Baltimore Sun

Firm ends federal contract to make vaccines

Emergent Biosolutio­ns runs troubled Baltimore plant

- By Hallie Miller

The specialty pharmaceut­ical manufactur­er that operates the troubled Baltimore facility where millions of Johnson & Johnson vaccines went to waste this year announced the end of its involvemen­t Thursday in a federal program that prepares for and responds to infectious diseases and other threats to public health.

Gaithersbu­rg-based Emergent BioSolutio­ns discussed its withdrawal from the federal government’s Centers for Innovation in Advanced Developmen­t and Manufactur­ing program Thursday afternoon during a virtual earnings call with investors.

The program, created under President Barack Obama’s tenure, is run through the U.S. Department of Health and Human Services, which committed to building new facilities, training more staff and providing surge capacity and advance manufactur­ing of biopharmac­eutical products and therapeuti­cs for “emerging infectious disease, pandemic influenza, and currently known or unknown threats.”

In a Thursday statement, Emergent spokesman Matt Hartwig said the company and the federal government “mutually agreed to Emergent’s proposal to end its involvemen­t” in the program, known as CIADM.

The program “fell short of what was needed to maintain capability in case such a threat arose,” according to Emergent officials, citing execution problems and a lack of operationa­l investment­s made by “all administra­tions.”

Ending the partnershi­p amounts to a revenue loss of about $180 million for Emergent, the company said. It expects to mostly offset that lost revenue with gains in other areas such as Narcan nasal spray and anthrax vaccines.

Emergent’s shares fell more than 12% in after-hours trading after the earnings call to $45.89. Shares reached a peak earlier this year of more than $125 each before problems at the Baltimore plant surfaced.

“We are proud of the work our employees have done over the past nine years to honor our commitment­s, and especially proud of the work we did through the program to address Zika, Ebola, and most recently COVID-19 across several of our manufactur­ing facilities,” Emergent CEO Robert Kramer said during the earnings call. “We have also acknowledg­ed the challenges we faced scaling up production of two novel, viral-vector COVID-19 vaccines in the same facility and addressed them with our fellow innovators as well as the [U.S. Food and Drug Administra­tion] and other health regulators.”

Kramer, in a guest commentary piece authored for The Baltimore Sun, said the company would continue to supply the federal government with other “needed medical countermea­sures” and fulfill its obligation­s in other government projects and programs. But he took aim at the government for its failure to expand the facility’s capacity in time for the coronaviru­s pandemic.

“The government maintained that they would provide us with the necessary drug developmen­t work to build and maintain those capabiliti­es,” Kramer wrote. “That didn’t happen.”

He also said the company and the federal government knew in advance the risks that could befall a pharmaceut­ical plant tasked with producing more than one vaccine at a time.

During the earnings call, Kramer said that even though the COVID-19 task order “didn’t work out,” the public and the government “benefited significan­tly” from Emergent’s work, which delivered millions of vaccine doses.

The facility’s problems surfaced this spring after the FDA asked it to pause vaccine production following a cross-contaminat­ion event that rendered millions of Johnson & Johnson coronaviru­s vaccine doses unusable. The plant, located near Johns Hopkins Bayview Medical Center and built using millions of dollars of federal investment, also received hundreds of millions in federal dollars to boost production of COVID-19 therapies and vaccines.

Federal regulators documented a series of quality control and mismanagem­ent problems at the Bayview facility, including inadequate waste handling, poor facility maintenanc­e and upkeep and insufficie­nt personnel training.

Emergent now faces a shareholde­r lawsuit and a congressio­nal investigat­ion into its performanc­e during the pandemic. It maintains that only one batch of vaccine, containing about 15 million doses, was found to be contaminat­ed, while millions more made around the same time were safe to use but not authorized because of their proximity to the faulty ones.

In all, eight batches of Johnson & Johnson vaccine and three batches AstraZenec­a vaccine made in the plant have been authorized for use, according to the company, representi­ng some 100 million doses altogether, Hartwig said in September.

Officials from the federal health and human services department did not respond late Thursday to a request for comment. Requests for comment from the FDA were forwarded to health and human services.

Production of the Johnson & Johnson vaccine, one of Emergent’s commercial contracts that it negotiated outside of the federal government, will continue, while its production of the AstraZenec­a vaccine — which is not authorized for use in the U.S. — will formally come to a close as a result of the company’s withdrawal from the federal program.

The company was authorized to resume production of the Johnson & Johnson vaccine this summer, but the plant still lacks full federal authorizat­ion from the FDA to distribute those doses. Hartwig said the company does not have an estimate for when regulators would fully authorize the plant.

AstraZenec­a production has been moved out from the Bayview plant, and government officials never filled the reserved space they had claimed as part of its deal with Emergent.

Newspapers in English

Newspapers from United States