On July 3, 2024, Emergent BioSolutions Inc., its wholly owned subsidiary, Emergent Manufacturing Operations Baltimore, LLC (EMOB), and Janssen Pharmaceuticals, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson (Janssen) (collectively, the Parties) executed a confidential Settlement Agreement and Release (the Settlement Agreement) to resolve all claims among the Parties arising from a manufacturing services agreement (as amended, the ?MSA?) 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 Product). 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 $50 million on or before the later of (a) July 31, 2024 and (b) 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.