Emergent BioSolutions (NYSE:EBS) saw its stock plunge today after the U.S. nixed a contract to manufacture COVID-19 vaccine doses for Johnson & Johnson (NYSE:JNJ).
Earlier this year, the company disposed of tens of millions of COVID-19 vaccine doses after identifying a manufacturing error in a Baltimore plant.
FDA released a scathing inspection report related to the plant in April, while Johnson & Johnson promised to increase oversight of the facility.
Emergent noted that it would not receive $180 million worth of the $628 million it had planned on getting from the COVID-19 vaccine contract.
Emergent also produces anthrax vaccine for the U.S. government and stated in an investor’s note that it remains “ready to continue supporting the USG’s priorities to protect the American public against public health threats.”
The company had also planned on manufacturing AstraZeneca’s vaccine in the same facility, but the U.S. government asked AstraZeneca to manufacture its vaccine elsewhere. AstraZeneca COVID-19 vaccine is not currently authorized for use in the U.S.
Emergent said it would continue to assist Johnson & Johnson in manufacturing other vaccines at the Baltimore plant.
The company said it had contributed more than 100 million dose equivalents of a COVID-19 vaccine for global distribution as of the end of September.
In the aforementioned investor’s note, the company stressed that its “business remains durable, resilient and poised for growth in line with [its] strategy,” which includes organic growth and acquisitions.