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House Democrats Investigating Emergent BioSolutions' Vaccine Contracts, Call On Execs To Testify

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House Democrats Investigating Emergent BioSolutions' Vaccine Contracts, Call On Execs To Testify
  • congressional panel has launched an investigation into whether Emergent BioSolutions Inc (NYSE: EBS) was improperly awarded a $628 million federal contract to make COVID-19 vaccines based on its favorable relationship with a key Trump Administration official, despite officials knowing it has a history of quality control issues.
  • Representatives Carolyn Maloney (D-N.Y.) and James Clyburn (D-S.C.) said on April 19 that the House Committee on Oversight and Reform would look into the matter and have sent a joint letter to Emergent Solutions’ CEO, Robert G. Kramer, and executive chairman, Fuad El-Hibri, to request that they testify before the coronavirus subcommittee.
  • “Specifically, we are investigating reports that Emergent received multi-million-dollar contracts to manufacture coronavirus vaccines despite a long, documented history of inadequately trained staff and quality control issues,” the lawmakers wrote.
  • Emergent’s Baltimore plant, which was shuttered this week by FDA, has been amid controversy after being forced to destroy millions of AstraZeneca plc (NASDAQ: AZN) and J&J doses after 15 million doses of Johnson & Johnson’s (NYSE: JNJ) vaccine were ruined after the plant mixed up ingredients for the shot with ingredients for AstraZeneca’s COVID-19 vaccine.
  • According to the letter, an FDA inspection of the Baltimore plant in April 2020 revealed that Emergent did not have the required personnel to produce a coronavirus vaccine, reports CNBC.
  • Emergent BioSolutions received a $628 million contract in June to boost its manufacturing capabilities to speed the delivery of COVID-19 vaccines.
  • Mr. Clyburn requested that two top executives from Emergent BioSolutions testify at a May 19 hearing.
  • Price Action: EBS shares closed 3.3% lower at $65.62 on Tuesday.
 

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