JNJ - Emergent ticks lower after FDA warning on Baltimore facility

• The shares of contract manufacturer Emergent BioSolutions ( NYSE: EBS ) turned lower on Monday morning after the company disclosed that the FDA issued a warning related to its Camden manufacturing facility in Baltimore, Maryland.
• According to the company, the letter received on Aug. 10 cites two types of deficiencies: issues linked to systems for cleaning and maintenance of equipment for prevention of contamination and those related to aseptic processing.
• The warning follows an FDA inspection of the facility in Feb. 2022, which prompted the company to obtain the services of a third party to review the plant further and seek additional oversight of its processes for product release.
• “The Company remains committed to upgrading its physical capabilities and strengthening its culture of quality and compliance,” Emergent ( EBS ) said in a regulatory filing.
• In 2021, a production mix-up at another company plant in Baltimore rendered millions of Johnson & Johnson ( JNJ ) COVID doses unusable.

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