J&J issues a notice to terminate the contract to produce an emergency COVID vaccine According to Reuters
© Reuters. FILE PHOTO: The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2019. REUTERS / Brendan McDermid
(Reuters) – Johnson & Johnson Company (NYSE:) on Monday said it has formally notified BioSolutions Emergency Company of its decision to terminate its contract with the contract manufacturer for the COVID-19 vaccine- 19 for the drug manufacturer.
The termination notice comes about a week after J&J had initially notified Summit of its intention to terminate the contract due to the manufacturer’s breach of contract, including failure to supply the COVID-19 vaccine drug- 19, J&J said.
Earlier, on Monday, she said J&J violated the agreement by not purchasing the minimum amount of COVID-19 vaccine produced by the company.
The contract manufacturer added that J&J failed to make required forecasts for the amount of vaccine it needed and canceled the agreement instead of meeting the minimum requirements.
If the deal is terminated, prisent said J&J will owe between $125 million and $420 million.
J&J, in its statement, said the emergency’s filing was “false and misleading”.
“We have capacity across our entire global COVID-19 vaccine production network, and we continue to meet our contractual obligations to deliver our vaccine,” J&J said.
Use of J&J’s COVID-19 vaccine has stalled in the United States after the Food and Drug Administration in May significantly restricted its use due to safety concerns.
J&J also withdrew its forecast for COVID-19 vaccine sales for the year due to oversupply leading to low demand globally.
Production at prisent’s Baltimore plant was briefly halted last year after it was discovered that ingredients from AstraZeneca’s COVID-19 vaccine (NASDAQ:), was also being manufactured there at the time. at that point, contaminated a batch of J&J vaccines.