- Emergent BioSolutions is undergoing a major organisational restructuring, which includes a reduction of about 300 employees and the closure of two facilities in Maryland.
- The restructure is expected to save about $80 million in annual costs, with a financial impact of $18 million to $21 million in the second half of 2024.
Just two months into his role as CEO at Emergent BioSolutions, Joseph Papa has announced a significant organisational restructuring for the company. This restructuring involves a workforce reduction of about 300 employees across all areas of the company and the closure of two facilities.
Emergent will be closing its Baltimore-Bayview drug substance manufacturing facility and its Rockville drug product facility, both located in Maryland. Going forward, the company’s sites in Winnipeg, Canada, and Lansing, Michigan, will conduct the majority of operations. Papa stated that the company will “actively explore strategic alternatives for its other sites throughout the year.”
The restructuring is expected to result in substantial cost savings for Emergent. Once fully implemented, the company anticipates saving about $80 million annually. However, Emergent also expects to incur a financial hit of around $18 million to $21 million in the second half of 2024 in connection with the restructuring.
The restructuring marks a strategic shift for Emergent as it transitions from a contract manufacturing organisation (CDMO) to a biopharma company.
Papa said, “This is a necessary step in our turnaround plan for Emergent. We believe these changes will strengthen our position as a biopharma leader and help ensure our long-term success.”
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