12:00 AM
 | 
Aug 23, 2010
 |  BioCentury  |  Strategy

The future emerges

Emergent sees growth opportunities in Trubion products and platforms

Emergent BioSolutions Inc. has sustained itself for years with a steady stream of government grants and contracts for infectious disease and biodefense products, but has been looking for acquisitions that could diversify its revenue stream into products with more growth potential.

The company says its proposed acquisition of autoimmune and cancer company Trubion Pharmaceuticals Inc. provides the diversification it has been seeking and leverages its biologics manufacturing expertise.

Emergent, which got its start as BioPort Corp. in 1998 and reorganized and renamed itself in 2004, has relied on government and non-government organization (NGO) grants and contracts for the bulk of its revenues.

In 2009, the company reported revenues grew 31.5% to $234.8 million, including $217.2 million in sales of BioThrax anthrax vaccine to the Department of Defense (DoD) and HHS, and $17.6 million in other contracts and grants.

In July, Emergent raised its 2010 revenue guidance to $275-$300 million from $235-$255 million after the Centers for Disease Control and Prevention (CDC) increased the number of BioThrax doses to be delivered to the Strategic National Stockpile during 2010. Earlier that month, HHS's Biomedical Advanced Research and Development Authority (BARDA) awarded Emergent a contract worth up to $107 million to develop and obtain regulatory approval...

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