By Will Feuer

 

Emergent BioSolutions Inc. said Janssen Pharmaceuticals Inc., Johnson & Johnson's vaccine arm, has breached its Covid-19 vaccine production contract with the biotech company.

Representatives for Janssen didn't immediately respond to a Wall Street Journal request for comment.

Emergent BioSolutions subsidiary Emergent Manufacturing Operations Baltimore LLC said it sent a notice of material breach of the agreement to Janssen on Monday.

Emergent BioSolutions said Janssen intends to not purchase the minimum quantity of product detailed in the initial 2020 agreement. Emergent BioSolutions also said Janssen intends to wind down the contract without fulfilling its minimum requirements.

Janssen has 30 days to comply with the contract before Emergent BioSolutions has the right to terminate the agreement, Emergent BioSolutions said.

Emergent BioSolutions said it had agreed under the contract with Janssen to provide development and manufacturing for up to five years. It said the contract was valued at about $480 million in the first two contract years.

Emergent BioSolutions said Monday that Janssen would owe the company between $125 million and $420 million if the contract were now terminated.

 

Write to Will Feuer at Will.Feuer@wsj.com

 

(END) Dow Jones Newswires

June 06, 2022 09:02 ET (13:02 GMT)

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