Good day, ladies and gentlemen, and welcome to the Emergent BioSolutions First Quarter 2011 Financial Results Conference Call. My name is Anne and I will be your coordinator for today’s call. As a reminder, this conference is being recorded for replay purposes. At this time, all participants are in listen-only mode. (Operator Instructions) We will be facilitating a question-and-answer session following the presentation. I would now like to turn the presentation over to Mr. Bob Burrows. Please proceed, sir.

Thanks, Anne. Good afternoon ladies and gentlemen. Again, my name is Bob Burrows, Vice President of Investor Relations for Emergent. Thank you for joining us today as we discuss Emergent BioSolutions financial results for the first quarter of 2011. As is customary, our call today is open to all participants. In addition, the call is being recorded and is copyrighted by Emergent BioSolutions. Joining me on the call this afternoon with prepared comments will be Fuad El-Hibri, our Chairman and Chief Executive Officer; and Don Elsey, our Chief Financial Officer. Additional members of our senior management team will be present on the call for purposes of the Q&A session. Before we begin, I’m compelled to remind everyone that during the call, management may make projections and other forward-looking statements regarding future events and the company’s prospects for future performance. These forward-looking statements reflect Emergent’s current perspective on existing trends and information. Any such forward-looking statements are not guarantees of future performance and involve substantial risks and uncertainties. Actual results may differ materially from those projected in any forward-looking statements. You are encouraged to review Emergent’s filings with the SEC on Forms 10-K, 10-Q and 8-K for more information on the risks and uncertainties that could cause actual results to differ. For the benefit of those you may be listening to the replay, this call was held and recorded on May 05, 2011. Since then, Emergent may have made announcements relating to topics discussed during today’s call. So again, please reference our most recent press releases and SEC filings. 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/Press Releases. With that introduction, I would now like to turn the call over to Fuad El-Hibri, Emergent BioSolutions’ Chairman and CEO. Fuad?

Thank you, Bob. Good afternoon, everyone and thank you for joining us on our earnings call today. In my prepared comments, I will review our financial performance for the first quarter of 2011, provide guidance on the second quarter revenue, discuss relevant updates to our business, and highlight key near-term milestones. Before I begin, I’d like to take a moment to comment on our news earlier this week. On Monday, May 2, we announced a modification to our current BioThrax procurement contract with CDC. The contract was expanded by 3.4 million doses with a total additional value of up to $101 million. This brings the total number of does to be delivered the under the contract to 17.9 million. Deliveries are contracted to be completed by the third quarter of this year. In addition, we continue to have discussions with CDC representatives regarding to form multi-year procurement contract. We anticipate an award by the end of the third quarter this year. Now, let me review our first quarter financial results. We achieved total revenues of $18.5 million and realized a net loss of $21 million. As you may remember from our March earnings call, we anticipated reduced deliveries in the first quarter. We redeployed our potency testing capacity primarily to the qualification of replacement reference standards. This process, which is required to enable continued release of BioThrax doses, has now been substantially completed. Moving onto guidance, we maintain our full year 2011 guidance of total revenues of $320 million to $340 million. We expect second quarter total revenues of $80 million to $90 million, reflecting return to normal levels of product growth. We anticipate catching up to our total revenue guidance by the end of the year. We also maintained our full year 2011 net income guidance of $35 million…

Thank you, Fuad. Good afternoon everyone. As Fuad mentioned, following the close of the market today, we released our financial results for the first quarter 2011. I encourage everyone to take a look at the press release which is currently available on our website. We plan to file our Quarterly Report on Form 10-Q with the SEC, no later than the close of business tomorrow, Friday, May 6. The 10-Q will also be available on our website. I’ll now provide a brief overview of our financial results for the first quarter of 211. As we previously guided, our total revenues in Q1 were light. Total revenues were $18.5 million, which were comprised of $5.6 million of product sales and $12.9 million of contracts and grants revenue. As Rob has already discussed, during the quarter we redeployed our potency testing capacity to the qualification of replacement reference standards and other development testing. This process, which is required to enable continued release of BioThrax doses has now been substantially completed. Looking at the contracts and grants revenues, this increased by 63% or $5 million over the $7.9 million recognized in the first quarter 2010. This growth was driven by increases in reimbursement revenues related to the Building 55 and further contracts awarded in 2010 as well as collaboration revenues from Abbott and Pfizer. On the spending side, our R&D expense in Q1 2011 was $34.8 million versus $19.9 million for Q1 2010, an increase of 74%. On a sequential basis relative to Q4 2010, our R&D expense increased by 17%. In both instances, the growth in Q1 2011 reflects the impact of the programs we acquired as part of the acquisition of Trubion late last year. If one takes into account the contracts and grants funding we have for many of our…

. : Eric Schmidt – Cowen & Company: Good afternoon. Thanks for taking the question. Just wondering if you could provide a little bit more detail on what substantially completed means, what's actually left to be completed? And I guess in addition given it sounds like you haven't started reshipping to the stockpile how you have confidence that the runs that you've been accumulating will pass potency lab testing?

Thank you Eric. Let me start by saying that with substantially completing the process, we mean that we’ve done most of the testing that is part of the process of qualifying and you reference lot. Of course after that we need to put the package together, analyze the data, put it together and submit it to FDA, and get back to any time through deal. With respect to delivery issue, right we haven’t shipped yet, but we do expect to ship by the end of this second quarter. As we have shown in our guidance for the second quarter, which is $80 million to $90 million in total sales, which as usual a significant portion of that is being at product sales. So we do anticipate getting product released by the end of the quarter, and actually shipping by end of second quarter. Eric Schmidt – Cowen & Company: So, Fuad, just to be clear then, you've obviously been accumulating a lot of product and that's waiting around to be potency-tested once you've finished the qualification. And your best guess, of course, is that most of those lots will pass testing and be shipped this quarter?

Correct, absolutely. And also Eric, you reminded that we have annual maintenance shutdowns that was performed and the one that we performed last year was towards the latter part of the year, which means that anyway even if we had and reallocate it. We redeployed our potency testing capacity, that the first quarter would have been like in terms of product release anyway because it takes about three to four months from the time we reinitiate after a shutdown until we get FDA release of our product. So there are certainly lots in the queue that we’re confident, are going to test within the normal range for testing throughout the year. So that’s at the – by the end of second quarter we would have an ability to achieve the guidance that we gave. Eric Schmidt – Cowen & Company: Thanks for the clarification. One more question on the $600,000 in sales to international and other customers. I think that may be the first time you've broken that number out, at least if my memory serves? Is this going to be something we see in the future? And is $600,000 about the kind of run rate or is this an aberrant quarter one way or another?

So, Eric, this is Don. How are you? Eric Schmidt – Cowen & Company: Good. Thanks Don.

Okay, okay. We broken that out in past calls and certainly in all of the filings with the SEC. So this is nothing out of the ordinary and we will continue to break it out as we go forward. As you know as we have talked about the ex-US market in the past. There I don't think one could point to a run rate for ex-US. As demands rise, and as we’re able to satisfy those demands with some capacity that may be available. We’ll do so. But I wouldn't project a run rate at this point of time.

I would like to add to that, too, is that we are pursuing regulatory approval to market BioThrax in several countries around the world. And as we're making progress towards that and hopefully which will culminate in market authorization in those markets, we think that that's -- and assuming we do have a bit extra capacity that might increase future sales. Again there is no promise of that I am just giving you a little bit more color as to what we're doing in terms of potentially expanding our potential of our international market. Eric Schmidt – Cowen & Company: Thank you.

And our next question comes from the line of Greg Wade with Wedbush. Please proceed. Greg Wade – Wedbush Morgan: Good afternoon. Thanks for taking my questions. First up, with respect to Building 55, could you give us a little more granularity in to the milestones associated with licensure and the anticipated timeline for those? And then, Don, could you just tell us a little bit about what depreciation expense was in the quarter and how you think that's going to behave over the anticipated coming year and maybe next year as you guys get more manufacturing capacity under your belt? Thanks.

Thanks for joining us today Greg. Let me try to answer the first question, which is that really we have a multiyear contract with BARDA to scale up the manufacturing of BioThrax in Building 55. And there are this is a development contract, which has normal development milestone that we achieve. We prepare invoices and get reimbursed for the activity that we extended on the project. So the key milestones, I guess for this year is consistency lot manufacture. For next year, it’s clinical testing and nonclinical stuff, which go on in parallel, and then hopefully thereafter BLA submission.

All right. Greg, good afternoon. With regards to depreciation for the quarter it was about $2.2 million. And basically it’s going to remain in that area until such time as Baltimore comes on. As you know, depreciation begins when an asset is put in place for its intended use. So Building 55 won't contribute to that stream until such time as it’s licensed. So Baltimore is probably the next significant asset investment and we would look at that beginning probably in 2012. Greg Wade – Wedbush Morgan: Great. Thanks for taking my questions.

Thank you Greg.

(Operator Instructions) And our next question comes from the line of Karen Jay with JPMorgan. Please proceed. Karen Jay – JPMorgan: Good afternoon. It’s Karen for Cory Kasimov. I have two questions. The first is on, now that you've been awarded the bridging contract, is there any visibility into potential timing of the RFP for the renewal?

Yes, thank you for joining us, Karen. Yes, indeed we were very pleased to execute the modification which actually adds 3.4 million doses to the existing contract that we have been overall delivering early on, so that bridges us through September. The RFP is still being worked on. We have no reason to believe that it’s not forthcoming very soon. We remain confident that it’s going to come out. We remain confident that an award will be finalized by the end of the third quarter in this year. Karen Jay – JPMorgan: Okay, great. And then my second question is on Building 55, any updates on whether or not bridging studies will be required?

We have dialog with FDA on an ongoing basis. . And once our consistency lots are completed, we will have another meeting with the FDA to discuss this discuss in greater detail. So it’s a little premature now to comment and we’re prepared to do both, if there is study to be done we’re prepared to do that. If you don't have to do one, it means earlier approval was also the same. So we’re timing as to what the situation might be. We’re happy that our Building 55 contract with the government allows and provides funding for the situation that we do have to do a clinical purchase. Karen Jay – JPMorgan: Great, thank you.

Thank you.

Ladies and gentlemen we have no further questions. This concludes today's question-and-answer session. I’d now like to turn the call back over to Bob Burrows for closing remarks.

Thank you. And ladies and gentlemen that concludes today's call. Thank you for your participation.. Please note that today call is being recorded and a replay will be available beginning later today through May 19. Alternatively there is available a webcast of call, an archive version of which will be available later today accessible through the company's website. Thank you again and we look forward to speaking to all of you in the future. Good bye.

Ladies and gentlemen we thank you for your participation in today’s conference. This concludes the presentation and you may now disconnect. Have a good day.