|  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|--------------------------------------------------------------------------------------|

|  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|------------------------------------------------------------------------------------------|

| Delaware                                                       |   | 14-1902018                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (IRS Employer Identification No.) |

| 400 Professional Drive, Gaithersburg , Maryland |   | 20879      |
|-------------------------------------------------|--------|------------|
| (Address of Principal Executive Offices)        |   | (Zip Code) |

| Title of Each Class                                           | Name of Each Exchange on Which Registered |
|---------------------------------------------------------------|-------------------------------------------|
| Common stock, $0.001 par value per share                      | New York Stock Exchange                   |
| Series A junior participating preferred stock purchase rights | New York Stock Exchange                   |

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| INDEX    |
|----------|
|     |   |   |
| PART I   |
|     | Item 1. | Business |
|     | Item 1A. | Risk Factors |
|     | Item 1B. | Unresolved Staff Comments |
|     | Item 2. | Properties |
|     | Item 3. | Legal Proceedings |
|     | Item 4. | Mine Safety Disclosures |
| PART II  |
|     | Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|     | Item 6. | Selected Financial Data |
|     | Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|     | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
|     | Item 8. | Financial Statements and Supplementary Data |
|     | Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|     | Item 9A. | Controls and Procedures |
|     | Item 9B. | Other Information |
| PART III |
|     | Item 10. | Directors, Executive Officers and Corporate Governance |
|     | Item 11. | Executive Compensation |
|     | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|     | Item 13. | Certain Relationships and Related Transactions, and Director Independence |
|     | Item 14. | Principal Accountant Fees and Services |
| PART IV  |
|     | Item 15. | Exhibits and Financial Statement Schedules |
|     | Signatures |
|     | Exhibit Index |

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|  | § | the potential outcome of our current investigation of foreign particles discovered in two lots of BioThrax; |
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|  | § | appropriations for the procurement of BioThrax® (Anthrax Vaccine Adsorbed), our FDA-licensed  anthrax vaccine; |
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|  | § | our ability to successfully integrate our acquisition of Cangene Corporation, and realize the benefits of this acquisition; |
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|  | § | our ability to perform under our contracts with the U.S. government related to BioThrax, including the timing of deliveries; |
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|  | § | our ability to obtain new BioThrax sales contracts or modifications to existing contracts; |
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|  | § | the availability of funding for our U.S. government grants and contracts; |
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|  | § | our ability to successfully execute our growth strategy and achieve our financial and operational goals; |
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|  | § | our ability to successfully integrate and develop the products or product candidates, programs, operations and personnel of any entities or businesses that we acquire; |
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|  | § | our ability to perform under our contract with the U.S. government to develop and obtain regulatory approval for large-scale manufacturing of BioThrax in Building 55, our large-scale vaccine manufacturing facility in Lansing, Michigan; |
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|  | § | our ability to identify and acquire companies or in-license products or late-stage product candidates that satisfy our selection criteria; |
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|  | § | our ability to realize synergies and benefits from acquisitions or in-licenses within expected time periods or at all; |
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|  | § | our ability to selectively enter into collaboration arrangements; |
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|  | § | our ability to achieve milestones in our out-license and collaboration contracts; |
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|  | § | our ability to obtain and maintain intellectual property protection for our products and product candidates; |
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|  | § | our ability and plans to expand our manufacturing facilities and capabilities; |
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|  | § | our ability and the ability of our contractors and suppliers to maintain compliance with cGMP and other regulatory obligations; |
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|  | § | the results of regulatory inspections; |
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|  | § | our ability to meet operating and financial restrictions placed on us and our subsidiaries under our senior secured credit facility; |
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|  | § | the rate and degree of market acceptance and clinical utility of our products; |
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|  | § | the success of our ongoing and planned development programs, non-clinical activities and clinical trials of our product candidates; |
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|  | § | the timing of and our ability to obtain and maintain regulatory approvals for our product candidates; |
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|  | § | the success of our commercialization, marketing and manufacturing capabilities and strategy; and |
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|  | § | the accuracy of our estimates regarding future revenues, expenses, capital requirements and needs for additional financing. |
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|  |  | BioThrax® (Anthrax Vaccine Adsorbed), the only vaccine licensed by the U.S. Food and Drug Administration, or the FDA, for the prevention of anthrax disease; |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | BATTM (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-Equine), the only heptavalent therapeutic licensed by the FDA for the treatment of botulinum disease*; |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | AnthrasilTM (Anthrax Immune Globulin Intravenous (Human)), which has a pending Biologics License Application, or BLA, with the FDA and, if approved, would be the only polyclonal antibody therapeutic licensed by the FDA for the treatment of anthrax infection*; |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | VIGIV (Vaccinia Immune Globulin Intravenous (Human)), the only therapeutic licensed by the FDA to address adverse events from smallpox vaccination*; and |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | RSDL® (Reactive Skin Decontamination Lotion Kit), the only device cleared by the FDA for the removal or neutralization of chemical agents, T-2 toxin and many pesticide-related chemicals from the skin. |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | NuThraxTM (anthrax vaccine adsorbed with CPG 7909 adjuvant), a next generation anthrax vaccine; |
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|  |  | PreviThraxTM (recombinant protective antigen anthrax vaccine, purified), a next generation anthrax vaccine; |
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|  |  | GC-072, the lead compound in the EV-035 series of broad spectrum antibiotics, which we acquired from Evolva SA in December 2014; and |
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|  |  | Other Biodefense product candidates. |
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|  |  | WinRho® SDF [Rho(D) Immune Globulin Intravenous (Human)], for treatment of autoimmune platelet disorder, also called immune thrombocytopenic purpura or ITP, and, separately, for the treatment of hemolytic disease of the newborn, or HDN *; |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | HepaGam B® [(Hepatitis B Immune Globulin Intravenous (Human)], for post-exposure prophylactic treatment of hepatitis-B*; |
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|  |  | VARIZIG® [Varicella Zoster Immune Globulin (Human)],  for post-exposure prophylactic treatment of varicella zoster virus, which causes chickenpox and shingles*; and |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | episil® (oral liquid), for relief of pain and soothing oral lesions of various etiologies, including oral mucositis/stomatitis caused by chemotherapy or radio therapy*. |
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|  |  | IXINITY® (coagulation factor IX (recombinant)), being developed for the prevention of bleeding episodes in people with hemophilia B; |
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|  |  | ES414, now known as MOR209/ES414, being developed for metastatic castration resistant prostate cancer under our collaboration with MorphoSys AG entered into in August 2014; |
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|  |  | otlertuzumab, formerly known as TRU-016, being developed for Chronic Lymphocytic Leukemia; and |
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|  |  | Other Biosciences product candidates. |
|--|----------|---------------------------------------|

| BIODEFENSE                                                            |
|-----------------------------------------------------------------------|
| Product                                                               | Indication | Regulatory Approvals |
| BioThrax® (Anthrax Vaccine Adsorbed)                             | Pre-exposure prophylaxis of anthrax disease | United StatesGermanySingapore |
| BATTM [(Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)] | Treatment of suspected or documented exposure to botulinum neurotoxin A, B, C, D, E, F or G | United States |
| Anthrasil (Anthrax Immune Globulin Intravenous (Human))               | Treatment of toxemia associated with inhalational anthrax | Anthrasil is an investigational product, but is procured by U.S. Health & Human Services, or HHS, for inclusion into the Strategic National Stockpile, or SNS, for use in an emergency under an Emergency Use Authorization, or EUA. |
| VIGIV (Vaccinia Immune Globulin Intravenous (Human)                   | Post-exposure prophylaxis of vaccinia (a common virus used to vaccinate against small pox) | United StatesCanada |
| RSDL® (Reactive Skin Decontamination Lotion Kit)                 | Removal or neutralization of chemical warfare agents, T-2 toxin and many pesticide-related chemicals from the skin | United States 510(k)United KingdomAustraliaCanada |
|                                                                  |   |   |

| BIOSCIENCES                                                       |
|-------------------------------------------------------------------|
| Product                                                           | Indication(s) | Regulatory Approvals |
| WinRho® SDF [(Rho(D) Immune Globulin Intravenous (Human)]    | ITP – immune thrombocytopenic purpuraHDN – hemolytic disease of the newbornPreventing Rho(D) immunization in Rho(D)(-) women [1]Treating Rho(D)(-) patients after transfusions with incompatible Rho(D)(+) blood or erythrocyte products [2] | Canada – ITP, HDNUnited States – ITP, HDNPortugal – [1] and [2] |
| HepaGam B® [Hepatitis B Immune Globulin Intravenous (Human)] | Post-exposure prophylaxis for hepatitis BPrevention of hepatitis B recurrence following liver transplantation in patients who are positive for hepatitis B surface antigen | United StatesCanadaIsraelKuwaitTurkey |
| VARIZIG® [Varicella Zoster Immune Globulin (Human)]          | Post-exposure prophylaxis for varicella (chickenpox) in high-risk patient groups, including immunocompromised children, newborns and pregnant women [1]Prevention and reduction of severity in maternal infections within four days of exposure to Varicella zoster virus [2] | United States – [1]Canada – [2] |
| episil® (oral liquid)                                        | Relief of pain, soothing oral lesions of various etiologies, including oral mucositis/stomatitis caused by chemotherapy and radio therapy | United States (exclusive commercialization rights in the United States) |

|  | § | BioThrax. Although BioThrax is the only vaccine licensed by the FDA for the prevention of anthrax disease, we face potential future competition for the supply of anthrax vaccines to the U.S. government. Various agencies of the U.S. government are providing funding to us and to our competitors for the development of alternative anthrax vaccines. In addition, the United Kingdom Public Health England manufactures an anthrax vaccine for use by the United Kingdom government. Other countries may also have anthrax vaccines in development for their own internal use. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | BAT. Our botulinum immune globulin product is the only heptavalent therapeutic licensed by the FDA for the treatment of botulinum disease. Other companies may be in stages of developing therapies aimed at treating or preventing botulism infections, however, direct competition is currently limited. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | Anthrasil. GlaxoSmithKline plc has obtained FDA licensure for ABthraxTM (raxibacumab), an anthrax monoclonal antibody therapeutic. Elusys Therapeutics, Inc. is developing Anthim®TM, an anthrax monoclonal antibody therapeutic. |
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|  | § | VIGIV. Our VIGIV is the only therapeutic licensed by the FDA to address adverse events from smallpox vaccination. Other companies may be in stages of developing therapies aimed at treating or preventing vaccinia infections; however, direct competition is currently limited. SIGA Technologies, Inc. is developing ArestvyrTM an oral therapy that could potentially be used as a treatment for smallpox or vaccinia infections. SIGA is continuing clinical trials for Arestvyr. |
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|  | § | RSDL. In the United States, RSDL is the only FDA-cleared chemical warfare agent decontamination device for use on the skin. Internationally, various Ministries of Defense have used Fullers Earth, Dutch Powder and French Powder to absorb liquid chemical weapons. |
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|  | § | NuThrax and PreviThrax. PharmAthene, Inc., PaxVax Inc., Vaxin Inc., Pfenex Inc., Soligenix, Inc. and Immunovaccine Inc. are each currently developing anthrax vaccine product candidates with funding provided by NIAID and BARDA. |
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|  | § | GC-072. Basilea Pharmaceutica Ltd., The Medicines Company, Rempex Pharmaceuticals, Inc., Cempra, Inc., Tetraphase Pharmaceuticals, Inc., Achaogen, Inc., GlaxoSmithKline plc and others are each currently developing broad spectrum antibiotic product candidates with funding provided by DTRA, NIAID and BARDA. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | VAX161C Pandemic Flu Vaccine. FluBlok® (Protein Sciences Corporation), PandemrixTM (GlaxoSmithKline plc), Emerflu® (Sanofi Pasteur Inc.) are licensed vaccines. Nanotherapeutics Inc., CSL Behring, and other companies are developing pandemic influenza vaccines that are not dependent on egg-based manufacturing. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | WinRho SDF. In the United States, the use of WinRho SDF is primarily for the ITP indication. In the U.S. ITP market, WinRho SDF competes with Rhophlac® (CSL Behring, a subsidiary of CSL Limited), Nplate® (Amgen Inc.) and Promacta® (GlaxoSmithKline plc). In Canada, the use of WinRho SDF is primarily for the HDN indication. WinRho SDF is the only anti-D product available for the prevention of HDN and treatment of ITP in Canada. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | HepaGam B. Two competitive products are marketed in North America: Nabi-HB® (Biotest Pharmaceuticals Corporation) and HyperHEP B® S/D (Grifols USA, LLC). Nabi-HB® and HyperHEP B® S/D are both licensed to treat acute exposure to blood containing hepatitis B surface antigen and administered via intramuscular injection. HepaGam B is currently the only intravenous hepatitis B immune globulin licensed for the liver transplantation indication in the United States and Canada. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | VARIZIG. No other currently manufactured competitive product is licensed in the North American markets. |
|--|----------|--------------------------------------------------------------------------------------------------------------|

|  |  | episil®. episil competes primarily with oral hygiene protocols, mouthwashes and oral rinses, topical anesthetics and mucosal barriers and coating agents. The most widely prescribed therapy is a pharmacist-compounded mouthwash known as Magic or Miracle mouthwash. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | IXINITY. If approved, we anticipate that IXINITY would compete with Rixubis (Baxter International Inc.) and Alprolix (Biogen Idec Inc.) recombinant FIX products as well as Benefix (Pfizer Inc.), AlphaNine (Grifols USA, LLC) and MonoNine (CSL Behring, a subsidiary of CSL Limited), which are FIX preparations derived from human plasma . We expect that Novo Nordisk Inc. and CSL Behring will also launch additional long acting recombinant factor IX agents in the future. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | MOR209/ES414. If approved, we anticipate that MOR209/ES414 would compete with Taxotere (Sanofi), Jevtana (Sanofi), Zytiga (Janssen), Xtandi (Astellas), Xofigo (Bayer/Algeta), Provenge (Dendreon) and potentially other products currently under development. |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | otlertuzumab. If approved for CLL, we anticipate that otlertuzumab would compete with, or be combined with, other B-cell depleting therapies, targeted therapies and chemotherapeutics, including: Rituxan® (Genentech, Inc., a member of the Roche Group), Treanda® (Cephalon, a subsidiary of Teva Pharmaceutical Industries Ltd.), Arzerra® (GlaxoSmithKline plc and Genmab A/S), ImbruvicaTM (Pharmacyclics, Inc. and Johnson and Johnson), GayzvaTM (Genentech USA, Inc., a member of the Roche Group) and Zydelig® (Gilead Sciences, Inc.). In addition, Boehringer Ingelheim GmbH and ImmunoGen, Inc. are in early stage development for monoclonal antibodies directed to CD37. AbbVie Inc. is developing ABT-199, a B-cell lymphoma 2 inhibitor, for treatment of CLL in collaboration with Genentech, Inc. |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Contract Manufacturing Services Business. We compete for contract service business with several biopharmaceutical product development organizations, contract manufacturers of biopharmaceutical products and university research laboratories, including, among others: OSO BioPharmaceuticals Manufacturing, LLC, Par Pharmaceutical Companies, Inc., Jubilant Hollister-Stier Laboratories LLC (a subsidiary of Jubilant Life Sciences Limited), Patheon Inc., Hospira Inc., Ajinomoto Althea, Inc. (a subsidiary of Ajinomoto Co., Inc.) Cook Pharmica LLC (a subsidiary of Cook Group Inc.), and Albany Molecular Research, Inc. Although many of these competitors do not offer the same range of services that we do, they can and do compete effectively against certain areas of our business, including our biopharmaceutical production capabilities. We also compete with in-house research, development and support service departments of other biopharmaceutical companies. |
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|  |  | Phase 1 clinical trials test for safety, dose tolerance, absorption, bio-distribution, metabolism, excretion and clinical pharmacology and, if possible, for early evidence regarding efficacy. |
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|  |  | Phase 2 clinical trials involve a small sample of individuals with the target disease or disorder and seek to assess the efficacy of the drug for specific targeted indications to determine dose response and the optimal dose range and to gather additional information relating to safety and potential adverse effects. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Phase 3 clinical trials consist of expanded, large-scale studies of patients with the target disease or disorder to obtain definitive statistical evidence of the efficacy and safety of the proposed product and dosing regimen. The safety and efficacy data generated from Phase 3 clinical trials typically form the basis for FDA approval of the product candidate. |
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|  |  | Phase 4 clinical trials are sometimes conducted after a product has been approved. These trials can be conducted for a number of purposes, including to collect long-term safety information or to collect additional data about a specific population. As part of a product approval, the FDA may require that certain Phase 4 studies, which are called post-marketing commitment studies, be conducted post-approval. |
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|  |  | BioThrax for post-exposure prophylaxis for patients with known or suspected exposure to B. anthracis administered in combination with antimicrobial therapy; |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Anthrasil for the treatment of toxemia associated with inhalational anthrax in adult and pediatric patients in combination with appropriate antibacterial drugs; |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | BAT with exclusivity through March 2020 for treatment of suspected or documented exposure to botulinum neurotoxin A, B, C, D, E, F or G; and |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | VARIZIG with exclusivity through December 2019 for post-exposure prophylaxis of varicella (chickenpox) in high-risk patient groups, including immunocompromised children, newborns and pregnant women. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Class I devices are those for which safety and efficacy can be assured by adherence to a set of general controls. These general controls include compliance with the applicable portions of the FDA's Quality System Regulation, or QSR, which sets forth requirements for manufacturing practices, record keeping, reporting of adverse medical events, labeling and promotion only for cleared or approved intended uses. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Class II devices are also subject to these general controls and to any other special controls as deemed necessary by the FDA to ensure the safety and efficacy of the device. Review and clearance by the FDA for these devices is typically accomplished through the so-called 510(k) pre-market notification procedure. When 510(k) clearance is sought, a sponsor must submit a pre-market notification demonstrating that the proposed device is substantially equivalent to a device approved by the FDA after May 28, 1976. This previously-approved device is called the predicate device. If the FDA agrees that the proposed device is substantially equivalent to the predicate device, then 510(k) clearance to market will be granted. After a device receives 510(k) clearance, any modification that could significantly affect its safety or efficacy, or that would constitute a major change in its intended use, requires a new 510(k) clearance or could require pre-market approval. If a proposed device is substantially equivalent to a predicate device that was approved prior to May 28, 1976, the proposed device is approved based on a pre-amendment and is approved as an unclassified device. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | A Class III device requires approval of a pre-market application, or PMA, which is an expensive, lengthy and uncertain process requiring many years to complete. Clinical trials are almost always required to support a PMA and are sometimes required for a 510(k) pre-market notification. These trials generally require submission of an application for an investigational device exemption, or IDE. An IDE must be supported by pre-clinical data, such as animal and laboratory testing results, which show that the device is safe to test in humans and that the study protocols are scientifically sound. The IDE must be approved in advance by the FDA for a specified number of patients, unless the product is deemed a non-significant risk device and is eligible for more abbreviated investigational device exemption requirements. |
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|  |  | fines, injunctions, and civil penalties; |
|--|----------|------------------------------------------|

|  |  | recall or seizure of products; |
|--|----------|--------------------------------|

|  |  | operating restrictions, partial suspension or total shutdown of production; |
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|  |  | refusal of requests for 510(k) clearance or PMA approval of new products; |
|--|----------|---------------------------------------------------------------------------|

|  |  | withdrawal of 510(k) clearance or PMA approvals already granted; and |
|--|----------|----------------------------------------------------------------------|

|  |  | criminal prosecution. |
|--|----------|-----------------------|

|  |  | the commitment of substantial time and attention of management and key employees to the preparation of bids and proposals for contracts that may not be awarded to us; |
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|  |  | the need to accurately estimate the resources and cost structure that will be required to perform any contract that we might be awarded; |
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|  |  | the possibility that we may be ineligible to respond to a request for proposal issued by the government; |
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|  |  | the submission by third parties of protests to our responses to requests for proposal that could result in delays or withdrawals of those requests for proposal; and |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | in the event our competitors protest or challenge contract or grant awards made to us pursuant to competitive bidding, the potential that we may incur expenses or delays, and that any such protest or challenge would result in the resubmission of bids based on modified specifications, or in the termination, reduction or modification of the awarded contract. |
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|  |  | the Federal Acquisition Regulation, or FAR, and agency-specific regulations supplemental to the FAR, which comprehensively regulate the procurement, formation, administration and performance of government contracts; |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | business ethics and public integrity obligations, which govern conflicts of interest and the hiring of former government employees, restrict the granting of gratuities and funding of lobbying activities and incorporate other requirements such as the Anti-Kickback Act, the Procurement Integrity Act, the False Claims Act and the Foreign Corrupt Practices Act; |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | export and import control laws and regulations; and |
|--|----------|-----------------------------------------------------|

|  |  | laws, regulations and executive orders restricting the use and dissemination of information classified for national security purposes and the exportation of certain products and technical data. |
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|  |  | terminate existing contracts, in whole or in part, for any reason or no reason; |
|--|----------|---------------------------------------------------------------------------------|

|  |  | unilaterally reduce or modify contracts or subcontracts, including by imposing equitable price adjustments; |
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|  |  | cancel multi-year contracts and related orders, if funds for contract performance for any subsequent year become unavailable; |
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|  |  | decline, in whole or in part, to exercise an option to purchase product under a contract or renew a contract; |
|--|----------|---------------------------------------------------------------------------------------------------------------|

|  |  | claim rights to facilities or to products, including intellectual property, developed under the contract; |
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|  |  | require repayment of contract funds spent on construction of facilities in the event of contract default; |
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|  |  | take actions that result in a longer development timeline than expected; |
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|  |  | direct the course of a development program in a manner not chosen by the government contractor; |
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|  |  | suspend or debar the contractor from doing business with the government or a specific government agency; |
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|  |  | pursue civil or criminal remedies under acts such as the False Claims Act and False Statements Act; and |
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|  |  | control or prohibit the export of products. |
|--|----------|---------------------------------------------|

|  |  | our ability to provide acceptable evidence of safety and efficacy; |
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|  |  | the prevalence and severity of any side effects; |
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|  |  | availability, relative cost and relative efficacy of alternative and competing treatments; |
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|  |  | the ability to offer our products for sale at competitive prices; |
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|  |  | the relative convenience and ease of administration; |
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|  |  | the willingness of the target patient population to try new products and of physicians to prescribe these products; |
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|  |  | the strength of marketing and distribution support; |
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|  |  | publicity concerning our products or competing products and treatments; and |
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|  |  | the sufficiency of coverage or reimbursement by third parties. |
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|  |  | warning letters and other communications; |
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|  |  | product seizure or withdrawal of the product from the market; |
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|  |  | restrictions on the marketing or manufacturing of a product; |
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|  |  | suspension or withdrawal of regulatory approvals or refusal to approve pending applications or supplements to approved applications; |
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|  |  | fines or disgorgement of profits or revenue; and |
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|  |  | injunctions or the imposition of civil or criminal penalties. |
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|  |  | equipment malfunctions or failures; |
|--|----------|-------------------------------------|

|  |  | technology malfunctions; |
|--|----------|--------------------------|

|  |  | cyber-attacks; |
|--|----------|----------------|

|  |  | work stoppages or slow-downs; |
|--|----------|-------------------------------|

|  |  | protests, including by animal rights activists |
|--|----------|------------------------------------------------|

|  |  | damage to or destruction of the facility; or |
|--|----------|----------------------------------------------|

|  |  | product contamination or tampering. |
|--|----------|-------------------------------------|

|  |  | successful development, formulation and cGMP scale-up of biologics manufacturing that meets FDA requirements; |
|--|----------|---------------------------------------------------------------------------------------------------------------|

|  |  | successful completion of clinical or non-clinical development, including toxicology studies and studies in approved animal models; |
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|  |  | receipt of marketing approvals from the FDA and equivalent foreign regulatory authorities; |
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|  |  | establishment of commercial manufacturing processes and product supply arrangements; |
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|  |  | establishment and training of a commercial sales force for the product, whether alone or in collaboration with others; |
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|  |  | successful registration and maintenance of relevant patent and/or other proprietary protection; and |
|--|----------|-----------------------------------------------------------------------------------------------------|

|  |  | acceptance of the product by potential government customers, physicians, patients, healthcare payers and others in the medical community. |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | our inability to manufacture sufficient quantities of materials for use in trials; |
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|  |  | the unavailability or variability in the number and types of subjects for each study; |
|--|----------|---------------------------------------------------------------------------------------|

|  |  | safety issues or inconclusive or incomplete testing, trial or study results; |
|--|----------|------------------------------------------------------------------------------|

|  |  | lack of efficacy of product candidates during the trials; |
|--|----------|-----------------------------------------------------------|

|  |  | government or regulatory restrictions or delays; and |
|--|----------|------------------------------------------------------|

|  |  | greater than anticipated costs of trials. |
|--|----------|-------------------------------------------|

|  |  | retaining existing customers and attracting new customers; |
|--|----------|------------------------------------------------------------|

|  |  | retaining key employees; |
|--|----------|--------------------------|

|  |  | diversion of management attention and resources; |
|--|----------|--------------------------------------------------|

|  |  | conforming internal controls, policies and procedures, business cultures and compensation programs; |
|--|----------|-----------------------------------------------------------------------------------------------------|

|  |  | consolidating corporate and administrative infrastructures; |
|--|----------|-------------------------------------------------------------|

|  |  | consolidating sales and marketing operations; |
|--|----------|-----------------------------------------------|

|  |  | identifying and eliminating redundant and underperforming operations and assets; |
|--|----------|----------------------------------------------------------------------------------|

|  |  | assumption of known and unknown liabilities; |
|--|----------|----------------------------------------------|

|  |  | coordinating geographically dispersed organizations; and |
|--|----------|----------------------------------------------------------|

|  |  | managing tax costs or inefficiencies associated with integrating operations. |
|--|----------|------------------------------------------------------------------------------|

|  |  | our collaborators may not commit adequate resources to the development, marketing and distribution of any collaboration products, limiting our potential revenues from these products; |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | our collaborators may experience financial difficulties and may therefore be unable to meet their commitments to us; |
|--|----------|----------------------------------------------------------------------------------------------------------------------|

|  |  | our collaborators may pursue a competing product candidate developed either independently or in collaboration with others, including our competitors; and |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | our collaborators may terminate our relationship. |
|--|----------|---------------------------------------------------|

|  |  | requiring us to dedicate a substantial portion of any cash flow from operations to payment on our debt, which would reduce the amounts available to fund other corporate initiatives; |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | increasing the amount of interest that we have to pay on debt with variable interest rates, if market rates of interest increase; |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------|

|  |  | subjecting us, as under our senior secured revolving credit facility, to restrictive covenants that may reduce our ability to take certain corporate actions, acquire companies, products or technology, or obtain further debt financing; |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | requiring us to pledge our assets as collateral, which could limit our ability to obtain additional debt financing; |
|--|----------|---------------------------------------------------------------------------------------------------------------------|

|  |  | limiting our flexibility in planning for, or reacting to, general adverse economic and industry conditions; and |
|--|----------|-----------------------------------------------------------------------------------------------------------------|

|  |  | placing us at a competitive disadvantage compared to our competitors that have less debt, better debt servicing options or stronger debt servicing capacity. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | the level, timing and cost of product sales; |
|--|----------|----------------------------------------------|

|  |  | the extent to which we acquire or invest in companies, products or technologies; |
|--|----------|----------------------------------------------------------------------------------|

|  |  | the acquisition of new facilities and capital improvements to new or existing facilities; |
|--|----------|-------------------------------------------------------------------------------------------|

|  |  | the payment obligations under our indebtedness; |
|--|----------|-------------------------------------------------|

|  |  | the scope, progress, results and costs of our development activities; |
|--|----------|-----------------------------------------------------------------------|

|  |  | our ability to obtain funding from collaborative partners, government entities and non-governmental organizations for our development programs; and |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | the costs of commercialization activities, including product marketing, sales and distribution |
|--|----------|------------------------------------------------------------------------------------------------|

|  |  | decreased demand or withdrawal of a product; |
|--|----------|----------------------------------------------|

|  |  | injury to our reputation; |
|--|----------|---------------------------|

|  |  | withdrawal of clinical trial participants; |
|--|----------|--------------------------------------------|

|  |  | costs to defend the related litigation; |
|--|----------|-----------------------------------------|

|  |  | substantial monetary awards to trial participants or patients; |
|--|----------|----------------------------------------------------------------|

|  |  | loss of revenue; and |
|--|----------|----------------------|

|  |  | an inability to commercialize products that we may develop. |
|--|----------|-------------------------------------------------------------|

|  |  | the classification of our directors; |
|--|----------|--------------------------------------|

|  |  | limitations on changing the number of directors then in office; |
|--|----------|-----------------------------------------------------------------|

|  |  | limitations on the removal of directors; |
|--|----------|------------------------------------------|

|  |  | limitations on filling vacancies on the board; |
|--|----------|------------------------------------------------|

|  |  | limitations on the removal and appointment of the chairman of our Board of Directors; |
|--|----------|---------------------------------------------------------------------------------------|

|  |  | advance notice requirements for stockholder nominations of candidates for election to the Board of Directors and other proposals; |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------|

|  |  | the inability of stockholders to act by written consent; |
|--|----------|----------------------------------------------------------|

|  |  | the inability of stockholders to call special meetings; and |
|--|----------|-------------------------------------------------------------|

|  |  | the ability of our Board of Directors to designate the terms of and issue a new series of preferred stock without stockholder approval. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  |  | decisions and procurement policies by the U.S. government affecting BioThrax; |
|--|----------|-------------------------------------------------------------------------------|

|  |  | the success of competitive products or technologies; |
|--|----------|------------------------------------------------------|

|  |  | results of clinical and non-clinical trials of our product candidates; |
|--|----------|------------------------------------------------------------------------|

|  |  | announcements of acquisitions, collaborations, financings or other transactions by us; |
|--|----------|----------------------------------------------------------------------------------------|

|  |  | public concern as to the safety of our products; |
|--|----------|--------------------------------------------------|

|  |  | termination or delay of a development program; |
|--|----------|------------------------------------------------|

|  |  | the recruitment or departure of key personnel; |
|--|----------|------------------------------------------------|

|  |  | variations in our product revenue and profitability; and |
|--|----------|----------------------------------------------------------|

|  |  | the other factors described in this "Risk Factors" section |
|--|----------|------------------------------------------------------------|

| Location                   | Use                                                                    | Segment                | Approximate square feetOwned/leased | Owned/leased       |
|----------------------------|------------------------------------------------------------------------|------------------------|-------------------------------------|--------------------|
| Lansing, Michigan          | Manufacturing operations facilities, office space and laboratory space | Biodefense             | 336,000                             | Owned              |
| Baltimore, Maryland        | Manufacturing facilities and office and laboratory space               | Biodefense             | 56,000                              | Owned              |
| Gaithersburg, Maryland     | Office and laboratory space                                            | Biodefense             | 48,000                              | Owned              |
| Hattiesburg, Mississippi   | Manufacturing facilities                                               | Biodefense             | 4,000                               | Lease expires 2020 |
| Winnipeg, Manitoba, Canada | Manufacturing operations facilities, office space and laboratory space | Biosciences            | 315,000                             | Owned              |
| Baltimore, Maryland        | Manufacturing facilities and office and laboratory space               | Biosciences            | 70,000                              | Owned              |
| Seattle, Washington        | Office and laboratory space                                            | Biosciences            | 51,000                              | Leases expire 2020 |
| Gaithersburg, Maryland     | Office space/rental real estate                                        | Biodefense/Biosciences | 130,000                             | Owned              |

|                         |   | First Quarter |   |   | Second Quarter |   |   | Third Quarter |   |   | Fourth Quarter |   |
|------------------------------|--------|---------------|--------|--------|----------------|--------|--------|---------------|--------|--------|----------------|--------|
| Year Ended December 31, 2014 |   |               |   |   |                |   |   |               |   |   |                |   |
| High                         |   | $             | 28.48  |   |           | $      | 27.17  |          |   | $      | 25.41          |   |   | $ | 28.08 |   |
| Low                          |   | $             | 21.72  |   |           | $      | 20.04  |          |   | $      | 20.11          |   |   | $ | 19.31 |   |
| Year Ended December 31, 2013 |   |          |   |   |           |   |   |          |   |   |           |   |   |   |   |   |
| High                         |   | $             | 16.99  |   |           | $      | 15.89  |          |   | $      | 19.53          |   |   | $ | 24.04 |   |
| Low                          |   | $             | 13.75  |   |           | $      | 13.02  |          |   | $      | 14.49          |   |   | $ | 17.31 |   |

| Issuer Purchases of Equity Securities |                                        |
|---------------------------------------|---------------------------------------------|
|                                  |                                             |   |  |   |  |   |  |   |
| Period                                | Total number of shares (or units) purchased |   | Average price paid per share (or unit) |   | Total number of shares (or units) purchased as part of publicly announced plans or programs |   | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs |   |
| October 1 to December 31, 2014 (1)    |                                        |   | 7,236 |   |   |   | 27.64 |   |   |   | 0 |   |   | $ | 0.00 |   |
| Total                                 |                                        |   | 7,236 |   |   | $ | 27.64 |   |   |   | 0 |   |   | $ | 0.00 |   |

----

|                                                  |   | Year Ended December 31, |       |
|-------------------------------------------------------|--------|-------------------------|------------|
| (in thousands, except share and per share data)       |   | 2014                    |       |   | 2013 |   |   | 2012 |   |   | 2011 |   |   | 2010 |   |
|                                                  |   |                         |       |   |  |   |   |  |   |   |  |   |   |  |   |
| Statements of operations data:                        |   |                         |       |   |  |   |   |  |   |   |  |   |   |  |   |
| Revenues:                                             |   |                         |       |   |  |   |   |  |   |   |  |   |   |  |   |
| Product sales                                         |   | $                       | 308,345    |   |   | $ | 257,922 |   |   | $ | 215,879 |   |   | $ | 202,409 |   |   | $ | 251,381 |   |
| Contract manufacturing                                |   |                    | 30,944     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Contracts, grants and collaborations                  |   |                    | 110,849    |   |   |   | 54,823 |   |   |   | 66,009 |   |   |   | 70,975 |   |   |   | 34,790 |   |
| Total revenues                                        |   |                    | 450,138    |   |   |   | 312,745 |   |   |   | 281,888 |   |   |   | 273,384 |   |   |   | 286,171 |   |
| Operating expenses:                                   |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of product sales and contract manufacturing      |   |                    | 118,412    |   |   |   | 62,127 |   |   |   | 46,077 |   |   |   | 42,171 |   |   |   | 47,114 |   |
| Research and development                              |   |                    | 150,829    |   |   |   | 119,933 |   |   |   | 120,226 |   |   |   | 124,832 |   |   |   | 89,295 |   |
| Selling, general & administrative                 |   |                    | 122,841    |   |   |   | 87,883 |   |   |   | 76,018 |   |   |   | 74,282 |   |   |   | 76,205 |   |
| Impairment of in-process research and development     |   |                    | -          |   |   |   | - |   |   |   | 9,600 |   |   |   | - |   |   |   | - |   |
| Total operating expenses                              |   |                    | 392,082    |   |   |   | 269,943 |   |   |   | 251,921 |   |   |   | 241,285 |   |   |   | 212,614 |   |
| Income from operations                                |   |                    | 58,056     |   |   |   | 42,802 |   |   |   | 29,967 |   |   |   | 32,099 |   |   |   | 73,557 |   |
| Other income (expense):                               |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                       |   |                    | 320        |   |   |   | 139 |   |   |   | 134 |   |   |   | 105 |   |   |   | 832 |   |
| Interest expense                                      |   |                    | (8,240     | ) |   |   | - |   |   |   | (6 | ) |   |   | - |   |   |   | - |   |
| Other income (expense), net                           |   |                    | 2,926      |   |   |   | 426 |   |   |   | 1,970 |   |   |   | (261 | ) |   |   | (1,023 | ) |
| Total other income (expense)                          |   |                    | (4,994     | ) |   |   | 565 |   |   |   | 2,098 |   |   |   | (156 | ) |   |   | (191 | ) |
|                                                  |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income taxes              |   |                    | 53,062     |   |   |   | 43,367 |   |   |   | 32,065 |   |   |   | 31,943 |   |   |   | 73,366 |   |
| Provision for income taxes                            |   |                    | 16,321     |   |   |   | 13,108 |   |   |   | 13,922 |   |   |   | 15,830 |   |   |   | 26,182 |   |
| Net income                                            |   |                    | 36,741     |   |   |   | 30,259 |   |   |   | 18,143 |   |   |   | 16,113 |   |   |   | 47,184 |   |
| Net loss attributable to noncontrolling interest      |   |                    | -          |   |   |   | 876 |   |   |   | 5,381 |   |   |   | 6,906 |   |   |   | 4,514 |   |
| Net income attributable to Emergent BioSolutions Inc. |   | $                       | 36,741     |   |   | $ | 31,135 |   |   | $ | 23,524 |   |   | $ | 23,019 |   |   | $ | 51,698 |   |
|                                                  |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share — basic                      |   | $                       | 0.98       |   |   | $ | 0.86 |   |   | $ | 0.65 |   |   | $ | 0.65 |   |   | $ | 1.63 |   |
| Earnings per share — diluted                    |   | $                       | 0.88       |   |   | $ | 0.85 |   |   | $ | 0.65 |   |   | $ | 0.64 |   |   | $ | 1.59 |   |
| Weighted average number of shares — basic       |   |                    | 37,344,891 |   |   |   | 36,201,283 |   |   |   | 36,080,495 |   |   |   | 35,658,907 |   |   |   | 31,782,286 |   |
| Weighted average number of shares — diluted     |   |                    | 45,802,807 |   |   |   | 36,747,556 |   |   |   | 36,420,662 |   |   |   | 36,206,052 |   |   |   | 32,539,500 |   |

|                        | As of December 31, |   |
|-----------------------------|--------------------|--------|
| (in thousands)              | 2014               |   | 2013 |   | 2012 |   | 2011 |   | 2010 |   |
|                        |                    |   |  |   |  |   |  |   |  |   |
| Balance Sheet Data:         |                    |   |  |   |  |   |  |   |  |   |
| Cash and cash equivalents   |               | $      | 280,499 |   |   | $ | 179,338 |   |   | $ | 141,666 |   |   | $ | 143,901 |   |   | $ | 169,019 |   |
| Working capital             |               |   | 339,239 |   |   |   | 216,464 |   |   |   | 201,440 |   |   |   | 183,364 |   |   |   | 167,774 |   |
| Total assets                |               |   | 945,262 |   |   |   | 626,630 |   |   |   | 564,230 |   |   |   | 546,864 |   |   |   | 500,319 |   |
| Total long-term liabilities |               |   | 299,125 |   |   |   | 80,814 |   |   |   | 60,195 |   |   |   | 59,083 |   |   |   | 51,039 |   |
| Total stockholders' equity  |               |   | 553,201 |   |   |   | 489,165 |   |   |   | 442,128 |   |   |   | 416,727 |   |   |   | 373,561 |   |

|  | § | BioThrax® (Anthrax Vaccine Adsorbed), the only vaccine licensed by the U.S. Food and Drug Administration, or the FDA, for the prevention of anthrax disease; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | BATTM (Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-Equine), the only heptavalent therapeutic licensed by the FDA for the treatment of botulinum disease*; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | AnthrasilTM (Anthrax Immune Globulin Intravenous (Human)), which has a pending Biologics License Application, or BLA, with the FDA and, if approved, would be the only polyclonal antibody therapeutic licensed by the FDA for the treatment of anthrax infection*; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | VIGIV (Vaccinia Immune Globulin Intravenous (Human)), the only therapeutic licensed by the FDA to address adverse events from smallpox vaccination*; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | RSDL® (Reactive Skin Decontamination Lotion Kit), the only device cleared by the FDA for the removal or neutralization of chemical agents, T-2 toxin and many pesticide-related chemicals from the skin. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | NuThraxTM (anthrax vaccine adsorbed with CPG 7909 adjuvant), a next generation anthrax vaccine; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | § | PreviThraxTM (recombinant protective antigen anthrax vaccine, purified), a next generation anthrax vaccine; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | § | GC-072, the lead compound in the EV-035 series of broad spectrum antibiotics, which we acquired from Evolva SA in December 2014. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | § | WinRho® SDF [Rho(D) Immune Globulin Intravenous (Human)], for treatment of autoimmune platelet disorder, also called immune thrombocytopenic purpura or ITP, and, separately, for the treatment of hemolytic disease of the newborn, or HDN *; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | HepaGam B® [(Hepatitis B Immune Globulin Intravenous (Human)], for post-exposure prophylactic treatment of hepatitis-B*; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | § | VARIZIG® [Varicella Zoster Immune Globulin (Human)],  for post-exposure prophylactic treatment of varicella zoster virus, which causes chickenpox and shingles*; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | episil® (oral liquid), for relief of pain and soothing oral lesions of various etiologies, including oral mucositis/stomatitis caused by chemotherapy or radio therapy*. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | IXINITY® (coagulation factor IX (recombinant)), being developed for the prevention of bleeding episodes in people with hemophilia B; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | ES414, now known as MOR209/ES414, being developed for metastatic castration resistant prostate cancer under our collaboration with MorphoSys AG entered into in August 2014; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | otlertuzumab, formerly known as TRU-016, being developed for Chronic Lymphocytic Leukemia. |
|--|--------|--------------------------------------------------------------------------------------------|

|  |  | there is persuasive evidence of an arrangement; |
|--|----------|-------------------------------------------------|

|  |  | delivery has occurred or title has passed to our customer based on contract terms; |
|--|----------|------------------------------------------------------------------------------------|

|  |  | the fee is fixed or determinable; and |
|--|----------|---------------------------------------|

|  |  | collectibility is reasonably assured. |
|--|----------|---------------------------------------|

| Development Programs                              | Funding Source | Award Date | Performance Period     |
|---------------------------------------------------|----------------|------------|------------------------|
| Post-Exposure Prophylaxis indication for BioThrax | BARDA          | 9/2007     | 9/2007 — 3/2016  |
| Large-scale manufacturing for BioThrax            | BARDA          | 7/2010     | 7/2010 — 7/2015  |
| NuThrax                                           | NIAID          | 7/2010     | 8/2010 — 4/2015  |
| PreviThrax                                        | BARDA          | 9/2010     | 9/2010 — 9/2015  |
| CIADM                                             | BARDA          | 6/2012     | 6/2012 — 6/2037  |
| BAT                                               | CDC            | 1/2003     | 1/2003 — 1/2015  |
| BAT                                               | BARDA          | 5/2006     | 5/2006 — 5/2026  |
| Anthrasil                                         | BARDA          | 9/2005     | 9/2005 — 4/2021  |
| Anthrasil                                         | BARDA          | 9/2002     | 9/2002 — 12/2015 |
| Anthrasil                                         | BARDA          | 9/2013     | 9/2013 — 9/2018  |
| VIGIV                                             | CDC            | 8/2012     | 8/2012 — 8/2017  |
| NuThrax Dry Formulation                           | NIAID          | 8/2014     | 8/2014 — 10/2019 |

|  |  | personnel-related expenses; |
|--|----------|-----------------------------|

|  |  | fees to professional service providers for, among other things, analytical testing, independent monitoring or other administration of our clinical trials and obtaining and evaluating data from our clinical trials and non-clinical studies; |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | costs of contract manufacturing services for clinical trial material; and |
|--|----------|---------------------------------------------------------------------------|

|  |  | costs of materials used in clinical trials and research and development. |
|--|----------|--------------------------------------------------------------------------|

|                                 |   | December 31, 2014 |   |   | December 31, 2013 |   |
|--------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Reporting unit                       |   | IPR&D         |   |   | Goodwill          |   |   | IPR&D |   |   | Goodwill |   |
|                                 |   |                   |   |   |                   |   |   |  |   |   |  |   |
| Biosciences therapeutics             |   | $                 | 50,100 |   |              | $      | 13,902 |   |   | $ | 41,800 |   |   | $ | 5,502 |   |
| Biosciences contracts manufacturing  |   |              | -      |   |              |   | 6,736 |   |   |   | - |   |   |   | - |   |
| Biosciences subtotal                 |   |              | 50,100 |   |              |   | 20,638 |   |   |   | 41,800 |   |   |   | 5,502 |   |
| Biodefense therapeutics and vaccines |   |              | 27,700 |   |              |   | 11,430 |   |   |   | - |   |   |   | - |   |
| Biodefense medical device(s)         |   |              | -      |   |              |   | 9,916 |   |   |   | - |   |   |   | 8,452 |   |
| Biodefense subtotal                  |   |              | 27,700 |   |              |   | 21,346 |   |   |   | - |   |   |   | 8,452 |   |
|                                 |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $                 | 77,800 |   |              | $      | 41,984 |   |   | $ | 41,800 |   |   | $ | 13,954 |   |

|  |  | BioThrax - $245.9 million for 2014 as compared to $246.7 million for 2013; |
|--|----------|----------------------------------------------------------------------------|

|  |  | Other Biodefense products - $32.4 million for 2014 (which includes RSDL and products we acquired from Cangene in February 2014) as compared to $11.2 million for 2013; and |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Biosciences product sales (acquired in February 2014) - $30.1 million for 2014. |
|--|----------|---------------------------------------------------------------------------------|

|  | § | development funding of $27.8 million for Anthrasil (acquired in February 2014); |
|--|--------|---------------------------------------------------------------------------------|

|  | § | development funding of $17.0 million for BAT (acquired in February 2014); and |
|--|--------|-------------------------------------------------------------------------------|

|  | § | recognition of $15.6 million, primarily related to license fee revenue, from our collaboration with MorphoSys (executed in August 2014). |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | product and contract manufacturing costs of $48.6 million for 2014 associated with revenues acquired in February, 2014 as part of the Cangene acquisition; and |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | increased costs of $9.4 million for RSDL, which we acquired in August 2013. |
|--|----------|-----------------------------------------------------------------------------|

|                                                |   | Year ended   |    |
|-----------------------------------------------------|--------|--------------|---------|
|                                                |   | December 31, |    |
| (in thousands)                                      |   | 2014         |    |   | 2013 |   |
| Biodefense:                                    |   |              |    |   |  |   |
|    Large-scale manufacturing for BioThrax |   | $            | 13,625  |   |   | $ | 17,876 |   |
|    BioThrax related programs              |   |         | 7,157   |   |   |   | 10,613 |   |
|    PreviThrax                             |   |         | 10,737  |   |   |   | 14,953 |   |
|    NuThrax                                |   |         | 9,428   |   |   |   | 9,236 |   |
|    Botulinum antitoxin                    |   |         | 7,351   |   |   |   | - |   |
|    Anthrasil                              |   |         | 19,513  |   |   |   | - |   |
|    Pandemic influenza                     |   |         | -       |   |   |   | 2,545 |   |
|    Other Biodefense                       |   |         | 14,164  |   |   |   | 7,440 |   |
| Total biodefense                               |   |         | 81,975  |   |   |   | 62,663 |   |
| Biosciences:                                   |   |         |    |   |   |   |   |   |
|    ES414 (formerly T-Scorp)               |   |         | 11,818  |   |   |   | 7,719 |   |
|    IXINITY                                |   |         | 17,456  |   |   |   | - |   |
|    otlertuzumab (formerly TRU-016)        |   |         | 8,818   |   |   |   | 27,035 |   |
|    Tuberculosis vaccine              |   |         | -       |   |   |   | 4,882 |   |
|    Other Biosciences                      |   |         | 22,729  |   |   |   | 11,016 |   |
| Total biosciences                                   |   |         | 60,821  |   |   |   | 50,652 |   |
| Other                                               |   |         | 8,033   |   |   |   | 6,618 |   |
| Total                                          |   | $            | 150,829 |   |   | $ | 119,933 |   |

|  |  | milestone payments received for our PEP indication for BioThrax related to the 2012 achievement of development milestones; |
|--|----------|----------------------------------------------------------------------------------------------------------------------------|

|  |  | our PreviThrax product candidate related to the timing of development activities; |
|--|----------|-----------------------------------------------------------------------------------|

|  |  | the sale of our spi-VEC technology during 2012; and |
|--|----------|-----------------------------------------------------|

|  |  | our agreements with Abbott and Pfizer that terminated during 2012. |
|--|----------|--------------------------------------------------------------------|

|                                                |   | Year ended   |    |
|-----------------------------------------------------|--------|--------------|---------|
|                                           |   | December 31, |    |
| (in thousands)                                      |   | 2013         |    |   | 2012 |   |
| Biodefense:                                    |   |              |    |   |  |   |
|    Large-scale manufacturing for BioThrax |   | $            | 17,876  |   |   | $ | 18,908 |   |
|    BioThrax related programs              |   |         | 10,613  |   |   |   | 10,934 |   |
|    PreviThrax                             |   |         | 14,953  |   |   |   | 19,805 |   |
|    NuThrax                                |   |         | 9,236   |   |   |   | 8,591 |   |
|    Pandemic influenza                     |   |         | 2,545   |   |   |   | 2,500 |   |
|    Thravixa                               |   |         | -       |   |   |   | 1,362 |   |
|    Other Biodefense                       |   |         | 7,440   |   |   |   | 6,479 |   |
| Total biodefense                               |   |         | 62,663  |   |   |   | 68,579 |   |
| Biosciences:                                   |   |         |    |   |   |   |   |   |
|    Tuberculosis vaccine              |   |         | 4,882   |   |   |   | 15,736 |   |
|    otlertuzumab (formerly TRU-016)        |   |         | 27,035  |   |   |   | 13,585 |   |
|    ES414 (formerly T-Scorp)               |   |         | 7,719   |   |   |   | 4,673 |   |
|    ES-301 (formerly DRACO)                |   |         | -       |   |   |   | 2,047 |   |
|    Other biosciences                      |   |         | 11,016  |   |   |   | 8,547 |   |
| Total biosciences                                   |   |         | 50,652  |   |   |   | 44,588 |   |
| Other                                               |   |         | 6,618   |   |   |   | 7,059 |   |
| Total                                          |   | $            | 119,933 |   |   | $ | 120,226 |   |

|                                 |   | Year ended December 31, |     |
|--------------------------------------|--------|-------------------------|----------|
| (in thousands)                       |   | 2014                    |     |   | 2013 |   |   | 2012 |   |
| Net cash provided by (used in):      |   |                         |     |   |  |   |   |  |   |
| Operating activities(1)              |   | $                       | 112,339  |   |   | $ | 96,954 |   |   | $ | 39,644 |   |
| Investing activities                 |   |                    | (210,052 | ) |   |   | (67,894 | ) |   |   | (40,114 | ) |
| Financing activities                 |   |                    | 198,874  |   |   |   | 8,612 |   |   |   | (1,765 | ) |
| Total net cash provided by (used in) |   | $                       | 101,161  |   |   | $ | 37,672 |   |   | $ | (2,235 | ) |

|                                             |   | Payments due by period |    |
|--------------------------------------------------|--------|------------------------|---------|
|                                             |   |                        |    |   | Less than |   |   | 1 to 3 |   |   | 4 to 5 |   |   | More than |   |
| (in thousands)                              |   | Total                  |    |   | 1 year |   |   | Years |   |   | Years |   |   | 5 years |   |
| Contractual obligations:                    |   |                        |    |   |  |   |   |  |   |   |  |   |   |  |   |
| 2.875% Convertible Senior Notes due 2021 (Notes) |   | $                      | 250,000 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 250,000 |   |
| Contractual interest due on Notes                |   |                   | 43,424  |   |   |   | 7,188 |   |   |   | 14,376 |   |   |   | 14,376 |   |   |   | 7,484 |   |
| Long-term indebtedness (excluding Notes)         |   |                   | 1,000   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Purchase commitments                             |   |                   | 11,248  |   |   |   | 3,648 |   |   |   | 7,600 |   |   |   | - |   |   |   | - |   |
| Operating lease obligations                      |   |                   | 11,126  |   |   |   | 2,558 |   |   |   | 4,154 |   |   |   | 3,510 |   |   |   | 904 |   |
| Total contractual obligations                    |   | $                      | 316,798 |   |   | $ | 13,394 |   |   | $ | 26,130 |   |   | $ | 17,886 |   |   | $ | 259,388 |   |

|  |  | the level, timing and cost of product sales; |
|--|----------|----------------------------------------------|

|  |  | the extent to which we acquire or invest in and integrate companies, business, products or technologies; |
|--|----------|----------------------------------------------------------------------------------------------------------|

|  |  | the acquisition of new facilities and capital improvements to new or existing facilities,; |
|--|----------|--------------------------------------------------------------------------------------------|

|  |  | the payment obligations under our indebtedness; |
|--|----------|-------------------------------------------------|

|  |  | the scope, progress, results and costs of our development activities; |
|--|----------|-----------------------------------------------------------------------|

|  |  | our ability to obtain funding from collaborative partners, government entities and non-governmental organizations for our development programs; |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | the costs of commercialization activities, including product marketing, sales and distribution; and |
|--|----------|-----------------------------------------------------------------------------------------------------|

|  |  | the costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other patent-related costs. |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                              |   | December 31, |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                                                                                              |   | 2014         |    |   | 2013 |   |
| ASSETS                                                                                                                                                                                                                            |   |              |    |   |  |   |
| Current assets:                                                                                                                                                                                                                   |   |              |    |   |  |   |
| Cash and cash equivalents                                                                                                                                                                                                         |   | $            | 280,499 |   |   | $ | 179,338 |   |
| Accounts receivable                                                                                                                                                                                                               |   |         | 58,834  |   |   |   | 60,587 |   |
| Inventories                                                                                                                                                                                                                       |   |         | 65,674  |   |   |   | 14,643 |   |
| Deferred tax assets, net                                                                                                                                                                                                          |   |         | 1,710   |   |   |   | - |   |
| Income tax receivable, net                                                                                                                                                                                                        |   |         | 1,357   |   |   |   | 5,651 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                         |   |         | 24,101  |   |   |   | 12,896 |   |
| Total current assets                                                                                                                                                                                                              |   |         | 432,175 |   |   |   | 273,115 |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Property, plant and equipment, net                                                                                                                                                                                                |   |         | 313,979 |   |   |   | 264,240 |   |
| In-process research and development                                                                                                                                                                                               |   |         | 77,800  |   |   |   | 41,800 |   |
| Intangible assets, net                                                                                                                                                                                                            |   |         | 58,344  |   |   |   | 30,148 |   |
| Goodwill                                                                                                                                                                                                                          |   |         | 41,984  |   |   |   | 13,954 |   |
| Deferred tax assets, net                                                                                                                                                                                                          |   |         | 12,764  |   |   |   | - |   |
| Other assets                                                                                                                                                                                                                      |   |         | 8,216   |   |   |   | 3,373 |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                      |   | $            | 945,262 |   |   | $ | 626,630 |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                                  |   | $            | 40,930  |   |   | $ | 27,521 |   |
| Accrued expenses and other current liabilities                                                                                                                                                                                    |   |         | 6,274   |   |   |   | 1,252 |   |
| Accrued compensation                                                                                                                                                                                                              |   |         | 31,654  |   |   |   | 24,615 |   |
| Contingent purchase consideration, current portion                                                                                                                                                                                |   |         | 6,487   |   |   |   | 1,341 |   |
| Provisions for chargebacks                                                                                                                                                                                                        |   |         | 2,246   |   |   |   | - |   |
| Deferred tax liability, net                                                                                                                                                                                                       |   |         | -       |   |   |   | 88 |   |
| Deferred revenue                                                                                                                                                                                                                  |   |         | 5,345   |   |   |   | 1,834 |   |
| Total current liabilities                                                                                                                                                                                                         |   |         | 92,936  |   |   |   | 56,651 |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Contingent consideration, net of current portion                                                                                                                                                                                  |   |         | 41,170  |   |   |   | 15,278 |   |
| Long-term indebtedness                                                                                                                                                                                                            |   |         | 251,000 |   |   |   | 62,000 |   |
| Deferred revenue, net of current portion                                                                                                                                                                                          |   |         | 5,713   |   |   |   | - |   |
| Deferred tax liability, net of current portion                                                                                                                                                                                    |   |         | -       |   |   |   | 1,419 |   |
|    Other liabilities                                                                                                                                                                                               |   |         | 1,242   |   |   |   | 2,117 |   |
|    Total liabilities                                                                                                                                                                                               |   |         | 392,061 |   |   |   | 137,465 |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                     |   |         |    |   |   |   |   |   |
|                                                                                                                                                                                                                              |   |         |    |   |   |   |   |   |
| Stockholders' equity:                                                                                                                                                                                                             |   |         |    |   |   |   |   |   |
| Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2014 and 2013, respectively                                                                                      |   |         | -       |   |   |   | - |   |
| Common stock, $0.001 par value; 100,000,000 shares authorized, 38,129,872 shares issued and 37,709,683, shares outstanding at December 31, 2014; 37,036,996 shares issued and 36,624,043, shares outstanding at December 31, 2013 |   |         | 38      |   |   |   | 37 |   |
| Treasury stock, at cost, 420,189 and 412,953 common shares at December 31, 2014 and 2013, respectively                                                                                                                            |   |         | (6,320  | ) |   |   | (6,119 | ) |
| Additional paid-in capital                                                                                                                                                                                                        |   |         | 274,222 |   |   |   | 247,637 |   |
| Accumulated other comprehensive loss                                                                                                                                                                                              |   |         | (3,008  | ) |   |   | (3,465 | ) |
| Retained earnings                                                                                                                                                                                                                 |   |         | 288,269 |   |   |   | 251,528 |   |
| Total Emergent BioSolutions Inc. stockholders' equity                                                                                                                                                                             |   |         | 553,201 |   |   |   | 489,618 |   |
| Noncontrolling interest in subsidiaries                                                                                                                                                                                           |   |         | -       |   |   |   | (453 | ) |
| Total stockholders' equity                                                                                                                                                                                                        |   |         | 553,201 |   |   |   | 489,165 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                                        |   | $            | 945,262 |   |   | $ | 626,630 |   |

----

|                                                   |   | Year Ended December 31, |       |
|--------------------------------------------------------|--------|-------------------------|------------|
|                                                   |   | 2014                    |       |   | 2013 |   |   | 2012 |   |
| Revenues:                                              |   |                         |       |   |  |   |   |  |   |
| Product sales, net                                     |   | $                       | 308,345    |   |   | $ | 257,922 |   |   | $ | 215,879 |   |
| Contract manufacturing                                 |   |                    | 30,944     |   |   |   | - |   |   |   | - |   |
|    Contracts, grants and collaborations |   |                    | 110,849    |   |   |   | 54,823 |   |   |   | 66,009 |   |
| Total revenues                                         |   |                    | 450,138    |   |   |   | 312,745 |   |   |   | 281,888 |   |
|                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Operating expense:                                     |   |                    |       |   |   |   |   |   |   |   |   |   |
| Cost of product sales and contract manufacturing       |   |                    | 118,412    |   |   |   | 62,127 |   |   |   | 46,077 |   |
| Research and development                               |   |                    | 150,829    |   |   |   | 119,933 |   |   |   | 120,226 |   |
| Selling, general and administrative                    |   |                    | 122,841    |   |   |   | 87,883 |   |   |   | 76,018 |   |
| Impairment of in-process research and development      |   |                    | -          |   |   |   | - |   |   |   | 9,600 |   |
| Income from operations                                 |   |                    | 58,056     |   |   |   | 42,802 |   |   |   | 29,967 |   |
|                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Interest income                                        |   |                    | 320        |   |   |   | 139 |   |   |   | 134 |   |
| Interest expense                                       |   |                    | (8,240     | ) |   |   | - |   |   |   | (6 | ) |
| Other income (expense), net                            |   |                    | 2,926      |   |   |   | 426 |   |   |   | 1,970 |   |
| Total other income (expense)                           |   |                    | (4,994     | ) |   |   | 565 |   |   |   | 2,098 |   |
|                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Income before provision for income taxes               |   |                    | 53,062     |   |   |   | 43,367 |   |   |   | 32,065 |   |
| Provision for income taxes                             |   |                    | 16,321     |   |   |   | 13,108 |   |   |   | 13,922 |   |
| Net income                                             |   |                    | 36,741     |   |   |   | 30,259 |   |   |   | 18,143 |   |
| Net loss attributable to noncontrolling interest       |   |                    | -          |   |   |   | 876 |   |   |   | 5,381 |   |
| Net income attributable to Emergent BioSolutions Inc.  |   | $                       | 36,741     |   |   | $ | 31,135 |   |   | $ | 23,524 |   |
|                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Earnings per share - basic                             |   | $                       | 0.98       |   |   | $ | 0.86 |   |   | $ | 0.65 |   |
| Earnings per share - diluted                           |   | $                       | 0.88       |   |   | $ | 0.85 |   |   | $ | 0.65 |   |
|                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Weighted-average number of shares - basic              |   |                    | 37,344,891 |   |   |   | 36,201,283 |   |   |   | 36,080,495 |   |
| Weighted-average number of shares - diluted            |   |                    | 45,802,807 |   |   |   | 36,747,556 |   |   |   | 36,420,662 |   |

----

|                                                                                         | December 31, |   |
|----------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                         | 2014         |   | 2013 |   | 2012 |   |
|                                                                                         |              |   |  |   |  |   |
| Net income attributable to Emergent BioSolutions Inc.                                        |         | $      | 36,741 |   |   | $ | 31,135 |   |   | $ | 23,524 |   |
| Reclassification of cumulative foreign currency translation adjustment to income, net of tax |         |   | - |   |   |   | 58 |   |   |   | - |   |
| Foreign currency translations, net of tax                                                    |         |   | 457 |   |   |   | 606 |   |   |   | (816 | ) |
| Comprehensive income                                                                         |         | $      | 37,198 |   |   | $ | 31,799 |   |   | $ | 22,708 |   |

----

|                                                                     |   | Year Ended December 31, |     |
|--------------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                     |   | 2014                    |     |   | 2013 |   |   | 2012 |   |
| Cash flows from operating activities:                                    |   |                         |     |   |  |   |   |  |   |
| Net income                                                               |   | $                       | 36,741   |   |   | $ | 30,259 |   |   | $ | 18,143 |   |
| Adjustments to reconcile to net cash provided by operating activities:   |   |                    |     |   |   |   |   |   |   |   |   |   |
| Stock-based compensation expense                                         |   |                    | 12,829   |   |   |   | 11,238 |   |   |   | 11,115 |   |
| Depreciation and amortization                                            |   |                    | 32,453   |   |   |   | 18,958 |   |   |   | 11,197 |   |
| Deferred income taxes                                                    |   |                    | 16,493   |   |   |   | 13,858 |   |   |   | 3,383 |   |
| Non-cash development expenses from joint venture                         |   |                    | -        |   |   |   | (347 | ) |   |   | 3,670 |   |
| Change in fair value of contingent obligations                           |   |                    | 3,133    |   |   |   | 735 |   |   |   | (3,005 | ) |
| Write off of debt issuance costs                                         |   |                    | 1,831    |   |   |   | - |   |   |   |   |   |
| Impairment of in-process research and development                        |   |                    | -        |   |   |   | - |   |   |   | 9,600 |   |
| Impairment of long-lived assets                                          |   |                    | -        |   |   |   | 1,172 |   |   |   | - |   |
| Excess tax benefits from stock-based compensation                        |   |                    | (5,987   | ) |   |   | (3,099 | ) |   |   | (1,588 | ) |
| Other                                                                    |   |                    | 1,284    |   |   |   | 51 |   |   |   | (40 | ) |
| Changes in operating assets and liabilities:                             |   |                    |     |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                      |   |                    | 21,405   |   |   |   | 35,456 |   |   |   | (21,890 | ) |
| Inventories                                                              |   |                    | 4,229    |   |   |   | 518 |   |   |   | (500 | ) |
| Income taxes                                                             |   |                    | (4,711   | ) |   |   | (7,179 | ) |   |   | 8,055 |   |
| Prepaid expenses and other assets                                        |   |                    | (8,472   | ) |   |   | (6,226 | ) |   |   | (1,038 | ) |
| Accounts payable                                                         |   |                    | (9,279   | ) |   |   | (551 | ) |   |   | 274 |   |
| Accrued expenses and other liabilities                                   |   |                    | 2,685    |   |   |   | 7 |   |   |   | 169 |   |
| Accrued compensation                                                     |   |                    | 4,539    |   |   |   | 2,092 |   |   |   | 1,649 |   |
| Provision for chargebacks                                                |   |                    | 299      |   |   |   | - |   |   |   | - |   |
| Deferred revenue                                                         |   |                    | 2,846    |   |   |   | 26 |   |   |   | 449 |   |
| Net cash provided by operating activities                                |   |                    | 112,318  |   |   |   | 96,968 |   |   |   | 39,643 |   |
| Cash flows from investing activities:                                    |   |                    |     |   |   |   |   |   |   |   |   |   |
| Purchases of property, plant and equipment                               |   |                    | (30,673  | ) |   |   | (42,021 | ) |   |   | (53,845 | ) |
| Proceeds from sale of assets                                             |   |                    | -        |   |   |   | - |   |   |   | 11,765 |   |
| Proceeds from maturity of investments                                    |   |                    | -        |   |   |   | - |   |   |   | 1,966 |   |
| Acquisitions, net of acquired cash                                       |   |                    | (179,379 | ) |   |   | (25,873 | ) |   |   | - |   |
| Net cash used in investing activities                                    |   |                    | (210,052 | ) |   |   | (67,894 | ) |   |   | (40,114 | ) |
| Cash flows from financing activities:                                    |   |                    |     |   |   |   |   |   |   |   |   |   |
| Proceeds from long-term debt obligations                                 |   |                    | 241,588  |   |   |   | - |   |   |   | - |   |
| Proceeds from borrowings on long-term indebtedness                       |   |                    | 1,000    |   |   |   | 62,000 |   |   |   | 13,547 |   |
| Issuance of common stock subject to exercise of stock options            |   |                    | 14,078   |   |   |   | 6,848 |   |   |   | 761 |   |
| Excess tax benefits from stock-based compensation                        |   |                    | 5,987    |   |   |   | 3,099 |   |   |   | 1,588 |   |
| Principal payments on long-term indebtedness and line of credit          |   |                    | (62,000  | ) |   |   | (62,774 | ) |   |   | (10,227 | ) |
| Contingent obligation payments                                           |   |                    | (1,579   | ) |   |   | (348 | ) |   |   | (1,748 | ) |
| Purchase of treasury stock                                               |   |                    | (200     | ) |   |   | (213 | ) |   |   | (5,906 | ) |
| Restricted cash deposit                                                  |   |                    | -        |   |   |   | - |   |   |   | 220 |   |
| Net cash provided by (used in) financing activities                      |   |                    | 198,874  |   |   |   | 8,612 |   |   |   | (1,765 | ) |
|                                                                     |   |                    |     |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents             |   |                    | 21       |   |   |   | (14 | ) |   |   | 1 |   |
|                                                                     |   |                    |     |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                     |   |                    | 101,161  |   |   |   | 37,672 |   |   |   | (2,235 | ) |
| Cash and cash equivalents at beginning of year                           |   |                    | 179,338  |   |   |   | 141,666 |   |   |   | 143,901 |   |
| Cash and cash equivalents at end of year                                 |   | $                       | 280,499  |   |   | $ | 179,338 |   |   | $ | 141,666 |   |
|                                                                     |   |                    |     |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                        |   |                    |     |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for interest                                   |   | $                       | 3,761    |   |   | $ | 2,055 |   |   | $ | 2,137 |   |
| Cash paid during the year for income taxes                               |   | $                       | 4,711    |   |   | $ | 6,331 |   |   | $ | 6,537 |   |
| Supplemental information on non-cash investing and financing activities: |   |                    |     |   |   |   |   |   |   |   |   |   |
| Purchases of property, plant and equipment unpaid at year end            |   | $                       | 5,394    |   |   | $ | 2,755 |   |   | $ | 5,612 |   |

----

|                                             |   | $0.001 Par Value Common Stock |       |   | Additional Paid-In |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive |   |   | Noncontrolling Interest |     |   | Retained |   |   | Total Stockholders' |   |
|--------------------------------------------------|--------|-------------------------------|------------|--------|--------------------|--------|--------|----------------|--------|--------|---------------------------------|--------|--------|-------------------------|----------|--------|----------|--------|--------|---------------------|--------|
|                                             |   | Shares                        |       |   | Amount             |   |   | Capital        |   |   | Shares                          |   |   | Amount                  |     |   | Loss     |   |   | in Subsidiary       |   |   | Earnings |   |   | Equity |   |
|                                             |   |                               |       |   |                    |   |   |                |   |   |                                 |   |   |                         |     |   |          |   |   |                     |   |   |  |   |   |  |   |
| Balance at December 31, 2011                     |   |                          | 36,002,698 |   |               | $      | 36     |           |   | $      | 220,654                         |   |   |                    | -        |   |     | $      | -      |                |   | $ | (3,313 | ) |   | $ | 2,481 |   |   | $ | 196,869 |   |   | $ | 416,727 |   |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee equity award plans activity             |   |                          | 269,852    |   |               |   | -      |           |   |   | 10,310                          |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,310 |   |
| Non-cash development expenses from joint venture |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | 3,670 |   |   |   | - |   |   |   | 3,670 |   |
| Net loss attributable to noncontrolling interest |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | (5,381 | ) |   |   | - |   |   |   | (5,381 | ) |
| Treasury stock                                   |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | (403,158 | )      |     |   | (5,906 | )                   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (5,906 | ) |
| Net income                                       |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | - |   |   |   | 23,524 |   |   |   | 23,524 |   |
| Foreign currency translation, net of tax         |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | (816 | ) |   |   | - |   |   |   | - |   |   |   | (816 | ) |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2012                     |   |                          | 36,272,550 |   |               | $      | 36     |           |   | $      | 230,964                         |   |   |                    | (403,158 | )      |     | $      | (5,906 | )                   |   | $ | (4,129 | ) |   | $ | 770 |   |   | $ | 220,393 |   |   | $ | 442,128 |   |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee equity award plans activity             |   |                          | 764,446    |   |               |   | 1      |           |   |   | 16,673                          |   |   |                    |     |   |     |   |   |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,674 |   |
| Non-cash development expenses from joint venture |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | (347 | ) |   |   | - |   |   |   | (347 | ) |
| Net loss attributable to noncontrolling interest |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | (876 | ) |   |   | - |   |   |   | (876 | ) |
| Treasury stock                                   |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | (9,795   | )      |     |   | (213   | )                   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (213 | ) |
| Net income                                       |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | - |   |   |   | 31,135 |   |   |   | 31,135 |   |
| Foreign currency translation, net of tax         |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | 664 |   |   |   | - |   |   |   | - |   |   |   | 664 |   |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2013                     |   |                          | 37,036,996 |   |               | $      | 37     |           |   | $      | 247,637                         |   |   |                    | (412,953 | )      |     | $      | (6,119 | )                   |   | $ | (3,465 | ) |   | $ | (453 | ) |   | $ | 251,528 |   |   | $ | 489,165 |   |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employee equity award plans activity             |   |                          | 1,092,876  |   |               |   | 1      |           |   |   | 26,585                          |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26,586 |   |
| Non-cash development expenses from joint venture |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | 453 |   |   |   | - |   |   |   | 453 |   |
| Treasury stock                                   |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | (7,236   | )      |     |   | (201   | )                   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (201 | ) |
| Net income                                       |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | - |   |   |   | - |   |   |   | 36,741 |   |   |   | 36,741 |   |
| Foreign currency translation, net of tax         |   |                          | -          |   |               |   | -      |           |   |   | -                               |   |   |                    | -        |   |     |   | -      |                |   |   | 457 |   |   |   | - |   |   |   | - |   |   |   | 457 |   |
|                                             |   |                          |       |   |               |   |   |           |   |   |                            |   |   |                    |     |   |     |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2014                     |   |                          | 38,129,872 |   |               | $      | 38     |           |   | $      | 274,222                         |   |   |                    | (420,189 | )      |     | $      | (6,320 | )                   |   | $ | (3,008 | ) |   | $ | - |   |   | $ | 288,269 |   |   | $ | 553,201 |   |

----

|  | Level 1 — | Observable inputs for identical assets or liabilities such as quoted prices in active markets; |
|--|-----------------|------------------------------------------------------------------------------------------------|

|  | Level 2 — | Inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
|--|-----------------|----------------------------------------------------------------------------------------------------------|

|  | Level 3 — | Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use. |
|--|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Buildings               | 31-39 years                            |
|-------------------------|----------------------------------------|
| Building improvements   | 10-39 years                            |
| Furniture and equipment | 3-15 years                             |
| Software                | Lesser of 3-5 years or product life    |
| Leasehold improvements  | Lesser of the asset life or lease term |

|  |  | there is persuasive evidence of an arrangement; |
|--|----------|-------------------------------------------------|

|  |  | delivery has occurred or title has passed to the Company's customer; |
|--|----------|----------------------------------------------------------------------|

|  |  | the fee is fixed or determinable; and |
|--|----------|---------------------------------------|

|  |  | collectibility is reasonably assured. |
|--|----------|---------------------------------------|

|                             | Year Ended December 31, |
|----------------------------------|-------------------------|
|                             |                    | 2014 |   | 2013 |   | 2012 |
| Expected dividend yield          |                    | 0% |   | 0% |   | 0% |
| Expected volatility              |                    | 35-38% |   | 39-49% |   | 41-52% |
| Risk-free interest rate          |                    | 1.14-1.65% |   | 0.32-0.70% |   | 0.36-0.54% |
| Expected average life of options |                    | 4.5 years |   | 4.4 years |   | 3.4 years |

|  |  | Expected dividend yield — the Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Expected volatility — a measure of the amount by which a financial variable, such as share price, has fluctuated (historical volatility) or is expected to fluctuate (implied volatility) during a period. The Company analyzed its own historical volatility to estimate expected volatility over the same period as the expected average life of the options. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Risk-free interest rate — the range of U.S. Treasury rates with a term that most closely resembles the expected life of the option as of the date on which the option is granted. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  | Expected average life of options — the period of time that options granted are expected to remain outstanding, based primarily on the Company's expectation of optionee exercise behavior subsequent to vesting of options. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in thousands)                                                       |   |        |    |
|----------------------------------------------------------------------|--------|--------|---------|
|                                                                 |   |        |    |
| Fair value of tangible assets acquired and liabilities assumed:      |   |        |    |
| Cash                                                                 |   | $      | 43,631  |   |
| Accounts receivable                                                  |   |   | 19,652  |   |
| Inventory (i)                                                        |   |   | 55,259  |   |
| Prepaid expenses and other assets                                    |   |   | 2,375   |   |
| Property, plant and equipment                                        |   |   | 40,264  |   |
| Deferred taxes, net                                                  |   |   | 21,337  |   |
| Income tax receivable                                                |   |   | 2,452   |   |
| Accounts payable and accrued liabilities                             |   |   | (22,918 | ) |
| Provision for chargebacks                                            |   |   | (1,946  | ) |
| Contingent purchase consideration                                    |   |   | (1,284  | ) |
| Deferred revenue                                                     |   |   | (6,378  | ) |
| Total fair value of tangible assets acquired and liabilities assumed |   |   | 152,444 |   |
|                                                                 |   |   |    |   |
| Acquired in-process research and development                         |   |   | 8,300   |   |
| Acquired intangible assets                                           |   |   | 36,200  |   |
| Goodwill                                                             |   |   | 24,566  |   |
| Total purchase price                                                 |   | $      | 221,510 |   |

|                               |        |   | Amortization |   |
|------------------------------------|--------|--------|--------------|--------|
|                               |        |   | Period       |   |
| ( in thousands)                    | Amount |   | in years     |   |
|                               |        |   |              |   |
| Corporate Trade Name               |   | $      | 2,800        |   |   |   | 5.0 |   |
| Marketed Products                  |   |   | 8,100        |   |   |   | 10.0 |   |
| Licensed Products                  |   |   | 3,100        |   |   |   | 7.0 |   |
| Biodefense Products                |   |   | 16,700       |   |   |   | 12.0 |   |
| Contract Manufacturing             |   |   | 5,500        |   |   |   | 8.0 |   |
|                               |   |   |         |   |   |   |   |   |
| Total identified intangible assets |   | $      | 36,200       |   |   |   |   |   |

|                 |   | December 31, |    |
|----------------------|--------|--------------|---------|
| (in thousands)       |   | 2014         |    |   | 2013 |   |
| Pro forma revenue    |   | $            | 462,446 |   |   | $ | 428,194 |   |
| Pro forma net income |   | $            | 34,624  |   |   | $ | 10,994 |   |

| (in thousands)                            |   |        |   |
|-------------------------------------------|--------|--------|--------|
| Amount of cash paid to Evolva Holdings SA |   | $      | 1,500  |   |
| Fair value of contingent consideration    |   |   | 28,200 |   |
| Total purchase price                      |   | $      | 29,700 |   |

| (in thousands)             |   |        |   |
|----------------------------|--------|--------|--------|
| Acquired intangible assets |   | $      | 27,700 |   |
| Goodwill                   |   |   | 2,000  |   |
| Total purchase price       |   | $      | 29,700 |   |

| (in thousands)                                  |   |        |   |
|-------------------------------------------------|--------|--------|--------|
| Amount of cash paid to Bracco Diagnostics Inc.  |   | $      | 25,873 |   |
| Fair value of contingent purchase consideration |   |   | 16,232 |   |
| Total purchase price                            |   | $      | 42,105 |   |

| (in thousands)             |   |        |   |
|----------------------------|--------|--------|--------|
| Acquired intangible assets |   |   | 32,099 |   |
| Goodwill                   |   |   | 9,916  |   |
| Acquired equipment         |   |   | 1,543  |   |
| Other                      |   |   | 11     |   |
| Assumed liabilities        |   |   | (1,464 | ) |
| Total purchase price       |   | $      | 42,105 |   |

|                                 | At December 31, 2014 |    |
|--------------------------------------|----------------------|---------|
| (in thousands)                       |                 | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                              |                 |         |   |   |  |   |   |  |   |   |  |   |
| Investment in money market funds (1) |                 | $       | 111,912 |   |   | $ | - |   |   | $ | - |   |   | $ | 111,912 |   |
| Total assets                         |                 | $       | 111,912 |   |   | $ | - |   |   | $ | - |   |   | $ | 111,912 |   |
|                                 |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                         |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contingent consideration             |                 | $       | - |   |   | $ | - |   |   | $ | 47,657 |   |   | $ | 47,657 |   |
| Total liabilities                    |                 | $       | - |   |   | $ | - |   |   | $ | 47,657 |   |   | $ | 47,657 |   |
|                                 |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 | At December 31, 2013 |    |
| (in thousands)                       |                 | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                              |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment in money market funds (1) |                 | $       | 37,701 |   |   | $ | - |   |   | $ | - |   |   | $ | 37,701 |   |
| Total assets                         |                 | $       | 37,701 |   |   | $ | - |   |   | $ | - |   |   | $ | 37,701 |   |
|                                 |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                         |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contingent price consideration       |                 | $       | - |   |   | $ | - |   |   | $ | 16,619 |   |   | $ | 16,619 |   |
| Total liabilities                    |                 | $       | - |   |   | $ | - |   |   | $ | 16,619 |   |   | $ | 16,619 |   |

| (in thousands)                        |   |        |   |
|---------------------------------------|--------|--------|--------|
| Balance at December 31, 2012          |   | $      | -      |   |
| Expense (income) included in earnings |   |   | 735    |   |
| Settlements                           |   |   | (348   | ) |
| Purchases, sales and issuances        |   |   | 16,232 |   |
| Transfers in/(out) of Level 3         |   |   | -      |   |
| Balance at December 31, 2013          |   | $      | 16,619 |   |
| Expense (income) included in earnings |   |   | 3,133  |   |
| Settlements                           |   |   | (1,579 | ) |
| Purchases, sales and issuances        |   |   | 29,484 |   |
| Transfers in/(out) of Level 3         |   |   | -      |   |
| Balance at December 31, 2014          |   | $      | 47,657 |   |

|           | December 31, |   |
|----------------|--------------|--------|
| (in thousands) | 2014         |   | 2013 |   |
| Billed         |         | $      | 39,948 |   |   | $ | 45,757 |   |
| Unbilled       |         |   | 18,886 |   |   |   | 14,830 |   |
| Total          |         | $      | 58,834 |   |   | $ | 60,587 |   |

|                       |   | December 31, |   |
|----------------------------|--------|--------------|--------|
| (in thousands)             |   | 2014         |   |   | 2013 |   |
| Raw materials and supplies |   | $            | 17,375 |   |   | $ | 2,656 |   |
| Work-in-process            |   |         | 33,477 |   |   |   | 9,819 |   |
| Finished goods             |   |         | 14,822 |   |   |   | 2,168 |   |
| Total inventories          |   | $            | 65,674 |   |   | $ | 14,643 |   |

|                                                        |   | December 31, |    |
|-------------------------------------------------------------|--------|--------------|---------|
| (in thousands)                                              |   | 2014         |    |   | 2013 |   |
| Land and improvements                                       |   | $            | 12,838  |   |   | $ | 10,605 |   |
| Buildings, building improvements and leasehold improvements |   |         | 107,202 |   |   |   | 83,823 |   |
| Furniture and equipment                                     |   |         | 130,131 |   |   |   | 107,006 |   |
| Software                                                    |   |         | 25,354  |   |   |   | 21,832 |   |
| Construction-in-progress                                    |   |         | 117,884 |   |   |   | 98,345 |   |
|                                                        |   |         | 393,409 |   |   |   | 321,611 |   |
| Less: Accumulated depreciation and amortization             |   |         | (79,430 | ) |   |   | (57,371 | ) |
| Total property, plant and equipment, net                    |   | $            | 313,979 |   |   | $ | 264,240 |   |

|                                |   |        |   |   | Manufacturing |   |   | Corporate |   |   | Marketed |   |   | Licensed |   |   | Biodefense |   |   | Contract      |   |   |        |   |
|-------------------------------------|--------|--------|--------|--------|---------------|--------|--------|-----------|--------|--------|----------|--------|--------|----------|--------|--------|------------|--------|--------|---------------|--------|--------|--------|--------|
| (in thousands)                 |   | RSDL   |   |   | Agreement     |   |   | Tradename |   |   | Products |   |   | Products |   |   | Products   |   |   | Manufacturing |   |   | Total  |   |
| Cost basis                          |   |        |   |   |               |   |   |           |   |   |          |   |   |          |   |   |            |   |   |               |   |   |        |   |
| Balance at December 31, 2013        |   | $      | 28,621 |   |          | $      | 3,478  |      |   | $      | -        |   |   | $        | -      |   |       | $      | -      |          |   | $      | -      |   |   | $ | - |   |   |   | 32,099 |   |
| Additions                           |   |   | -      |   |          |   | -      |      |   |   | 2,800    |   |   |     | 8,100  |   |       |   | 3,100  |          |   |   | 16,700 |   |   |   | 5,500 |   |   |   | 36,200 |   |
| Balance at December 31, 2014        |   | $      | 28,621 |   |          | $      | 3,478  |      |   | $      | 2,800    |   |   | $        | 8,100  |   |       | $      | 3,100  |          |   |   | 16,700 |   |   | $ | 5,500 |   |   |   | 68,299 |   |
|                                |   |   |   |   |          |   |   |      |   |   |     |   |   |     |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated amortization            |   |   |   |   |          |   |   |      |   |   |     |   |   |     |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2013        |   | $      | (1,468 | )      |          | $      | (483   | )         |   | $      | -        |   |   | $        | -      |   |       | $      | -      |          |   | $      | -      |   |   | $ | - |   |   |   | (1,951 | ) |
| Amortization                        |   |   | (3,519 | )      |          |   | (1,159 | )         |   |   | (478     | )      |   |     | (692   | )      |       |   | (378   | )             |   |   | (1,191 | )      |   |   | (587 | ) |   |   | (8,004 | ) |
| Balance at December 31, 2014        |   | $      | (4,987 | )      |          | $      | (1,642 | )         |   | $      | (478     | )      |   | $        | (692   | )      |       | $      | (378   | )             |   | $      | (1,191 | )      |   | $ | (587 | ) |   |   | (9,955 | ) |
|                                |   |   |   |   |          |   |   |      |   |   |     |   |   |     |   |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net book value at December 31, 2014 |   | $      | 23,634 |   |          | $      | 1,836  |      |   | $      | 2,322    |   |   | $        | 7,408  |   |       | $      | 2,722  |          |   | $      | 15,509 |   |   |   | 4,913 |   |   |   | 58,344 |   |

| (in thousands)               |   |        |   |
|------------------------------|--------|--------|--------|
| 2015                         |   | $      | 8,629  |   |
| 2016                         |   |   | 8,146  |   |
| 2017                         |   |   | 7,470  |   |
| 2018                         |   |   | 7,470  |   |
| 2019 and beyond              |   |   | 26,629 |   |
| Total remaining amortization |   | $      | 58,344 |   |

| (in thousands)          |   | Biosciences therapeutics |   |   | Biosciences contracts manufacturing |   |   | Biodefense therapeutics |   |   | Biodefense medical device(s) |   |   | Total  |   |
|------------------------------|--------|--------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------|--------|--------|------------------------------|--------|--------|--------|--------|
| Cost Basis                   |   |                          |   |   |                                     |   |   |                         |   |   |                              |   |   |        |   |
| Balance at December 31, 2013 |   | $                        | 5,502  |   |                                |   | -      |                    |   |   | -                            |   |   |   | 8,452  |   |   |   | 13,954 |   |
| Additions                    |   |                     | 8,400  |   |                                |   | 6,736  |                    |   |   | 11,430                       |   |   |   | 1,464  |   |   |   | 28,030 |   |
| Balance at December 31, 2014 |   | $                        | 13,902 |   |                                |   | 6,736  |                    |   |   | 11,430                       |   |   |   | 9,916  |   |   |   | 41,984 |   |
|                         |   |                     |   |   |                                |   |   |                    |   |   |                         |   |   |   |   |   |   |   |   |   |

|                                          |   | 2006 Plan        |      |   | 2004 Plan                       |   |   |                  |   |
|-----------------------------------------------|--------|------------------|-----------|--------|---------------------------------|--------|--------|------------------|--------|
|                                          |   | Number of Shares |      |   | Weighted-Average Exercise Price |   |   | Number of Shares |   |   | Weighted-Average Exercise Price |   |   | Aggregate Intrinsic Value |   |
| Outstanding at December 31, 2013              |   |             | 3,633,146 |   |                            | $      | 17.01  |             |   |   | 53,156 |   |   | $ | 8.86 |   |   | $ | 23,148,738 |   |
| Granted                                       |   |             | 1,125,321 |   |                            |   | 27.46  |             |   |   | - |   |   |   | - |   |   |   |   |   |
| Exercised                                     |   |             | (784,811  | )      |                            |   | 16.72  |             |   |   | (10,000 | ) |   |   | 2.74 |   |   |   |   |   |
| Forfeited                                     |   |             | (135,663  | )      |                            |   | 19.96  |             |   |   | - |   |   |   | - |   |   |   |   |   |
| Outstanding at December 31, 2014              |   |             | 3,837,993 |   |                            | $      | 20.04  |             |   |   | 43,156 |   |   | $ | 10.28 |   |   | $ | 29,181,534 |   |
| Exercisable at December 31, 2014              |   |             | 1,993,261 |   |                            | $      | 17.81  |             |   |   | 43,156 |   |   | $ | 10.28 |   |   | $ | 19,499,871 |   |
| Options expected to vest at December 31, 2014 |   |             | 1,158,434 |   |                            | $      | 21.41  |             |   |   | - |   |   | $ | - |   |   | $ | 7,193,136 |   |

|                             |   | Number of Shares |     |   | Weighted-Average Grant Price |   |   | Aggregate Intrinsic Value |   |
|----------------------------------|--------|------------------|----------|--------|------------------------------|--------|--------|---------------------------|--------|
| Outstanding at December 31, 2013 |   |             | 789,951  |   |                         | $      | 16.53  |                      |   | $ | 18,246,611 |   |
| Granted                          |   |             | 562,662  |   |                         |   | 27.46  |                      |   |   |   |   |
| Vested                           |   |             | (361,010 | )      |                         |   | 17.79  |                      |   |   |   |   |
| Forfeited                        |   |             | (64,247  | )      |                         |   | 19.84  |                      |   |   |   |   |
| Outstanding at December 31, 2014 |   |             | 927,356  |   |                         | $      | 22.44  |                      |   | $ | 25,251,904 |   |

|                                   | Years Ended  |   |
|----------------------------------------|--------------|--------|
|                                   | December 31, |   |
| (in thousands)                         | 2014         |   | 2013 |   | 2012 |   |
| Cost of product sales                  |         | $      | 1,145 |   |   | $ | 575 |   |   | $ | 513 |   |
| Research and development               |         |   | 3,606 |   |   |   | 3,283 |   |   |   | 3,451 |   |
| General and administrative             |         |   | 8,078 |   |   |   | 7,380 |   |   |   | 7,151 |   |
| Total stock-based compensation expense |         | $      | 12,829 |   |   | $ | 11,238 |   |   | $ | 11,115 |   |

|                             |   | Year ended December 31, |   |
|----------------------------------|--------|-------------------------|--------|
| (in thousands)                   |   | 2014                    |   |   | 2013 |   |   | 2012 |   |
| Current                          |   |                         |   |   |  |   |   |  |   |
| Federal                          |   | $                       | 10,412 |   |   | $ | (878 | ) |   | $ | 11,481 |   |
| State                            |   |                    | 479    |   |   |   | (173 | ) |   |   | (1,045 | ) |
| International                    |   |                    | 112    |   |   |   | 300 |   |   |   | 103 |   |
| Total current                    |   |                    | 11,003 |   |   |   | (751 | ) |   |   | 10,539 |   |
| Deferred                         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Federal                          |   |                    | 7,693  |   |   |   | 12,679 |   |   |   | 3,758 |   |
| State                            |   |                    | 128    |   |   |   | 1,028 |   |   |   | (375 | ) |
| International                    |   |                    | (2,503 | ) |   |   | 152 |   |   |   | - |   |
| Total deferred                   |   |                    | 5,318  |   |   |   | 13,859 |   |   |   | 3,383 |   |
| Total provision for income taxes |   | $                       | 16,321 |   |   | $ | 13,108 |   |   | $ | 13,922 |   |

|                                                                 |   | December 31, |    |
|----------------------------------------------------------------------|--------|--------------|---------|
| (in thousands)                                                       |   | 2014         |    |   | 2013 |   |
| Net operating loss carryforward                                      |   | $            | 20,530  |   |   | $ | 23,256 |   |
| Research and development carryforward                                |   |         | 8,049   |   |   |   | 7,395 |   |
| Scientific research and experimental development credit carryforward |   |         | 29,556  |   |   |   | - |   |
| Intangible assets                                                    |   |         | 5,689   |   |   |   | 3,300 |   |
| Stock compensation                                                   |   |         | 8,196   |   |   |   | 6,378 |   |
| Foreign deferrals                                                    |   |         | 75,511  |   |   |   | 64,090 |   |
| Inventory reserves                                                   |   |         | 4,122   |   |   |   | - |   |
| Deferred revenue                                                     |   |         | 244     |   |   |   | - |   |
| Other                                                                |   |         | 7,219   |   |   |   | 1,222 |   |
| Deferred tax asset                                                   |   |         | 159,116 |   |   |   | 105,641 |   |
| Fixed assets                                                         |   |         | (34,839 | ) |   |   | (32,588 | ) |
| Intangible assets                                                    |   |         | (6,538  | ) |   |   | - |   |
| Other                                                                |   |         | (10,891 | ) |   |   | (5,714 | ) |
| Deferred tax liability                                               |   |         | (52,268 | ) |   |   | (38,302 | ) |
| Valuation allowance                                                  |   |         | (92,374 | ) |   |   | (68,846 | ) |
| Net deferred tax (liabilities)/ asset                                |   | $            | 14,474  |   |   | $ | (1,507 | ) |

|                                |   | Year ended December 31, |   |
|-------------------------------------|--------|-------------------------|--------|
| (in thousands)                      |   | 2014                    |   |   | 2013 |   |   | 2012 |   |
| US                                  |   | $                       | 59,764 |   |   | $ | 52,749 |   |   | $ | 52,391 |   |
| International                       |   |                    | (6,702 | ) |   |   | (8,506 | ) |   |   | (14,945 | ) |
| Earnings before taxes on income     |   |                    | 53,062 |   |   |   | 44,243 |   |   |   | 37,446 |   |
|                                |   |                    |   |   |   |   |   |   |   |   |   |   |
| Federal tax at statutory rates      |   | $                       | 18,572 |   |   | $ | 15,485 |   |   | $ | 13,106 |   |
| State taxes, net of federal benefit |   |                    | 257    |   |   |   | 538 |   |   |   | (2,079 | ) |
| Impact of foreign operations        |   |                    | 186    |   |   |   | (1,116 | ) |   |   | (3,604 | ) |
| Change in valuation allowance       |   |                    | 1,808  |   |   |   | 1,434 |   |   |   | 4,629 |   |
| Effect of foreign rates             |   |                    | -      |   |   |   | - |   |   |   | (22 | ) |
| Tax credits                         |   |                    | (7,137 | ) |   |   | (5,918 | ) |   |   | (2,904 | ) |
| Other differences                   |   |                    | 124    |   |   |   | (227 | ) |   |   | 139 |   |
| Permanent differences               |   |                    | 2,511  |   |   |   | 2,912 |   |   |   | 4,657 |   |
| Provision for income taxes          |   | $                       | 16,321 |   |   | $ | 13,108 |   |   | $ | 13,922 |   |

| (in thousands)                                       |   |        |   |
|------------------------------------------------------|--------|--------|--------|
| Gross unrecognized tax benefits at December 31, 2011 |   | $      | 1,056  |   |
| Increases for tax positions for prior years          |   |   | 25     |   |
| Decreases for tax positions for prior years          |   |   | (65    | ) |
| Increases for tax positions for current year         |   |   | -      |   |
| Settlements                                          |   |   | -      |   |
| Lapse of statute of limitations                      |   |   | -      |   |
| Gross unrecognized tax benefits at December 31, 2012 |   |   | 1,016  |   |
| Increases for tax positions for prior years          |   |   | 165    |   |
| Decreases for tax positions for prior years          |   |   | -      |   |
| Increases for tax positions for current year         |   |   | 15     |   |
| Settlements                                          |   |   | -      |   |
| Lapse of statute of limitations                      |   |   | (75    | ) |
| Gross unrecognized tax benefits at December 31, 2013 |   |   | 1,121  |   |
| Increases for tax positions for prior years          |   |   | 150    |   |
| Decreases for tax positions for prior years          |   |   | -      |   |
| Increases for tax positions for current year         |   |   | 102    |   |
| Settlements                                          |   |   | -      |   |
| Lapse of statute of limitations                      |   |   | (125   | ) |
| Gross unrecognized tax benefits at December 31, 2014 |   | $      | 1,248  |   |

|                       |   | Incurred during   |   |
|----------------------------|--------|-------------------|--------|
|                       |   | the year ended    |   |
| (in thousands)             |   | December 31, 2013 |   |
| Termination benefits       |   | $                 | 2,114  |   |
| Contract termination costs |   |              | 431    |   |
| Other costs                |   |              | 261    |   |
| Total                      |   | $                 | 2,806  |   |

|                         |   |             |   |   | Contract    |   |   |        |   |   |       |   |
|------------------------------|--------|-------------|--------|--------|-------------|--------|--------|--------|--------|--------|-------|--------|
|                         |   | Termination |   |   | Termination |   |   | Other  |   |   |       |   |
| (in thousands)          |   | Benefits    |   |   | Costs       |   |   | Costs  |   |   | Total |   |
| Balance at December 31, 2012 |   | $           | -      |   |        | $      | -      |   |   | $      | -     |   |   | $ | - |   |
| Expenses incurred            |   |        | 2,114  |   |        |   | 431    |   |   |   | 134   |   |   |   | 2,679 |   |
| Amount paid                  |   |        | (1,660 | )      |        |   | (431   | )      |   |   | (134  | )      |   |   | (2,225 | ) |
| Other adjustments            |   |        | -      |   |        |   | -      |   |   |   | -     |   |   |   | - |   |
| Balance at December 31, 2013 |   | $           | 454    |   |        | $      | -      |   |   | $      | -     |   |   | $ | 454 |   |
| Expenses incurred            |   |        | -      |   |        |   | -      |   |   |   | -     |   |   |   | - |   |
| Amount paid                  |   |        | (454   | )      |        |   | -      |   |   |   | -     |   |   |   | (454 | ) |
| Other adjustments            |   | $           | -      |   |        | $      | -      |   |   | $      | -     |   |   | $ | - |   |
| Balance at December 31, 2014 |   |        | -      |   |        |   | -      |   |   |   | -     |   |   |   | - |   |

| (in thousands)               |   |        |   |
|------------------------------|--------|--------|--------|
| 2015                         |   | $      | 2,558  |   |
| 2016                         |   |   | 2,204  |   |
| 2017                         |   |   | 1,950  |   |
| 2018                         |   |   | 1,813  |   |
| 2019                         |   |   | 1,697  |   |
| 2020 and beyond              |   |   | 904    |   |
| Total minimum lease payments |   |   | 11,126 |   |
| Minimum lease receipts       |   |   | (1,388 | ) |
|                         |   |   |   |   |
| Total minimum lease payments |   | $      | $9,738 |   |

|                                                        |   |        |       |
|-------------------------------------------------------------|--------|--------|------------|
| (in thousands, except share and per share data)             |   | 2014   |       |   | 2013 |   |   | 2012 |   |
| Numerator:                                                  |   |        |       |   |  |   |   |  |   |
| Net income                                                  |   | $      | 36,741     |   |   | $ | 31,135 |   |   | $ | 23,524 |   |
| Interest expense applicable to convertible debt, net of tax |   |   | 2,879      |   |   |   | - |   |   |   | - |   |
| Amortization of debt issuance costs, net of tax             |   |   | 735        |   |   |   | - |   |   |   | - |   |
| Adjusted net income                                         |   |   | 40,355     |   |   |   | 31,135 |   |   |   | 23,524 |   |
|                                                        |   |   |       |   |   |   |   |   |   |   |   |   |
| Denominator:                                                |   |   |       |   |   |   |   |   |   |   |   |   |
| Weighted-average number of shares—basic               |   |   | 37,344,891 |   |   |   | 36,201,283 |   |   |   | 36,080,495 |   |
| Dilutive securities—equity awards                     |   |   | 737,391    |   |   |   | 546,273 |   |   |   | 340,167 |   |
| Dilutive securities—convertible debt                  |   |   | 7,720,525  |   |   |   | - |   |   |   | - |   |
| Weighted-average number of shares—diluted             |   |   | 45,802,807 |   |   |   | 36,747,556 |   |   |   | 36,420,662 |   |
|                                                        |   |   |       |   |   |   |   |   |   |   |   |   |
| Earnings per share-basic                                    |   | $      | 0.98       |   |   | $ | 0.86 |   |   | $ | 0.65 |   |
| Earnings per share-diluted                                  |   | $      | 0.88       |   |   | $ | 0.85 |   |   | $ | 0.65 |   |

|                                       |   | Reportable Segments |    |
|--------------------------------------------|--------|---------------------|---------|
| (in thousands)                             |   | Biodefense          |    |   | Biosciences |   |   | All Other |   |   | Total |   |
| Year Ended December 31, 2014               |   |                     |    |   |  |   |   |  |   |   |  |   |
| External revenue                           |   | $                   | 370,547 |   |   | $ | 79,591 |   |   | $ | - |   |   | $ | 450,138 |   |
| Intersegment revenue (expense)             |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Research and development                   |   |                | 81,975  |   |   |   | 60,821 |   |   |   | 8,033 |   |   |   | 150,829 |   |
| Interest income                            |   |                | 62      |   |   |   | - |   |   |   | 258 |   |   |   | 320 |   |
| Interest expense                           |   |                | -       |   |   |   | - |   |   |   | (8,240 | ) |   |   | (8,240 | ) |
| Depreciation and amortization              |   |                | 17,669  |   |   |   | 5,070 |   |   |   | 267 |   |   |   | 23,006 |   |
| Net income (loss)                          |   |                | 96,966  |   |   |   | (51,300 | ) |   |   | (8,925 | ) |   |   | 36,741 |   |
| Intangible assets                          |   |                | 40,979  |   |   |   | 17,365 |   |   |   | - |   |   |   | 58,344 |   |
| In-process research and development assets |   |                | 27,700  |   |   |   | 50,100 |   |   |   | - |   |   |   | 77,800 |   |
| Goodwill                                   |   |                | 20,638  |   |   |   | 21,346 |   |   |   | - |   |   |   | 41,984 |   |
| Total assets                               |   |                | 439,797 |   |   |   | 344,420 |   |   |   | 161,045 |   |   |   | 945,262 |   |
| Expenditures for long-lived assets         |   |                | 26,736  |   |   |   | 2,444 |   |   |   | 1,493 |   |   |   | 30,673 |   |
| Year Ended December 31, 2013               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External revenue                           |   | $                   | 311,564 |   |   | $ | 1,181 |   |   | $ | - |   |   | $ | 312,745 |   |
| Intersegment revenue (expense)             |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Research and development                   |   |                | 62,663  |   |   |   | 50,652 |   |   |   | 6,618 |   |   |   | 119,933 |   |
| Interest income                            |   |                | -       |   |   |   | - |   |   |   | 139 |   |   |   | 139 |   |
| Interest expense                           |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Depreciation and amortization              |   |                | 15,584  |   |   |   | 1,238 |   |   |   | 186 |   |   |   | 17,008 |   |
| Net income (loss)                          |   |                | 87,289  |   |   |   | (50,925 | ) |   |   | (5,229 | ) |   |   | 31,135 |   |
| Intangible assets                          |   |                | 30,148  |   |   |   | - |   |   |   | - |   |   |   | 30,148 |   |
| In-process research and development assets |   |                | -       |   |   |   | 41,800 |   |   |   | - |   |   |   | 41,800 |   |
| Goodwill                                   |   |                | 8,452   |   |   |   | 5,502 |   |   |   | - |   |   |   | 13,954 |   |
| Total assets                               |   |                | 331,827 |   |   |   | 98,510 |   |   |   | 196,293 |   |   |   | 626,630 |   |
| Expenditures for long-lived assets         |   |                | 30,700  |   |   |   | 1,343 |   |   |   | 9,978 |   |   |   | 42,021 |   |
| Year Ended December 31, 2012               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| External revenue                           |   | $                   | 276,469 |   |   | $ | 5,419 |   |   | $ | - |   |   | $ | 281,888 |   |
| Intersegment revenue (expense)             |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Research and development                   |   |                | 68,579  |   |   |   | 44,588 |   |   |   | 7,059 |   |   |   | 120,226 |   |
| Interest income                            |   |                | -       |   |   |   | - |   |   |   | 134 |   |   |   | 134 |   |
| Interest expense                           |   |                | -       |   |   |   | - |   |   |   | (6 | ) |   |   | (6 | ) |
| Depreciation and amortization              |   |                | 8,951   |   |   |   | 2,147 |   |   |   | 99 |   |   |   | 11,197 |   |
| Net income (loss)                          |   |                | 94,865  |   |   |   | (63,928 | ) |   |   | (7,413 | ) |   |   | 23,524 |   |
| In-process research and development assets |   |                | -       |   |   |   | 41,800 |   |   |   | - |   |   |   | 41,800 |   |
| Goodwill                                   |   |                | -       |   |   |   | 5,502 |   |   |   | - |   |   |   | 5,502 |   |
| Total assets                               |   |                | 354,010 |   |   |   | 56,148 |   |   |   | 154,072 |   |   |   | 564,230 |   |
| Expenditures for long-lived assets         |   |                | 52,957  |   |   |   | 810 |   |   |   | 78 |   |   |   | 53,845 |   |

|                                 |   | Three months ended |    |
|--------------------------------------|--------|--------------------|---------|
| (in thousands)                       |   | March 31,          |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Fiscal year 2014                     |   |                    |    |   |  |   |   |  |   |   |  |   |
| Revenue                              |   | $                  | 53,884  |   |   | $ | 110,325 |   |   | $ | 137,954 |   |   | $ | 147,975 |   |
| Income (loss) from operations        |   |               | (25,458 | ) |   |   | 7,862 |   |   |   | 31,032 |   |   |   | 44,620 |   |
| Net income (loss)                    |   |               | (20,236 | ) |   |   | 5,029 |   |   |   | 21,832 |   |   |   | 30,116 |   |
| Net income (loss) per share, basic   |   |               | (0.55   | ) |   |   | 0.13 |   |   |   | 0.58 |   |   |   | 0.80 |   |
| Net income (loss) per share, diluted |   |               | (0.55   | ) |   |   | 0.13 |   |   |   | 0.49 |   |   |   | 0.66 |   |
| Fiscal year 2013                     |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                              |   | $                  | 43,100  |   |   | $ | 82,436 |   |   | $ | 89,102 |   |   | $ | 98,107 |   |
| Income (loss) from operations        |   |               | (13,350 | ) |   |   | 14,712 |   |   |   | 18,147 |   |   |   | 23,293 |   |
| Net income (loss)                    |   |               | (8,062  | ) |   |   | 10,484 |   |   |   | 13,491 |   |   |   | 15,222 |   |
| Net income (loss) per share, basic   |   |               | (0.22   | ) |   |   | 0.29 |   |   |   | 0.37 |   |   |   | 0.42 |   |
| Net income (loss) per share, diluted |   |               | (0.22   | ) |   |   | 0.29 |   |   |   | 0.36 |   |   |   | 0.41 |   |

----

|   | EMERGENT BIOSOLUTIONS INC.            |
|--------|---------------------------------------|
|   |                                  |
|   | By: /s/ Daniel J. Abdun-Nabi          |
|   | Daniel J. Abdun-Nabi                  |
|   | President and Chief Executive Officer |
|   | Date: March 6, 2015                   |

| Signature                                         |   | Title                                                                                                       |   | Date          |
|---------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|---------------|
|                                              |   |                                                                                                        |   |          |
|                                              |   |                                                                                                        |   |          |
| /s/Daniel J. Abdun-NabiDaniel J. Abdun-Nabi       |   | President, Chief Executive Officer and Director(Principal Executive Officer)                                |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Robert G. KramerRobert G. Kramer               |   | Executive Vice President, Chief Financial Officer and Treasurer(Principal Financial and Accounting Officer) |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Fuad El-HibriFuad El-Hibri                     |   | Executive Chairman of the Board of Directors                                                                |   | March 4, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Zsolt HarsanyiZsolt Harsanyi, Ph.D.            |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Dr. John Niederhuber                           |   |                                                                                                        |   |          |
| Dr. John Niederhuber                              |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Ronald B. RichardRonald B. Richard             |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Louis W. Sullivan, M.D.Louis W. Sullivan, M.D. |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Marvin White                                   |   |                                                                                                        |   |          |
| Marvin White                                      |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Dr. Sue BaileyDr. Sue Bailey                   |   | Director                                                                                                    |   | March 4, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/George JoulwanGeorge Joulwan                   |   | Director                                                                                                    |   | March 6, 2015 |
|                                              |   |                                                                                                        |   |          |
| /s/Jerome HauerJerome Hauer                       |   | Director                                                                                                    |   | March 6, 2015 |

| Exhibit |           |                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |           | Description                                                                                                                                                                                                                                                                                                                                                                               |
| 2       |           | Arrangement Agreement dated as of December 11, 2013, among the Company, 2396638 Ontario Inc. and Cangene Corporation (incorporated by reference to Exhibit 2 to the Company's Current Report on Form 8-K filed on December 12, 2013).                                                                                                                                                     |
| 3.1     |           | Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-8 filed on December 8, 2006) (Registration No. 333-139190).                                                                                                                                                                              |
| 3.2     |           | Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3 to the Company's Current Report on Form 8-K filed on August 16, 2012).                                                                                                                                                                                                                                |
| 4.1     |           | Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to the Company's Registration Statement on Form S-1 filed on October 20, 2006) (Registration No. 333-136622).                                                                                                                                                                              |
| 4.2     |           | Rights Agreement, dated as of November 14, 2006, between the Company and American Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-8 filed on December 8, 2006) (Registration No. 333-139190).                                                                                                              |
| 4.3     |           | Registration Rights Agreement, dated as of September 22, 2006, among the Company and the stockholders listed on Schedule 1 thereto (incorporated by reference to Exhibit 4.3 to Amendment No. 1 to the Company's Registration Statement on Form S-1 filed on September 25, 2006) (Registration No. 333-136622).                                                                           |
| 4.4     |           | Indenture, dated as of January 29, 2014, between the Company and Wells Fargo Bank, National Association, including the form of 2.875% Convertible Senior Notes due 2021 (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on January 29, 2014).                                                                                                 |
| 9.1     |           | Voting and Right of First Refusal Agreement, dated as of October 21, 2005, between the William J. Crowe, Jr. Revocable Living Trust and Fuad El-Hibri (incorporated by reference to Exhibit 9.1 to the Company's Registration Statement on Form S-1 filed on August 14, 2006) (Registration No. 333-136622).                                                                              |
| 10.1    |           | Credit Agreement, dated as of December 11, 2013, among the Company, as borrower, certain of its subsidiaries party thereto, as guarantors, Bank of America, N.A., as administrative agent, and certain financial institutions party thereto as lenders (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 12, 2013).                |
| 10.2    |           | First Amendment to Credit Agreement, dated as of January 17, 2014, among the Company, as borrower, certain of its subsidiaries party thereto, as guarantors, Bank of America, N.A., as administrative agent, and certain financial institutions party thereto as lenders (incorporated by reference to Exhibit 10.2 to the Company's Annual Report on Form 10-K filed on March 10, 2014). |
| 10.3    |           | Second Amendment to Credit Agreement, dated as of March 21, 2014, among the Company, as borrower, certain of its subsidiaries party thereto, as guarantors, Bank of America, N.A., as administrative agent, and certain financial institutions party thereto as lenders (incorporated by reference to Exhibit 10 to the Company's Quarterly Report on Form 10-Q filed on May 12, 2014).   |
| 10.3    | *              | Emergent BioSolutions Inc. Employee Stock Option Plan, as amended and restated on January 26, 2005 (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-1 filed on August 14, 2006) (Registration No. 333-136622).                                                                                                                                |
| 10.4    | *              | Emergent BioSolutions Inc. 2006 Stock Incentive Plan (incorporated by reference to Exhibit 10.3 to Amendment No. 5 to the Company's Registration Statement on Form S-1 filed on October 30, 2006) (Registration No. 001-33137).                                                                                                                                                           |
| 10.5    | *              | Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 7, 2009).                                                                                                                                                                                             |
| 10.6    | *              | Second Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (incorporated by reference to Appendix A to the Company's definitive proxy statement on Schedule 14A filed on April 6, 2012).                                                                                                                                                                            |
| 10.7    | *              | Third Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (incorporated by reference to Appendix A to the Company's definitive proxy statement on Schedule 14A filed on April 7, 2014).                                                                                                                                                                             |
| 10.7    | *              | Form of Director Nonstatutory Stock Option Agreement (incorporated by reference to Exhibit 10.5 to the Company's Annual Report on Form 10-K filed on March 8, 2013).                                                                                                                                                                                                                      |
| 10.8    | *              | Form of Director Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K filed on March 8, 2013).                                                                                                                                                                                                                          |
| 10.9    | *              | Form of Non-Qualified Stock Option Agreement (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K filed on March 8, 2013).                                                                                                                                                                                                                              |
| 10.10   | *              | Form of Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K filed on March 8, 2013).                                                                                                                                                                                                                                   |
| 10.11   | *              | Form of Indemnity Agreement for directors and senior officers (incorporated by reference to Exhibit 10 to the Company's Current Report on Form 8-K filed on January 18, 2013).                                                                                                                                                                                                            |
| 10.12   | *              | Director Compensation Program (incorporated by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K filed on March 8, 2013).                                                                                                                                                                                                                                            |
| 10.14   | *              | Annual Bonus Plan for Executive Officers (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K filed on March 5, 2010).                                                                                                                                                                                                                                  |
| 10.15   | *              | Amended and Restated Senior Management Severance Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 22, 2011).                                                                                                                                                                                                                 |
| 10.16   |           | Amended and Restated Marketing Agreement, dated as of November 5, 2008, between Emergent Biodefense Operations Lansing LLC (formerly known as Emergent Biodefense Operations Lansing Inc.) and Intergen N.V. (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on Form 10-K filed on March 6, 2009).                                                             |
| 10.17   | †        | Solicitation, Offer and Award (the "CDC BioThrax Procurement Contract"), effective September 30, 2011, from the Centers for Disease Control and Prevention to Emergent Biodefense Operations Lansing LLC (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed on May 4, 2012).                                                                 |
| 10.18   | †        | Modification No. 1 to the CDC BioThrax Procurement Contract, effective March 21, 2012, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on November 1, 2012).                                                                        |
| 10.19   | †        | Modification No. 2 to the CDC BioThrax Procurement Contract, effective September 1, 2012, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed on November 1, 2012).                                                                     |
| 10.2    |           | Modification No. 3 to the CDC BioThrax Procurement Contract, effective April 5, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2013).                                                                           |
| 10.21   | †        | Modification No. 4 to the CDC BioThrax Procurement Contract, effective June 1, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2013).                                                                            |
| 10.22   | †        | Modification No. 5 to the CDC BioThrax Procurement Contract, effective June 1, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2013).                                                                            |
| 10.23   | †        | Modification No. 6 to the CDC BioThrax Procurement Contract, effective June 1, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed on August 6, 2013).                                                                            |
| 10.24   | †        | Modification No. 7 to the CDC BioThrax Procurement Contract, effective September 26, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on November 8, 2013).                                                                    |
| 10.25   | †        | Modification No. 8 to the CDC BioThrax Procurement Contract, effective September 30, 2013, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on November 8, 2013).                                                                    |
| 10.26   | †        | Modification No. 9 to the CDC BioThrax Procurement Contract, effective January 13, 2014, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.26 to the Company's Annual Report on Form 10-K filed on March 10, 2014).                                                                          |
| 10.27   | †        | Modification No. 10 to the CDC BioThrax Procurement Contract, effective January 22, 2014, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on Form 10-K filed on March 10, 2014).                                                                         |
| 10.27   | †        | Modification No. 11 to the CDC BioThrax Procurement Contract, effective September 18, 2014, between Emergent Biodefense Operations Lansing LLC and the Centers for Disease Control and Prevention (incorporated by reference to Exhibit 10 to the Company's Quarterly Report on Form 10-Q/A filed on January 23, 2015).                                                                   |
| 12      | #              | Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                       |
| 21      | #              | Subsidiaries of the Company.                                                                                                                                                                                                                                                                                                                                                              |
| 23      | #              | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                 |
| 31.1    | #              | Certification of the Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a).                                                                                                                                                                                                                                                                                                     |
| 31.2    | #              | Certification of the Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a).                                                                                                                                                                                                                                                                                                     |
| 32.1    | #              | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                    |
| 32.2    | #              | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                    |
| 101.INS |           | XBRL Instance Document                                                                                                                                                                                                                                                                                                                                                                    |
| 101.SCH |           | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                                                   |
| 101.CAL |           | XBRL Taxonomy Calculation Linksbase Document                                                                                                                                                                                                                                                                                                                                              |
| 101.DEF |           | XBRL Taxonomy Definition Linksbase Document                                                                                                                                                                                                                                                                                                                                               |
| 101.LAB |           | XBRL Taxonomy Label Linksbase Document                                                                                                                                                                                                                                                                                                                                                    |
| 101.PRE |           | XBRL Taxonomy Presentation Linksbase Document                                                                                                                                                                                                                                                                                                                                             |
|    | #              | Filed herewith                                                                                                                                                                                                                                                                                                                                                                            |
|    | †        | Confidential treatment granted by the Securities and Exchange Commission as to certain portions. Confidential materials omitted and filed separately with the Securities and Exchange Commission.                                                                                                                                                                                         |
|    | †† | Confidential treatment requested by the Securities and Exchange Commission as to certain portions. Confidential materials omitted and filed separately with the Securities and Exchange Commission.                                                                                                                                                                                       |
|    | *              | Management contract or compensatory plan or arrangement filed herewith in response to Item 15(a) of Form 10-K.                                                                                                                                                                                                                                                                            |