Stock Groups

Emergent slumps as U.S. terminates COVID-19 vaccine manufacturing deal -Breaking

[ad_1]

© Reuters. FILE PHOTO: A box of Johnson & Johnson’s coronavirus disease (COVID-19) vaccines is seen at the Forem vaccination centre in Pamplona, Spain, April 22, 2021. REUTERS/Vincent West/File Photograph

(Reuters) – Shares in Emergent BioSolutions Inc fell 15% Friday after the U.S. government terminated a contract that allowed it to increase its manufacturing capacity for third-party COVID-19 vaccinations.

The contract manufacturer has come under regulatory fire after an accidental mix-up of ingredients ruined about 15 million doses of Johnson & Johnson (NYSE:)’s COVID-19 vaccine and prompted the U.S. Food and Drug Administration to halt operations at its Baltimore plant earlier this year.

Emergent stated in a regulatory filing on Thursday that modifications to the U.S. Department of Health and Human Services’ terms will lower the contract’s worth from $650.8 Million to $470.9 million.

Emergent said in late July it would resume production of J&J’s vaccine at the plant following additional FDA reviews.

Boris Peaker from Cowen, a Cowen analyst said in a note that Emergent’s declining contract drug manufacturing company will see its revenue drop further after the U.S. contract was terminated.

The material manufactured for the J&J vaccine at the Baltimore plant prior to the April shutdown and awaiting FDA approval could be enough to produce as many as 50 million shots, Reuters reported last month.

Emergent said on Thursday it was expecting to continue supporting J&J out of its Bayview site.

Up to Thursday’s closing, emerging shares fell 41% in this year.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]