Date: May 2, 2011
Source: Business Wire
Abstract: Emergent BioSolutions Inc. (NYSE:EBS) announced today that it has signed a modification to its current procurement contract (200-2009-30162) with the U.S. government to supply an additional 3.42 million doses of BioThrax® (Anthrax Vaccine Adsorbed). BioThrax is the only vaccine licensed by the U.S. Food and Drug Administration (FDA) to protect against anthrax infection.
This modification to the contract is valued at up to $101 million for the delivery and shipping of additional doses of BioThrax beginning 3Q 2011. Delivery of these doses will commence immediately following early completion of final delivery of the original 14.5 million doses of BioThrax under the contract prior to this modification. Emergent anticipates completing all deliveries of these additional 3.42 million doses of BioThrax during the remainder of 2011.
“Emergent proudly supports the U.S. government’s efforts and unwavering commitment to meet its stated need of 75 million doses of anthrax vaccines,” said Fuad El-Hibri, chairman and chief executive officer of Emergent BioSolutions. “This contract is an indication that BioThrax remains a critical component of the government’s arsenal of biodefense medical countermeasures. In addition to this contract modification, we are continuing discussions with the U.S. government regarding a follow-on procurement contract, which we anticipate will cover a multi-year period.”
About Emergent BioSolutions Inc.
Emergent BioSolutions protects and enhances life by developing and manufacturing vaccines and therapeutics that are supplied to healthcare providers and purchasers for use in preventing and treating disease. Emergent's marketed and investigational products target infectious diseases, oncology and autoimmune disorders. Additional information about the company may be found at www.emergentbiosolutions.com.
BioThrax is the only FDA-licensed vaccine for the prevention of anthrax infection. It is indicated for the active immunization of adults who are at high risk of exposure to anthrax. BioThrax is manufactured from a culture filtrate, made from a non-virulent strain of Bacillus anthracis. To date, Emergent has delivered over 42 million doses of BioThrax to the U.S. government and continues to deliver additional doses under active procurement contracts. Since 1998, over 10 million doses have been administered to more than 2.5 million military personnel. For full prescribing information, please visit www.biothrax.com/prescribinginformation_biothrax_us.pdf.
Safe Harbor Statement
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements, other than statements of historical fact, including
statements regarding our strategy, future operations, future financial
position, future revenues, projected costs, prospects, plans and
objectives of management, including any potential future securities
offering, our expected revenue growth and net earnings for 2011, and any
other statements containing the words “believes”, “expects”,
“anticipates”, “plans”, “estimates” and similar expressions, are
forward-looking statements. There are a number of important factors that
could cause the company’s actual results to differ materially from those
indicated by such forward-looking statements, including appropriations
for BioThrax® procurement; our ability to obtain new BioThrax®
sales contracts or modifications to existing contracts; our plans to
pursue label expansions and improvements for BioThrax®; our
plans to expand our manufacturing facilities and capabilities; the rate
and degree of market acceptance of our products; the success of
preclinical studies and clinical trials of our product candidates and
post-approval clinical utility of our products; and other factors
identified in the company’s Annual Report for the year ended December
31, 2010 and subsequent reports filed with the SEC. The company
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of this
press release (Business Wire, 2011).
Title: U.S. Increases Emergent BioSolutions' Anthrax Vax Contract
Date: May 4, 2011
Source: Fierce Vaccines
Abstract: Emergent BioSolutions is adding another 3.42 million doses to its 14.5 million-dose BioThrax contract with the U.S. government. The contract extension is worth an approximate $101 million; the company has made $1.2 billion through federal contracts since 2004. BioThrax is the only FDA-approved anthrax vaccine.
"Emergent proudly supports the U.S. government's efforts and
unwavering commitment to meet its stated need of 75 million doses of
anthrax vaccines," said CEO Fuad El-Hibri in a release. "This contract
is an indication that BioThrax remains a critical component of the
government's arsenal of biodefense medical countermeasures."
El-Hibri also stated that Emergent and the U.S. are in talks for another multi-year contract. The company will begin delivering the additional doses for the Strategic National Stockpile in the third quarter of this year after all previously contracted doses have been filled. Emergent also has secured a $186.6 million contract for a recombinant protein antigen to combat anthrax and a $28.7 million contract for a third-generation vaccine (Fierce Vaccines, 2011).
Title: Fighting Bio Terrorism With SIGA Technologies
Date: June 28, 2011
Soure: Beacon Equity Research
Fortunately, there are effective countermeasures against biological weapons. In the United States, a division of the Office of the Assistant Secretary of Preparedness and Response known as the Biomedical Advanced Research and Development Authority or BARDA handles the procurement and advanced development of medical countermeasures for chemical, biological, radiological, and nuclear agents, as well as the advanced development and procurement of medical countermeasures for pandemic influenza and other emerging infectious diseases. This governmental agency stockpiles pharmaceutical products to be used in widespread medical emergencies like biological attacks. As you can imagine obtaining a contract from BARDA is a highly lucrative score for a company.
Our focus stock today, SIGA Technologies (Nasdaq: SIGA)
is one such pharmaceutical company with a contract from BARDA. The
contract is for 1.7 million courses of SIGA’s groundbreaking drug,
ST-246, an oral therapeutic agent active against orthopoxviruses
including smallpox. It is the only drug from any source ever to have
demonstrated efficacy in non-human primate models of orthopox virus
disease, which was a requirement of the request for proposal that
resulted in the current contract. ST-246 will be the first entirely new
small-molecule drug delivered to the Strategic National Stockpile under
Project Bioshield. Smallpox, even though no longer present naturally in
the environment, is considered a formidable bioterrorism threat, and
there is currently no FDA-approved treatment for symptomatic
The contract was modified to just 1.7 million courses from the original option of 12 million. It does not preclude BARDA from purchasing additional courses, however. Being that SIGA is the only company that produces this drug, it’s possible that the modified contract could work in SIGA’s favor. Being that its no longer optioned in the contract, should BARDA need to purchase additional product, price increases may now be possible. I am not an expert in Government Pharma purchases but it makes sense on the surface.
Technically, shares have fallen sharply off their recent highs and are basing around the $10.50 per share range. $12.40 is significant resistance as the 200 day moving average for any up moves. Price is jumping higher on the contract news. A close eye should be kept on the $12.40 area! (Beacon Equity Research, 2011).