Emergent BioSolutions awarded $2B contract by U.S. HHS
Emergent BioSolutions announced a contract award by the Office of the Assistant Secretary for Preparedness and Response, or ASPR, in the U.S. Department of Health and Human Services, or HHS, valued at approximately $2B over 10 years for the continued supply of ACAM2000, or Smallpox Vaccine, into the U.S. Strategic National Stockpile, or SNS. The actual number of ACAM2000 doses to be procured is dependent on certain timing and tiered-pricing terms that are subject to the discretion of ASPR. ACAM2000 vaccine is the only vaccine licensed by the FDA for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection. This contract for the procurement of ACAM2000 vaccine consists of a one-year base period of performance, valued at approximately $170M, and nine option years. The company expects to deliver into the SNS a majority of the doses under the base year by year end 2019, the effect of which is already included in the company's full year financial forecast, which was recently reaffirmed on August 1. This multiple year contract is intended to support the replacement of the smallpox vaccine stockpile and follows the conclusion of a prior 10-year, $425M contract to establish domestic warm-base manufacturing capabilities and procure smallpox vaccines issued by the U.S. government April 1, 2008.