The US has canceled a $628 million deal with vaccine manufacturer Emergent BioSolutions, the Washington Post reports.
Earlier this year, the New York Times reported that 15 million SARS-CoV-2 vaccine doses manufactured by the firm had to be discarded because of contamination and that an audit revealed a number of issues at the plant that deviated from manufacturing standards. The Wall Street Journal additionally reported that the company's Maryland plant had problems preventing cross-contamination — including between the different vaccines it was making — and maintaining sanitary conditions. The Post adds that the Biden Administration then put Johnson & Johnson in direct control of the plant, which was then to only produce that vaccine.
It now reports that the US has canceled its deal with the company to produce vaccines, and that Emergent will not receive about $180 million due to the end of the deal.
"These are mutually agreed upon terminations for convenience and neither party is alleging breach of default by the other," Matt Hartwig, an Emergent spokesperson, tells CNBC.
CBS News adds that Emergent will continue to produce the J&J SARS-CoV-2 vaccine under a separate deal with the company.