After much thought and deliberation, the best course of action for Emergent BioSolutions (NYSE: EBS) was to spin-off its’ bioscience business into a separate publicly traded company. The new company doesn’t have a name yet (expected to be announced in early 2016) but the headquarters choice has been selected.
Emergent BioSolutions says the new company will be an independent entity with distinct strategic plans, growth strategies, operational and development priorities, separate management of course but also a separate headquarters. While many people would probably anticipate it to be at least across city lines, the new spin-off headquarters is expected to be in Seattle, Washington. Emergent BioSolutions will remain in Gaithersburg.
The biodefense firm says there are many benefits to this strategic rationale, the new spin-off will be coined as a “biopharmaceutical company focused on novel oncology and hematology therapeutics to meaningfully improve patients' lives” while Emergent BioSolutions will be known as “a global specialty biopharmaceutical company focused on providing specialty products for civilian and military populations that address intentional and naturally emerging public health threats”. The later has always been Emergent’s bread and butter as well as what it's best known for. The split should clear up any confusion about both companies’ and allow some of less known drugs in development to get some of the limelight. The big change could also mean much higher growth for Emergent in the biodefense arena.