Home Life Style Feds cancel $628 million deal with vaccine maker - IHUB Partner...

Feds cancel $628 million deal with vaccine maker – IHUB Partner Press Releases

Six out of 10 of all vaccinations have been administered in the world’s three most populous countries — China, the United States and India – Copyright AFP ISHARA S. KODIKARA

Emergent Biosolutions shares plunged after the Covid vaccine maker and federal government “mutually agreed” to cancel its multimillion-dollar contract.

There was some disagreement over who decided to call it quits first. Emergent CEO Robert Kramer said Thursday that the government “agreed to the company’s request to end our 9-year pandemic manufacturing partnership,” per the Baltimore Sun.

A senior administration official, however, told the New York Times that the Department of Health and Human Services decided to end the contract and set up the termination so it would not face legal challenges from Emergent

The Maryland-based company was blamed in March for ruining millions of Johnson & Johnson’s Covid doses after the shots were contaminated with ingredients intended for the AstraZeneca vaccine.

The company will also lose $180 million due to the contract’s termination, executives told investors on a call Thursday, according to CNBC. Emergent Biosolutions shares dropped over 42 percent on Friday after news of the terminated contract got out.

The company will continue working with J&J to produce its vaccines at the Baltimore plant as its deal with the company is separate from its contract with the federal government.

“We’ve contributed over 100 million dose equivalents of COVID-19 vaccine for global distribution. Importantly, we look forward to continuing to support J&J’s ongoing vaccine production in the months ahead,” Kramer said, reports CBS News.

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