Emergent BioSolutions Says Janssen Has Breached Covid Vaccine Contract
06 Juni 2022 - 03:17PM
Dow Jones News
By Will Feuer
Emergent BioSolutions Inc. said Janssen Pharmaceuticals Inc.,
Johnson & Johnson's vaccine arm, has breached its Covid-19
vaccine production contract with the biotech company.
Representatives for Janssen didn't immediately respond to a Wall
Street Journal request for comment.
Emergent BioSolutions subsidiary Emergent Manufacturing
Operations Baltimore LLC said it sent a notice of material breach
of the agreement to Janssen on Monday.
Emergent BioSolutions said Janssen intends to not purchase the
minimum quantity of product detailed in the initial 2020 agreement.
Emergent BioSolutions also said Janssen intends to wind down the
contract without fulfilling its minimum requirements.
Janssen has 30 days to comply with the contract before Emergent
BioSolutions has the right to terminate the agreement, Emergent
BioSolutions said.
Emergent BioSolutions said it had agreed under the contract with
Janssen to provide development and manufacturing for up to five
years. It said the contract was valued at about $480 million in the
first two contract years.
Emergent BioSolutions said Monday that Janssen would owe the
company between $125 million and $420 million if the contract were
now terminated.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 06, 2022 09:02 ET (13:02 GMT)
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