Kessler Topaz Meltzer & Checker, LLP

Final Deadline Reminder for Emergent BioSolutions Inc. Investors – EBS - Seite 2

The truth about Emergent began to be revealed on March 31, 2021 after the close of markets, when The New York Times published an article reporting on the accidental contamination of COVID-19 vaccines developed by J&J and AstraZeneca at Emergent’s Baltimore facility. The New York Times article stated that in late February 2021, Emergent employees at the Baltimore facility mixed up ingredients of the two different COVID-19 vaccines, contaminating up to 15 million doses of J&J’s vaccine and forcing regulators to delay authorization of the facility’s production lines. Also, “[f]urther shipments of the Johnson & Johnson vaccine — expected to total 24 million doses in the next month — were supposed to come from the giant plant in Baltimore” but “[t]hose deliveries are now in question while the quality control issues are sorted out.”

The next morning, April 1, 2021, the Associated Press reported, based on documents obtained through the Freedom of Information Act, that the Food and Drug Administration (“FDA”) had “repeatedly . . . cited Emergent for problems such as poorly trained employees, cracked vials and problems managing mold and other contamination around one of its facilities.” Following this news, Emergent’s stock price substantially declined from a close of $92.91 per share on March 31, 2021, to $80.46 per share at the close of trading on April 1, 2021, a drop of $12.45, or over 13%, per share.

Then, on April 19, 2021, Emergent revealed that, “at the request of the FDA, Emergent agreed not to initiate the manufacturing of any new material at its Bayview facility and to quarantine existing material manufactured at the Bayview facility pending completion of the [FDA’s] inspection and remediation of any resulting findings.” Following this news, the price of Emergent’s common stock declined $9.77 per share, or more than 12%, from a close of $77.64 per share on April 16, 2021, to close at $67.87 per share on April 19, 2021.

The Roth Action alleges that, throughout the Class Period, the defendants failed to disclose that: (1) Emergent’s Baltimore facility had a history of manufacturing issues increasing the likelihood for massive contaminations; (2) the Baltimore facility had received a series of FDA citations as a result of these contamination risks and quality control issues; (3) Emergent had been forced to discard millions of doses of COVID-19 vaccines after workers at the facility deviated from manufacturing standards; and (4) as a result of the foregoing, the defendants’ public statements about Emergent’s ability and capacity to mass manufacture multiple COVID-19 vaccines at its Baltimore facility were materially false and/or misleading and/or lacked a reasonable basis.