CEO & Chairman, 10% Owner of Emergent BioSolutions Inc. (EBS) Fuad El-hibri sells 15,000 shares of EBS on 08/11/2009 at an average price of $16.78 a share.

EMERGENT BIOSULUTIONS INC. is a leading biopharmaceutical company dedicated to one simple mission – to protect life. EBS develops manufactures and commercializes vaccines and therapeutics that assist the body\’s immune system to prevent or treat disease. Their products target infectious diseases and other medical conditions that have resulted in significant unmet or underserved public health needs. Their marketed product BioThrax? (Anthrax Vaccine Adsorbed) is the only vaccine approved by the U.S. Food and Drug Administration for the prevention of anthrax infection. Emergent BioSolutions Inc. has a market cap of $511.8 million; its shares were traded at around $16.91 with a P/E ratio of 13.1 and P/S ratio of 2.8.

Emergent BioSolutions Inc., (EBS)

Q2 2009 Earnings Call

August 6, 2009 5:00 pm ET

Executives

Robert G. Burrows – Vice President, Investor Relations

Fuad El-Hibri – Chairman of the Board, Chief Executive Officer

R. Don Elsey – Chief Financial Officer

Daniel J. Abdun-Nabi – President, Chief Operating Officer

W. James Jackson, Ph.D. – Senior Vice President and Chief Scientific Officer

Analysts

Eric Schmidt – Cowen & Company

David Moskowitz – Caris & Company

Mona Ashiya – J.P. Morgan

Sean Long – Kennedy Capital Management

Presentation

Operator

Welcome to the Emergent BioSolutions Incorporated second quarter 2009 financial results conference call. (Operator Instructions) I would now like to turn the call over to Mr. Robert Burrows.

Robert Burrows

Good afternoon ladies and gentlemen. My name is Robert Burrows, Vice President of Investor Relations for Emergent. Thank you for joining us today as we discuss Emergent BioSolutions financial results for the second quarter and first six months of 2009. 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 will be Fuad El-Hibri, Chairman and Chief Executive Officer, and Don Elsey, 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, however, I am compelled to remind everyone that during the all management may make projections and other forward-looking statements regarding future events and the company’s prospects or 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.

Emergent BioSolutions chairman and CEO, Mr. Fuad El-Hibri, named Ernst & Young Entrepreneur of the Year 2009 award finalist in greater Washington. Emergent BioSolutions chairman Fuad El-Hibri:

chairman and chief executive officer, Mr. Fuad El-Hibri, is a finalist for the Ernst & Young Entrepreneur of the Year^® 2009 Award in the Greater Washington region.  Yahoo! Finance and Mr. Fuad El-Hibri:

Emergent BioSolutions Inc. (NYSE:EBS – News) announced today that its.  According to Ernst & Young LLP, the awards program recognizes entrepreneurs who demonstrate extraordinary success in the areas of innovation, financial performance and personal commitment to their businesses and communities. Mr. El-Hibri was selected as a finalist from nearly 100 nominations by a panel of independent judges. Award winners will be announced at a special gala event on June 18 at the Ritz-Carlton, Tysons Corner in Virginia.

“It is an honor to be chosen as a finalist for the Ernst & Young Entrepreneur of the Year Award,” said Mr. Fuad El-Hibri. “I am proud of the entrepreneurial spirit, commitment, and collaboration that prevail at Emergent, which are key factors to our company’s success. This recognition represents the contributions of each and every member of the Emergent Team as we work together in pursuit of our company mission – to protect life.”

Mr. El-Hibri was also a finalist for the Greater Washington region in 2007. The Ernst & Young Entrepreneur of the Year awards program celebrates its 23rd anniversary this year. The program has expanded to recognize business leaders in over 135 cities in 50 countries throughout the world.

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. 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.

About Ernst & Young’s Entrepreneur of the Year^® Awards Program

Ernst & Young’s Entrepreneur of the Year^® Award is the world’s most prestigious business award for entrepreneurs. The award makes a difference through the way it encourages entrepreneurial activity among those with potential and recognizes the contribution of people who inspire others with their vision, leadership and achievement. As the first and only truly global award of its kind, the Ernst & Young Entrepreneur of the Year^® award celebrates those who are building and leading successful, growing and dynamic businesses, recognizing them through regional, national and global awards programs in more than 135 cities in 50 countries.

Sponsors
Founded and produced by Ernst & Young LLP, the Entrepreneur of the Year awards are pleased to have the Ewing Marion Kauffman Foundation and SAP America as national sponsors.

In Greater Washington, sponsors include HSBC Bank, Pillsbury Law, Reznick Group, Lockton Companies and the Washington Business Journal.

NHM Chairman Louis Sullivan, MD, has announced the election of biotechnology executive Fuad El-Hibri, physician and public health expert Margaret A. Hamburg, MD, and technology entrepreneur James M. Philips to the NHM Board of Trustees for three-year terms of service. Fuad El-Hibri on National Health Museum, WASHINGTON— September 3, 2007.

Fuad El-Hibri has filed an intention with the SEC to sell 1.1 million shares of stock:

On January 20, 2009, Emergent Biosolutions announces that Fuad El-Hibri has filed an intention with the SEC to sell 1.1 million shares of stock: 13.5 million shares had been issued to date with 47% controlled by Fuad El-Hibri. It also announced Stage II testing of vaccines for Typhoid, Hepatitis B, and Tuberculosis.

Posted in El-Hibri Foundation, El-Hibri Fuad, El-Hibri Peace Education Prize, Fuad El-Hibri
Tags: American University, Martin Luther King, Nelson Mandela, Nonviolence, Mohandas Karamchand Gandhi, Mubarak Awad, Nonviolence International, White House

Good afternoon everyone. As Fuad mentioned following the close of … timing and the potential opportunity? Fuad El-Hibri Indeed, AIG remains a … or another contract for BioThrax. Fuad El-Hibri Fuad El-Hibri and Emergent BioSolutions Inc. Earnings Call Transcript

• Emergent BioSolutions Inc., Q1 2009 Earnings Call Transcript
• Emergent BioSolutions Inc. Q4 2008 Earnings Call Transcript 06 Mar, 2009

… in continued profitability. Finally, as Fuad mentioned, we continue to pursue … upfront versus development versus procurement? Fuad El-Hibri Well, let me first … Have you gone to that? Fuad El-Hibri For competitive reasons, I …

• Emergent BioSolutions Inc. Q3 2008 Earnings Call Transcript 21 Nov, 2008

… , and our recombinant trivalent botulinum vaccine. As Fuad mentioned these development contract revenues carry with … a protest. Cory Kasimov – JPMorgan Right. Okay. Fuad El-Hibri (inaudible). Cory Kasimov – JPMorgan …

• Emergent BioSolutions Inc. Q2 2008 Earnings Call Transcript 07 Aug, 2008

… Robert Burrows – VP, Corporate Communications Fuad El-Hibri – Chairman and CEO Don … follows Following my brief introduction, Fuad will provide comments on corporate … Company And I take from Fuad’s comments that you’re …

• Emergent BioSolutions Inc. Q1 2008 Earnings Call Transcript 07 May, 2008

… Robert Burrows – VP, Corporate Communications Fuad El-Hibri – Chairman and CEO Don … the call this morning is Fuad El-Hibri, our Chairman and Chief … sales, not in the quarter-over-quarter. Fuad El-Hibri Yes, that’s absolutely …

• Emergent Biosolutions Inc. Q4 2007 Earnings Call Transcript 07 Mar, 2008

… third generation anthrax vaccine, please. Fuad El-Hibri Thank you Richard, I … military for [executive] immunization program. Fuad El-Hibri I guess the best … monopolizing on the time here. Fuad El-Hibri You’re asking some …

• Emergent Biosolutions Q3 2007 Earnings Call Transcript 02 Nov, 2007

… straightforward. Following my brief introduction, Fuad will briefly discuss third quarter … to the discounted price that Fuad indicated earlier. This discounted price … is this a new customer? Fuad El-Hibri What I can disclose …

Fuad El-Hibri is CEO of BioPort, the only U.S. maker of anthrax vaccine.

By Del Jones, USA TODAY, ROCKVILLE, Md. — Those who go to sleep at night with the threat of terrorism on their minds might be surprised to learn that Muslim CEOs are running companies that watch over our safety.

• Houssam Salloum is CEO of Axiolog, a Detroit firm developing a high-tech system for tracking international cargo into vulnerable U.S. ports.

• Nafa Khalaf is CEO of Detroit Contracting, which after the Sept. 11 attacks in 2001 secured the five major treatment plants that supply water to 4.5 million residents of the Detroit area. Khalaf, 50, emigrated from Iraq in 1986, and his company is now working to protect water plants in Iraq.

• Ahmad Mesdaq, owner of businesses in San Diego including a coffee lounge and cigar factory, this summer will launch an auto registration system in his native Afghanistan that will help authorities stop widespread shipments of explosives and drugs by warlords. Getting Afghanistan back on its feet brings security to the USA, he says.

The past three years have shown the war on terror is complicated. Just as sides can’t be drawn up by national boundaries, neither can the good guys and bad guys be identified based on their religion or national origin.

Throughout history corporate executives have played important roles in winning wars. President Franklin Roosevelt made Robert Wood Johnson, the late CEO of Johnson & Johnson, an Army general in World War II and put him in charge of bringing small business into the war effort. Executives will likely play a critical role in the war on terrorism as well. But they won’t all have names like Johnson. Some may have names like El-Hibri or Mesdaq.

“American Muslims are making endless efforts to stop evil,” Mesdaq says.

These executives are the antithesis of the celebrity CEO so common now in Corporate America. After all, these are times when Muslims running companies in homeland security could attract the attention of both Islamophobes and terrorists. It took months of searching trade associations, chambers of commerce and homeland security experts for USA TODAY to find a cadre of companies that contribute to the security of the U.S. and have a Muslim at the helm. When found, some said they were under contractual obligations not to talk to the media. Some, like Salloum, declined to be interviewed so as not to attract attention. Others were like El-Hibri, who agreed to an interview with reservation.

“Some successful business people in the Muslim community are worried that there are forces working against them,” he says, sitting in his office tucked away in a building with no exterior signage in this Washington, D.C., suburb.

“I’m trusting, not paranoid,” says El-Hibri, 46, who became a U.S. citizen in 1999. He was born in Germany and spent his childhood equally in Europe and the Middle East before coming to the USA to get an economics degree from Stanford and an MBA from Yale. “But there is a group who don’t think the anthrax vaccine should be in the hands of someone with an Arab or Muslim background.”

Scrutiny surrounds anthrax vaccine

Conspiracy-theory Internet sites have taken a special interest in El-Hibri’s formative years in Lebanon and Sudan, and a more recent three-year assignment in Saudi Arabia with Citibank. The sites imply crimes ranging from ties to Osama Bin Laden to being the mastermind behind the mailing of anthrax spores that killed five people in 2001. El-Hibri calls the Web sites annoying and jokes that he’s lucky to be in the vaccination business so that he can inoculate himself from the pain of accusers who can’t be confronted.

Even some members of Congress have objected to BioPort’s anthrax role. That criticism reflects ignorance, says retired admiral William Crowe, who served as chairman of the Joint Chiefs of Staff in the Reagan administration and the first George Bush administration and now is on BioPort’s board of directors. BioPort recruited Crowe, a friend of El-Hibri’s father. Crowe received 8% of BioPort’s stock to serve on its board, largely because of his expertise about the key customer, the Defense Department. But Crowe’s presence also mitigates the attention on El-Hibri.

BioPort keeps a small supply of anthrax spores under five layers of security to verify the potency of the vaccine, a requirement of the Food and Drug Administration. That makes El-Hibri a suspect of conspiracy theorists, who say the unsolved anthrax mail crime of 2001 increased demand for BioPort’s product while El-Hibri and his family were safely inoculated from the fatal bio-threat.

“That’s a terrible stretch,” says Crowe, who says El-Hibri is straightforward and honest and is one who has “never entertained even the slightest idea of fooling the government” and “bends over backward to make sure the Defense Department is aware.”

Muslim executives were careful and measured when responding to most questions but became noticeably uneasy when asked how devout they were to Islam. A typical response: “I attend mosque when I have time,” Khalafsaid. “My philosophy is to be good, to live with others and to be equal with others.”

“I don’t drink alcohol or gamble,” said Mesdaq, 32. “I go to mosque,” but he emphasized: “I’m not a political Muslim. I’m a normal American. I like to drive nice cars, go out and have fun and dance. I’m very blessed.”

El-Hibri says he attends mosque once a year. His mother is German and Catholic. He adopted the faith of his Lebanese father. Islam, Christianity and Judaism are essentially the same, El-Hibri says, with a “belief in one God, what’s right and what’s wrong. Do the best things in the eyes of God, that’s most important.”

That there are Muslims fighting terrorism comes as no surprise to Daniel Lubetzky, the Jewish CEO of Peaceworks, a New York company that fosters joint ventures in regions of conflict. For example, Peaceworks markets Meditalia food products made in cooperation among Israelis, Palestinians, Egyptians and Turks; and Bali Spices made by Muslims, Buddhists and Christians working as partners in Indonesia.

Lubetzky finds that business leaders are usually moderates who see extremism as the enemy to solving poverty. The majority of Muslims have the most to lose from terrorism, because the moderates always pay for the backlash against the extremists, Lubetzky says. “Terrorists hurt their own people the most.”

Making Afghanistan safer helps the USA

Mesdaq is the son of a brigadier general in the Afghani air force who immigrated to the USA as a 9-year-old after the Soviet Union invaded Afghanistan. After the Sept. 11 attacks and the subsequent U.S. war in Afghanistan, he returned a year ago to his native country to visit family. He found a country with more than 500,000 vehicles and no efficient system of registration and licensing. SUVs with tinted windows and diplomatic plates from Iran, Pakistan and the former Soviet republics are everywhere,loaded with explosives or drugs and driven by warlords, he says.

Mesdaq had an idea for a registration system using license plates with holograms. The U.S. State Department approved his plan last month, and he says it will be launched this summer. A one-time registration fee of $100 a car will generate $50 million for the country.

Mesdaq says it’s important that Afghanistan not become dependent on aid from the U.S. “They need to lift themselves if they love their country,” he said.

Salloum is a former captain for the Italian merchant marine who left Lebanon at 17. He has lived in the USA since 1998 and is developing a tracking system that uses satellites to monitor U.S.-bound cargo.

Under the present system, if authorities become suspicious about U.S.-bound cargo, the U.S. Coast Guard boards the arriving ship six miles out at sea, checks the paperwork and, if necessary, examines individual crates. The Axiolog system aims to let enforcement agents worldwide use intelligence more efficiently to flag questionable shipments.

For example, a shipment of books might be inspected if Axiolog finds no record of that company ever receiving paper to publish books. Axiolog would allow such anomalies to be examined by computer while the cargo is en route, cutting down on expensive delays to legitimate shipments.

Such a system could prove invaluable. Even the threat of a dirty bomb could close the port of Los Angeles for a week. It would then take nearly two months to clear the backlog of incoming ships, economic terrorism that could cost billions of dollars.

El-Hibri says it’s a myth that a belief in Islam interferes with being good in business. A study last year by Marcus Noland at the Institute for International Economics supports El-Hibri’s position. Noland found no evidence that Islam was a drag on economic development in countries with large Muslim populations — outside of oil-rich regions where extremist views often interfere with education.

“The Islamic religion promotes hard work and the idea that there’s nothing wrong with being a financial success as long as you do it in an ethical and moral way,” says El-Hibri, an avid polo player whose father’s company built telecommunication networks in Saudi Arabia, Russia, Poland, Venezuela and El Salvador.

Khalaf, who took just 18 months to get a civil engineering degree from Wayne State University when he came to the USA in 1986, then earned an MBA from George Washington University, agrees that Muslim executives have their priorities straight.

“When you become an American citizen your priority is to protect Americans,” he says.

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Posted in El-Hibri Fuad, Emergent BioSolutions, Emergent BioSolutions Inc, Fuad El-Hibri, USA Taoday
Tags: United States, Saudi Arabia, World War II, Osama Bin Laden, George W Bush, US, Iraq, Barack Obama, Middle East