Emergent BioSolutions — maker of the overdose reversal drug Narcan — plans to shutter its manufacturing facilities in Baltimore and Rockville as part of a broader restructuring effort, according to filings the Gaithersburg-based pharmaceutical company made with the U.S. Securities and Exchange Commission.
The move will lead to the severance of about 300 employees across the company and the elimination of about 85 currently vacant positions, the filings said. Emergent estimates the layoffs and plant closures will save the company about $80 million each year, when they’re fully implemented.
“Today’s actions are about the future of Emergent,” Emergent CEO Joe Papa said in a news release about the restructuring. “We have put in place a multi-year plan to position Emergent for sustainable and long-term success, and that starts by stabilizing our operations, strengthening our balance sheet and managing our debt.”
“Decisions like these are never easy as they have real impact on many of our dedicated colleagues,” he continued. “We are committed to providing resources to those affected as they transition to new opportunities.”
Emergent, which got its start making an anthrax vaccine for the U.S. government, has focused making public health-related drugs and struggled with quality issues at the Baltimore plant after the company was tapped to make coronavirus vaccines.
Emergent estimates that the restructuring would cost the company between $18 million and $21 million, primarily in the second half of fiscal year 2024. Most of the money will go toward severance, transition services and estimated benefits cost for the laid off employees.
Moving forward, Emergent plans to concentrate manufacturing operations at sites in Winnipeg, Canada, and Lansing, Michigan, while exploring alternatives for other sites throughout the year, the news release said. The company also created a new chief science officer role and added to the executive management team during the reorganization.
