Emergent BioSolutions Inc.

Previous wording

In May 2024, the Company initiated the May 2024 Plan. These strategic actions led to a reduction of the Company’s workforce by approximately 300 employees across all areas of the Company and the elimination of approximately 85 positions that were vacant, as well as the closure of the Company’s Baltimore-Bayview Drug Substance manufacturing facility and Rockville, Maryland Drug Product facility. Decisions regarding the elimination of positions and the closure of manufacturing facilities were subject to local law and consultation requirements in certain countries, as well as the Company’s business needs. The cumulative amount of restructuring charge related to the May 2024 Plan since inception is $18.2 million. All activities related to the May 2024 Plan were substantially completed during the third quarter of 2024. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company's classification policy for each category of operating expense.

Current wording

In May 2024, the Company initiated the May 2024 Plan. These strategic actions led to a reduction of the Company’s workforce by approximately 300 employees across all areas of the Company and the elimination of approximately 85 positions that were vacant, as well as the closure of the Company’s Baltimore-Bayview Drug Substance manufacturing facility and Rockville, Maryland Drug Product facility. Decisions regarding the elimination of positions and the closure of manufacturing facilities were subject to local law and consultation requirements in certain countries, as well as the Company’s business needs. The cumulative amount of restructuring charge related to the May 2024 Plan since inception is $18.5 million. All activities related to the May 2024 Plan were substantially completed during the third quarter of 2024. Restructuring costs are recognized as an operating expense within the Condensed Consolidated Statement of Operations and are classified based on the Company's classification policy for each category of operating expense.

Previous wording

On March 31, 2025, the Company announced that its Board of Directors had authorized the repurchase of up to $50.0 million of the Company’s common stock (the “2025 Share Repurchase Program”) on or before March 27, 2026. During the three and six months ended June 30, 2025, the Company utilized $6.9 million to repurchase 1.1 million shares at an average price of $6.12 per share, excluding commissions and excise taxes. As of June 30, 2025, we had $43.1 million available to repurchase shares under the 2025 Share Repurchase Program.

Current wording

On March 31, 2025, the Company announced that its Board of Directors had authorized the repurchase of up to $50.0 million of the Company’s common stock (the “2025 Share Repurchase Program”) on or before March 27, 2026. During the three and nine months ended September 30, 2025, the Company utilized $8.9 million and $15.8 million to repurchase 1.1 million and 2.3 million shares, respectively, at an average price of $7.87 and $7.00 per share, excluding commissions and excise taxes, respectively. As of September 30, 2025, the Company had $34.2 million available to repurchase shares under the 2025 Share Repurchase Program.

Previous wording

Changes in tax laws, rulings, policies, or related legal and regulatory interpretations occur frequently and may have significant favorable or adverse impacts on our effective tax rate. In 2021, the Organization for Economic Cooperation and Development released model rules for a 15% global minimum tax applied to cross-border profits of certain large multinational corporations, known as Pillar Two. Pillar Two has now been enacted by approximately 36 countries, including Ireland. This minimum tax is treated as a period cost beginning in 2024 and its impact is included on the Company's financial results of operations for the current period. The Company is monitoring legislative developments, as well as additional guidance from countries that have enacted legislation. We anticipate further legislative activity and administrative guidance in 2025.

Current wording

Changes in tax laws, rulings, policies, or related legal and regulatory interpretations occur frequently and may have significant favorable or adverse impacts on our effective tax rate. In 2021, the Organization for Economic Cooperation and Development released model rules for a 15% global minimum tax applied to cross-border profits of certain large multinational corporations, known as Pillar Two. Pillar Two has now been enacted by approximately 36 countries, including Ireland. This minimum tax is treated as a period cost beginning in 2024 and its impact is included on the Company's financial results of operations for the current period. The Company is monitoring legislative developments, as well as additional guidance from countries that have enacted legislation.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently assessing the impact of the OBBBA on its consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. These impacts did not have a material effect on the tax rate for the three and nine months ended September 30, 2025.

Previous wording

SG&A expenses decreased $42.2 million, or 49%, to $43.7 million for the three months ended June 30, 2025. The decrease was primarily due to an improvement of $21.2 million in professional services fees related to general corporate initiatives in the prior year and legal service fees, coupled with a $17.4 million reduction in compensation and other employee related costs as a result of the restructuring initiatives that began during the first quarter of 2023 and a decrease in marketing costs. SG&A expenses as a percentage of total revenues decreased 3 percentage points to 31% for the three months ended June 30, 2025.

Current wording

SG&A expenses decreased $37.7 million, or 49%, to $38.9 million for the three months ended September 30, 2025. The decrease was primarily due to the absence of a one-time expense of $10.0 million recognized in the prior year period and the receipt of a one-time reimbursement of $10.5 million in the current year period related to settlements of our securities and shareholder litigation matters. These non-recurring items were coupled with decreases in compensation and other employee related expenses as a result of the restructuring initiatives that began during the first quarter of 2023, and lower marketing, professional services and legal expenses. SG&A expenses as a percentage of total revenues decreased 9 percentage points to 17% for the three months ended September 30, 2025.

Previous wording

Interest expense decreased $8.9 million, or 38%, to $14.7 million for the three months ended June 30, 2025. The decrease was primarily due to lower interest costs related to our syndicated borrowings and lower amortization of debt service costs, partially offset by higher interest expense related to our Credit Agreement with OHA Agency LLC, as administrative agent, and the lenders from time to time party thereto (the “Term Loan Agreement”).

Current wording

Interest expense increased $6.9 million, or 83%, to $15.2 million for the three months ended September 30, 2025. The increase was primarily due to an increase in amortization of debt service costs and higher interest expense related to our Credit Agreement with OHA Agency LLC, as administrative agent, and the lenders from time to time party thereto (the “Term Loan Agreement”), partially offset by lower interest costs related to our prior syndicated borrowings.

Previous wording

Gain (loss) on sale of business and assets held for sale

Current wording

Gain (loss) on sale of business and assets held for sale decreased $64.3 million, or 100%, due to no sale of business or held for sale activity occurring during the three months ended September 30, 2025. The gain in the prior year was related to the sale of RSDL®to SERB, partially offset by a reduction to the loss on the sale of the Company’s drug product facility in Baltimore-Camden to Bora, which was attributable to a net working capital adjustment payable to the Company.

Previous wording

Income tax provision (benefit) decreased $18.1 million, or (136)%, to $4.8 million for the three months ended June 30, 2025. The decrease was primarily due to a change in jurisdictional mix of income and losses, and a decrease of profitability in the second quarter of 2025 relative to the first quarter.

Current wording

Income tax provision decreased $21.2 million, or 77%, to $6.4 million for the three months ended September 30, 2025. The decrease was primarily due to a change in jurisdictional mix of income and losses, and a decrease of profitability in the third quarter of 2025 relative to 2024.

Previous wording

Total revenues decreased $192.0 million, or 35%, to $363.1 million for the six months ended June 30, 2025. The decrease was due to lower Commercial Products revenue of $125.7 million, Services revenue of $71.6 million and MCM Products revenue of $3.8 million, partially offset by an increase in Contracts and grants revenue of $9.1 million.

Current wording

Total revenues decreased $254.7 million, or 30%, to $594.2 million for the nine months ended September 30, 2025. The decrease was due to lower Commercial Products revenue of $146.1 million, Services revenue of $81.3 million and MCM Products revenue of $35.5 million, partially offset by an increase in Contracts and grants revenue of $8.2 million.

Previous wording

Gross margin increased $84.2 million to $151.5 million for the six months ended June 30, 2025. Gross margin percentage increased 33 percentage points to 45% for the six months ended June 30, 2025. The increase in gross margin was due to improvements in Services gross margin driven by the accounting for the Settlement Agreement with Janssen in the prior year period and improvements in MCM Products gross margin, partially offset by a decrease in Commercial Products gross margin. Gross margin and gross margin percentage exclude Contracts and grants revenues because the related costs are R&D expenses.

Current wording

Gross margin increased $59.1 million to $271.3 million for the nine months ended September 30, 2025. Gross margin percentage increased 22 percentage points to 48% for the nine months ended September 30, 2025. The increase in gross margin was due to a $158.3 million improvement in Services gross margin driven by the accounting for the Settlement Agreement with Janssen in the prior year period, partially offset by a decrease of $96.9 million in Commercial Products gross margin and a decrease of $2.3 million in MCM Products gross margin. Gross margin and gross margin percentage exclude Contracts and grants revenues because the related costs are R&D expenses.

Previous wording

R&D expenses decreased $20.2 million, or 62%, to $12.5 million for the three months ended June 30, 2025. The decrease was primarily due to write-offs related to program terminations in the second quarter of 2024 and decreases in overhead and severance related costs. This decrease was partially offset by an increase in costs associated with the Ebanga TM development work.

Current wording

R&D expenses decreased $20.5 million, or 33%, to $41.1 million for the nine months ended September 30, 2025. The decrease was primarily due to write-offs related to program terminations in the second quarter of 2024 and decreases in overhead and severance related costs in the current year. This decrease was partially offset by an increase in costs associated with the development work related to Ebanga TM.

Previous wording

SG&A expenses decreased $74.5 million, or 44%, to $96.1 million for the six months ended June 30, 2025. The decrease was primarily due to an improvement of $34.2 million in compensation and other employee related costs as a result of the restructuring initiatives that began during the first quarter of 2023 and a reduction of $30.6 million for professional services fees related to general corporate initiatives in the prior year and legal service fees, coupled with a decrease in marketing costs. SG&A expenses as a percentage of total revenues decreased 4 percentage points to 26% for the six months ended June 30, 2025.

Current wording

SG&A expenses decreased $112.2 million, or 45%, to $135.0 million for the nine months ended September 30, 2025. The decrease was primarily due to declines in compensation and other employee related costs as a result of the restructuring initiatives that began during the first quarter of 2023 as well as lower professional services and legal fees related to general corporate initiatives in the prior year. The decline in SG&A was also due to the absence of a one-time expense of $10.0 million recognized in the prior year period and the receipt of a one-time reimbursement of $10.5 million in the current year period related to settlements of our securities and shareholder litigation matters as well as decreases in marketing spend. SG&A expenses as a percentage of total revenues decreased 6 percentage points to 23% for the nine months ended September 30, 2025.

Previous wording

Impairment of long-lived assets decreased $27.2 million, or 100%, due to no impairment recognized during the three months ended June 30, 2025. The $27.2 million non-cash impairment charge in the second quarter of 2024 was related to our Bayview and Rockville asset groups within the Bioservices reporting unit.

Current wording

Impairment of long-lived assets decreased $27.2 million, or 100%, due to no impairment recognized during the nine months ended September 30, 2025. The $27.2 million non-cash impairment charge in the second quarter of 2024 was related to our Bayview and Rockville asset groups within the Bioservices reporting unit.

Previous wording

Loss on assets held for sale decreased $27.8 million, or 70%, to $12.2 million for the six months ended June 30, 2025. The loss on assets held for sale in the current period is related to warehouse space in Maryland and in the prior period it is related to the Camden Transaction, which closed during the third quarter of 2024.

Current wording

Gain (loss) on sale of business and assets held for sale decreased $36.5 million, or 150%, to a $12.2 million loss for the nine months ended September 30, 2025. The loss on assets held for sale in the current period is related to warehouse space in Maryland and the gain on sale of business in the prior period is related to the sale of RSDL® to SERB, partially offset by a loss the sale of the Company’s drug product facility in Baltimore-Camden to Bora.

Previous wording

Income tax provision (benefit) increased $3.5 million, or 21%, to $19.9 million for the six months ended June 30, 2025. The increase was primarily due to a change in jurisdictional mix of income and losses, reflecting a higher U.S. profitability in the second quarter of 2025 relative to 2024.

Current wording

Income tax provision decreased $17.7 million, or 40%, to $26.3 million for the nine months ended September 30, 2025. The decrease was primarily due to a change in jurisdictional mix of income and losses, reflecting a lower profitability in Ireland in the third quarter of 2025 relative to 2024.

Previous wording

Commercial Products gross margin decreased $81.1 million, or 71%, to $33.0 million for the six months ended June 30, 2025. Commercial Products gross margin percentage decreased 19 percentage points to 29% for the six months ended June 30, 2025. The decrease was largely due to lower sales of OTC NARCAN® and lower branded NARCAN®sales, as well as an unfavorable price and volume mix. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $18.9 million and restructuring costs of $0.2 million.

Current wording

Commercial Products gross margin decreased $15.8 million, or 41%, to $22.9 million for the three months ended September 30, 2025. Commercial Products gross margin percentage decreased 10 percentage points to 31% for the three months ended September 30, 2025. The decrease was largely due to lower sales of OTC NARCAN® and lower branded NARCAN®sales, as well as an unfavorable price and volume mix, partially offset by an increase in KLOXXADO® sales. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.4 million.

Previous wording

NARCAN® sales decreased $52.5 million, or 44%, to $67.5 million for the three months ended June 30, 2025. The decrease was primarily driven by lower sales of OTC NARCAN® and lower Canadian sales of branded NARCAN®, primarily driven by an unfavorable price and volume mix.

Current wording

Naloxone sales decreased $146.1 million, or 44%, to $187.7 million for the nine months ended September 30, 2025. The decrease was primarily driven by lower sales of OTC NARCAN® and lower Canadian sales of branded NARCAN®, primarily driven by unfavorable pricing changes and unit volumes, partially offset by an increase in KLOXXADO® sales.

Previous wording

Cost of Commercial Product sales decreased $17.0 million, or 32%, to $36.4 million for the three months ended June 30, 2025. The decrease was primarily due to lower sales of OTC NARCAN® and lower Canadian sales of branded NARCAN®.

Current wording

Cost of Commercial Product sales decreased $49.2 million, or 32%, to $103.5 million for the nine months ended September 30, 2025. The decrease was primarily due to lower sales of OTC NARCAN® and lower Canadian sales of branded NARCAN®, partially offset by an increase in KLOXXADO® sales.

Previous wording

Commercial Products gross margin decreased $35.4 million, or 62%, to $21.7 million for the three months ended June 30, 2025. Commercial Products gross margin percentage decreased 16 percentage points to 32% for the three months ended June 30, 2025. The decrease was largely due to lower sales of OTC NARCAN® and lower branded NARCAN®sales, as well as an unfavorable price and volume mix. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $9.4 million and restructuring costs of $0.2 million.

Current wording

Commercial Products gross margin decreased $96.9 million, or 63%, to $55.9 million for the nine months ended September 30, 2025. Commercial Products gross margin percentage decreased 16 percentage points to 30% for the nine months ended September 30, 2025. The decrease was largely due to lower sales of OTC NARCAN® and lower branded NARCAN®sales, as well as an unfavorable price and volume mix, partially offset by an increase in KLOXXADO® sales. Commercial Products segment adjusted gross margin in the current year period excludes the impact of intangible asset amortization of $28.3 million and restructuring costs of $0.2 million.

Previous wording

Anthrax MCM sales decreased $27.1 million, or 70%, to $11.6 million for the three months ended June 30, 2025. The decrease primarily reflects the impact of the timing of sales related to CYFENDUS®, partially offset by the timing of sales of BioThrax®. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and Company delivery of orders that follow.

Current wording

Anthrax MCM sales decreased $10.0 million, or 88%, to $1.4 million for the three months ended September 30, 2025. The decrease primarily reflects the impact of timing of USG sales of BioThrax®as well as timing of international sales of CYFENDUS®in the prior year period. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and Company delivery of orders that follow.

Previous wording

MCM Product gross margin increased $0.3 million, or 1%, to $25.8 million for the three months ended June 30, 2025. MCM Product gross margin percentage increased 4 percentage points to 44% for the three months ended June 30, 2025. The increase in gross margin percentage was primarily due to a favorable sales mix which was weighted more heavily towards higher margin products and a decrease in shutdown costs compared with the second quarter of 2024. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $6.8 million and restructuring costs of $(0.4) million.

Current wording

MCM Product gross margin decreased $15.8 million, or 14%, to $97.5 million for the three months ended September 30, 2025. MCM Product gross margin percentage increased 3 percentage points to 68% for the three months ended September 30, 2025. The increase in gross margin percentage was primarily due to a favorable sales mix which was weighted more heavily towards higher margin products and a decrease in shutdown and severance related costs compared with the third quarter of 2024. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $6.9 million and restructuring costs of $0.2 million.

Previous wording

Anthrax MCM sales decreased $35.1 million, or 37%, to $59.5 million for the six months ended June 30, 2025. The decrease reflects the impact of the timing of sales related to CYFENDUS®, partially offset by the timing of sales related to Anthrasil®and BioThrax®. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and Company delivery of orders that follow.

Current wording

Anthrax MCM sales decreased $45.1 million, or 43%, to $60.9 million for the nine months ended September 30, 2025. The decrease reflects the impact of the timing of USG sales of CYFENDUS®and BioThrax®, partially offset by increases due to timing of Canadian sales of Anthrasil®and an increase of BioThrax®international sales. Anthrax vaccine product sales are primarily made under annual purchase options exercised by the USG. Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing of USG purchases, the availability of governmental funding and Company delivery of orders that follow.

Previous wording

Other Products sales decreased $0.6 million, or 9%, to $6.2 million for the three months ended June 30, 2025. The decrease was primarily due to no RSDL® product sales in the current year period due to the sale of RSDL®to SERB in the third quarter of 2024, partially offset by higher BAT® sales due to timing.

Current wording

Other Products sales decreased $20.2 million, or 23%, to $66.0 million for the nine months ended September 30, 2025. The decrease was primarily due to no RSDL® product sales in the current year period due to the sale of RSDL® to SERB in the third quarter of 2024 and a decrease in BAT® foreign sales, partially offset by higher USG BAT® sales due to timing.

Previous wording

MCM Product gross margin increased $13.5 million, or 12%, to $125.4 million for the six months ended June 30, 2025. MCM Product gross margin percentage increased 7 percentage points to 58% for the six months ended June 30, 2025. The increase in gross margin percentage was primarily due to a favorable sales mix which was weighted more heavily towards higher margin products and a decrease in shutdown costs compared with the prior year period. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $13.6 million, inventory step-up provision of $1.8 million and restructuring costs of $(1.2) million.

Current wording

MCM Product gross margin decreased $2.3 million, or 1%, to $222.9 million for the nine months ended September 30, 2025. MCM Product gross margin percentage increased 5 percentage points to 62% for the nine months ended September 30, 2025. The increase in gross margin percentage was primarily due to a favorable sales mix which was weighted more heavily towards higher margin products and a decrease in shutdown and severance costs compared with the prior year period. MCM Product segment adjusted gross margin in the current year period excludes the impacts of intangible asset amortization of $20.5 million, inventory step-up provision of $1.8 million and restructuring costs of $(1.0) million.

Previous wording

Services revenues decreased $60.3 million, or 93%, to $4.4 million for the three months ended June 30, 2025. The decrease was primarily attributable to the one time $50.0 million arbitration settlement (the “Settlement Agreement”) with Janssen Pharmaceuticals, Inc. (“Janssen”), one of the Janssen Pharmaceutical Companies of Johnson & Johnson, related to the 2022 termination of the manufacturing services agreement with Janssen, coupled with a decrease in revenue from the Company’s Camden facility in the current year period, which was sold to Bora in the third quarter of 2024, partially offset by an increase in production at the Company's Winnipeg facility.

Current wording

Services revenues decreased $9.7 million, or 68%, to $4.6 million for the three months ended September 30, 2025. The decrease was primarily attributable to a decrease in revenue from the Company’s Camden facility in the current year period, which was sold to Bora in the third quarter of 2024, partially offset by an increase in production at the Company's Winnipeg facility.

Previous wording

Contracts and grants revenue increased $9.1 million, or 62%, to $23.7 million for the six months ended June 30, 2025. The increase was due to development work in connection with Ebanga TM.

Current wording

Contracts and grants revenue decreased $0.9 million, or 9%, to $9.1 million for the three months ended September 30, 2025. The decrease was due to declines in overall funded R&D projects, partially offset by an increase in development work in connection with Ebanga TM.

Previous wording

Services revenues decreased $71.6 million, or 86%, to $11.6 million for the six months ended June 30, 2025. The decrease was primarily attributable to the one time $50.0 million arbitration settlement with Janssen related to the Settlement Agreement, coupled with a decrease in revenue from the Company’s Camden facility in the current year period, which was sold to Bora in the third quarter of 2024, partially offset by an increase in production at the Company's Winnipeg facility.

Current wording

Services revenues decreased $81.3 million, or 83%, to $16.2 million for the nine months ended September 30, 2025. The decrease was primarily attributable to the one time $50.0 million arbitration settlement with Janssen related to the Settlement Agreement, coupled with a decrease in revenue from the Company’s Camden facility in the current year period, which was sold to Bora in the third quarter of 2024, partially offset by an increase in production at the Company's Winnipeg facility.

Previous wording

Contracts and grants revenue increased $4.0 million, or 61%, to $10.6 million for the three months ended June 30, 2025. The increase was due to development work in connection with Ebanga TM.

Current wording

Contracts and grants revenue increased $8.2 million, or 33%, to $32.8 million for the nine months ended September 30, 2025. The increase was due to development work in connection with Ebanga TM, partially offset by a decrease in overall funded R&D projects.

Previous wording

SG&A expenses decreased $5.5 million, or 6%, to $85.9 million for the three months ended June 30, 2024. The decrease was primarily due to lower employee related expenses and compensation as a result of restructuring initiatives during 2023, coupled with a decrease in marketing expense. The decrease was partially offset by higher legal services fees for disputes and other corporate initiatives, as well as higher restructuring costs. SG&A expenses as a percentage of total revenues increased 7 percentage points to 34% for the three months ended June 30, 2024.

Current wording

SG&A expenses decreased $9.4 million, or 11%, to $76.6 million for the three months ended September 30, 2024. The decrease was primarily due to lower employee related expenses and compensation as a result of restructuring initiatives during 2023 and 2024, coupled with a decrease in legal services fees for disputes and other corporate initiatives. The decrease was partially offset by the settlement charge related to the stockholder litigation matter, net of expected insurance proceeds. SG&A expenses as a percentage of total revenues decreased 6 percentage points to 26% for the three months ended September 30, 2024.

Previous wording

Interest expense decreased $5.0 million, or 17%, to $23.6 million for the three months ended June 30, 2024. The decrease was primarily due to lower interest costs related to our syndicated borrowings and debt service costs attributable to the negotiation of the Fourth Amendment to Amended and Restated Credit Agreement, Waiver and First Amendment to Amended and Restated Collateral Agreement in the second quarter of 2023, partially offset by higher interest expense related to the termination of our interest rate swap hedging agreements.

Current wording

Interest expense decreased $11.4 million, or 58%, to $8.3 million for the three months ended September 30, 2024. The decrease was primarily due to lower amortization of debt service costs coupled with lower interest costs related to our syndicated borrowings, partially offset by higher interest expense related to the termination of our interest rate swap hedging agreements and interest related to our Term Loan Agreement.

Previous wording

Gain (loss) on sale of business and assets held for sale was a loss of $40.0 million for the six months ended June 30, 2024 compared to a gain of $74.9 million for the six months ended June 30, 2023. The loss on sale of business and assets held for sale is related to the held for sale treatment of the Company’s drug product facility in Baltimore-Camden, which the Company agreed to sell to Bora. The gain on sale of business and assets held for sale in the prior year is attributable to the sale of our travel health business to Bavarian Nordic during the second quarter of 2023.

Current wording

Gain (loss) on sale of business and assets held for sale was a gain of $64.3 million for the three months ended September 30, 2024, compared with a loss of $0.7 million for the three months ended September 30, 2023. The gain on sale of business in the current year is related to the sale of RSDL® to SERB coupled with a reduction to the loss on the sale of the Company’s drug product facility in Baltimore-Camden to Bora, which is attributable to a net working capital adjustment payable to the Company. The loss on sale of business in the prior year is attributable to a net working capital adjustment, payable to Bavarian Nordic, related to the sale of our travel health business to Bavarian Nordic during the second quarter of 2023.

Previous wording

Income tax provision increased $2.1 million, or 19%, to $13.3 million for the three months ended June 30, 2024. The increase was primarily due to an increase in taxable income in the Company’s profitable jurisdictions.

Current wording

Income tax provision increased $30.1 million, to $27.6 million for the three months ended September 30, 2024. The increase was primarily due to an increase in taxable income in the Company’s profitable jurisdictions.

Previous wording

Total revenues increased $52.9 million, or 11%, to $555.1 million for the six months ended June 30, 2024. The increase was due increases in Services revenue of $39.7 million, MCM Products revenue of $17.3 million and Contracts and grants revenue of $1.5 million, partially offset by a decrease Commercial Products revenue of $5.6 million.

Current wording

Total revenues increased $76.2 million, or 10%, to $848.9 million for the nine months ended September 30, 2024. The increase was due increases in Services revenue of $39.8 million and MCM Products revenue of $83.8 million, partially offset by a decrease Commercial Products revenue of $52.4 million.

Previous wording

Intangible asset amortization decreased $0.6 million, or 2%, to $32.5 million for the six months ended June 30, 2024. The decrease was due to a decrease in amortization expense resulting from the intangibles sold with our travel health business to Bavarian Nordic, partially offset by an increase in amortization expense for the intangible asset related to Ebanga TM.

Current wording

Intangible asset amortization decreased $0.6 million, or 1%, to $48.8 million for the nine months ended September 30, 2024. The decrease was due to a decrease in amortization expense resulting from the intangibles sold with our travel health business to Bavarian Nordic, partially offset by an increase in amortization expense for the intangible asset related to Ebanga TM.

Previous wording

R&D expenses decreased $18.9 million, or 28%, to $47.8 million for the six months ended June 30, 2024. The decrease was primarily due to the sale of our development program for CHIKV VLP to Bavarian Nordic in the second quarter of 2023 and reduction in related overhead costs driven by the headcount reductions. The decrease was also driven by a reduction in spend for certain funded projects, excluding Ebanga TM. The decrease was partially offset by write-offs related to program terminations during the period, an increase in the allocation of R&D overhead costs, an increase in severance costs and an increase in funded R&D related to Ebanga TM.

Current wording

R&D expenses decreased $20.4 million, or 25%, to $61.6 million for the nine months ended September 30, 2024. The decrease was primarily due to the sale of our development program for CHIKV VLP to Bavarian Nordic in the second quarter of 2023 and lower overhead costs driven by headcount reductions. The decrease was also driven by the wind-down of funded projects, excluding Ebanga TM. The decrease was partially offset by write-offs related to program terminations during the period and increases in the allocation of R&D overhead costs and funded R&D related to Ebanga TM.

Previous wording

SG&A expenses decreased $22.1 million, or 11%, to $170.6 million for the six months ended June 30, 2024. The decrease was primarily due to lower employee related expenses and compensation as a result of restructuring initiatives during 2023 and lower professional services fees related to general corporate initiatives, including organizational transformation consulting fees. These decreases were partially offset by higher legal services fees for disputes and strategic corporate initiatives, as well as higher restructuring costs. SG&A expenses as a percentage of total revenues decreased 7 percentage points to 31% for the six months ended June 30, 2024.

Current wording

SG&A expenses decreased $31.5 million, or 11%, to $247.2 million for the nine months ended September 30, 2024. The decrease was primarily due to lower employee related expenses and compensation as a result of restructuring initiatives during 2023 and 2024, lower professional services fees related to corporate initiatives, including organizational transformation consulting fees, and lower legal fees due to the wind-down of various legal matters. This decrease was partially offset by the settlement charge related to the stockholder litigation matter, net of expected insurance proceeds. SG&A expenses as a percentage of total revenues decreased 7 percentage points to 29% for the nine months ended September 30, 2024.

Previous wording

Impairment of long-lived assets decreased $279.5 million, or 91%, to $27.2 million for the three months ended June 30, 2024. The decrease was due to a $27.2 million non-cash impairment charge in the second quarter of 2024 related to our Bayview and Rockville asset groups within the Bioservices reporting unit, compared with a $306.7 million non-cash impairment charge recorded in the second quarter of 2023 related to our Camden, Bayview and Rockville asset groups within the Bioservices reporting unit.

Current wording

Impairment of long-lived assets decreased $279.5 million, or 91%, to $27.2 million for the nine months ended September 30, 2024. The decrease was due to a $27.2 million non-cash impairment charge in the second quarter of 2024 related to our Bayview and Rockville asset groups within the Bioservices reporting unit, compared with a $306.7 million non-cash impairment charge recorded in the second quarter of 2023 related to our Camden, Bayview and Rockville asset groups within the Bioservices reporting unit.

Previous wording

Interest expense increased $1.4 million, or 3%, to $47.9 million for the six months ended June 30, 2024. The increase was primarily due to interest expense related to the termination of our interest rate swap hedging agreements and one-time debt service costs attributable to the negotiation of the Forbearance Agreement and Sixth Amendment and the Seventh Amendment to the Amended and Restated Credit Agreement, partially offset by lower interest costs related to our syndicated borrowings.

Current wording

Interest expense decreased $10.0 million, or 15%, to $56.2 million for the nine months ended September 30, 2024. The decrease was primarily due to a decrease in interest expense related to our syndicated borrowings and a decrease in amortization of debt service costs, partially offset by higher interest expense related to the termination of our interest rate swap hedging agreements and interest related to our Term Loan Agreement.

Previous wording

Gain (loss) on sale of business and assets held for sale was a loss of $40.0 million for the three months ended June 30, 2024 compared to a gain of $74.9 million for the three months ended June 30, 2023. The loss on sale of business and assets held for sale is related to the held for sale treatment of the Company’s drug product facility in Baltimore-Camden, which the Company agreed to sell to Bora. The gain on sale of business and assets held for sale in the prior year is attributable to the sale of our travel health business to Bavarian Nordic during the second quarter of 2023.

Current wording

Gain (loss) on sale of business and assets held for sale decreased $49.9 million, or 67%, to $24.3 million for the nine months ended September 30, 2024 The gain on sale of business in the current year is related to the sale of RSDL® to SERB, partially offset by a loss the sale of the Company’s drug product facility in Baltimore-Camden to Bora. The gain on sale of business in the prior year is attributable to the sale of our travel health business to Bavarian Nordic during the second quarter of 2023.

Previous wording

Other, net went from $1.3 million in income to $6.1 million in expense for the six months ended June 30, 2024. The change of $7.4 million was primarily attributable to lower interest income, due to lower balances in our money market accounts and a write-off of an equity method investment.

Current wording

Other, net was $15.8 million in income for the for the nine months ended September 30, 2024 compared to $2.1 million in expense for the nine months ended September 30, 2023. The change of $17.9 million was primarily due to income associated with development milestone achievements related to CHIK VLP, partially offset by a loss on the sale of a building at our Canton facility, lower interest income, due to lower balances in our money market accounts, and a write-off of an equity method investment.