The company is planning to cut operations at its Canton, Massachusetts, facility and Rockville, Maryland factory and lay off about 400 employees across the organisation
The NARCAN nasal spray medication. (Credit: NEXT Distro on Unsplash)
American biopharmaceutical company Emergent BioSolutions has unveiled its strategic plans to strengthen its core business and financial position.
Emergent is planning to minimise investment and focus less on growth in its contract development and manufacturing organisation (CDMO) services business.
In addition, Emergent will cut operations at its Canton, Massachusetts, facility in response to changes in the volume of medical countermeasures procured by the US government.
This decision will also result in a slight reduction in operations at the company’s drug product factory in Rockville, Maryland.
In the future, the firm will concentrate on its core product business including medical countermeasures, overdose reversal nasal spray Narcan and anthrax vaccines.
The biopharmaceutical company will also focus on delivering for its existing customers like the US and its allies.
Emergent will continue to operate in both Bayview and Canton in order to ramp up output in response to additional demand.
Emergent BioSolutions interim CEO Haywood Miller said: “The actions we are taking will further strengthen our core products business and financial foundation.
“This will better align Emergent’s businesses with a focus on our core products and delivering for the needs of our customers.
“It will provide us with the flexibility to respond to future customer demand while responsibly maintaining manufacturing infrastructure deemed critical to respond to public health threats.”
According to the American firm, these strategic steps will result in the layoff of about 400 employees across the organisation.
When completely executed, these activities, when combined with other cost-cutting initiatives, are estimated to result in annualised savings of more than $100m.
The expenses of these activities are estimated to be between $19 and $21m, and they are scheduled to be incurred in the third quarter of 2023, Emergent added.
Furthermore, the chief operating officer (COO) position is being eliminated as a result of Emergent’s strategy shift away from its services sector.
In July, the biopharmaceutical company secured the US Food and Drug Administration (FDA) approval for Cyfendus for post-exposure prophylaxis use.