Emergent BioSolutions posts first-quarter profit on vaccine funding

(Reuters) -Contract drugmaker Emergent BioSolutions Inc, subject of a scathing report following an FDA inspection of its plant making ingredients for COVID-19 vaccines, on Thursday posted a first-quarter profit compared with a year-ago loss, helped by U.S. government funding for vaccine production.

Emergent reported $183.8 million in sales from contract development and manufacturing services, up from $162.1 million during the same period last year. The increase was due mainly to government support for its part in producing COVID-19 vaccines.

Emergent lowered its 2021 contract manufacturing revenue forecast to $765 million to $875 million from its prior view of $925 million to $965 million.

It attributed the change to a halt by U.S. regulators in shipments of vaccines it was making for Johnson & Johnson due to serious quality concerns.

The company was ordered to stop making vaccine for AstraZeneca at its Baltimore plant after ingredients from that company’s shot contaminated a batch of J&J vaccine. J&J has since taken control of manufacturing that plant, where the Food and Drug administration identified a long list of problems.

Net income was $69.7 million, or $1.28 per share, for the quarter, versus a loss of $12.5 million, or 24 cents per share, a year earlier.

Revenue rose to $343 million from $192.5 million.

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