Good day ladies and gentlemen and welcome to the fourth quarter 2007 Emergent Biosolutions Incorporated earnings conference call. My name is Francis and I will be your coordinator for today. At this time, all participants are in a listen only mode. We will conduct a question and answer session toward the end of this conference. If at any time during this call you require assistance, please key star followed by zero and a coordinator will be happy to assist you. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today, Mr. Bob Burrows, Vice President of Investor Relations, please proceed.

Thank you Francis. Good morning ladies and gentlemen and thank you for joining us today as we discuss Emergent Biosolutions financial results for the year 2007. As is customary, our call today is open to all participants. In addition, the call is being electronically recorded and is copyrighted by Emergent Biosolutions. Joining me on the call this morning is Fuad El-Hibri, our Chairman and Chief Executive Officer and Don Elsy, our Chief Financial Officer. Additionally, other members of senior management will be present on the call for purposes of Q&A and they are Dan Abdun-Nabi, President and Chief Operating Officer of the company and Dr. Mike Langford, President of our Product Development subsidiary in Gaithersburg, Maryland. The agenda for today’s call will be, following my brief introduction, Fuad will provide comments on our accomplishments from 2007 and key milestones for 2008. Don will then review in detail our financials for 2007 and provide comment on our financial guidance for 2008. We then will move to the customary Q&A session. Please note that any statements about the company’s prospects or future expectations are forward looking statements. As you know, forward looking statements involve substantial risks and uncertainties and actual results may differ materially from expectations. Please refer to the press release issued earlier today and importantly to our filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ. Also, Emergent Biosolutions assumes no obligation to update the information in today’s press release or as presented on this call, except as may be required by applicable laws or regulations. Today’s press release may be found on our website at www.emergentbiosolutions.com under investors slash press release. And with that brief introduction, I would now like to turn the call over to Fuad El-Hibri, Emergent Biosolutions’ Chairman and CEO. Fuad.

Thank you Bob, good morning everyone and thank you for joining us today. As you know, 2007 was our first full year as a public company during which we met or exceeded all of our key objectives to get set for the organization for the year. We achieved both financial and operational success. Operationally, we sold more of our licensed product [class rank] and accomplished key product development milestones. We also advanced our manufacturing expansion program and completed key business development objectives. Building upon our performance in 2007, I am confident we will achieve our key goals for 2008. With that introduction, I will now discuss in some detail our 2007 accomplishments across a broad spectrum of issues and I will also discuss our key goals for 2008. Let me start with our 2007 financial accomplishments. In 2007, we reported another year of record revenues of $183 million and net income of $23 million which represents our sixth consecutive year of profitability. During 2007, we continued to reinvest internally generated cash into our product pipeline in pursuit of vaccines and therapeutics that address significant unmet or underserved medical needs. With more than $100 million in cash at year end and visibility into projected revenues in 2008, we are well positioned to pursue the acquisition of one or more late stage product candidates which will compliment the advancement of our product portfolio. This is one of our primary corporate goals for 2008. Don will provide more detail on our financial results for 2007 in a moment. Let me turn now to our operational accomplishments, specifically marketing and sales, product development, manufacturing and business developments. I will begin with our marketing and sales accomplishments. Notably, we succeeded in capturing a greater portion of the HHS requirements for the stockpiling of anthrax vaccine.…

Thank you Fuad, good morning everyone. As Bob mentioned, we released our full year 2007 financial results this morning prior to the opening of the markets. The press release is now available on our website. Later today we will be filing on our annual report on form 10K with the SEC. The 10K will be available on our website and on the SEC’s website once it has been filed. As Fuad mentioned, 2007 was a very positive year for Emergent and we were very pleased with our financial results for the year. We have now had four consecutive years of revenue growth and six consecutive years of profitability. Our product sales to both US and foreign government customers have allowed us to continue to reinvest internally generated cash into our product development pipeline. Looking ahead, the devised schedule of dose delivery under the current contract with HHS over the next two years and the resulting revenues generated from these deliveries position us well to continue investing in our advanced and follow on product pipeline, pursue additional markets for Biothrax, to make additional investments in our manufacturing and development infrastructure, we will also continue to pursue our strategy of growth through opportunistic acquisitions as we look to build out our product pipeline opportunities. Now, I would like to give a summary of our financials for 2007 and I’ll start with product revenues. 2007 product sales increased by $21.8 million or 15% to $169.8 million from $148 million in 2006. The increase in revenue was driven by a 41% increase in the number of doses of Biothrax delivered, somewhat offset by a 19% decrease in the average sales price per dose. The decrease in the average sales price per dose was due to a one time discounted price for a portion of…

Thank you, ladies and gentlemen, if you wish to ask a question, press star one on your touchtone telephone. If your question has been answered or you wish to withdraw your question, press star two. Questions will be taken in the order received. Press star one to begin. Your first question comes from the line of Richard Smith with J.P. Morgan, please proceed. Richard Smith – J.P. Morgan: Yes, good morning. Just a couple of questions, one would be anthrax antibody that you’ve just licensed in, could you give us a sense of the next steps for that product, when that might be in a position to be licensed, would it be something to look out into 2009 and just could you give us a sense of where you stand on the development of maybe second or third generation anthrax vaccine, please.

Thank you Richard, I’m going to ask Mike to answer the first question and I will answer the second one.

So on the anthrax therapeutic that we just [did] license, we had submitted a contract where [we searched], contract that with Asian [deniad], we’re anticipating that award to be announced in September. So the next steps for that product are if you take it [unintelligible] process development for commercial scale manufacturing to go ahead and execute the non clinical efficacy studies and then to go ahead and begin and complete the phase 1 clinical trial for that product. So as it stands we look to advance the development of the product probably beginning this fall. I anticipating an award. So it we’re very excited about this new acquisitions because it really positions us in both, on both tracks, the polyclonal AIG track and the monoclonal one where we compete with [HGF]. So we believe it’s a very strong candidate and we believe that we have a good chance of getting some funding [unintelligible]. Richard Smith – J.P. Morgan: Would it be fair to say that given what you’ve seen with HGSI that the path for future development is pretty much laid out for you?

Yes, you know it’s always good to be the first to market but sometimes it’s also advantageous to be the second and to basically follow the footsteps of someone who has gone through the trials and tribulations. So we’re very optimistic and we understand that the government likes to pursue multiple suppliers and we believe that we are well positioned. Richard Smith – J.P. Morgan: Okay and on the second and third generation anthrax vaccine?

Yes before I go there let me just say one more thing about the monoclonals versus polyclonals. We do believe that both requirements stand in parallel. So now to the next question which is you asked what’s happening with the second and third generation. Let me start with the third generation. Third generation [unintelligible] by NIAID for the development of what is truly a suitable product with a long shelf life with antigens sparing attributes and with potentially a strong [unintelligible] that would accelerate the immune response. So we submitted some bids under that RFP and we expected to hear from NIAID sometime in July of this year. We believe that we’re well positioned as a key player for the next generation. With respect to second generation, as you know recently an RFP came out that stated that the government is interested in purchasing 25 million doses of a second generation product. Now the second generation to remind everyone is really pretty much the same as our product expect instead of using native [PA] as the primary antigen it’s recombinant [DA]. Again the antigen aluminum [unintelligible] and it is an injectable as it is with ours. So we believe the government is interested in continuing to pursue that for the multiple supplier [unintelligible] and for good reason. We are evaluating at this point as to whether and how we best bid for this, under this RFP. And we’ll keep you abreast of any [unintelligible] developments. Richard Smith – J.P. Morgan: Okay, thank you very much.

Your next question comes from the line of Daniel Mallin with Web Securities, please proceed. Daniel Mallin – WBB Securities: Hi guys, congratulations on the quarter and the year. Most of my questions were just answered, they were on really the two things that you just talked about, but more specifically on the recent acquisition for the anthrax monoclonal antibodies, I realize that the government has you know stated its intent to acquire products from both categories. Do you think though that there’s really room in the stockpile for both, or is it ultimately whichever proves to be more efficacious in terms of treating anthrax on a post exposure basis is really going to win?

Well I think in the long run, whichever is more effective is going to win. But I think in the short and medium term, the government seems to be committed to pursue both tracks simply because there might be some shelf life differences. There may be some efficacy differences and there may be some price differences. So it is our view that both tracks are going to be relevant for at least the medium term, 3-5 years and then maybe thereafter, you know there might be a down selection [unintelligible] one company but in terms of on track. Daniel Mallin – WBB Securities: Okay and then in terms of the HHS versus DOD procurement, I know that all of the current procurement is through HHS. You know, however, it’s possible that some of the doses that are currently being acquired could be being shipped to DOD. I realize this is a sensitive issue but are you seeing any indicators in terms of how and where you’re shipping, I mean previously you were shipping to two different people. Are all of your shipments basically all going directly to HHS or are you doing any other shipments that would lead you to believe that some of the current doses being produced are actually being used directly by the military for [executive] immunization program.

I guess the best way I can answer this Dan is that the government has decided to procure Biothrax through one government agency and as it stands now its HHS, the larger purchaser of our vaccine. We also understand that DOD will continue with its active immunization program and that any purchases or requirements that they have will be purchased through HHS and HHS will in turn purchase additional doses for them. That is our understanding and as DOD starts looking at their 08 requirement this year’s requirement, we do expect that that will result in further purchases by HHS. Daniel Mallin – WBB Securities: Okay and lastly I know you touched on this in the call but what is the timing in terms of the completion of the new plant and the expansions in Lancing? When do you expect to be fully operational is what I’m getting at.

Right, so we’re doing engineering runs and after the engineering runs we would start process validation and so we expect to submit a DLA supplement sometime this year. And then you know you have your normal six to 12 month review period. So we expect that if everything goes well that sometime in 09 we may be licensed to a manufacturer of anthrax in the large scale facility. Daniel Mallin – WBB Securities: And as you said its scalable so whether one of your own candidates is commercial at that point or potentially you might actually be prepared anyway to purchase something that’s already commercial with an eye towards moving the manufacturing or close to be commercial into your new facility?

Absolutely. I’d like to underscore that this facility was designed to be campaignable, so it is not only restricted to manufacture Biothrax but potentially other recombinant and other fermentation stages vaccine candidates. So yes we will be looking at bringing other products in for manufacturing them. Daniel Mallin – WBB Securities: Can I ask one quick question on RPA, I know I’ve kind of monopolizing on the time here.

You’re asking some good questions Dan. Daniel Mallin – WBB Securities: You know on RPA it just seems like it’s just the RFP that just keeps coming back and it just doesn’t seem to want to go away. You know a while back if you looked at the public filings from Vacgen, you know I thought it was very interesting that in those filings they basically stated outright that they tried to sell their RFP asset and couldn’t get what they considered to be a reasonable bid. Having said that though, if you look at the timing under this RFP that just hit the system, you know if you extrapolate forward with reasonable expectations of what somebody can deliver, when would you think that somebody else’s RPA under this RFP could potentially be in the marketplace?

Let me start by saying that RPA is experimental. Vacgen had some issues. Whether [aveesha] RPA has any issues, we can’t speak to. But what we can say is that the RFP allows for 5-8 years to deliver into the stockpile and going through the process of getting post to licensure will take time. And at the end, we may have a product that may have only about 18-24 months stability. Daniel Mallin – WBB Securities: It says right in there that they’re looking for up to 24 months of stability so they’ve already seemed to cut back on that expectation from the previous RFPs so.

Correct and if you look at stockpiling economics, you know if you compare a product that has only 18 month or a 24 month versus one that may have you know 36, 48 or even beyond month, it becomes a very interesting economic question, financial question. Also, you know it’s still unproven RPA as to whether it has the same efficacy as [viotrack]. But we do understand that the government would like to diversify their supplier base and have multiple suppliers for such a strategic and important product. Daniel Mallin – WBB Securities: Any feedback from the FDA yet on Biothrax for post exposure?

We’re working it hard. We are on track. We have a contract with HHS in which they actually are [funding] towards the completion of our test indications and you know we’re pretty much following through with what the contract has asked us to do. Our target time for the, so this year we’re looking at having an additional clinical study and next year if everything goes well we should be in a position to submit [unintelligible]. Daniel Mallin – WBB Securities: Okay well thank you again.

Ladies and gentlemen as a reminder to ask a question press star one. And there are no other questions in the queue. Pardon me we have a follow up from the line of Richard Smith from J.P. Morgan, please proceed. Richard Smith – J.P. Morgan: Hi, just a quick follow up. The licensing or acquisition of an additional asset this year, could you just maybe give us some sense that you said this whether you believe that might be a bio defense asset or it might be something on the commercial vaccine side?

That’s a very good question Richard. I mean when it comes to bio defense, we’re looking at broadening and deepening our franchise with respect to anthrax and botulinum and we’ve made some good progress with this acquisition to where you’re pretty close to being fully around [unintelligible]. On the commercial side we have two candidates that are in phase 2, positioned to go into phase 3 and there we’d like to see one or two more advanced stage commercial products. So our focus is going to be on the commercial side with respect to bringing in a phase 2 or potentially a phase 3 product. Richard Smith – J.P. Morgan: Okay, thank you.

Thank you at this time there are no other questions in the queue and I’d like to turn the call back over to Mr. Bob Burrows for any closing remarks.

Thank you Francis. Ladies and gentlemen that concludes today’s call, thank you all for your participation. Please note that today’s call has been recorded and a replay will be available to you later today through March 21st. Alternatively there is available a webcast of today’s call and an archived version of which will be available later today, accessible through the company’s website at www.emergentbiosolutions.com and clicking on investors path. Thank you again and we look forward to speaking with all of you in the future. Goodbye.

Again thank you for your participation in today’s conference, this concludes the presentation, you may now disconnect and have a great day.