Emergent sells Baltimore plant to Bora for $30m

The Camden site is a part of the firm’s contract development and manufacturing organization (CDMO) business, offering four clinical and commercial aseptic fill/finish lines, along with lyophilization, formulation development, and support services.

“We are working hand-in-hand with Bora on the transition. As you know, approximately 350 current Emergent employees at the Camden site and some supporting corporate employees are expected to join Bora upon the closing of the transaction, which is expected to take place within 60 days,” a spokesperson for Emergent told us.

“Emergent and Bora have each appointed an experienced team to work collaboratively to develop integration plans and ensure a smooth transition once the transaction has closed. We have a team in place to ensure there is no disruption to existing customers in this transition period, ensuring continued patient safety and product quality underpinning all we do.”

This divestiture is a part of the firm’s strategy to stabilize its financial position. Emergent’s CFO Richard Lindahl clarified during a financial call in 2023 the firm’s decision “to deemphasize growth in CDMO” business.

Expected to close in the third quarter of 2024, the decision to divest is a part of a “broader operational plan to streamline the firm’s manufacturing network to Lansing and Winnipeg,” the spokesperson added.

In August 2022, the Camden facility received a US Food and Drug Administration (FDA) warning following an inspection. The regulatory authority cited issues with Emergent’s systems for cleaning and maintenance of equipment to prevent contamination of drug products. Later that year, the firm announced an investment for quality enhancement and improvement initiatives at the plant.

In May 2024, the company closed two of its facilities in Bayview, Baltimore, and Rockville, Maryland, resulting in about 300 job cuts across various departments.

Truist Securities acted as Emergent’s financial advisor and Covington & Burling LLP served as legal counsel for this transaction.