Biotech & Health

Biotech In Gaithersburg Finalizes $550 Million Contract Towards Nation’s Medical Stockpile

MBS Staff
Feb. 4, 2009; Los Angeles, CA – An FDA field inspector checks imported shrimp for signs of contamination or spoilage, and prepares samples for laboratory analysis.

Feb. 4, 2009; Los Angeles, CA – An FDA field inspector checks imported shrimp for signs of contamination or spoilage, and prepares samples for laboratory analysis.

A Gaithersburg-based biotech that won a U.S. Department of Health and Human Services contract worth up to $550 million has finalized the agreement.

Emergent BioSolutions (NYSE: EBS) developed BAT or Botulism Antitoxin Heptavalent, a botulism antitoxin that the biodefense firm says is the only heptavalent botulism antitoxin licensed by the U.S. Food and Drug Administration for treatment in adults and pediatric patients. It uses Emergent’s proprietary equine hyperimmune platform.

The contract was divided into two deliverables with the first having a maximum value of $90 million and was negotiated in September 2019. BAT will go into the U.S. Strategic National Stockpile over an annual basis within 10 years and has an option for additional doses valued at $94 million over 10 years.

The final deliverable has the largest value at approximately $366 million. Emergent would play the critical role of maintaining the plasma collection and production capability for a key component of botulism response planning within the same time frame.

Emergent BioSolutions recently reported financial results for the first quarter of 2020 that showed the company increased revenues slightly to $192.5 million and reduced its net loss to $12.5 million.

The company also just signed a $135 million agreement with Johnson & Johnson (NYSE: JNJ) to manufacture that company's COVID-19 vaccine candidate. The production of that drug by Emergent could as much as 300 million doses.

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