Emergent BioSolutions to Acquire Healthcare Protective Products Division of Bracco Diagnostics Inc.

  Emergent BioSolutions to Acquire Healthcare Protective Products Division of
  Bracco Diagnostics Inc.

  *Acquisition will broaden Emergent’s biodefense franchise into chemical
    countermeasures
  *Transaction will expand product sales through the addition of RSDL, a
    product cleared by the FDA for removal or neutralization of chemical
    warfare agents
  *Acquisition expected to contribute to revenue and net income, exclusive of
    transaction costs, beginning in 2013
  *Emergent reaffirms full year 2013 revenue and net income guidance and 1Q
    2013 revenue guidance

Business Wire

ROCKVILLE, Md. -- April 25, 2013

Emergent BioSolutions Inc. (NYSE: EBS) announced today that it has entered
into an asset purchase agreement to acquire the Healthcare Protective Products
Division (HPPD) of Bracco Diagnostics Inc. in an all-cash transaction that
includes payment of $26.0 million upon closing. The acquisition will diversify
and expand Emergent’s biodefense franchise by adding product sales from HPPD’s
marketed chemical countermeasure, RSDL (Reactive Skin Decontamination Lotion).
The acquisition offers Emergent an opportunity to leverage its core
capabilities in manufacturing, government contracting, government sales, and
product distribution as it looks to substantially expand sales of RSDL in the
attractive and growing chemical countermeasure market.

“This acquisition directly supports our ongoing growth plan, which includes
acquiring revenue generating, profitable products and businesses that address
the needs of U.S. and allied foreign governments across the CBRN spectrum,”
stated Daniel J. Abdun-Nabi, president and chief executive officer of Emergent
BioSolutions. “Our relationships, combined with those of HPPD, with the U.S.
Government and foreign ministries of defense, as well as worldwide distributor
relationships addressing first responder markets, should enable us to grow
revenues from RSDL and to expand and enhance Emergent’s leadership position as
a premier supplier of CBRN countermeasures.”

The Canadian Department of National Defence and the U.S. Department of the
Army have both played a central role in the development and licensing of RSDL,
which has been cleared by the U.S. Food and Drug Administration (FDA), Health
Canada, the European Union’s Medicines and Healthcare products Regulatory
Agency and Australia’s Therapeutics Goods Administration for the removal or
neutralization of chemical warfare agents from the skin, including nerve
agents, mustard gas, and toxins.

After closing of the transaction, Emergent will assume responsibility for an
existing 5-year (2012-2017) procurement contract with the U.S. Department of
Defense (DoD) to provide RSDL to active military personnel, as well as a
supply agreement with NATO that allows NATO countries to purchase RSDL through
the NATO Support Agency through 2015, with up to two additional option years.
Emergent intends to pursue various potential growth opportunities for RSDL,
including expanding sales to additional U.S. government agencies and domestic
and foreign first responders, as well as new foreign ministries of defense.

Emergent plans to retain HPPD’s current staff of 16 employees who will be
integrated into Emergent’s Biodefense Division. HPPD’s operations will
continue to be located in Princeton, New Jersey and Hattiesburg, Mississippi.

The acquisition of HPPD, which is subject to customary closing conditions
including the receipt of certain third party consents and regulatory
approvals, is expected to close in the third quarter of 2013.

Emergent expects the acquisition to contribute to revenue and net income,
exclusive of transaction costs, beginning in 2013. After giving effect to this
acquisition, Emergent is reaffirming its annual 2013 guidance of $290 to $310
million in total revenues and $20 to $30 million in net income. The company
also reaffirms its first quarter revenue guidance of $40 to $50 million.
Actual first quarter 2013 financial results will beannounced on May 2, 2013.

Conference Call and Webcast

Emergent will host a conference call to discuss this acquisition on April 25,
2013 at 8:00 am Eastern. The conference call will be accessible by dialing
888.771.4371 or 847.585.4405 (international) and providing confirmation number
34764446. The call will also be webcast, accessible from the Company’s website
at www.emergentbiosolutions.com, under “Investors.”

A replay of the conference call will be accessible, approximately one hour
following the conclusion of the call, by dialing 888.843.7419 or 630.652.3042
and using the passcode 34764446. The replay will be available through May 2,
2013 on the company’s website www.emergentbiosolutions.com, under “Investors.”

About Emergent BioSolutions

Emergent BioSolutions is a specialty pharmaceutical company seeking to protect
and enhance life by offering specialized products to healthcare providers and
governments to address medical needs and emerging health threats. Additional
information about the company may be found at www.emergentbiosolutions.com.
Follow us @emergentbiosolu.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Any statements, other
than statements of historical fact, including statements regarding the
expected closing of the transaction, the potential opportunities and financial
impact of the transaction, and our financial guidance, and any other
statements containing the words “believes”, “expects”, “anticipates”,
“intends”, “plans”, “estimates” and similar expressions, are forward-looking
statements. These forward-looking statements are based on our current
intentions, beliefs and expectations regarding future events. We cannot
guarantee that any forward-looking statement will be accurate. Investors
should realize that if underlying assumptions prove inaccurate or unknown
risks or uncertainties materialize, actual results could differ materially
from our expectations. Investors are, therefore, cautioned not to place undue
reliance on any forward-looking statement. Any forward-looking statement
speaks only as of the date of this press release, and, except as required by
law, we do not undertake to update any forward-looking statement to reflect
new information, events or circumstances.

There are a number of important factors that could cause the company’s actual
results to differ materially from those indicated by such forward-looking
statements, including uncertainties as to the satisfaction of closing
conditions with respect to the transaction, including the timing and receipt
of third party and regulatory approvals; our ability to successfully integrate
the business and realize the benefits of the transaction; appropriations for
BioThrax^® procurement; our ability to obtain new BioThrax sales contracts or
modifications to existing contracts; our plans to pursue label expansions and
improvements for BioThrax; availability of funding for our U.S. government
grants and contracts; our ability to identify and acquire or in-license
products or late-stage product candidates that satisfy our selection criteria;
whether anticipated synergies and benefits from an acquisition or in-license
are realized within expected time periods or at all; our ability to enter into
selective collaboration arrangements; our ability to expand our manufacturing
facilities and capabilities; the rate and degree of market acceptance and
clinical utility of our products; the success of our ongoing and planned
development programs; the timing of and our ability to obtain and maintain
regulatory approvals for our product candidates; and our commercialization,
marketing and manufacturing capabilities and strategy. The foregoing sets
forth many, but not all, of the factors that could cause actual results to
differ from our expectations in any forward-looking statement. Investors
should consider this cautionary statement, as well as the risk factors
identified in our periodic reports filed with the SEC, when evaluating our
forward-looking statements.

Contact:

Emergent BioSolutions Inc.
Investor:
Robert G. Burrows, 301-795-1877
Vice President, Investor Relations
BurrowsR@ebsi.com
or
Media:
Tracey Schmitt, 301-795-1800
Vice President, Corporate Communications
SchmittT@ebsi.com
 
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