Emergent Bio Says Johnson & Johnson Breached COVID-19 Vaccine Contract

Emergent BioSolutions Inc EBS said Johnson & Johnson JNJ had breached an agreement by failing to buy the company's minimum quantity of COVID-19 vaccines.
Emergent said J&J had failed to provide required forecasts for the number of vaccines it needed and had wound down the agreement instead of fulfilling minimum requirements.
Also Read: Almost 400M COVID-19 Vaccine Doses Lost Due To Emergent's Baltimore Plant Fiasco.
Under the terms of the Agreement, Emergent had agreed to provide contract development and manufacturing services to produce drug substances at a large scale for up to five years, originally valued at approximately $480 million in the first two contract years.
In its SEC filing, Emergent said J&J would owe it roughly $125 million to $420 million if the agreement is terminated.
The use of J&J's COVID-9 vaccine has been stalled in the U.S. as the FDA in May had significantly restricted its use due to safety concerns.
Related: Emergent BioSolutions Suspends CDMO Guidance As It Awaits Clarity On COVID-19 Vaccine Requirements.
Price Action: EBS shares are down 3.75% at $31.03 during the market session on the last check Monday.
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