AZN - Emergent shares fall 15% after U.S. government ends vaccine contract early

Emergent BioSolutions (NYSE:EBS) shares fell 15% in after-hours trading after the company revealed during its Q3 2021 earnings call that the federal government has terminated a contract as part of a pandemic preparedness plan. The Center for Innovation in Advanced Development and Manufacturing Contract was initially signed in 2012 to improve pandemic response following the H1N1 outbreak. More recently, Emergent's Baltimore facility was tapped to manufacture vaccines for Johnson & Johnson (NYSE:JNJ) and AstraZeneca (NASDAQ:AZN). A major manufacturing error at that plant in March rendered 15M doses of the J&J vaccine useless. In April, the plant was shut down. Emergent has also received inquiries from various federal agencies regarding its ability to produce COVID-19 vaccines. Ending the contract will account for a $180M revenue loss, though the company said it can offset that with gains in other areas. Production of the J&J vaccine will continue as that is a commercial contract separate

For further details see:

Emergent shares fall 15% after U.S. government ends vaccine contract early