Emergent BioSolutions (NYSE:EBS) has closed a five-year agreement with Johnson & Johnson (NYSE:JNJ) unit Janssen Pharmaceuticals for large-scale drug substance manufacturing for J&J's SARS-CoV-2 vaccine, Ad26.COV2-S.
EBS will provide contract development and manufacturing services over the contract term valued at ~$480M for the first two years. Volume manufacturing will start in 2021 at its Baltimore Bayview facility subsequent to technology transfer.
The company will release updated 2020 guidance when it reports Q2 results.
JNJ is up 2% premarket and EBS up 1%, both on light volume.