Congressman Krishnamoorthi Presses Emergent CEO For Accepting $1.9 Million Bonus Despite Filthy Facilities and Saving Zero Lives

WASHINTON, DC – Today, Congressman Krishnamoorthi questioned Mr. Robert G. Kramer, President and Chief Executive Officer, Emergent BioSolutions Inc., about his company's decisions to provide him an excessive executive salary increase even though he did not successfully deliver the product agreed to in a taxpayer funded federal contracts negotiated by the Trump Administration. Emergent BioSolutions Inc. knowingly ignored serious flaws and deficiencies in their manufacturing process, while also awarding millions of dollars in raises to Mr. Kramer. Congressman Krishnamoorthi pressed Mr. Kramer on this waste of taxpayer money in today's Select Committee on the Coronavirus Hearing.

The link to the video recording of Mr. Krishnamoorthi's questioning of Emergent BioSolutions leadership can be found here. Below is a transcript of the question line:

Rep. Krishnamoorthi: In May of 2020, Emergent was contracted to receive $628 million to reserve and prepare its Bayview facility to produce the vaccine, correct?

Mr. Kramer: That is correct.

Rep. Krishnamoorthi: And under the terms of that contract, Emergent was required to maintain its facility quote: "in a state of readiness to perform current good manufacturing practices (cGMP) manufacturing activities." You don't dispute that, right?

Mr. Kramer: That is correct.

Rep. Krishnamoorthi: And a month after that contract was awarded, Janssen Pharmaceuticals performed an audit that found, quote "mold issues" at the Bayview facility. The FDA in April of 2021, found that the building used for manufacturing vaccines, "is not maintained in a clean and sanitary condition" You don't dispute that correct?

Mr. Kramer: I believe that's correct, yes.

Rep. Krishnamoorthi: And the FDA found paint peeling on the floors and walls, you don't dispute that either right?

Mr. Kramer: I believe that's correct, yes.

Rep. Krishnamoorthi: And you don't deny that the FDA "brown residue" and "black residue" on plant walls, correct?

Mr. Kramer: I'm not aware of that particular finding.

Rep. Krishnamoorthi: It's on page three. I got to tell you Mr. Kramer, my teenage son's room gives your facility a run for it money. In terms of it's cleanliness. And, on page eight of this FDA report, which I have right here, it says, "Emergent has failed to adequately train personnel involved in manufacturing operations, quality control sampling, and engineering operations to prevent cross contamination of bulk drug substances." You don't deny that the FDA found that, right?

Mr. Kramer: That is correct.

Rep. Krishnamoorthi: So it's no surprise that late last year Emergent had to toss out five batches of AstraZeneca vaccine, amounting to roughly ten to fifteen million doses of vaccine. And then yet again, as you testified this morning, you had to throw out, discard, destroy, bulk drug substance amounting to fifteen million doses of the J&J vaccine.

Now let me point you to this score card for what you folks actually achieved. In 2020, received a contract for about $648 million dollars. That's two or three contracts. You personally were paid $5.6 million dollars in 2020. And the number of usable doses delivered to the American people a grand total of, you guessed it, zero. Zero. A spectacular failure.

And yet, in February 2021 meeting of the compensation committee of Emergent's board of directors… they said, "you significantly exceeded expectations for 2020." I have to tell you Mr. Kramer, if you look at this chart right here, given the fact that no usable doses made it into anyone's arms, you did not significantly exceed the American people's expectations. Interestingly, that same presentation recommends you get a bump from $5.6 million in 2020 to $7.8 million in 2021. That's this year. You earned $3.7 in 2019 so you experienced a 51% increase in your compensation, amounting to almost a $2 million increase.

Sir, given that you take full responsibility what happened 2020, that you apologized to this committee today, sir would you commit to turning over your $1.9 million bonus to the taxpayers of America?

Mr. Kramer: Congressman, I will not make that commitment.

Rep. Krishnamoorthi: I didn't think so, sir.