Emergent BioSolutions Inc.

Good day, and thank you for standing by. Welcome to the Q2 2023 Emergent BioSolutions, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Matt Hartwig.

Thank you, Corinne, and good afternoon, everyone. My name is Matt Hartwig, Senior Director of Media Relations for the company, and it is my pleasure to welcome you to today's call, where we will be discussing the operational and financial results for second quarter 2023. As is customary, today's call is open to all participants, and the call is being recorded and is copyrighted by Emergent BioSolutions. In addition to today's press release, there is a series of slides accompanying this webcast available to all webcast participants. Turning to slides three and four, during today's call, we may make projections and other forward-looking statements related to our business, future events, our prospects, or future performance. These forward-looking statements are based on our current intentions, beliefs, and expectations regarding future events. Any forward-looking statement speaks only as of the date of this conference call and, except as required by law, we do not undertake to update any forward-looking statement to reflect new information, events, or circumstances. Investors should consider this cautionary statement as well as the risk factors identified in our periodic reports filed with the SEC when evaluating our forward-looking statements. During today's call, we may also refer to certain non-GAAP financial measures that involve adjustments to GAAP figures in order to provide greater transparency regarding emergence operating performance. Please refer to the table found in today's press release regarding our use of adjusted net income and loss, adjusted EBITDA, and adjusted gross margin, and the reconciliations between our GAAP financial measures and these non-GAAP financial measures. Turning to slide five, The agenda for today's call will include Heywood Miller, our newly appointed interim chief executive officer, and Rich Lindahl, EVP and chief financial officer. Following prepared comments from both Heywood and Rich, we will conduct a Q&A session where additional members of the executive leadership team are present and available as needed. Finally, for the benefit of those who may be listening to the replay of the webcast, this call was held and recorded on August 8, 2023. Since then, Emergent may have made announcements related to topics discussed during today's call. And with that introduction, I would now like to turn the call over to Heywood. Heywood?

Thanks, Matt. Good afternoon, and thank you for joining. A summary of my comments begin on slide seven. In a moment, Rich will detail our Q2 performance and provide updated guidance for 2023. I have also asked Paul Williams, our Senior Vice President, Products, to join us to answer questions related to our MCM and Narcan nasal spray franchises. First, I want to begin by sharing my enthusiasm and optimism about the future of Emergent as I step into the interim CEO role. During the first half of the year, Emergent has achieved a number of strategic milestones across its products business that will help America be better prepared to face future public health threats. So far in 2023, the U.S. government has awarded contracts to Emergent for ACAM 2000, Big IV, BAT, RSDL, as well as a new contract for Abanga for the treatment of Ebola. These contract awards reinforce the value of Emergent's business and products. Likewise, Emergent has stepped forward to meet the demand for Narcan nasal spray in the midst of the ongoing devastation caused by America's opioid crisis. We will continue to fulfill the growing needs of our public interest customers while also preparing for the launch of Narcan nasal spray as an over-the-counter opioid reversal treatment. The launch remains on track for later this summer. This will be an important step in expanding access to this potentially life-saving medicine for millions of Americans. While these achievements have helped strengthen Emergent's financial position, the board and management team have taken an in-depth review of the company's business and its strategic direction to ensure the sustainability of Emergent and its future growth. After careful review, the board and management team determined that a strategic shift in how Emergent deploys its resources is necessary. As we announced this morning, moving forward, we will be reducing investment in and deemphasizing focus on growth in our services business. Instead, we will prioritize advancing emergence core products business and continue to take advantage of related opportunities. We are also addressing our cost structure by better aligning our operations to the changing volumes of U.S. government procurement of medical countermeasures. As noted in the press release, these changes will have an impact on our colleagues, something we do not take lightly. We are committed to helping them transition to new opportunities. Emergent is a resilient company that has been managing through significant change and uncertainty over the past two years. Working with the board and management team, I will be focused on the following priorities. First, continuing to take decisive actions to strengthen Emergent's financial position and operations as we meet current demands for our products, including the OTC launch of Narcan nasal spray. and take advantage of future opportunities in our products business. Second, delivering quality products for our current customer base and maintaining the manufacturing standards necessary to remain a leader in the MCM market. Finally, to position Emergent for strategic future growth by preserving its unique capabilities to help and protect life. Before turning it over to Rich, I want to acknowledge and thank Bob Kramer for his contributions and leadership. Bob embodies Emergent's mission to protect and enhance life and help instill a culture unafraid to do big things. Emergent has never lost focus on its mission or its people, and that is one reason I am confident in its future. As Emergent prepares to celebrate its 25th anniversary in September, I am honored to serve in this role to help shape Emergent's impact on patients and public health for the next 25 years. Again, thank you for your participation. Now I'll turn it over to Rich.