EBS - Emergent BioSolutions Announces Strategic Operational Changes to Stabilize Financial Position | Benzinga
- Proactive changes aim to ensure long-term sustainability and growth, optimize operations, streamline processes, and allocate resources more efficiently
- Reorganization will align with evolving business goals, strategic priorities and new operational plan
- Overall efforts expected to deliver annual cost savings of approximately $80 million
GAITHERSBURG, Md., May 01, 2024 (GLOBE NEWSWIRE) -- Emergent BioSolutions (NYSE:EBS) today announced the next phase of its new operational plan that consolidates operations, closes several manufacturing facilities, and restructures its enterprise workforce to improve the performance and profitability of its business. Emergent will continue to focus on its core products business – medical countermeasures and NARCAN® Nasal Spray –and on delivering for its patients and customers, including the U.S. and allied governments.
These strategic actions 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 - $21 million and are expected to be primarily incurred in the second half of 2024.
"Today's actions are about the future of Emergent," said CEO Joe Papa. "We have put in place a multi-year plan to position Emergent for sustainable and long-term success, and that starts by stabilizing our operations, strengthening our balance sheet and managing our debt."
Papa continued, "Decisions like these are never easy as they have real impact on many of our dedicated colleagues. We are committed ...