Emergent BioSolutions Inc. (EBS): Business Model Canvas [Dec-2025 Updated]

You're digging into a company making a serious pivot, and honestly, understanding the mechanics of that shift is key to knowing if the turnaround sticks. Emergent BioSolutions Inc. is deep into a multiyear reset, aiming for stability by late 2025 by leaning hard on its government medical countermeasures and the commercial success of NARCAN. Here's the quick math: they are guiding for total FY 2025 revenue between $775 million and $835 million, all while slashing overhead-SG&A expenses dropped about 50% in Q3 2025 alone. To see exactly how they're balancing life-saving national preparedness supply with retail pharmacy presence, check out the full Business Model Canvas breakdown below.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Emergent BioSolutions Inc. running, especially as they navigate their multi-year turnaround plan. Here are the hard numbers defining those key partnerships as of late 2025.

Enduring contracts with the U.S. Government for Medical Countermeasures (MCM)

The U.S. Government remains a bedrock partner, with recent contract modifications showing continued investment in biodefense readiness. These figures reflect procurements announced through the Biomedical Advanced Research and Development Authority (BARDA) and other agencies.

Here's the quick math on recent domestic contract activity:

Product/Program	Contract Modification Value (USD)	Announcement Period	Source Agency/Authority
ACAM2000® (Smallpox/Mpox Vaccine)	$56 million	Q2 2025	U.S. Government/BARDA
CYFENDUS® (Anthrax Vaccine)	$30 million	Q2 2025	BARDA
TEMBEXA® (Smallpox Antiviral)	$17 million	Q2 2025	U.S. Government
ACAM2000® (July 2024 Modification)	$99.9 million	July 2024	ASPR
VIGIV® and BAT® (July 2024 Options)	$122.9 million (Total)	July 2024	ASPR

Also, data shows a payment of $52 million was made to EMERGENT BIOSOLUTIONS CANADA INC from the Department of Health and Human Services on July 2, 2025. In July 2024, total contract modifications exceeded $250 million for four MCMs.

Strategic alliances with international governments for biodefense product sales

International government orders provide important revenue diversification for the MCM portfolio.

• Secured $29 million in new product orders from an international government partner in September 2025, covering anthrax, smallpox, and botulism countermeasures.
• International sales of Medical Countermeasures (MCM) products contributed $91 million to total Q1 2025 revenue.
• Emergent BioSolutions Canada Inc. secured approximately $27.0 million in international orders targeted for delivery in 2025.

Commercial partnership with Ridgeback Biotherapeutics for Ebanga

The collaboration for Ebanga™, the Ebola treatment, involves specific roles for manufacturing and distribution in North America, underpinned by a large potential government contract.

• The 10-year contract with BARDA for Ebanga™ development and procurement has a maximum total value of up to $704 million if all option periods are exercised.
• Development work related to Ebanga™ contributed $4.0 million to Q2 2025 contracts and grants revenue.
• Development work for Ebanga™ contributed $5.1 million to Q1 2025 contracts and grants revenue.
• Emergent is responsible for manufacturing, sale, and distribution in the U.S. and Canada, per the July 2022 agreement.

Collaboration with Rocketvax on a Phase I trial for a new vaccine candidate

Emergent BioSolutions Inc. made a strategic financial investment into Rocketvax's parent company, Swiss Rockets Ltd, in March 2025.

• Emergent will lead U.S. manufacturing and commercialization efforts for four of Rocketvax's pipeline candidates.
• One candidate, a live-attenuated nasal spray SARS-CoV-2 vaccine, has a letter of intent with the U.S. National Institutes of Health (NIH) to support a clinical trial under the Project NextGen initiative.

Distribution partners for commercial products like NARCAN in retail channels

NARCAN® Nasal Spray sales volumes and revenues are tracked closely, showing shifts in OTC versus government/retail channels.

• Since 2016, more than 85 million doses of NARCAN® Nasal Spray have been distributed across the U.S. and Canada.
• In 2024, the company distributed 11 million cartons (each including 2 doses) of NARCAN® Nasal Spray.
• NARCAN® revenues for Q2 2025 were $52.5 million, a decrease of 44% year-over-year, driven by lower OTC sales.
• NARCAN® revenues for Q1 2025 were $45.3 million, a decrease of 62% year-over-year.
• In Q1 2025, Emergent BioSolutions secured a three-year agreement valued at approximately $65.0 million to supply the Ontario Ministry of Health with NARCAN® Nasal Spray.

Finance: review Q3 2025 guidance impact from NARCAN revenue trends by end of week.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Key Activities

Manufacturing and supply of critical biodefense products (e.g., Anthrax, Smallpox MCM).

Emergent BioSolutions Inc. continues the activity of supplying medical countermeasures (MCM) to governmental and international customers. For the first nine months of 2025, total product sales were $545 million. The company secured eleven MCM contract modifications and product orders in 2025 year-to-date. International customers accounted for 34% of Medical Countermeasures sales year-to-date as of Q3 2025.

Specific product revenue fluctuations in Q3 2025 compared to Q3 2024 included:

• Revenues from Anthrax MCM products decreased by 88%.
• Revenues from Other Product sales (including BAT) increased by 91%.

The company's Q3 2025 Gross Margin % stood at 54%, with an Adjusted Gross Margin % of 61%.

Executing a multiyear turnaround plan focused on cost reduction and efficiency.

The execution of the multiyear transformation plan is a central activity, with management noting that operating margin and cash flow grew significantly throughout 2025 as they executed this plan. The company is executing the second phase, the 'Turnaround' phase, aimed at profitable growth. Cost reduction is evident in the Q3 2025 operating expenses, which totaled $176 million, a $133 million reduction from the prior year. SG&A spend specifically declined roughly 50% from the prior year. The restructuring actions initiated in 2024 were projected to achieve annual savings of about $80 million once fully implemented. Financial stability metrics reflect this focus, with net leverage at the end of Q3 2025 being approximately 2x Adjusted EBITDA.

Key financial performance indicators for Q3 2025 include:

Metric	Value
Adjusted EBITDA	$87.8 million
Adjusted EBITDA Margin	38%
Net Income	$51.2 million
Net Income Margin	22%

Research and development (R&D) for pipeline candidates and existing products (e.g., Ebanga).

Emergent BioSolutions Inc. maintains R&D activities while preserving critical capabilities to support long-term growth. R&D expenses in Q3 2025 were $0.3 million lower, or 2%, compared to Q3 2024. This decrease was partially offset by an increase in unfunded R&D project spend and in Ebanga related development work. Development work connected to Ebanga™ also drove increases in contract and grant revenues in earlier quarters, such as a 64% increase in Q1 2025 and a 61% increase in Q2 2025 compared to the prior year periods.

Managing the North America-based supply chain for product delivery.

Supply chain management involves ongoing production at specific sites following divestitures. The Camden facility revenue decreased in Q3 2025 as it was sold in Q3 2024. Conversely, production increased at the Winnipeg facility, contributing to revenue in Q3 2025. The company focuses on managing the supply chain for product delivery, which is evidenced by the sequential growth in naloxone revenue.

Supply chain and operational costs saw a significant reduction in Q3 2025:

• Cost of product and services sales, net decreased by $36.7 million, or 30%, versus Q3 2024.
• Cost of Services decreased by $16.2 million year-over-year in Q3 2025.

Maintaining market leadership in the naloxone nasal spray category.

Maintaining market leadership for naloxone nasal spray, including NARCAN® Nasal Spray, remains a key focus. Emergent BioSolutions Inc. recognized the 10-Year Anniversary of the U.S. FDA Approval of NARCAN® Nasal Spray in November 2025. The company is the leading U.S. supplier of nasal naloxone. In Q3 2025, NARCAN Nasal Spray revenue showed strong sequential growth. Specifically, unit volume for NARCAN was up 13% quarter-over-quarter, and revenue was up 9% in Q3 2025. However, Q3 2025 revenues from Naloxone products were down 21% compared to Q3 2024, driven by an unfavorable price and volume mix for OTC NARCAN® and Canadian branded NARCAN®. The broader global naloxone spray market size was estimated to grow from $661.87 billion in 2024 to $810.65 billion in 2025.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Key Resources

You're looking at the core assets Emergent BioSolutions Inc. (EBS) relies on to execute its mission of protecting and saving lives through medical countermeasures (MCMs). These aren't just abstract concepts; they are tangible assets, contracts, and specialized knowledge that underpin their operations as of late 2025.

Diversified Portfolio and Regulatory Approvals

Emergent BioSolutions Inc. maintains a portfolio designed to address several Category A biological agents, including Anthrax, Botulism, Smallpox, and Viral hemorrhagic fevers like Ebola. This is supported by specific intellectual property and recent regulatory milestones for key products.

Here's a look at the status of the core MCMs:

Product	Primary Indication/Focus	Recent/Key Regulatory/Contract Data (as of late 2025)
NARCAN Nasal Spray	Emergency treatment of known or suspected opioid overdose	Marked the 10-year anniversary of U.S. Food and Drug Administration (FDA) approval for the first FDA-approved nasal naloxone spray. Shelf-life extended to 48 months (Four Years) as of January 2024.
ACAM2000	Smallpox and Mpox (Vaccinia) Vaccine, Live	Received FDA approval for an expanded indication to include prevention of mpox disease in high-risk individuals. Secured a contract modification of $56 million in September 2025 for U.S. government supply. Projected sales for ACAM2000 and related products expected to exceed $120 million this year.
TEMBEXA (brincidofovir)	Antiviral treatment	Secured a contract modification award of $17 million for Oral Suspension TEMBEXA. Received EUNDS Approvals by Health Canada in December 2023.
CYFENDUS	Anthrax Vaccine Adsorbed, Adjuvanted	Secured a contract modification award of $30 million.
CNJ-016 (VIGIV)	Vaccinia Immune Globulin Intravenous (Human)	Secured a contract modification award of $52 million.

The company also announced approximately $27 million in international orders in March 2025 for five critical MCM products, targeting smallpox and anthrax threats.

Manufacturing and Supply Chain Footprint

Emergent BioSolutions Inc. relies on a North American manufacturing network, which they state is USMCA-compliant. This network supports both clinical and commercial production.

• Has four manufacturing facilities across North America, with sites in the United States and Canada.
• Possesses both Biosafety Level 2 and Level 3 manufacturing capabilities.
• The Baltimore-Bayview drug substance manufacturing facility was sold in the first quarter of 2025 for a total value of $36.5 million.

Financial Capacity

Liquidity is a key resource, especially when managing long-term government contracts. You need to know the current balance sheet strength.

Metric	Amount as of Q3 2025 (September 30, 2025)
Total Liquidity	$346 million
Balance Sheet Cash	$246 million
Undrawn Revolver Capacity	$100 million
Gross Debt	$693 million
Total Net Debt	$448 million

This liquidity position improved by $96 million year-over-year.

Specialized Expertise

The institutional knowledge built over time is irreplaceable. Emergent BioSolutions Inc. has over 25 years of experience developing, manufacturing, and delivering MCMs. This expertise covers complex products such as spore formers, live attenuated viruses, and plasma products, both human and equine.

The company has secured eleven MCM contract modifications and product orders in 2025 alone.

Finance: draft 13-week cash view by Friday.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Value Propositions

Providing life-saving solutions for opioid overdose reversal (NARCAN).

The NARCAN franchise showed strong sequential revenue growth, driven by NARCAN Nasal Spray, with unit volume increasing by 13% Quarter-over-Quarter through the third quarter of 2025. For the third quarter of 2025, revenues from Naloxone products were $74.9 million, a decrease of 21% compared to the third quarter of 2024. Year-to-date revenue for the naloxone nasal spray product line reached $188 million.

Securing national preparedness with government-stockpiled MCMs.

Emergent BioSolutions Inc. secured eleven Medical Countermeasures (MCM) contract modifications and product orders in 2025 year-to-date, highlighting consistent global demand. In the third quarter of 2025 alone, the company secured four new U.S. government contract modifications totaling approximately $155 million.

Offering a reliable, North America-based supply of critical public health products.

The company emphasizes its commitment to maintaining a strong North America-based supply chain.

Delivering high-margin international MCM sales, driving profitability.

International customers represented 34% of Medical Countermeasures sales year-to-date as of the third quarter of 2025. International revenue accounted for 40 to 48% of medical countermeasure sales year-to-date. The third quarter of 2025 saw new purchase orders from an international government partner valued at $29 million (USD), with approximately $26 million expected to be received in 2025. This international demand contributes to margin expansion, with the third quarter 2025 Adjusted Gross Margin percentage at 61%.

Supplying a diversified portfolio against chemical, biological, and radiological threats.

The value proposition is supported by a portfolio addressing multiple threat segments, including smallpox, anthrax, and botulism.

Here's a look at the Medical Countermeasures (MCM) product sales breakdown for the third quarter of 2025 (amounts in millions USD):

MCM Category	Q3 2025 Revenue ($ millions)	Year-over-Year Change (%)
Smallpox MCM	83.6	(37)
Anthrax MCM	1.4	(88)
Other Products	57.5	91

The Other Products category includes contributions from BAT and RSDL.

The company's overall product sales composition in the third quarter of 2025 included:

• Naloxone: $74.9 million
• MCM Products (Anthrax and Smallpox): $85.0 million ($1.4 million + $83.6 million)
• Other Products: $57.5 million

Total Product sales, net for the third quarter of 2025 were $217.4 million.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Customer Relationships

You're looking at how Emergent BioSolutions Inc. (EBS) manages its most critical customer relationships, which are heavily skewed toward government entities for its Medical Countermeasures (MCM) portfolio. This isn't just about selling; it's about long-term partnership and maintaining readiness for national security threats. The relationship management here is highly dedicated and personal, given the nature of biodefense products.

Dedicated, long-term relationship management for U.S. government contracts is the bedrock of the MCM business. Fluctuations in revenue for products like Anthrax MCM directly reflect the timing of U.S. government (USG) purchases and the exercise of annual purchase options under existing procurement contracts. For instance, in Q4 2024, Anthrax MCM revenues dropped 71% compared to Q4 2023, showing how dependent these figures are on the USG's procurement schedule. Conversely, Smallpox MCM revenues saw a massive 565% increase in Q4 2024 over Q4 2023, driven by the timing of USG purchases of VIGIV CNJ-016®.

We can map out some of the recent, significant USG engagements that define this relationship:

Product/Program	Contract/Order Value (USD)	Reporting Period	Customer/Agency
ACAM2000® (Smallpox/Mpox Vaccine)	$56 Million (Modification)	Q3 2025	U.S. Government
BAT® (Botulism Antitoxin)	$62.4 Million (Modification)	Q2 2025	U.S. Government (ASPR)
VIGIV® (Vaccinia Immune Globulin)	$51.9 Million (Modification)	Q2 2025	U.S. Government (ASPR)
Anthrax Vaccine (BioThrax®)	$235.8 Million (Five-year contract)	Announced in Q1 2024	U.S. Department of Defense

This steady flow of contract modifications, like the $30.0 Million modification for CYFENDUS® announced in July 2024, affirms Emergent BioSolutions Inc.'s standing as a trusted biodefense partner. You see this relationship in action when Q2 2025 Smallpox MCM revenues jumped 127% compared to Q2 2024, largely due to the timing of USG purchases for VIGIV CNJ-016®.

Direct engagement with public health agencies and first responders is most visible through the commercial side, particularly with naloxone. While prescription NARCAN® sales were discontinued following the OTC launch in Q3 2023, the focus shifted. For Q3 2025, total Naloxone revenues were $74.9 Million, a 21% decrease from Q3 2024, driven by lower OTC NARCAN® sales and Canadian sales, though this was partially offset by new KLOXXADO® sales. Honestly, the shift to OTC means the relationship with first responders and public health entities is now more about broad market availability and awareness campaigns, such as recognizing naloxone awareness days.

Maintaining market share through strong brand presence in the naloxone segment is a constant effort, even with revenue headwinds. For example, Q4 2024 NARCAN® revenues were $65.1 Million, down 41% from Q4 2023, largely due to lower OTC unit volume. The brand strength is being tested, but the company is actively defending its position.

The company also maintains strategic, high-level engagement with international government partners. This segment shows significant scale. For instance, in Q1 2025, international revenue accounted for 40% of total revenue, with international MCM sales reaching up to $91 Million. This global relationship building is crucial for sustaining the MCM portfolio, as seen when Q3 2025 Other Product sales increased 91% year-over-year, partly due to higher USG BAT® sales, but also reflecting the global health preparedness focus.

Finally, the direct-to-consumer aspect is managed through the proprietary distribution platform:

• The platform, NARCANDirect®, was expanded in Q2 2025 to offer KLOXXADO® (naloxone HCl) Nasal Spray and Convenience Kits.
• The company recognized the installation of over-the-counter naloxone in the U.S. House of Representatives buildings in Q2 2025, a direct engagement milestone.

Finance: draft 13-week cash view by Friday.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Channels

You're looking at how Emergent BioSolutions Inc. (EBS) gets its products to market as of late 2025. It's a mix of big government deals and direct-to-consumer access for naloxone.

Direct Sales and Procurement Contracts with the U.S. Government

The U.S. Government (USG) remains a core channel, primarily for Medical Countermeasure (MCM) products like vaccines. Fluctuations in revenue depend heavily on the timing of USG purchases and the exercise of annual purchase options under existing contracts. For the year-to-date period ending September 30, 2025, Smallpox MCM revenue stood at $231 million, and Anthrax MCM revenue was $61 million.

Recent contract activity highlights this channel's importance:

• Secured a $56 million contract modification in Q2 2025 to supply ACAM2000 vaccine to the USG, projecting total sales for that product line over $120 million for the year.
• Received a $30 million contract modification from BARDA for CYFENDUS.
• Total award payments to Emergent BioSolutions Canada Inc. reached $52 million in July 2025 from the Department of Health and Human Services.
• A payment of $62 million for BOTULISM ANTITOXIN was recorded in June 2025.
• Total award payments seen over the last year (as of June 2025) amounted to $321,734,826.

Direct Sales to International Governments and Allied Nations

International government sales are a growing component, particularly within the MCM segment. For the year-to-date period through Q3 2025, international MCM sales represented 34% of total MCM revenue. The company secured a $29 million contract from an international government in September 2025, expecting to recognize $26 million of that by the end of 2025. The full-year 2025 guidance for MCM Products is set between $450 million and $475 million.

Retail Pharmacy Channels for Over-the-Counter (OTC) NARCAN Nasal Spray

Commercial Products revenue, which includes NARCAN Nasal Spray, is guided for the full year 2025 to be between $265 million and $300 million. The year-to-date revenue for Naloxone nasal spray through Q3 2025 was $188 million. However, Q2 2025 saw a decrease in NARCAN revenue of $52.5 million, or 44%, compared to Q2 2024, driven by lower OTC sales and Canadian retail sales.

NARCANDirect Distribution Network for Public Interest Customers

While specific revenue figures for the NARCANDirect network are not separately itemized, the performance of branded NARCAN® sales, which includes public interest customers, is factored into the Commercial Products segment. The Q1 2025 NARCAN revenue decrease of $73.2 million, or 62% from Q1 2024, was attributed to lower OTC NARCAN sales and lower Canadian retail sales.

Wholesale Distributors for Commercial Product Sales

Sales through wholesale distributors are a key part of the Commercial Products channel, as evidenced by the impact of distributor activity on NARCAN sales. The Commercial Products segment gross margin percentage for Q3 2025 was 31%, down from the prior year quarter, largely due to lower sales of OTC NARCAN® and lower branded NARCAN® sales, as well as an unfavorable price and volume mix.

Here's a quick look at the revenue context near the end of 2025:

Metric	Amount (as of latest reported period)	Reference Period
Trailing Twelve Months (TTM) Revenue	$0.75 Billion USD	As of December 2025
Year-to-Date Revenue	$594 million	Through Q3 2025
FY 2025 Commercial Products Guidance	$265 million - $300 million	Full Year 2025 Forecast
NARCAN Nasal Spray Revenue	$188 million	Year-to-Date through Q3 2025
Q2 2025 NARCAN Revenue	$67.5 million	Q2 2025

The company reaffirmed its full-year 2025 total revenue guidance to be between $775 million and $835 million. Finance: draft Q4 cash flow projection by Wednesday.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Customer Segments

You're looking at the customer base for Emergent BioSolutions Inc. (EBS) as of late 2025, and it's heavily weighted toward government entities, though the commercial side, especially naloxone, remains a key revenue driver.

The Medical Countermeasures (MCM) business is anchored by the U.S. Government, which is the primary purchaser for national preparedness needs. This relationship is evidenced by recent contract activity, such as securing a $56 million contract modification for the ACAM2000 vaccine in the third quarter of 2025, and another $30 million modification for CYFENDUS. For the third quarter of 2025, revenues from Smallpox MCM products were $83.6 million, while Anthrax MCM revenues were $1.4 million.

International Governments and Allied Nations form a substantial part of the MCM segment. As of year-to-date 2025, these international customers represent 34% of total MCM sales. This segment saw a decrease in Q3 2025 compared to Q3 2024, partially offset by increases in international sales for CNJ-016 and ACAM2000.

The commercial side targets Public Interest/First Responders and Retail Consumers/Pharmacies, primarily through the naloxone franchise. For the third quarter of 2025, total Naloxone product revenues reached $74.9 million, representing a 21% decrease year-over-year. The suggested retail price for the over-the-counter (OTC) NARCAN® Nasal Spray was set at $44.99 per unit.

The Contract Development and Manufacturing Organization (CDMO) services component, categorized under Services revenue, has been de-emphasized following strategic divestitures. Revenues from Services dropped significantly, showing a 68% decrease in Q3 2025 compared to Q3 2024, largely due to the sale of the Camden facility in the prior year.

Here's a quick look at how the product sales broke down in Q3 2025:

Customer/Product Group	Q3 2025 Revenue (in millions USD)	Year-over-Year Change (Q3 2025 vs Q3 2024)
Naloxone (Commercial Products)	$74.9	(21)%
Smallpox MCM (Government Focus)	$83.6	(37)%
Anthrax MCM (Government Focus)	$1.4	(88)%
Other Products (e.g., BAT®)	$57.5	91%

The overall customer base supports the reaffirmed full-year 2025 revenue guidance, which is projected to be between $775 million and $835 million.

Key customer groups and their associated activities include:

• U.S. Government (HHS, DoD): Primary buyer for Anthrax and Smallpox MCM products like BioThrax®, CYFENDUS®, ACAM2000®, and TEMBEXA®.
• International Governments and Allied Nations: Account for 34% of MCM sales year-to-date 2025.
• Public Interest/First Responders: Purchasers of naloxone products through state, local, and non-profit channels.
• Retail Consumers and Pharmacies: Buying OTC NARCAN® Nasal Spray, which has a suggested retail price of $44.99.
• CDMO Clients: Segment revenue has sharply declined, reflecting a strategic de-emphasis following asset sales.

Finance: draft 13-week cash view by Friday.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Cost Structure

The cost structure for Emergent BioSolutions Inc. is heavily influenced by the capital-intensive nature of biomanufacturing and the ongoing execution of cost discipline initiatives across operating expenses.

A core element of the cost base involves high fixed costs associated with specialized manufacturing facilities. The cost of product sales, for instance, depends on the utilization of available manufacturing capacity, which inherently involves significant fixed overhead, personnel, and equipment costs, particularly for the Bioservices segment, which also consists of fixed and variable components. Furthermore, the company noted that favorable manufacturing variances in Q3 2025 were partly due to lower shut-down and severance costs, suggesting these facility-related costs are a material, though variable, component of COGS.

Significant progress has been made in controlling Selling, General, and Administrative (SG&A) expenses. For the third quarter of 2025, SG&A expenses were reported at $38.9 million, representing a substantial 49% reduction, or a decrease of $37.7 million, compared to the $76.6 million reported in Q3 2024. This reduction was driven by restructuring initiatives, lower marketing, professional services, and legal expenses, alongside the absence of a one-time $10.0 million expense recognized in the prior year period.

Cost of Goods Sold (COGS) for product segments showed a total decrease of $36.7 million, or 30%, in Q3 2025 compared to Q3 2024. The specific components of COGS for the key product lines in Q3 2025 were:

Cost Component	Q3 2025 Amount (in millions)	Year-over-Year Change (Q3 2025 vs Q3 2024)
Cost of MCM Product sales	$38.1 million	Decreased by $15.9 million (or 29%)
Cost of Commercial Product sales	Not explicitly stated as an absolute value	Decreased by $4.6 million

Research and Development (R&D) investment remained a controlled expense. For the first quarter of 2025, R&D expenses were $15.1 million, which was consistent with the R&D expense reported in Q1 2024. For Q3 2025 specifically, R&D expenses were $13.5 million, a decrease of $0.3 million (or 2%) versus Q3 2024.

Financing costs are a notable item due to the company's debt load. As of September 30, 2025, Emergent BioSolutions Inc. reported a gross debt of $693 million. The interest expense associated with this gross debt is a recurring financial cost within the overall cost structure.

Emergent BioSolutions Inc. (EBS) - Canvas Business Model: Revenue Streams

The revenue streams for Emergent BioSolutions Inc. (EBS) in late 2025 are anchored by two primary product categories, supplemented by government development funding and international market expansion.

The total full-year 2025 revenue guidance has been raised to a range of $775 million to $835 million. This updated outlook reflects strong execution and margin improvement across the business.

The core product revenue streams are detailed in the following guidance table for the full year 2025:

Revenue Stream Category	FY 2025 Guidance Range
Medical Countermeasure (MCM) product sales	$450 million to $475 million
Commercial product sales (NARCAN, KLOXXADO)	$265 million to $300 million

Contracts and grants revenue primarily supports development work, such as for Ebanga, and is bolstered by recent government awards. The company secured 11 contract modifications and product orders for its biodefense business year-to-date in 2025. Specifically, 4 new U.S. government contracts were secured, totaling approximately $155 million combined, along with an incremental $29 million of MCM product orders from an international government partner.

International sales represent a growing portion of the MCM revenue, which typically carries higher gross margins than U.S. government contracts. For the year-to-date period in 2025, international customers accounted for 34% of Medical Countermeasure sales.

Key details on contracts and international contribution include:

• Secured 11 contract modifications and product orders for biodefense year-to-date 2025.
• New U.S. government contracts totaled approximately $155 million.
• Incremental MCM product orders from an international partner totaled $29 million.
• International customers represented 34% of year-to-date 2025 MCM sales.
• The MCM segment delivered an adjusted gross margin of 73% in the third quarter of 2025.