Contract manufacturer Emergent says J&J breached vaccine contract
Contract manufacturer Emergent says J&J breached vaccine contract
June 6, 2022, 9:01 AM EDT
(Reuters) – Contract manufacturer Emergent BioSolutions Inc. (EBS.N) said on Monday U.S. drugmaker Johnson & Johnson (JNJ.N) had breached an agreement by failing to buy the minimum quantity of COVID-19 vaccines made by the company.
Emergent said J&J had failed to provide required forecasts for the amount of vaccines it needed and had wound down the agreement instead of fulfilling minimum requirements.
The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2019. REUTERS/Brendan McDermid/File Photo
If the agreement is terminated, Emergent said J&J would owe it roughly $125 million to $420 million.
J&J did not immediately respond to Reuters’ request for comment.
The use of J&J’s COVID-9 vaccine has been stalled in the United States as the Food and Drug Administration in May had significantly restricted its use due to safety concerns.
J&J has also pulled its COVID-19 vaccine sales forecast for the year due to a supply glut led by low demand globally.
Manufacturing at Emergent’s Baltimore plant was briefly halted last year after a discovery that ingredients from AstraZeneca’s (AZN.L) COVID-19 vaccine, also being produced there at that time, contaminated a batch of J&J’s vaccines.
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