Frank Rondel
The former chief executive of Emergent BioSolutions, Robert Kramer, has been accused of using confidential information about contamination in a COVID-19 vaccine to profit from stock trades totaling over $10 million, reports customreceipt.com with reference to 4thebike.de. Kramer led the government-contracted biopharmaceutical company responsible for producing coronavirus vaccines, including a batch that required the destruction of 400 million doses in 2021 due to contamination at its Baltimore facility.
The New York Attorney General’s office filed a lawsuit on Thursday seeking damages, disgorgement, and related costs. According to the complaint, Kramer sold company shares before the contamination issues were publicly disclosed, earning $10.1 million. Attorney General Letitia James stated that Kramer’s actions represented a breach of public trust. “At the height of the COVID-19 pandemic, Robert Kramer illegally profited millions by selling his company shares while knowing that Emergent faced critical production issues with the AstraZeneca vaccine,” James said.
Emergent BioSolutions had previously agreed to pay $900,000 in penalties for approving Kramer’s trading plan, which allegedly violated New York’s Martin Act, legislation prohibiting insider trading. Kramer’s attorney, Kirby Behre, dismissed the lawsuit as “baseless and an overreach.”
In mid-2020, Emergent secured two contracts with AstraZeneca valued at $261 million to manufacture large-scale COVID-19 vaccine supplies. Following the announcement, Emergent’s stock price jumped from $94.99 to $136.49, a 43.6% increase. However, by September and early October, the company encountered manufacturing difficulties and contamination issues. Internal communications reportedly informed Kramer of aborted and contaminated batches on October 6, 2020, and by October 13, the company had determined that multiple vaccine batches were likely unsalvageable.
The lawsuit alleges that Kramer subsequently arranged a stock trading plan with his investment advisor, officially signing it on November 13, 2020. Beginning January 15, 2021, Kramer sold shares over several weeks, concluding his sales on February 8, 2021. Following these transactions, Emergent’s stock price declined and never fully recovered. In April 2021, the U.S. Food and Drug Administration permanently halted Emergent’s production of the AstraZeneca vaccine.
Earlier we wrote that Trump Introduces Comprehensive Health Care Plan Targeting Drug Costs and Insurance Premiums.