Stockholders' equity

6 Months Ended

Jun. 30, 2012

Stock options and restricted stock units [Abstract]

Stock options and restricted stock units

7.Stockholders' equity

Preferred stock

The Company is authorized to issue up to 15,000,000 shares of preferred stock, $0.001 par value per share ("Preferred Stock"). Any Preferred Stock issued may have dividend rates, voting rights, conversion privileges, redemption characteristics, and sinking fund requirements as approved by the Company's board of directors.

Common stock

The Company currently has one class of $0.001 par value per share common stock ("Common Stock") authorized and outstanding. The Company is authorized to issue up to 100,000,000 shares of Common Stock. Holders of Common Stock are entitled to one vote for each share of Common Stock held on all matters, except as may be provided by law.

Stock options and restricted stock units

As of June 30, 2012, the Company had two stock-based employee compensation plans, the Second Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "2006 Plan") and the Emergent BioSolutions Employee Stock Option Plan (the "2004 Plan") (together, the "Emergent Plans"). The Company has granted options to purchase shares of common stock under the Emergent Plans and has granted restricted stock units under the 2006 Plan. The Emergent Plans have both incentive and non-qualified stock option features. The Company no longer grants equity awards under the 2004 Plan.

On May 17, 2012, the Company's shareholders approved the 2006 Plan, which increased the number of shares of common stock available for issuance under plan awards by 2,500,000.  As of June 30, 2012, an aggregate of 11,178,826 shares of common stock were authorized for issuance under the 2006 Plan, of which a total of 3,757,296 shares of common stock remain available for future awards to be made to plan participants. As part of the May 2012 amendment, awards of restricted stock units after May 17, 2012 are counted against the maximum aggregate number of shares of common stock available for issuance under the 2006 Plan as 1.86 shares of common stock for every one restricted stock unit granted. The maximum number of shares subject to awards that may be granted per year under the 2006 Plan to a single participant is 287,700. The exercise price of each option must be not less than 100% of the fair market value of the shares underlying such option on the date of grant. Awards granted under the 2006 Plan have a contractual life of no more than 10 years. The terms and conditions of equity awards (such as price, vesting schedule, term and number of shares) under the Emergent Plans are determined by the compensation committee of the Company's board of directors, which administers the Emergent Plans.  Each equity award granted under the Emergent Plans vests as specified in the relevant agreement with the award recipient and no option can be exercised after ten years from the date of grant.

The following is a summary of option award activity under the Emergent Plans:

	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, 2011		3,090,909		$	17.35		53,156	$	8.86	$	6,238,427
Granted		726,291			15.75		-		-
Exercised		(43,491	)		9.23		-		-
Forfeited		(125,678	)		19.52		-		-
Outstanding at June 30, 2012		3,648,031		$	17.06		53,156	$	8.86	$	4,227,300
Exercisable at June 30, 2012		2,176,650		$	16.09		53,156	$	8.86	$	4,200,518

The following is a summary of restricted stock unit award activity under the 2006 Plan:

	Number of Shares			Weighted-Average Grant Price		Aggregate Intrinsic Value
Outstanding at December 31, 2011		635,500		$	20.89	$	10,714,450
Granted		363,197			15.75
Vested		(228,369	)		20.26
Forfeited		(33,545	)		20.10
Outstanding at June 30, 2012		736,783		$	18.58	$	11,162,262