Emergent BioSolutions Announces Restructuring Plan 

Emergent BioSolutions, a Gaithersburg, Maryland-based specialty bio/pharmaceutical company and contract manufacturer, has announced the next phase of a new operational plan that consolidates operations, closes several manufacturing facilities, and restructures its workforce.  

The changes will lead to a reduction of approximately 300 employees across all areas of the company and the elimination of approximately 85 positions that are currently vacant. In combination with other rationalizing initiatives, these actions are expected to result in annualized savings of approximately $80 million when fully implemented. The costs associated with the restructuring plan are estimated to be approximately $18 million to $21 million and are expected to be primarily incurred in the second half of 2024. 

As part of the operational changes, Emergent will shut down both its Baltimore-Bayview, drug-substance manufacturing facility and Rockville, Maryland, drug-product facility. Emergent will concentrate operations at sites in Winnipeg, Canada, and Lansing, Michigan, while the company explores strategic alternatives for its other sites throughout the year (2024). 

The restructuring is the first major move by the company’s CEO, Joseph Papa, who was appointed CEO of Emergent BioSolutions in February 2024. As part of the reorganization, a new Chief Science Officer role has been created and added to the executive management team, reporting to Papa. 

Additionally, the company announced another setback with the US Department of Health and Human Services cutting back on a 10-year smallpox vaccine contract with Emergent, reducing the annual doses from 9.0 million to 3.5 million annually for years five through nine. 

Source: Emergent BioSolutions (restructuring) and Emergent BioSolutions (vaccine contract)