Deal value could go up to $404 million.

Emergent BioSolutions with supply an additional 14.5 million doses of BioThrax®, its anthrax vaccine, to the HHS for inclusion in the strategic national stockpile (SNS). The multiyear contract is valued at between $364 million and $404 million. The higher amount is linked to the delivery of product having four-year expiry date.

First deliveries of BioThrax under this new contract are scheduled to begin in the third quarter of 2009. It will follow the completion of deliveries under the company’s current $448 million contract to supply 18.75 million doses of BioThrax to the SNS. Final product deliveries under this new contract are anticipated in the third quarter of 2011.

BioThrax (anthrax vaccine adsorbed) is the only FDA-licensed vaccine for the prevention of anthrax infection. It is licensed as a pre-exposure prophylaxis for use in adults who are at high risk. Since 1998, the U.S. government has procured nearly 32 million doses of BioThrax. During that time period, nearly 7.9 million doses have been administered to more than two million military personnel, according to Emergent BioSolutions.

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