J&J’s Janssen to pay Emergent’s EMOB $50M as part of settlement

On July 3, Emergent BioSolutions (EBS) its wholly owned subsidiary, Emergent Manufacturing Operations Baltimore, or EMOB and Janssen Pharmaceuticals, one of the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ) executed a confidential Settlement Agreement and Releas to resolve all claims among the Parties arising from a manufacturing services agreement between EMOB and Janssen for large-scale drug substance manufacturing of Johnson & Johnson’s investigational SARS-CoV-2 vaccine, Ad26.COV2-S, recombinant based on the AdVac technology . The Settlement Agreement also resolves the Parties’ related and previously disclosed arbitration. Pursuant to the terms of the Settlement Agreement, Janssen will pay the Company $50M on or before the later of July 31 and 28 calendar days following the effective date of the Settlement Agreement. In addition, the Settlement Agreement contains broad releases of the Parties, their affiliates and subsidiaries, representatives, officers, directors and shareholders, including releases of all claims related to the manufacture of the Product by EMOB, the MSA, or any agreement or understanding between the Parties concerning the Product, and the matters at issue in the arbitration.