Emergent BioSolutions wins $235.8M DoD contract

Tasos Katopodis/Getty Images News Emergent BioSolutions ( NYSE: EBS ) traded ~7% higher premarket Thursday after the contract manufacturer said the U.S. Department of Defense ((DoD)) awarded it a contract worth up to $235.8M to supply its anthrax vaccine. Per the terms, the Gaithersburg, Maryland based biotech will deliver its BioThrax (Anthrax Vaccine Adsorbed) product for the use of the U.S.

military as a measure to prevent anthrax disease. The contract consists of a five year base agreement ending on September 30, 2028, and an additional five year option extending it through September 30, 2033. According to the deal, a minimum of $20.1M worth of products should be purchased during the initial five year period.

And for the following years, the annual order size should be at least $20M. “This new contract award is a testament to the importance of Emergent’s medical countermeasures portfolio, and we look forward to delivering on our commitments to the U.S. DoD,” Emergent’s ( EBS ) product head Paul Williams remarked.

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