HQ Team
August 9, 2023: Emergent BioSolutions, will sack 400 employees across its various facilities to focus on core business products meant to treat opioid overuse, anthrax, Ebola and smallpox.
The Maryland, US-based company is cutting investment and is “de-emphasizing” its focus in the Contract Development and Manufacturing Organization services business, according to a company statement.
The job cuts include facilities in Bayview, Maryland, Rockville, Maryland drug production facility, and Canton, Massachusetts facility.
As a result of the strategic shift away from Emergent’s services business, the company is eliminating the chief operating officer role.
Leaving in September
Adam Havey, executive vice president, and current COO, will be leaving the company on September 30, 2023.
“These actions will lead to a reduction of approximately 400 employees across all areas of the company,” according to the statement.
Along 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 between $19 million and $21 million and are expected to be incurred in the third quarter of 2023.
Narcan nasal spray
One of the reasons given by the company for the cut-back was changes in the volume of U.S. government procurements of medical countermeasures.
Emergent will now focus on its core products business — medical countermeasures and Narcan nasal spray, and on delivering to its existing customers, including the US 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 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.
‘Flexibility’
“It will provide us with the flexibility to respond to future customer demand while responsibly maintaining manufacturing infrastructure deemed critical to respond to public health threats.”
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.
“Changes like these are never easy as they impact many of our colleagues,” said Mr Miller. “Emergent is committed to working with impacted employees to help transition them to new opportunities.”
