Emergent to axe employees, close plants

May 2, 2024

Emergent BioSolutions has revealed plans to lay off approximately 300 employees and close two plants as part of the "next phase" of its comprehensive operational restructuring.

The changes come as the company aims to stabilize its financial position and focus on core product areas —  medical countermeasures and Narcan nasal spray A new chief science officer role was also created as part of the reorganization.

The plan includes the shutdown of Emergent's Baltimore-Bayview drug substance manufacturing facility and its Rockville, Maryland drug product facility. Operations will be consolidated at the company’s remaining sites in Winnipeg, Canada and Lansing, Michigan.

The company anticipates these measures will generate annual cost savings of approximately $80 million. Restructuring costs are expected to range from $18 million to $21 million, to be incurred primarily in the second half of 2024.

The restructuring was first initiated last August, when Emergent announced it would be cutting around 400 jobs and reducing investment in its CDMO business. At the time, the company also announced plans to scale back operations at its Baltimore Bayview facility, which had expanded in 2017 to enhance pandemic preparedness. This facility faced setbacks during the COVID-19 pandemic, including a critical vaccine batch failure and subsequent regulatory challenges.