Emergent Leverages Manufacturing and Plasma Fractionation Expertise and Unused Capacity to Create Opportunities for Future Revenue Growth
GAITHERSBURG, Md., May 19, 2015 (GLOBE NEWSWIRE) -- Emergent BioSolutions Inc. (NYSE:EBS) today announced that it has signed a strategic long-term manufacturing agreement with ProMetic Life Sciences Inc. This agreement provides ProMetic access to Emergent's cGMP FDA-licensed biopharmaceuticals facility located in Winnipeg, Manitoba, Canada.
"Emergent is pleased to enter into this agreement, which reflects our leading capabilities in plasma fractionation and fits perfectly with ProMetic's proprietary plasma purification platform," said Barry Labinger, Executive Vice President and President, Biosciences Division at Emergent BioSolutions. "With this agreement, Emergent has created a revenue stream with significant future growth opportunities based on our manufacturing expertise, which utilizes excess manufacturing capacity and assets that we acquired and successfully integrated from our acquisition of Cangene Corporation. We look forward to working with ProMetic in support of their efforts to develop plasma-derived biopharmaceuticals and in generating and growing a new source of revenue for Emergent."
ProMetic will commence transferring its technology and manufacturing process into Emergent's Winnipeg facility as soon as possible, followed by the scale-up and manufacture by Emergent of cGMP biopharmaceuticals to enable ProMetic to pursue additional IND filings.
Under the terms of this manufacturing agreement, ProMetic is obligated to purchase at least C$4 million of capacity in the first full contract year. The minimum order amount increases over the 15-year life of the contract. The aggregate total of the minimum fees over the life of the contract is in excess of C$100 million. The agreement also provides flexibility to the parties in the event services in excess of the minimum are requested by ProMetic. These services will be charged on an as-used basis.
About Emergent BioSolutions Inc.
Emergent BioSolutions is a global specialty biopharmaceutical company seeking to protect and enhance life by offering specialized products to healthcare providers and governments to address medical needs and emerging health threats. Additional information about the company may be found at www.emergentbiosolutions.com. Follow us @emergentbiosolu.
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Robert G. Burrows
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Emergent BioSolutions Inc.