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Emergent Tanks as U.S. Ends Contract, Vaccine Maker Cuts Outlook -Breaking

by Mike Robinson

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© Reuters

By Dhirendra Tripathi

Investing.com – Emergent Biosolutions stock (NYSE:) plunged more than 41% Friday a day after the company said it had agreed to terminate a contract signed in 2012 with the federal government to supply drugs and vaccines.

Emergent was hit by this development and cut its top-end revenue guidance for the year by $100m to $1.7billion to $1.8billion. Total revenue for the third quarter fell 15% to $329million

Its contract value was $470.9 Million, down from $650.8 Million. This contract was granted to Baltimore-based company in order to set up a facility to produce vaccines and drugs in case of a pandemic, or any other public health emergency.

In 2020, when coronavirus was endemic in the United States, Emergent had the capacity to produce Covid-19 vaccines.

The premature end comes after missteps at the company that included contamination of some of the batches of vaccines it had made for Johnson & Johnson (NYSE:).

J&J took over its share of the manufacturing facility at the Baltimore unit, and production of another Covid-19 vaccine that Emergent was making on behalf of AstraZeneca (NASDAQ:) was moved out of the plant.

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