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Emergent Biosolutions IPO Next Week

Associated Press
http://www.forbes.com/markets/feeds/ap/2006/11/09/ap3160650.html

Biopharmaceutical company Emergent Biosolutions Inc. is expected to go public next week, offering 5 million shares at between $14 and $16 per share.


The Gaithersburg, Md. based company expects proceeds of $66.3 million, or $70.1 million if the underwriters exercise their right to an additional 750,000 shares. The figure assumes a debut price at $15.

Emergent plans to use about $10 million to fund development of its biodefense product candidates, which include a next generation anthrax vaccine. About $19 million would go toward clinical development of commercial product candidates, including a typhoid vaccine and hepatitis B vaccine, while an additional $25 million would fund the construction of a new manufacturing facility in Lansing, Michigan and designs for a build-out of facilities in Frederick, Md.

The remainder would be used for general corporate purposes, which could include expanding the sales and marketing operations or the buyout of technologies and products.

The company makes BioThrax, the only anthrax vaccine approved by the Food and Drug Administration. It is developing a treatment for anthrax infection and botulinum toxin infection, as well as a next generation anthrax vaccine. Other vaccines under development include typhoid, hepatitis B, chlamydia and meningitis B. Most of the vaccines are either in preclinical or early clinical development.

Emergent already has a position in the biodefense market with its anthrax vaccine. It competes in a crowded field of companies making and developing vaccines, including GlaxoSmithKline and Merck & Co. The company is collaborating with Sanofi-Pasteur, the vaccines business of Sanofi-Aventis, to develop a meningitis B vaccine.

JP Morgan Securities Inc., Cowen and Company LLC and HSBC Securities Inc. are underwriters for the IPO. The stock will be listed under the ticker "EBS" on the New York Stock Exchange.

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