Emergent Awarded 10-Year HHS Contract

In support of the U.S. government’s policy to maintain a stockpile to be able to protect every American from smallpox, Emergent BioSolutions has signed a contract with the Office of the Assistant Secretary for Preparedness and Response (ASPR) in the U.S. Department of Health and Human Services (HHS) valued at approximately $2 billion over 10 years for the continued supply of ACAM2000, (Smallpox (Vaccinia) Vaccine, Live) into the U.S. Strategic National Stockpile (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 U.S. Food and Drug Administration (FDA) for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection.
 
"Emergent applauds the U.S. government’s continued focus on national security demonstrated through its long-term stockpiling strategy, which ensures a sustainable supply of critical medical countermeasures such as ACAM2000 vaccine, and its investment in a stable domestic manufacturing infrastructure to help protect the U.S. population against  smallpox in the event of an attack," said Robert G. Kramer Sr., president and chief executive officer, Emergent BioSolutions. "Awarded on the heels of our recently announced contract to supply our Vaccinia Immune Globulin Intravenous or VIGIV therapeutic, this contract solidifies our role as a solutions provider supporting the government’s smallpox preparedness efforts and helping fulfill their needs with our smallpox franchise. It is one of the unique ways we live out our mission—to protect and enhance life."
 
This contract for the procurement of ACAM2000 vaccine consists of a one-year base period of performance, valued at approximately $170 million, 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, $425 million contract to establish domestic warm-base manufacturing capabilities and procure smallpox vaccines issued by the U.S. government April 1, 2008. ACAM2000 continues to be one of the lowest priced vaccines that the U.S. government procures across all relevant vaccine programs.
 
Abbey Jenkins, SVP and vaccines business unit head at Emergent, said, "The U.S. government’s long-term commitment to smallpox preparedness and the role ACAM2000 vaccine serves have been reinforced in guidance and legislation within the last two decades. As the only smallpox vaccine administered in one dose, ACAM2000 vaccine remains the primary smallpox vaccine for general population use in the event of a smallpox emergency.i We are proud of our employees, especially those at our Canton, Massachusetts and Rockville, Maryland locations, who are dedicated to producing this critical countermeasure. Because of their work, Emergent stands ready to continue our partnership with HHS in fulfilling this contract."

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