Emergent BioSolutions is reducing investment in and focus on growing its CDMO services business, and is reducing operations at its Bayview facility in Baltimore, MD. The company will also reduce operations at its facility in Canton, MA, following changes in the volume of U.S. government procurements of medical countermeasures. This will also result in a reduction in operations at the company’s Rockville, MD drug product facility.
 
Emergent will lay off approximately 400 employees across all areas of the company. In combination with other cost reduction initiatives, these actions are expected to result in annualized savings of over $100 million when fully implemented. The costs associated with these actions are estimated to be approximately $19 million to $21 million and are expected to be incurred in the third quarter of 2023.
 
Going forward, Emergent will focus on its core products business of medical countermeasures and NARCAN Nasal Spray, and on delivering for its existing customers, including the U.S. and allied governments. Emergent will maintain a level of operations at both Bayview and Canton to ramp up production in response to new demand.
 
The company is eliminating the chief operating officer role. As such, Adam Havey, executive vice president and current COO, will be leaving the company on September 30, 2023. Bill Hartzel, senior vice president and head of bioservices, will assume responsibility for manufacturing operations and will join the executive management team reporting to the interim CEO.

“The actions we are taking will further strengthen our core products business and financial foundation,” said Emergent interim Chief Executive Officer Haywood Miller. “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 flexibility to respond to future customer demand while responsibly maintaining manufacturing infrastructure deemed critical to respond to public health threats.”