Emergent Biosolutions, Inc. H.C. Wainwright 28th Annual Global Investment Conference

Joe? Thank you. Hello, everyone.

Pleasure to be here today, and thank you very much for your interest in Emergent, an emerging and unique company. We have a 26-year history of working with the U.S. government and other governments around the world, to partner with them to create biodefense programs, activities where we help them prepare. The number one areas and risks of biodefense tend to be, what is the number one viral risk? It is smallpox. We have both a therapeutic as well as a vaccine for smallpox. The number one bacterial threat is anthrax. We have, once again, a vaccine as well as a therapeutic for anthrax. The number one toxin in the world is the botulism, and we have both botulism antitoxin for that.

Then, of course, you may have read in the news the current risk of the outbreak of Ebola, in Africa, and we have a product that is a treatment, a monoclonal antibody for the treatment of Ebola. So, we have a number of different products. Our product is called Ebanga. So, a number of different products that makes a very unique business model where we partner with governments around the world to help get them prepared for risk of biodefense. In addition, because our business deals with different types of pathogens that the government does not want exposure to, we have a long lifespan of our products in that the government does not want a number of players to have access to anthrax. Their concern is that if anthrax spores got into the hands of a bad actor, they may choose to do something that could be problematic for the government.

So, we have a longevity of our business in the sense that we make the product for the U.S. government. There are limited people that can go. I can guarantee you, there is no one going to their garage tonight and say, "I am going to create an anthrax vaccine." That is just not going to happen, because they are not going to get access to anthrax spores. But we also, beyond making the product, we have the ability to provide the government with ongoing stability, testing, make sure the potency is there, shelf life is there. That gives us additional longevity. So, that gives you a sense of our business. Beyond that, we also, beyond public health, we have a product, the number one product for opioid overdoses is NARCAN. That is our product. We continue to be the market leader in that area. That is the quick view. There are some safe harbor comments I will make.

I refer all of you to look at our SEC filings if you have any interesting questions on that. In terms of leadership and public health, I will start with the team. The team is a very experienced and trusted management team. The team has over 100 years of experience in the biopharma segment. Good, strong team, with representatives from all the different areas of our business. This is just a look at our portfolio. This includes all the products in our portfolio. This represents the leading position in biodefense. We have more products in biodefense than any other company has out there, as I mentioned. If you start at the top there with smallpox, we have a therapeutic and a vaccine for smallpox. The products that are also used for mpox, there is ACAM2000, which is our vaccine that can also be used for mpox.

Anthrax, we have a number of different products there, both therapeutically and a vaccine for anthrax. Botulism, I mentioned botulism antitoxin, and Ebola is our Ebanga monoclonal antibody. All those products are designed to make sure that the governments around the world have products to anticipate risk in the biopreparedness and biodefense. In addition to that, I mentioned the opioid overdose, and once again, our products there are NARCAN, which is the gold standard 4 milligram product, and we also, through a license with Hikma, have access to KLOXXADO nasal spray, which is an 8 milligram strength of naloxone. It gives you a very wide, diversified portfolio of products.

I am happy to say I had a chance to meet RFK Jr., just in early September, and one of the things I can absolutely say to him, that many of you have heard the questions that have been asked about the U.S. government about Most-Favored-Nation pricing. I can absolutely assure you that I walked into that office and tell him that right now, Emergent already provides Most-Favored-Nation pricing. Unlike with many of the pharma companies, the U.S. gets the Most-Favored-Nation pricing for the products that we make for the U.S. government. In terms of our manufacturing footprint, we have streamlined that footprint down, that manufacturing network. We have two hub locations. One is in Lansing, Michigan. That capability there is bacterial fermentation. We make the product there. The other hub is Winnipeg.

Winnipeg makes predominantly products for hyperimmune plasma product capabilities in terms of what we do there. In addition, based on the need in the marketplace, we are also restarting our Canton facility. We announced that fairly recently about the Canton restart. That has a live attenuated virus vaccines active ingredient capability, which is not widely available around the world. We did choose to restart that just recently. It gives you a sense of the capabilities we have, both in terms of where the sites are, but then also being able to make the full portfolio of our product capabilities for our company. We have done some good steps in terms of streamlining, but also maintaining the capabilities. Additionally, I mentioned this at the beginning that we have a multi-year transformation plan underway.

I joined the company in 2024, with the intent to first stabilize the company and then find the turnaround where we'll decide where to make the best investment for the future. Our priorities on the turnaround were absolutely to look for where can we make the best investment with the best return on investment for all of our stakeholders in the company. We're in the middle of that right now. We've stabilized the company, we're investing for the future and looking for those future growth opportunities, all while making sure that we continue to be the leader in solving global public health threats and prioritizing patient safety, quality, and compliance across our entire portfolio of our products. That's what we do and why we do it. I'm going to go in through each segment. I'll start with naloxone. It'll take me a couple slides to go through that, and then I'll go to the medical countermeasures business.

The naloxone business, I'm delighted to say we got approval for that product to go over the counter in 2023. We believe naloxone's availability as over-the-counter status has been a dramatic improvement in reducing the number of opiate overdose deaths. In 2023, the opiate overall deaths in the U.S. was somewhere in the 90,000 to 100,000 people dying every year for opiate overdoses. That's a terrible number. I'm delighted to say, in 2025, we've been able to bring that number down dramatically. It's somewhere now in around 50,000 level. Still way too many people dying from opiate overdoses, but we have been able to dramatically reduce that. We believe a big part of that is because we've been able to move the product from prescription to OTC.

With OTC status, we can make it more available. We can put it on the wall kit on the walls, we can clip it onto a backpack for a student so they can have it on their backpack, so that wherever the person needs the product, you have the potential ability to save a person's life. Because if you overdose on an opioid, you will stop breathing, and once you stop breathing, you only have four or five minutes before you're going to have some serious problems or death. So having the availability of the product wherever you need it has been a big part of why we think the number of opiate overdose deaths have come down. Our product, NARCAN, is the gold standard out there. It is the leading brand.

It's what's commonly referred to, even if they're using the generic naloxone, they're often will talk about it as the NARCAN product. That's our portfolio. To be clear, we have faced some intensifying competitive pressures on the NARCAN business. The overall market continues to grow in units, but we have faced pressures, and a result of that, we have brought down our estimates for revenue. But once again, we continue to hold the market share. We believe our market share is somewhere in the 50%, with now four generic competitors in the market, and we're still holding on to about 50%. We have had to price the product competitively, which means we have to come closer to where the generics are. We don't have to match them, but we have to be certainly be close with that. And that's the reason why we've run into some challenges with NARCAN.

We still are focused on trying to protect and save lives. We are continuing to make our product even more accessible, bringing out new innovation for multi-pack cases, bringing out backpack kits that you can clip on the backpack, things that can help make the product available in more forms that will help save lives because it will be where you need it. As a result of some of the challenges with NARCAN, we did have to make some reductions in the actual numbers of what we were doing from a restructuring point of view. We did that based on this generic entries. We have decreased the expense base by approximately $40 million. We closed 2 labs in Maryland. We sold an unutilized office building that we had available to us, and we exited a warehouse lease.