Emergent BioSolutions estimates total revenue of $285 to $288 million for 2010

Emergent BioSolutions Inc. (NYSE: EBS) announced today preliminary, unaudited financial results for 2010 and guidance for 2011.

For 2010, the Company estimates total revenue of $285 to $288 million, split between product sales of approximately $251 million and contracts and grants of $34 to $37 million. The Company also estimates net income of $48 to $51 million. The Company ended the year with a combined cash and accounts receivable balance in excess of $200 million. The Company's accounts receivable balance consists primarily of amounts due related to shipments of BioThrax^® received and accepted by the US government, but for which payment is forthcoming.

For 2011, the Company is forecasting total revenue of $320 to $340 million, an increase of up to 19 percent, split between product sales of $255 to $265 million and contracts and grants of $65 to $75 million. The Company also is forecasting net income of $35 to $45 million.

2011 total revenue is expected to be driven by, among other things:

• the continuation of deliveries of BioThrax^® under the current multi-year procurement contract with CDC;
• additional deliveries of BioThrax^® under a follow-on, multi-year procurement contract with CDC, anticipated to be executed during 1Q 2011 and to begin in 4Q 2011;
• a significant increase in contracts and grants revenue based primarily on development contracts already in place that are funding the validation and qualification of BioThrax^® in the Company's large-scale manufacturing facility and the further development of Previthrax^TM (rPA); and,
• collaboration and milestone revenues associated with achievement of clinical development milestones related to the Company's oncology product candidate, which is under an existing co-development agreement with Abbott, and the Company's autoimmune product candidate, which was out-licensed to Pfizer.

Fuad El-Hibri, chairman and chief executive officer of Emergent BioSolutions Inc., stated, "We are delighted with our 2010 performance and are enthusiastic about the prospects for continued growth in 2011. We look forward to continuing to work with the U.S. government on supplying BioThrax as well as developing additional medical countermeasures in support of their long term commitment to safe guard the American public against biological agents. We are also excited about the prospect of further developing our infectious disease vaccines and oncology and autoimmune disease therapeutics."

The 2010 results will be finalized upon the completion of the Company's external audit, anticipated in early March 2011.