our business segments and our future growth drivers.
Speaker #2: Let's start with Narcan. We work relentlessly to help save lives through our efforts to increase access and awareness to naloxone while helping to maintain affordability for Narcan 4 milligrams and CloudSato 8 milligrams.
We are also fully integrated clock saddled nasal spray and new convenient kits and our archaean direct distribution platform. This offering makes it easier for our customers need life saving solutions for their patients.
Speaker #2: We are closely following the positive impact that Narcan nasal spray having on opioid overdose deaths. Third-party sources have now confirmed an association between the year-over-year decline in overdose deaths and the over-the-counter availability of Narcan starting in the third quarter 2023.
Notably just recently plus Sato gain preferred status on the Humana Medicare part D formulary, giving us access to approximately an additional $5 8 million lives in May we announced a three year agreement valued at approximately $65 million with the province of Ontario to supply our light.
Speaker #2: We know there are a variety of factors that play into this tremendous reduction but we are proud to be a contributor to help save lives.
Saving narcan treatments and you already ordered have already begun.
Speaker #2: During our first quarter earnings call, we experienced some short-term and one-time headwinds in demand for Narcan. I want to reiterate that Narcan volume has grew this quarter by 50% versus the first quarter 2025.
Additionally, we supplied <unk> to the Royal Canadian mounted police, who cover the G. Seven leaders summit in Canada. This provides us even more visibility for our products in the Canadian market. Examples like the further illustrate the importance of our products to help save lives.
Speaker #2: Indicating we believe these one-off events now be behind us. Our leadership in the public interest channel remains strong. We have several new and returning customers which we believe is driven by our market-leading solutions and our competitive pricing.
Just last month U S House of Representatives placed a carton of Nellix.
Every.
<unk>, our defibrillator located in the building to providing direct access to first responders to help anyone experiencing an opioid overdose. This effort was led by Republican Representative body Carter of Georgia, who is a supporter of this public health issue.
Speaker #2: On the retail side, we gained additional visibility through our participation in the Amazon Prime Day in July and our business-to-business efforts are showing progress as we added several new partners this quarter.
Speaker #2: We have have also fully integrated CloudSato nasal spray and new convenient kits in our Narcan Direct distribution platform. This offering makes it easier for our customers to meet life-saving solutions for their communities and patients.
Moving to slide 19.
Our MCM business benefits from strong international and congressional bipartisan support and there are multiple favorable developments that I want to highlight.
Speaker #2: Notably, just recently, CloudSato gained preferred status on the Humana Medicare Part D formulary, giving us access to approximately an additional 5.8 million lives. In May, we announced a three-year agreement valued at approximately $65 million with the promise of Ontario to supply our life-saving Narcan treatments and the orders have already begun.
First on June 25th that the NATO Summit member Nation. It's reached the decision to raise defense spending from 2% to 5% of GDP by 2035 allocated three 5% towards core military activates and one 5% towards 400 defense related priorities. This shift unlocks net committed to five <unk>.
Trillion in new funding over the next decade and fit clubs a sustained increased demand for a fifth medical countermeasures.
Speaker #2: Additionally, we supplied Narcan to the Royal Canadian Mounted Police, who covered the G7 leaders' summit in Canada. This provides us even more visibility for our product to the Canadian market.
Emergent is already active in international markets supplying allied governments with critical by solutions. We believe this incremental investment in National defense bodes very favorably for our topline growth.
Speaker #2: Examples like these further illustrate the importance of our products to help save lives. Finally, just last month, the US House of Representatives placed a cartoon naloxone next to every AED or defibrillator located in its buildings, providing direct access to first responders to help anyone experiencing an opioid overdose.
Second in June of 2025 Health Emergency Preparedness response authority or HERA held an important industry day in Brussels. This event represents yet. Another example of the EU prioritization of medical countermeasures on a global scale now.
Now, let us discuss our recent contract awards, we announced a $62 $4 million contract modification for bat, which was followed by a 51 nine.
Speaker #2: This effort was led by Republican Representative Buddy Carter of Georgia, who is a supporter of this public health issue. Moving to slide 19, our MCM business benefits from strong international and congressional bipartisan support and there are multiple favorable developments that I want to highlight.
In contract modification for Vig, our smallpox preparedness.
Importantly year to date, we have already secured seven revenue generating contract modifications and.
Speaker #2: First, on June 25th at the NATO summit, member nations reached a decision to raise defense spending from 2% to 5% of GDP by 2035 allocating $3.5% towards core military activities and $1.5% towards broader defense-related priorities.
And based on our continued dialogue with U S. Government, we are still expecting contracts for additional products that will be executed in the second half of the year.
An area that we believe that the merchant apart yet received very little attention is that we not only supply and help the government stockpile medical countermeasure, but.
Speaker #2: This shift unlocks an estimated $2.5 trillion in new funding over the next decade and signals a sustained increase in demand for advanced medical countermeasures.
We are also serves the quality and stability of those products. After the initial sale. These services provide as good an ongoing revenue stream.
Now to our efforts in the global outbreak and unmet need again impacts we continue to engage with the world Health organization on emergency use listing for ATM 2000 vaccine as well as with key African country leaders just offer our assistance with pumps operate.
Speaker #2: Emergent is already active in international markets supplying allied governments with critical biodefense solutions we believe this incremental investment in national defense bodes very favorably for our top-line growth.
Speaker #2: Second, in June of 2025, the Health Emergency Preparedness Response Authority, or HERA, held an important industry day in Brussels. This event represents yet other example of the EU prioritization of medical countermeasures on a global scale.
We recently announced a new publication in peer reviewed journals expert review of anti infective therapy, which reviewed our <unk> as a potential anti viral treatment for amdocs.
Speaker #2: Now, let us discuss our recent contract awards. We announced a $62.4 million contract modification for VAT, which was followed by a $51.9 million contract modification for VEG, ur smallpox preparedness.
The Panther led most of the trial to evaluate BCD for Amdocs has been enrolling patient in Democratic Republic of Congo Since January and I've mentioned in my earlier comments is is critical work to understand and evaluate the potential line extensions for the <unk> product.
Speaker #2: Importantly, year to date, we have already secured seven revenue-generating contract modifications. And based on our continued dialogue with US government, we are still expecting contracts for additional products that will be executed in the second half of the year.
On slide 20, we outline our outlook and future growth and cash deployment rich touched on the capital allocation and his remarks I'd like to underscore our plan, which is to invest the cash we are generating from our business into three growth tracks.
Speaker #2: An area that we believe sets Emergent apart yet receives very little attention is that we not only supply and help the government stockpile medical countermeasures but we also service the quality and stability of those products after the initial sale.
One is to invest in new government collaborations for line extensions new products within our existing R&D pipeline number two is for continued international growth investments and number three is to look externally to identify value, creating programs that align strategically with our current business model and capabilities.
Speaker #2: These services provide us with an ongoing revenue stream. Turning now to our efforts in the global outbreak and unmet need against Mpox, we continue to engage with the World Health Organization on emergency use listing for ACAM2000 vaccine as well as with key African country leaders to offer our assistance with the Mpox outbreak.
At the beginning of 2025, we took two steps towards pipeline development first our investment agreement to support the research infrastructure development expansion of Swiss rockets, the parent company of pocket backed venture next we acquired exclusive commercial rights to distribute <unk> nasal spray in the U S and Canada as an added tool to.
Speaker #2: We recently announced a new publication and a peer-reviewed journal expert review of anti-infectious therapy which reviewed our Tembexa, or BCV, as a potential antiviral treatment for Mpox.
The opioid crisis.
Finally, our strong cash flow and liquidity position continue to enable us to explore expand investment opportunities into attractive areas and create shareholder value.
Speaker #2: The Panther-led MOSA trial to evaluate BCV for Mpox has been enrolling patients in democratic Republic Congo since January and, mentioned in my earlier comments, this is critical work to understand and valuate the potential line extensions for the Tembexa product.
In closing on slide 21, we have outperformed our top line guidance in the second quarter.
We expect a strong second half of the year and are narrowing the 2025 revenue range to $765 million to $835 million and raising the low end and midpoint for adjusted EBITDA guidance to $175 million to $200 million.
Speaker #2: On July 20, we outlined our outlook on future growth in cash deployment which touched the capital allocations as remarked, but I'd like to underscore our plan, which is to invest the cash we are generating from our business into three growth tracks.
As we continue to see positive indicators that we remain on track to execute our multi year turnaround plan.
Speaker #2: Number one, is to invest in new government collaborations for line extensions and new products within our existing R&D pipeline. Number two is for continued international growth investments.
Looking at the external environment, we firmly believe that business such as ours are extremely valuable.
Speaker #2: And number three, is to look externally to identify value-creating programs that align strategically with our current business model and capabilities. At the beginning of 2025, we took two steps towards pipeline development.
Increasingly dangerous workplace.
This reinforces our confidence that we are executing a strategic multi year turnaround plan that is focused on generating value for our shareholders.
As we transform we will plan to operate with the highest standards of quality ethics and compliance all that we do that that operator, I look forward to taking additional questions. Please open up the line for questions operator. Thank you.
Speaker #2: First, our investment agreement to support the research infrastructure development and expansion of Swiss Rockets, the parent company of our RocketVac venture. Next, we acquired exclusive commercial rights to distribute CloudSato nasal spray and the US and Canada as added tools to fight the opioid crisis.
Thank you as a reminder to ask a question you will need to press star one on your telephone to remove yourself from the queue. You May press star one one the game.
Speaker #2: Finally, our strong cash flow and liquidity position continue to enable us to explore and expand investment opportunities into attractive areas and create shareholder value.
Please standby, while we compile the Q&A roster.
Our first question.
Speaker #2: In closing on slide 21, we have outperformed our top-line guidance in the second quarter. We expect a strong second half of the year and are narrowing the 2025 revenue range to $765 to 835 million and raising the low-end and midpoint for adjusted EBITDA guidance to $175 to $200 million.
Come from the line of.
Jessica Fye of Jpmorgan. Please go ahead Jessica.
Hey, guys. Good evening, thanks for taking our questions I ask you on Narcan. So first can you mentioned some strategic pricing actions can you elaborate on when that happened and what the average price and marken is now.
Speaker #2: As we continue to see positive indicators that we remain on track to execute our multi-year turnaround plan. Looking at the external environment, we firmly believe businesses such as ours are extremely valuable in an increasingly dangerous workplace.
Second I think you said the naloxone market will grow low to mid single digits is that in volume or revenue.
And third how do you think about the ability to maintain your current market share.
Speaker #2: This reinforces our confidence that we are executing a strategic multi-year turnaround plan that is focused on generating value for our shareholders. As we transform, we will plan to operate with the highest standard of quality ethics and compliance all that we do.
And then just a housekeeping question on SG&A. It looks like that came in nicely below our forecast. This quarter is that <unk> SG&A number a good run rate for the rest of 2025. Thank you.
Again, just trying to get all of these Jessica.
Speaker #2: And that operator, I look forward to taking additional questions. Please open up the line for estions, operator. Thank you.
I Miss any please let me note on the Narcan pricing actions really referring to there is some of the pricing actions that have occurred over the last 12 months or last several months <unk> pricing has been relatively stable over the last several months.
Speaker #1: Thank you. As a reminder to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.
We feel that this is a pretty stable pricing environment right now obviously.
Speaker #1: Please stand by while we compile the Q&A roster. Our first question. Comes the line of Jessica Fai of JP Morgan. Please go ahead, Jessica.
Things could change, but right now, we see really pricing stability and the timing of what we're seeing.
As it would relate to the market growth for naloxone.
Absolutely correct, we do expect low to mid single digit growth rates for for the <unk> market and our view on this as it has done is can be for a couple of different factors number one. Unfortunately, there's still 80000 people dying because of opioid overdoses. So we still believe that this is a very pressing problem and at least the data that we see as I meant.
Speaker #4: Hey, guys. Good evening. Thanks for taking our estions. I have a few on Narcan. So first, you ioned some strategic pricing actions. Can you elaborate on when that happened and what the average price of Narcan is now?
Speaker #2: Good afternoon, everyone. Thank you for joining today as Emergent discusses their operational and financial results for the second quarter of 2025. As is customary, today's call is open to all participants.
Speaker #4: Second, I think you said the naloxone market will grow low to mid-single digits. Is that volume or revenue? And third, how do you think about the ability to maintain your current market share?
Speaker #2: The call is being recorded and is copyrighted
And another third party proof sources really suggest that the availability of OTC and <unk>.
Speaker #2: by Emergent
Speaker #2: In addition, to today's press
<unk> has made a difference in the loss.
Speaker #2: accompanying this webcast available to all
Third quarter of 2023, so we're seeing the trend lines continue to go down but this is no time to stop and we expect it will still have a.
Speaker #4: And then I just have a keeping question on SG&A. It looks like that came in nicely below our forecast this quarter. Is that too queue, SG&A number, a good run rate for the rest of 2025?
Speaker #2: webcast participants. Turning to
A problem out there that people will invest behind to stop the problem.
Speaker #2: forward-looking statements related to their
Speaker #4: Thank you.
Speaker #2: business, future
Speaker #3: Okay. I'm going try to get all of these Jessica, but if I miss any, please let me know. On the Narcan pricing actions, what really refers there are some of the pricing actions that have occurred over the last 12 months or the several months.
Also clearly the availability of the litigation settlement funds from the large pharma company that had opioids and net availability of those funds over the next 10 years. We also think will be an important growth factor for helping too.
Speaker #2: performance. These forward-looking statements are based on their current intentions, beliefs, and expectations regarding future events. Any forward-looking statement
Speaker #3: Narcan pricing has been relatively stable over the last several months. So we feel that this is a pretty stable pricing environment right now. Obviously, you ow things could change, but right we see really pricing stability in the timing of what we're seeing.
Speaker #2: date of this conference call. And except as required by law, Emergent does not undertake to update any forward-looking statement to reflect new information, events, or
Grow the market and save more lives based on we've seen the evidence of the saving lives from some of the third party proof sources and now.
We have some additional capacity based on the settlement funds to help.
Speaker #2: circumstances. Investors should consider this cautionary webcast participants.
Speaker #3: As it would relate to the market growth for naloxone, you're absolutely correct. We do expect low to mid-single digit growth rates for the naloxone market.
Helped fund the opioid overdose treatments like <unk>.
Speaker #2: the risk factors
Speaker #2: identified in Emergent's
Speaker #2: periodic reports filed
<unk> product, but also obviously for education. So we do think thats going to be an important part.
Speaker #3: our view on this is it can be for a couple of different factors. Number one, unfortunately, there's still 80,000 people a year dying because of opioid overdoses.
The last part you said you asked about maintaining market share and as I said I think we feel very comfortable we still are the majority share player in this marketplace.
Speaker #2: During today's call,
Speaker #2: discuss certain non-GAAP financial
Speaker #2: measures that involve
Speaker #3: So we still believe that this is a very pressing problem. And at least the data that we see as I mentioned some of the third-party proof sources really suggests that the availability of OTC Narcan has made a difference in the last, so since the third quarter 2023.
This market is much different than a market like a generic market where.
One could lose or gain share in the first six months to 12 months, we have been holding onto our share and we expect that we will continue to be the market leader.
We developed new programs New line extensions, we had the clocks auto as part of our program and then importantly, we're making it easier to do business with us through our <unk> direct programs well, we always seek to maintain competitive pricing. We don't match, we have competitive pricing. So we think those are the reasons why we've been able to hold onto share unexpected.
Speaker #3: So we're seeing the trend lines continue to go down, but this is no time to stop and we expect that we'll have a problem out there that people will invest behind to stop the problem.
Speaker #2: And Rich Lindahl, EVP, and Chief Financial Officer refer to the tables found who will provide details on the second quarter and
Speaker #3: Also, clearly, the availability of the litigation settlement funds from the large pharma companies that had opioids and that availability of those funds over the next 10 years, we also think will be an important growth factor for helping to grow the market and save more lives based on we've seen the evidence of saving lives from some the third-party proof sources and now we have some additional capacity based on the settlement funds to help fund the opioid overdose treatments like the Narcan product but also obviously for education.
Speaker #2: year-to-date in today's press
On the share in the future I think you want to ask also about the Q2 run rate.
Speaker #2: 2025 financial results as well as provide release.
Speaker #2: an update on full Turning to slide year 2025
Hi, Jessica Thanks for the question I would say, yes, I think it's a pretty decent run rate for the rest of the year plus or minus maybe 5% something like that.
Speaker #2: company's business performance
Speaker #2: Q&A.
Great and just circling back on the naloxone market growth of low to mid single digits was that volume of the market or overall market revenue.
Speaker #2: recorded on August 6th,
Speaker #2: 2025. Since then, Emergent may have made announcements related to topics discussed during today's call. And with full year 2025 that, I would now like to turn
So we are referring mostly to the volume of the market to be clear, but as long as pricing stays relatively stable that should translate to that but obviously, we're going to keep a close eye on what's happening with the pricing, but as I said over the last several months.
Speaker #3: So we do think that's going to be an important part. The last part you said you ked about was maintaining market share. And as I said, I think we feel very comfortable we still are the majority share player in this marketplace.
Speaker #2: the call over to Joe Papa. Joe?
Speaker #3: Thank you. Operator, good afternoon, and thank ou for joining our second quarter of 2025 earnings call. This is Joe Papa, CEO of Emergent, and I'm joined today by
Excellent.
<unk> pricing has been relatively stable.
Speaker #3: This market is much different than a market like a generic market where one could lose a significant amount of share in the
Thank you.
Thank you for your questions operator.
Operator next question.
Thank you. Our next question comes from the line of <unk> Silver Roger.
H Sebring rate and company. Please go ahead.
Hi, This is eduardo on for Rob.
Just a quick question maybe.
Maybe talk a little bit about.
Narcan have you seen is the market demand.
Have you seen any changes given the recent influence some of the new synthetic opiates abuse agents.
These magazines and how they're even stronger than fentanyl or are you guys seeing any responses.
Public health officials.
In response to that.
Yes, we've obviously been following this very closely we have a way to continue to look at what's happening from the reports, obviously find polo and the presses I'm sure you have as well.
What I would say is that.
We're obviously concerned about this and we believe because of the strength of these products even more reasons to have.
Narcan available for every every household because you just never know what the problems can be happen and obviously, we hope that no one overdosing on opioids.
Fortunately, it's happening so we want to make sure.
Net narcan is available to help these patients.
And get to a point where they.
They get treatment they will they can survive rather than unfortunately, not having access to narcan and unfortunately.
<unk> very quickly move they don't have the product on more they can run into the opioid overdose problem. So we're seeking to increased access to narcan and all the naloxone products for that matter.
That's an important initiative and are working diligently with everybody.
We won't rest until we feel that <unk> available in every first aid kit because we believe thats the kind of situation. Unfortunately, we find ourselves in dark as a very cost effective ways to save lives and unfortunately, there's still a lot of people dying. So we're working on on making <unk> more accessible because we passionately believe that will save lives.
Got it.
That's helpful and switching over to MTM do you have any updated thoughts about the competitive landscape for smallpox antiviral, specifically and the potential.
For brink suite of fair use, especially on like from the recent findings about the limitations of a pick up my remarks.
Sure So we're tracking that as well.
We obviously as I've mentioned in the comments that we are initiating working with Panther to do clinical trials to show the effectiveness of our <unk> product. We do believe that getting that clinical trial data would be very beneficial to us.
We think this is an opportunity connections a very potent anti viral and we look forward to getting some additional data on it obviously, we are working closely with BARDA.
But everybody in U S government Department of defense strategic National stockpile under our plans for <unk> as well as the African countries getting some additional clinical work. So I don't know what to say much more about our competition other than saying.
We are strong believers in the power of the <unk> product to help patients.
Without getting some additional data right now in Africa, and we believe that will be beneficial.
<unk> for all patients to as we show the outcomes from <unk>. So we're working very hard today on it and look forward to have more to say tomorrow about what that means not just for <unk>, but also for the implications for smallpox. So let's just have more to say about that in our Africa clinical trials and our additional discussions with you.
S government, but.
Government has an interest in what we're doing and they're looking at.
More about what we're doing for the future of the good news is that U S. Government has been very open to meeting with US we have a regular meeting with BARDA strategic National Stockpile Department defense on a regular quarterly basis at the highest levels of their organizations to ensure that were in line with what our expectations are what their our expectation so look to us.
Speaker #2: We do believe that getting that clinical trial data would be very beneficial to us. We think this is an opportunity. Temdexa is a very potent antiviral, and we look forward to getting some additional data on it.
Have more to say about that as we get more data.
Speaker #2: Obviously, we are working closely with BARDA, the everybody in the US government department of defense, strategic national stockpile on our plans for Temdexa as well as the African countries on getting some additional clinical work.
Okay. Thanks, and one final one and that in the <unk> space. Just curious if you have any additional contract modifications you expect in the second half of 'twenty five.
And for which specifically specific biodefense preparedness programs.
Speaker #2: So I 't know. I want to say much more about our competition other than saying we are strong believers in the power of the Temdexa product to help patients.
The easy answer is yes, we do expect to have additional contract modifications revenue generating contract medication modifications in the second half of 2025, I, probably don't want to make specific comments on any individual products, but I think the fact that we already had seven.
Speaker #2: We're out getting some additional data right now. In Africa, and we believe that will be very beneficial for all patients as we show the outcomes from Temdexa.
Speaker #2: So we're working very hard today on it. Look forward to have more say tomorrow. About what that means, not just for Mpox, but also for the implications for smallpox.
Year to date I think to the first half of the year to suggest that certainly like Lucas of additional contract modifications during the second half of the year and that is our expectation if I don't want to go into any more detail.
Speaker #2: So we'll just have more to say about that in our African clinical trials and our additional discussions with the US government. But US government has an interest in what we're doing, and they're looking to, you ow, talk more about what we're ing for the future.
Only thing I would add is I think we have line of sight to some of these things and that's incorporated into the guidance that we provided.
Got it that's really helpful. Thanks for taking the questions.
Speaker #2: The good news is that US government's been very open to meeting with us for, you know, we have a regular meeting with BARDA strategic national stockpile department of defense, you know, on a regular quarterly basis at the highest level.
Thank you I would now like to turn the conference back to Joe Papa for closing remarks, Sir.
Well. Thank you operator, thank you everyone for joining us today and I think as you can hopefully tell our team is very excited about our mission to protect and save lives in these future growth driver opportunities that we see in front of us as I said, it's an increasingly dangerous world and we believe very much in our ability to help reduce that risk through our.
Speaker #2: So they're organizations to ensure that we're in line with, you know, what our expectations are, what they're our ectations. So we'll just have more to say about that as we get more data.
Speaker #5: Got it. Thanks. And one final one in the MCM space. Just curious if you have any additional contract modifications you expect in the second half of '25 and for which specifically specific biodefense preparedness programs?
Medical countermeasures and importantly, we believe that our <unk> product and <unk> are well positioned to save People's lives from opioid overdoses.
Speaker #2: The easy answer is yes. We expect to have additional contract modifications, revenue-generating contract modifications in the second half of '25. I probably don't want to make specific comments on any individual products, but you ow I think you know the fact that we already had seven year to date, I ink through the first half of the year to suggest that you know certainly likely we'll get some additional contract modifications during the second half of the year.
Look to us to have more to say about that in the future.
Certainly thank you for all your attention today and I Hope you certainly look at some of the financials, we put out and our ability to significantly impact our financial metrics something less.
<unk> months, if you've looked at everything cash generation EBITDA operating expenses I think they've all moved in the right direction. So thanks again for joining US today, everyone have a great day.
Okay.
Speaker #2: And that is our expectation. I probably don't want to go into any more ails.
Thank you all and with that ladies and gentlemen, we now conclude the call. Thank you for your participation. Please note an archived version of today's webcast as well as a PDF version of the slides used today's call will be available later today and accessible through the investors landing page on the company's website. Thank you again.
Speaker #1: Yeah. I mean, the only ing I would add is I think we have line of sight to some of these things, and that's that's incorporated into the guidance that we provided.
Speaker #5: Got it. That's really helpful. Thanks for taking the estions.
Speaker #4: Thank you. I would now like to turn the conference back to Joe Papa for closing remarks. Sir.
Look forward to speaking with you all in the future Goodbye.
Speaker #2: Well, thank you, operator. ank you, everyone, for joining us today. I think, as you hopefully tell, our team is very excited about our mission to protect and save lives and these future growth driver opportunities that we see in front of us.
Speaker #2: As I said, it's an increasingly dangerous world, and we believe very much in our ability to help reduce that risk. Through our medical countermeasures and, importantly, we believe that our Narcan product and Glaxo are well-positioned to save people's lives from opioid overdoses.
Speaker #2: So look to us to have more to say about that in future. And certainly, thank you for all your attention today, and I ope you certainly look at some of the financials we put out and our ability to significantly impact our financial metrics over the last 12 months, if you look at everything in cash generation, EBITDA, operating expenses.
Speaker #2: I think they've all moved in the right direction. So thanks again for joining us today, everyone. ave a great day.
Speaker #4: Thank ou all. And with that, ladies and gentlemen, we now conclude the call. Thank you for your participation, and please note and archive version of today's webcast as well as a PDF version of the slides used today's call.
Speaker #4: We'll available later today and accessible through the investors' landing page on the company's website. Thank you again. We look forward to speaking you all in the future.