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Emergent BioSolutions Issues Statement on Court Ruling

ROCKVILLE, Md.–(BUSINESS WIRE)–Sep. 14, 2009– Emergent BioSolutions Inc. (NYSE:EBS) released the following statement today relating to its efforts to collect on the debt owed to it by Protein Sciences Corporation (PSC) through the filing of an involuntary bankruptcy petition with the federal bankruptcy court in Delaware:

Today the court ruled that:

1. PSC is insolvent under the federal bankruptcy laws, because it generally was not paying its debts as they become due;
2. Emergent and two other petitioning creditors held valid claims against PSC without bona fide dispute; and
3. Emergent’s claim in excess of $11.5 million is due and owing.

The court, however, abstained from putting PSC into bankruptcy, because it found that Emergent’s claims more appropriately should be pursued in its other pending lawsuits, including the “replevin” or foreclosure action in the Connecticut state court. The breach of contract and tort claims properly may be heard in the pending New York state and Connecticut federal court actions. Emergent intends to continue to pursue its rights in those courts and remains confident that it will be able to achieve a full recovery.

About Emergent BioSolutions Inc.

Emergent BioSolutions Inc. is a biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and therapeutics that assist the body’s immune system to prevent or treat disease. Emergent’s marketed product, BioThrax^® (Anthrax Vaccine Adsorbed), is the only vaccine licensed by the U.S. Food and Drug Administration for the prevention of anthrax disease. Emergent’s development pipeline includes programs focused on anthrax, botulism, tuberculosis, typhoid, hepatitis B and chlamydia. Additional information may be found at www.emergentbiosolutions.com.

 

Source: Emergent BioSolutions Inc.