House Democrats Investigating Emergent BioSolutions' Vaccine Contracts, Call On Execs To Testify

A congressional panel has launched an investigation into whether Emergent BioSolutions Inc EBS was improperly awarded a $628 million federal contract to make COVID-19 vaccines based on its favorable relationship with a key Trump Administration official, despite officials knowing it has a history of quality control issues.
Representatives Carolyn Maloney (D-N.Y.) and James Clyburn (D-S.C.) said on April 19 that the House Committee on Oversight and Reform would look into the matter and have sent a joint letter to Emergent Solutions’ CEO, Robert G. Kramer, and executive chairman, Fuad El-Hibri, to request that they testify before the coronavirus subcommittee.
“Specifically, we are investigating reports that Emergent received multi-million-dollar contracts to manufacture coronavirus vaccines despite a long, documented history of inadequately trained staff and quality control issues,” the lawmakers wrote.
Emergent’s Baltimore plant, which was shuttered this week by FDA, has been amid controversy after being forced to destroy millions of AstraZeneca plc AZN and J&J doses after 15 million doses of Johnson & Johnson’s JNJ vaccine were ruined after the plant mixed up ingredients for the shot with ingredients for AstraZeneca’s COVID-19 vaccine.
According to the letter, an FDA inspection of the Baltimore plant in April 2020 revealed that Emergent did not have the required personnel to produce a coronavirus vaccine, reports CNBC.
Emergent BioSolutions received a $628 million contract in June to boost its manufacturing capabilities to speed the delivery of COVID-19 vaccines.
Mr. Clyburn requested that two top executives from Emergent BioSolutions testify at a May 19 hearing.
Price Action: EBS shares closed 3.3% lower at $65.62 on Tuesday.

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