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Federal Government Ends Contract with Vaccine Manufacturer

The U.S. federal government has cut off any and all ties with the controversial COVID-19 Vaccine maker, Emergent BioSolutions. The stark turn of events happened after the manufacturer dumped millions of doses and decided to withhold any further production for months. This came after the regulators raised severe concerns associated with the Vaccine quality.

During the early pandemic phase, the government strongly supported the company to become the sole domestic manufacturer of the AstraZeneca, and Johnson & Johnson Vaccine. However, this year March, a batch of J&J  was found to be contaminated after which Emergent decided to press pause on manufacturing. A probe highlighted a host of problems at the facility located in Bayview area of Baltimore.

Emergent disclosed the termination of the contract on Thursday, November 04. The government stopped making payments as a part of the deal that was granted in May 2020 worth more than $600 million. Emergent BioSolutions will now have to let go near about $180 million of total award, as per company disclosures. Emergent has declared that the company will keep manufacturing Vaccine with J&J in Baltimore. The Vaccine manufacturer said that even though the arrangement was endorsed by the government, it wasn’t financed through the $600 million deal.

Despite the delayed approval from regulators, Emergent has commenced operations with the approval from Food and Drug Administration. The FDA approval allows Emergent to release somewhere near 100 million doses. The abruptly cancelled contract marks the end of decade-old effort by the government.

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