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Date
Wednesday, Oct. 29, 2025, at 5 p.m. ET
Call participants
- President and Chief Executive Officer — Joseph C. Papa
- Executive Vice President and Chief Financial Officer — Richard S. Lindahl
- Vice President, Investor Relations — Frank Vargo
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Takeaways
- Revenue -- $231 million in the third quarter, exceeding the company’s Q3 2025 revenue guidance range of $180 million to $210 million by $21 million.
- Net Income -- $51 million for the third quarter, with year-to-date net income of $107 million.
- Adjusted EBITDA -- Adjusted EBITDA reached $194 million year to date. Full-year 2025 adjusted EBITDA guidance was raised to a range of $195 million to $210 million.
- Adjusted EBITDA Margin -- Adjusted EBITDA margin was 38%. representing a 200-basis-point year-over-year improvement.
- Adjusted Gross Margin -- Adjusted gross margin was 61%. driven by a more favorable product mix, expanded strategic global partnerships, and a leaner cost structure resulting from divestitures and restructuring initiatives.
- Operating Expenses -- with operating expenses down $133 million year to date for the first nine months of 2025, primarily due to cost-cutting in SG&A.
- Naloxone (NARCAN) Performance -- NARCAN nasal spray unit volume increased 13% quarter over quarter. NARCAN revenue grew 9% sequentially, reflecting stabilization after one-time events in the first quarter.
- International MCM Sales -- 34% of year-to-date 2025 medical countermeasure (MCM) sales came from international customers, up from a historical mid- to high-teens percentage in previous years.
- Liquidity -- $346 million in liquidity, including $246 million in cash on the balance sheet as of Q3 2025, and $100 million in undrawn revolver capacity.
- Net Debt and Leverage Ratio -- Third-quarter net debt of $448 million with net leverage at approximately 2x adjusted EBITDA,
- Share & Bond Repurchases -- $15.8 million in share repurchases year to date out of a $50 million program, and $6.9 million in principal of unsecured bonds retired for $5.8 million in cash.
- Guidance Updates -- Raised total revenue outlook to $775 million to $835 million for full-year 2025, and increased adjusted gross margin guidance to 52%-54%.
- Contract Awards -- Four new U.S. government contracts totaling approximately $155 million, with an additional $29 million in MCM product orders from an international government partner.
- Product Mix Insights -- Smallpox product revenue reached $231 million in the first nine months of 2025, and combined NARCAN/anthrax revenue totaled $249 million year to date, clarifying that subtotals do not sum to the stated total product sales due to other products and adjustments.
- Gross Margin Differential -- International MCM sales achieve higher gross margins than U.S. government sales due to pricing, per CEO Papa, who said, "The answer to that is yes."
Summary
Emergent BioSolutions (EBS +36.60%) delivered revenue and profitability that surpassed company guidance and consensus in Q3 2025, reflecting sequential acceleration in both the NARCAN and medical countermeasures segments. Management raised both full-year 2025 revenue and non-GAAP adjusted EBITDA guidance, expanded global partnerships, and operational efficiencies after recent divestitures and restructuring. The cash position strengthened as net debt declined and leverage improved, with increased capital being deployed for share buybacks and bond repurchases as part of the company’s capital allocation priorities. Third quarter also included several new government contracts and order wins that bolstered near-term visibility.
- CEO Papa confirmed management’s expectation that international MCM opportunities represent a recurring growth area, describing them as “part of a concentrated program and activity.”
- Current U.S. government shutdown did not disrupt cash collections or operations, with regular engagement maintained with federal agencies.
- Strategic partnership activity, notably with Rocketvaxx, was highlighted, with CEO Papa explaining funding is secured for upcoming clinical trials and positioning this technology under U.S. initiatives such as Project Next Gen.
- Operational cost reductions preserved key R&D investments while reducing SG&A by approximately $112 million year to date in the first nine months of 2025.
- CEO Papa stated, “There is significant bipartisan support favoring biothreat preparedness,” supporting continued robust outlook for the company’s core biodefense franchise.
Industry glossary
- MCM (Medical Countermeasures): Medical products, including vaccines and therapeutics, developed to respond to chemical, biological, radiological, and nuclear threats.
- BARDA: Biomedical Advanced Research and Development Authority, a U.S. government agency that funds and supports medical countermeasure initiatives.
- SG&A (Selling, General, and Administrative expenses): Operating expenses related to selling products and managing business operations, excluding R&D.
- Project Next Gen: U.S. government project focused on developing next-generation pandemic preparedness countermeasures and rapid vaccine platforms.
Full Conference Call Transcript
Frank Vargo: Good afternoon, everyone. Thank you for joining us today as Emergent discusses their operational and financial results for 2025. As is customary, today's call is open to all participants. The call is being recorded and is copyrighted by Emergent BioSolutions Inc. In addition to today's press release, there are a series of slides accompanying this webcast available to all webcast participants. Turning to Slide two, during today's call, Emergent may make projections and other forward-looking statements related to their business, future events, prospects, or future performance. These forward-looking statements are based on their current intentions, beliefs, and expectations regarding future events.
Any forward-looking statement speaks only as of the date of this conference call, and except as required by law, Emergent does not undertake to update any forward-looking statements to reflect new information, events, and circumstances. Investors should consider this cautionary statement as well as the risk factors identified in Emergent's periodic reports filed with the SEC when evaluating their forward-looking statements. During today's call, Emergent may also discuss certain non-GAAP financial measures that involve adjustments to GAAP figures in order to provide greater transparency regarding Emergent's operating performance. Please refer to the tables found in today's press release. Turning to Slide three, the agenda for today's call will include Joseph C.
Papa, President and Chief Executive Officer, who will provide an update on the company's transformation plan and highlight key results. And Richard S. Lindahl, EVP and Chief Financial Officer, will provide details on the third quarter and year-to-date 2025 financial results as well as provide an update on full-year 2025 guidance. Joseph C. Papa will conclude by discussing the company's business performance and key catalysts for growth followed by Q&A. Finally, for the benefit of those who may be listening to a replay of this webcast, this call was held and reported on 10/29/2025. Since then, Emergent may have made announcements related to topics discussed during today's call.
And with that, I would now like to turn the call over to Joseph C. Papa. Joe?
Joseph C. Papa: Thank you, Frank, and hello, everyone. Welcome to Emergent's third quarter 2025 Earnings Call. This is Joseph C. Papa, CEO of Emergent, and I'm joined today by Richard S. Lindahl, our Chief Financial Officer. We will start by providing third quarter highlights and then Rich will review the third quarter financials. I'll return to review key business catalysts to drive growth. We'll close with a Q&A session. Turning to Slide five, the Emergent team's aspiration is to be the leader in solving public health crises around the world. As part of our mission to protect and save lives, we develop and deliver highly complex products to address some of the world's most pressing threats.
Based on the efforts of our team, we had another great quarter and are on track to exceed our initial 2025 revenue and adjusted EBITDA guidance. Year to date, we have secured 11 contract modifications and product orders for our Biodefense business while maintaining our market leadership position in the nasal naloxone category. We have a durable Biodefense Business Model with a North America-based supply chain for our product and manufacturing in the US or in the USMCA compliant facility. Finally, we believe our differentiated capabilities in plasma and hard-to-manufacture products position us to be a strategic long-term partner for our customers. Turning to Slide six, Emergent was founded 25 years ago, and our business is unlike traditional pharmaceutical companies.
In fact, we have the most diversified biodefense and naloxone product portfolio. It is focused on addressing the global public health threats of smallpox, anthrax, ten pox, Ebola, botulism, and even opioid overdose emergency situations. Just yesterday, we released a new survey finding that reinforced bioterrorism remains a significant concern to informed public policy leaders. Turning to slide eight, we are making great progress with our multi-year transformation. During 2025, we continue to make strategic investments for long-term growth while creating significant value for our stakeholders. We are achieving operating margin improvements and validating best options to advance top-line growth while maintaining our attractive cost structure.
On Slide nine, we provide a more detailed look at the third quarter, including exceeding our internal guidance on both the top and bottom line. Third quarter revenues of $231 million were $21 million above the high end of our Q3 guidance range of $180 million to $210 million. Our profitability continues to improve, and year to date, we have already achieved the high end of our full-year adjusted EBITDA guidance range of $194 million generated as of the third quarter. Both the revenue and profitability of the business exceeded our internal management expectations and the analyst consensus.
Based on the year-to-date performance, we are increasing our adjusted EBITDA guidance range to $195 million to $210 million, up from $175 million to $200 million. Our liquidity remains very strong. We now have access to $346 million in financial capacity to invest in additional growth and capital deployment. This includes $246 million of balance sheet cash and our undrawn revolver. We are pleased with the significant collection of cash for accounts receivable even during the first day in Q4. We are selectively deploying our capital to create stakeholder value. Our net leverage improved to approximately 2x net debt to adjusted EBITDA, down from 3.3 times in 2024. In 2025, we've also repurchased some Emergent bonds.
It continues with our share repurchase program where we expect $15.8 million of our $50 million twelve-month program. We are excited about the progress in the NCM segment with four new contract modifications added in the third quarter. We also see upside from our international customers, which represent 34% of our MCM sales year to date, which is up from the mid to high teens in past years. Our leadership in Naloxone remains strong, and we are committed as ever to combat the opioid overdose epidemic and saving lives. With two months left in the year, we feel very good about our 2025 performance and are actively working to establish additional growth drivers for 2026 and beyond.
On Slide 10, we summarize the strong performance of our Naloxone business year to date. We remain the leader in the naloxone category amongst public interest customers. We are benefiting from a stabilized U.S. pricing market for naloxone. Quarter over quarter, NARCAN unit volume grew by 13% and revenue grew by 9%. This sequential growth reaffirms that we have moved past one-time first quarter events. In fact, NRPM demand remains strong. We expect continued growth of the entire market, which may provide a tailwind to our business. Now I'd like to turn the call over to Rich to walk through the third quarter financials.
Richard S. Lindahl: Thanks, Joe. Good afternoon, everyone. We appreciate you joining the call. We're off to a strong start in 2025. Our third quarter revenue came in at $231 million, exceeding the upper end of our guidance range by $21 million, driven by sequential growth of NARCAN and the addition of four new contract modifications. Through the third quarter, we continue to see year-over-year improvements in both gross margin and adjusted EBITDA margin, highlighting the efficiency of our business that delivered a 38% adjusted EBITDA margin this past quarter. To further highlight our strong performance, net income for the third quarter was $51 million. Year-to-date net income was $107 million, and year-to-date earnings per share was $1.89.
Year-to-date performance has also exceeded our internal expectations. We're raising our total revenue guidance to a range of $775 million to $835 million, a $5 million improvement at the midpoint. And we're increasing our adjusted EBITDA guidance to a range of $195 million to $210 million, a $15 million increase at the midpoint as compared to our prior forecast. The profitability and cash generation of our company has allowed us to focus on creating opportunities to generate additional shareholder value. In the third quarter, we deployed cash towards both equity and debt, taking advantage of opportunistic pricing. Even with these actions, our cash position and leverage ratio remained in a strong and stable position.
Both of our business segments outperformed in the quarter, and importantly, we saw no disruption from external macro factors that may be pressuring the rest of biopharma. We continue to play a vital role as a trusted partner to both the U.S. Government and our international partners, with growing demand for our medical countermeasures as nations prioritize preparedness and response capabilities. Please turn to Slide 12 to review our third quarter financials. I'll start by noting that the prior year comparisons fully reflect our restructuring actions from early 2024. Highlights of the quarter include total revenues of $231 million. As a reminder, third quarter 2024 benefited from a partial quarter of non-divested revenues from RSTL and the Camden facility.
Adjusted EBITDA margin of 38%, an increase of 200 basis points versus the prior year, underscoring our continued strong profitability with our efficient platform. Adjusted gross margin of 61% improved 200 basis points year over year, driven by a more favorable product mix, the expansion of strategic global partnerships, and a leaner cost structure stemming from our divestitures and restructuring initiatives. And finally, operating expenses of $52 million were $38 million lower compared to the prior year. Of note, you can see that our SG&A spend declined roughly 50% from LiveSolver. Additional third quarter revenue details can be found in the appendix. Turning to Slide 13, I'll walk through our performance for the first nine months of 2025.
Total revenues were $594 million, a decline compared to the prior year, reflecting the divestitures, the J&J one-time settlement in 2024, and strategic pricing actions taken on NARCAN. Adjusted EBITDA was $194 million or 33% of total revenues, an improvement of approximately $32 million and 1,400 basis points year over year. This outcome illustrates our strong operating leverage, the impact of our restructuring actions, as well as a favorable product mix in 2025 driven by international MCM sales. Adjusted gross margin of 57% improved 1,100 points compared to the prior year. This expansion was driven by product mix and continued operational efficiencies stemming from the 2024 initiatives. Operating expenses totaled $176 million, a $133 million reduction from the prior year.
Most of this reduction came from a $112 million decline in SG&A while we preserved critical R&D capabilities to support long-term growth. Moving on to Slide 14. For the first nine months of 2025, total revenue was $594 million, driven by total product sales of $545 million. As noted, 2024 includes revenue associated with one-time events and assets. The table in the upper right corner of Slide 14 normalizes 2024 revenue for these items. With that, let's break down performance by key product lines. Naloxone nasal spray revenue totaled $188 million, reflecting improved sequential momentum from the second and third quarters. Anthrax medical countermeasure revenue was $61 million based on the timing of government procurement orders.
Smallpox revenue was $231 million, an increase of $30 million or 15%, reflecting deliveries under multiyear contracts and increased international orders. Lastly, other revenues were $49 million. As a reminder, last year's revenues included $50 million from the Janssen settlement as well as Camden facility revenue prior to its divestiture in August 2024. Normalizing for these items, other revenues grew $25 million year over year, due to increased services demand in our Winnipeg facility, along with CNG revenue related to our Givanga development program. Turning to Slide 15, I'm pleased to report continued progress in strengthening our financial position. For 2025, total liquidity was $346 million, comprised of $246 million of cash and $100 million of undrawn revolver capacity.
Liquidity improved $96 million year over year. As of September 30, our gross debt was $693 million, down about $7 million versus the prior year, driven by our unsecured bond repurchases during the quarter. Total net debt in Q3 2025 was $448 million, a $103 million or 19% reduction. Our net leverage remained in the 2x adjusted EBITDA range at the end of the third quarter, as we both increased profitability and reduced gross debt. We also collected significant accounts receivable from late September MCM deliveries in early October, despite the current U.S. Government shutdown, further enhancing our operating cash flow. This outcome further reinforces the importance of our business. Please turn to Slide 16.
Our capital allocation priorities are focused on three key areas: growth, debt repayment, and share repurchases. First, we're investing in both organic and inorganic opportunities to strengthen our core businesses and drive future revenue expansion. Some important tailwinds include increasing international revenue from our Medical Countermeasures segment and our stronger balance sheet, which enables business development. We remain very judicious stewards of shareholder capital and continue to evaluate opportunities to advance internal R&D projects. Next, we continue to prioritize debt repayment to strengthen our balance sheet and improve financial flexibility. Beginning in August, we initiated a $30 million bond repurchase program and during the quarter retired $6.9 million in principal amount of unsecured bonds for $5.8 million of cash.
We are also committed to creating shareholder value through the twelve-month $50 million share repurchase program we announced in March 2025. In the third quarter, we repurchased another 1.1 million shares for $8.9 million, bringing us to 2.3 million repurchased year to date for $15.8 million or an average price of $7 per share. We remain opportunistic with buybacks in future quarters as we evaluate market conditions and other factors. Transitioning to Slide 17, we are updating our full-year 2025 guidance by raising the midpoint of our revenue and profitability metrics.
Further details are as follows: total revenues of $775 million to $835 million, an increase of $5 million at the midpoint; adjusted EBITDA in the range of $195 million to $210 million, an improvement of $15 million at the midpoint. We're also raising our adjusted gross margin guidance to a range of 52% to 54%, a 200 basis point improvement over our prior guidance at the midpoint. On the strong performance year to date across our segments, we're also raising the midpoint of our medical countermeasures product revenue guidance while maintaining our prior guidance range for commercial products. Segment revenue guidance is as follows: NCM product sales are $450 million to $475 million.
We continue our enduring partnership with the U.S. Government, which is further evidenced by the 11 contract modifications we've received year to date for our medical countermeasure products. Commercial products, including KLXSATA, the range of $265 million to $300 million. Year to date, commercial product sales were $188 million with stable pricing across the U.S. public interest channel. Our performance in 2025 reinforces our market-leading position in the opioid overdose reversal space. In closing, on Slide 18, we're continuing the turnaround phase of our multi-year plan with solid performance in the first nine months of 2025. Our 2025 revenue outlook remains focused on our core business across both the medical countermeasures and commercial segments.
Of note, international sales now represent 34% of the company's MCM segment, which is up meaningfully from the high teens in prior years. We are closely monitoring this trend and making targeted investments to facilitate this growth. Our partnership with the U.S. Government and international customers remains strong, as evidenced by the 11 contract modifications year to date. Our gross margins and profitability have continued to improve throughout the year, and we're generating positive operating cash flow while enhancing our liquidity position. Our leverage ratio is stable at approximately 2x adjusted EBITDA. Looking ahead, our plan remains consistent. We're pursuing strategic growth investments while actively seeking opportunities to deliver value to our shareholders.
I'll now turn the call back to Joe to discuss our business outlook and catalysts. Joe?
Joseph C. Papa: Thank you, Rich. Turning to Slide 20. Let's begin with our naloxone business. Our entire Emergent organization is proud of the tangible impact that Narcan has in saving many lives from opioid overdoses in the United States and Canada. Next month, we will recognize the ten-year anniversary of the U.S. approval of the prescription NARCAN nasal spray. We will highlight the tremendous work that is going to expand access through its over-the-counter availability in 2023.
And with ongoing efforts to expand Narcan access, added Foxado into our NARCAN DIRECT platform for ease of purchasing, combined with the over $50 billion in opioid litigation settlement dollars, we believe that our portfolio will continue to align with the overall net market growth expectations. Moving to slide number 41, I'd like to review the key results from our recent Biodefense survey. There is significant bipartisan support favoring biothreat preparedness. The bottom line is that once policy opinion leaders, the perceived risk of bioterror threats is high, and bioterrorism even outpaces concerns about nuclear risk. This is because biological attacks are viewed to be more feasible, more imminent. Those surveyed were concerned about the overall preparedness.
This quarter, we secured four new U.S. Government contracts worth approximately $155 million combined. We also successfully secured an incremental $29 million of MCM product orders with an international government partner. International sales have been a key growth driver in 2025 and represent 34% of our MCM sales year to date, which is meaningfully higher than prior years. On the public sales front, Emergent was in continuous communication with our Evanga commercial partner, Ridgeback Therapeutics. Ridgeback, along with other organizations and local health authorities, directly supported efforts during the recent Ebola outbreak in the Democratic Republic of Congo.
This outbreak, which is one of several over the last five years, is a stark reminder of the continued frequency and threat of the Ebola virus disease. Global readiness and resilience are key to being prepared for the next potential outbreak. Earlier this year, we announced our continued collaboration with BARDA to advance Evanga development towards supplying treatment, ensuring we are prepared against Ebola. On slide 22, we outline our outlook on future growth and cash deployment. Our plan is to invest the cash we are generating from our profitable business segments into two growth tracks. First, exploring government collaborations for new biodefense products.
The second is to identify value-creating external commercial programs that align strategically with their current business model and capabilities. In summary, on slide number 25, we have adjusted, we have outperformed our top-line and adjusted EBITDA guidance expectations in the third quarter. We are raising our full-year revenue guidance while also raising our adjusted EBITDA guidance to $195 million to $210 million. Throughout 2025, our operating margin and cash flow have grown significantly as we execute our multi-year turnaround plan. In conclusion, we have a unique and diversified biodefense portfolio. We are proud leaders addressing the overdose epidemic through our life-saving naloxone products.
We will take additional steps to generate value for all our stakeholders, and we will strive for the highest standards of quality, ethics, and compliance across the entire Emergent enterprise. So with that, I look forward to taking your questions. Operator, if you please open up the line for questions.
Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Our first question comes from the line of Jessica Macomber Fye from JPMorgan. The floor is yours.
Jessica Macomber Fye: Hey, guys. Good afternoon. Thanks for taking my questions. I have several. First, what drove the strong year-over-year growth in other products specifically? Second, with international driving 34% of MCM orders year to date, can we think of these orders as recurring? Are they part of multiyear contracts? Or are they one-off orders? And can you remind me how the gross margin on international MCM orders compares to the gross margin associated with US MCM sales? Then for Narcan, you mentioned OTC sales and Canadian sales fell year over year. What are you seeing in each of those segments of the business? And should we consider any impact from the government shutdown on the NARCAN business this quarter?
And what about the MCM business? Thank you.
Joseph C. Papa: Okay. There's quite a bit there, Jessica. Thank you for the questions. We should take the first one part of the button under your category. It's there. Yeah. So a lot of it is driven by agreements with the Evanga program having significant activity this year. And that's really probably the major driver there. I think the second question you had about our international contracting and is that a recurring revenue base and more than one time. We've worked very diligently over the last eighteen months where we made some investments in our international platform to reach out and get more international revenue and sales. And I'm glad to say that, that is paying off and we are seeing that.
So we view this as part of a concentrated program and activity. Admittedly, any given contract is for a set amount of product in a set amount of time. But we clearly see the international opportunity as one that will be a growth opportunity for us in the future. So probably the best answer is these products are certainly part of a specific order for a specific quantity and a specific time.
But we do view this as being an international growth opportunity, especially as we know the European Union and other parts of the world are continuing to ramp up their capabilities in this entire area of biodefense and strategic national stockpile that they're setting up in our team has been delighted to try to help them as they get ready for this European Union stockpiling program on strategic national size awareness. Going to help them to think through that type of process. On the next part of your question, the international gross margin, and one of the things I could say is, are international gross margins higher? The answer to that is yes.
And one of the issues that we have is that we have committed to the U.S. Government and that they've helped us with our funding. For our programs and our products, that they would U.S. Government would get what we refer to as most segregation pricing. So as a result of that, they usually get the best price and other countries pay, a little bit more. It's not a big market difference, but there is a little bit better pricing for the U.S. Government in that they helped us with the development of our products. The next question I believe was NARCIA and in Canada and what's happening there. We're making good progress.
We've talked about a number of different project agreements that we have with Canadian provinces and making good progress there. I would say that's something that's going to be variable in any given quarter in terms of when sales happen in the third quarter, the fourth quarter, or next year. But we're making very good progress in Canada is recognizing that they've got issues with opioid overdoses, they're looking to us to help them satisfy some of that demand out there. So, we're making progress there.
There is going to be some variability quarter over quarter in terms of when the quarter gets shipped in third quarter, fourth quarter, or first quarter, but we are very happy with the relationship we have with the Canadian government. Final question I think you had was government shutdown. And I can tell you first hand, the US government employees that we work with at the Strategic National Stockpile of BARDA Department of Defense, continue to work every day and they're going above and beyond to call duty in terms of what they're doing notwithstanding the shutdown.
And I can tell you first hand, Rich, myself, the rest of our team had a meeting with the highest levels of BARDA Department of Defense, and Strategic National Stockpile just last week. So everything we see is a continuous to move forward on these important strategic initiatives that in terms of what the Biodefense Building represents in The U.S. is important. Must do activities. So they keep working hard and obviously there to support them any way we can. I think I got all of them, Jessica, but thank you for your question. Operator, next person.
Operator: Oh, yes. Our next question comes from Raghuram Selvaraju from H.C. Wainwright and Co. The floor is yours.
Eduardo Rafael Martinez-Montes: Hi, everyone. This is Eduardo on for Ram. Hoping to get a little update on the Rocketbats collaboration, if you have any meaningful catalyst over the next twelve months?
Joseph C. Papa: Sure. Just a reminder for everybody. Earlier in the year, we reached with Swiss Rocket, the pair Rocket Vaxx to work with them on four project opportunities. They are making good progress. On the first product that we've acknowledged, they do have funding for the Phase one of that. Research that they're now obtaining the initial quantity of clinical trial material. I think that trial started. Expectation that the trial will start sometime in the early part of 2026. And I remind you, what we believe is really important with the boxing bag technology is that it is different than the mRNA technology. It is not mRNA.
But it is a fast to develop technology but it uses live attenuated virus technology, vaccine technology. And by doing that, it could be developed quickly, similar to mRNA. However, there's durability in the immune response because they use a live attenuated version. So that's what we're excited about. Because it falls under something called Project Next Gen. As the U.S. Government is looking for the next virus outbreak, how could it be controlled, and they view this type of technology as being potentially important to that next wave of outbreaks, whatever pandemic it might be. So, yes, rapidly making progress. We're working with them.
There's still a lot of work to be doing, but they have the funding for the Phase one starting sometime in 2026. Okay. Next question.
Operator: Thank you for that question. Is there another question you'd like to ask?
Eduardo Rafael Martinez-Montes: Sure. Yeah. Could I get just kinda curious more on the NCM products this time. Which of the products do you think is gonna be the principal driver of US government contract-based revenue going forward? And do you have any ideas why that might be?
Joseph C. Papa: Yeah. I think the advantage that we at Emergent have is we have the most diversified product portfolio in the biodefense world. And we all recognize that the biodefense category is we're living in an increasingly dangerous world, the technology as we showed in our survey in biodefense is something that could be very quickly rolled out by some terrorists. Groups. So we think it's important that we are prepared. I think it really comes down to for us, it's just having this diversity of the portfolio so that we're ready for any potential activity we work very closely with BARDA, Strategic National Stockpile, Department of Defense to ensure whatever happens that we're prepared to help them.
And we're working very closely with them. So we meet with them on a regular basis to get prepared. So I don't know if I want to pick out a singular product. I think they're all important to us. And I think what's probably the most important thing about when you think about Emergent is the diversity we have, whether it be products for smallpox, whether it be a vaccine or a therapeutic products for anthrax, whether it be the vaccine or therapeutic products for botulism. We've got across the end products. We have all of them. And I think that's what really truly sets us apart from the other players in the space.
Clearly, in the new category, we like the opportunity with Cimbexa. Do we see the continuing outbreaks of Ebola? Yes, those are important things for us as well. I think they'll drive a big part of our future. Thank you for the question.
Operator: Thank you for your question. This concludes the question and answer session. I would now like to turn it back to Joseph C. Papa, CEO, for closing remarks.
Joseph C. Papa: Well, thank you, everyone, for joining us today. We very much appreciate your interest in our company. Please reach out if there's any other additional questions. But we're excited about what Emergent is accomplishing this year. I think we're well on our way to have another good year for us and another great quarter. And very much thanks to all working at Emergent for all the work they've done to help us have a very strong year to date. Thank you, everyone, for joining us today. Have a great day.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.