Emergent BioSolutions files for $86.25 million IPO

By Angela McDaniels

Seattle, Aug. 14 - Emergent BioSolutions, Inc. filed for an $86.25 million initial public offering of common stock in an S-1 registration with the Securities and Exchange Commission on Monday.

Each share of common stock will include one series A junior participating preferred stock purchase right. The number of shares to be offered and the price range for the offering have not been determined.

J.P. Morgan Securities Inc. is bookrunner for the offering, with Cowen and Co. LLC acting as joint lead and HSBC Securities (USA) Inc. as co-manager. The underwriters have been granted a greenshoe.

Emergent BioSolutions is a biopharmaceutical company based in Gaithersburg, Md., that develops and commercializes immunobiotics in two business segments: biodefense and commercial.

The company manufactures and markets BioThrax, which, according to the filing, is the only anthrax vaccine approved by the Food and Drug Administration. Emergent BioSolution's revenue from BioThrax was $127.3 million in 2005.

The company's biodefense product portfolio also includes three product candidates in preclinical development: anthrax immune globulin for post-exposure treatment of anthrax infection, botulinum immune globulin for post-exposure treatment of illness caused by botulinum toxin and recombinant bivalent botulinum vaccine, a prophylaxis for illness caused by botulinum toxin.

The company's commercial product portfolio includes a typhoid vaccine in phase 2 clinical development, a hepatitis B therapeutic vaccine in phase 2 clinical development, a group B streptococcus vaccine in phase 1 clinical development and vaccines for chlamydia and meningitis B, both in preclinical development.

IPO proceeds will be used primarily to fund clinical trials, preclinical testing and other development. The remaining proceeds will go toward the construction of the company's new manufacturing facility in Lansing, Mich., to building out its manufacturing facilities in Frederick, Md., and toward other general corporate purposes.

The company had 7,782,016 shares of common outstanding at July 31. President, chief executive officer and chairman of the board Fuad El-Hibri is the largest stockholder with 7,782,001 shares for 99.6% of the pre-IPO common stock total.

Emergent BioSolutions had a net loss of $4.6 million on $12.2 million of total revenue for the quarter ended March 31. Cash and cash equivalents were $14.8 million at March 31.

Research and development costs for the quarter ended March 31 were $8.2 million.

The company has applied to list its common stock on the Nasdaq Global Market under the symbol "EBSI."

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