Emergent BioSolutions Inc.

Hello, everyone. Thank you for joining us and welcome to the Emergent BioSolutions third quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Frank Vargo, VP and Treasurer. Frank, please go ahead.

Good afternoon, everyone, and thank you for joining us as Emergent discusses its operational and financial results for the third quarter of 2026. As is customary, today's call is open to all participants, it's being recorded, and it's copyrighted by Emergent BioSolutions. In addition to today's press release, a slide presentation accompanying this webcast is available to all webcast participants. Turning to slide two. During today's call, Emergent may make projections and other forward-looking statements related to business, future events, prospects, or future performance. These forward-looking statements are based on our current intentions, beliefs, and expectations regarding future events. Any forward-looking statements speak only as of the day of this conference call and accept as required by law. Emergent does not undertake updating forward-looking statements to reflect new information, events, or circumstances. Investors should consider this cautionary statement as well as the risk factors identified in Emergent's periodic reports filed with the SEC when evaluating these forward-looking statements. During today's call, Emergent may also discuss certain non-GAAP financial measures that include adjustments to GAAP figures to provide additional transparency regarding the company's operating performance. Please refer to the tables included in today's press release. Turning to slide three, The agenda for today's call include remarks from Joe Papa, President and Chief Executive Officer, who will provide an update on the company's transformation plan, business performance, and key highlights. Rich Lindahl, EVP and Chief Financial Officer, will then review the third quarter 2026 financial results and provide an update on full year 2026 guidance. Joe Papa will conclude with a discussion of the company's key catalysts for growth, followed by a question and answer session. Finally, for the benefit of those who may be listening to the replay of this webcast, this call was held and recorded on November 2nd, 2026. Since that time, Emergent may have made announcements to the latest topics discussed during today's call. With that, I will now turn the call over to Joe Papa. Joe?

Hello, everyone, and thank you for joining us to discuss Emergent's third quarter 2026 financial results. This is Joe Papa, President and Chief Executive Officer of Emergent. and I'm joined today by Richard Lindahl, our Chief Financial Officer. This afternoon, I will share an update on our multi-year transformation plan, the actions we implemented during the quarter to strengthen the business, and the progress we are making across our diversified medical countermeasures and Naloxone portfolios. Richard will then review our third quarter financial results and our outlook for the remainder of 2026. I will close with the growth catalyst and priorities that will guide us as we finish the year. Then we'll open up the call for Q&A. Before we begin, though, I want to acknowledge an important milestone. This November marks 20 years since eMERGE's initial public offering in November 2006. As we reflect on that anniversary, our mission to protect and save lives remains our foundation. We are focused on building upon that legacy as we advance our transformation and position eMERGE for the future. I'd also like to take a moment to recognize Rich. After 17 years as a public company CFO, of which approximately nine years were spent at Emergent, Rich has decided to retire effective December 31st, 2026. Frank Vargo, our Vice President and Treasurer, will assume the role of interim CFO on January 1st, 2027. To support a seamless transition, Rich will continue to serve as a senior executive advisor through March 31, 2027. Rich has been a trusted partner to me, our board, and our leadership team. He has helped guide Emergent through periods of significant change, strengthened our financial discipline, and played an important role in the progress we have made to position the company for the future. He's also built a very strong and highly talented finance and IT organization. We are fortunate to have an experienced leader in Frank who knows our business, understands our priorities, and will provide continuity and disciplined financial stewardship during this transition. On behalf of the board and our colleagues, I want to thank Rich for his leadership, his commitment to the emergence mission, and his dedication to our people. I'll now begin the presentation on slide four. For more than 25 years, Emergent has prepared for and responded to complex public health threats. Our mission remains clear, to protect and save lives. That mission is especially important in a world where biological threats are evolving, geopolitic uncertainty is elevated, and advances in technology, including artificial intelligence, can create both new opportunities and new risks. We continue to believe that Emergent is the leader in biodefense preparedness in the LSM, serving patients, customers, and government partners around the world. Turning to slide six, against that backdrop, our multi-year transformation plan continues to guide our business and strategic decisions. We are focused on improving operating performance, aligning our cost structure, strengthening the balance sheet, advancing growth opportunities where emergent has differentiated capabilities and maintaining a strong commitment to patient safety, quality, and compliance. Let's move to slide eight. After an exceptional better-than-expected second quarter performance of $234 million in revenue, our third quarter results were consistent with expectations with $110 million in revenue within our guidance range. This brings our year-to-date revenue to $500 million. Additional highlights from the quarter include our overall profitability and cash generation support investment and growth. Year-to-date, adjusted EBITDA reached $128 million, a 25% margin, with $122 million in operating cash flow. Cash stood at $176 million with $226 million in liquidity. Financial discipline remains a priority for us. We repurchased $75 million in bond principal and continued cost prioritization is occurring. Our MCM business delivered solid performance. We executed a $24 million contract modification for Siphendis, made deliveries to the US government by the close of quarter three. We also completed a Convexa tablet delivery from the contract modification awarded in March of this year. Internationally, We completed product sales to more than 13 countries in the third quarter, which demonstrates the diversification of our MCM business and the importance of biodefense preparedness internationally around the world. Naloxone remains central to community preparedness. We maintain our U.S. market leading position while we continue to be competitive in the market to ensure consumers have access to both Narcan native spray and Cloxsado native spray when needed. Our growth initiatives are progressing. Importantly, we are taking a disciplined approach when it comes to the evaluation and pursuit of certain business development opportunities. The Canton Manufacturing Facility Restart Milestones remain on track. We are proud to celebrate this restart with the local Commonwealth officials. Finally, we are progressing the Pan-Ebola Therapeutic Program and AI partnerships for clinical development work. We have a handful of other AI and machine learning platforms that we are engaging for pipeline and growth opportunities. We plan to advance this critical work while remaining focused on patient safety, quality, and compliance. Turning to slide nine, I'd like to highlight the recent reports on the rising threat of AI in bioterrorism, national security, and the role emergent can play in collaboration with other companies on potentially addressing such risks. In August, we issued a call to cross-collaborate with AI leaders, including anthropic and open AI, on key areas like threat detection and to develop a preparedness framework. We expect to continue these efforts and be a potential partner on AI bioterrorism prevention efforts today and into the future. On slide 10, let's take a look at our MCM results. Through the great efforts of our MCM team, we secured $59 million in revenue in the third quarter, which was driven by an executed $24 million contract modification. The product was delivered to the U.S. government within the quarter, while the team also completed the majority of a Tembexa tablet delivery from a March 2026 contract modification with the U.S. government. To date, we executed all six anticipated U.S. government contract modifications. On the international side, We supply a diverse mix of MCMs to 13 different countries and close 19 sales during the quarter. International sales and product orders contributed $72 million of revenue represent 22% of year-to-date MCM revenue. On slide 11, the decline in opioid overdose deaths is encouraging. Powerful synthetic opioids and accidental poisonings continue to make preparedness very important across the U.S. and Canada. Our focus remain increasing on access to overdose reversal medications with over-the-counter Narcan, continuing a standard of care, and Cloxido 8mg offering another important option. In the U.S., we continue supporting state law enforcement and harm reduction organizations, as well as retail partners and workplaces on increasing access and the availability for vulnerable populations. We continue seeing strong growth of Narcan across Canada, and it Government of Canada recently issued a standing offer which creates a multi-year pathway for Narcan. To this end, we're complementing access with public awareness through our Ready to Rescue campaign and college educational engagement. These are important efforts to help increase access, awareness, and the availability of Narcan and Cloxido to save lives. Let me now hand the call over to Rich to follow Rich's comments. I'll spend some time elaborating on our business outlook and growth catalyst.