By  Megan Redshaw

A House panel investigation revealed taxpayers paid Johnson & Johnson vaccine manufacturer, Emergent Biosolutions, $271 million under vaccine contracts despite “serious deficiencies” at the Baltimore plant.

Johnson & Johnson (J&J) documented serious contamination risks at a troubled Emergent Biosolutions Baltimore plant in June 2020 — seven months before a contamination incident ruined 15 million doses of COVID vaccine and derailed the company’s vaccine production plans.

The House Select Committee on Coronavirus launched a probe into Emergent last month after the company acknowledged “serious deficiencies” in the company’s manufacturing that caused a mix-up of AstraZeneca and J&J doses.

A memorandum released prior to Wednesday’s hearing raised questions about J&J’s lack of oversight of the Baltimore facility. The memo also cited large bonuses paid to top executives despite failures, and described other evidence recently obtained by the Select Subcommittee on the Coronavirus Crisis and the Committee on Oversight and Reform in their ongoing investigation into Emergent.

The memo revealed:

1. Emergent was paid millions despite destroying millions of vaccine doses. The company charged the federal government $26 million per month in reservation fees to maintain its “readiness” to manufacture vaccines pursuant to “current good manufacturing practices.” As a result of these contract terms, taxpayers paid Emergent more than $271 million.
2. New documents from two separate inspections performed in June 2020 showed Emergent was warned it needed “extensive training of personnel” and “strengthening of the quality function,” and that it had a “deficient” virus contamination control strategy. Despite concerns raised during four other inspections in 2020, Emergent failed to promptly and fully remediate the problems at the facility.
3. Emergent privately admitted to manufacturing problems during an April 2021 inspection by the U.S. Food and Drug Administration (FDA).
4. A key official who awarded contracts had previously been on Emergent’s payroll. Dr. Robert Kadlec, former consultant to Emergent, received at least $360,000 in consulting fees prior to joining the U.S. Department of Health and Human Services. Kadlec awarded Emergent billions in contracts.
5. Company executives reaped a windfall as vaccines were destroyed. In February, — eight months after J&J documented serious contamination risks at the production plant — Emergent awarded millions in raises and bonuses to its senior executives, praising them for their “exceptional leadership” and “exemplary” performance in 2020. The vice president responsible for manufacturing received a “special bonus award” of $100,000 for significant contract development and manufacturing and in recognition of his exceptional performance in 2020.

The House report also documented in detail Emergent’s persistent problems with contamination, unsanitary conditions, mold, poor training, improper equipment and insufficient attention to procedures.

While Emergent received much of the blame for the manufacturing crisis, documents showed J&J was aware of serious risks of contamination at the Bayview Baltimore plant. A report from a virtual audit conducted in June 2020, cited mold, inadequate growing and wipe-down procedures, and “deficient” contamination-control measures.

“The site virus-contamination control strategy is deficient,” the J&J audit report said. “There is not a formal Bayview contamination control strategy for the site.”

J&J did not comment on its audit and did not respond to The Washington Post’s questions about what steps the company took after its findings.

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Via https://childrenshealthdefense.org/defender/vaccine-producer-hearing-botched-doses-executive-bonuses-stock-sales/