Corning Announces Expansion of Contract with U.S. Departments of Defense, Health & Human Services

Rhea-AI Summary

Corning has secured an additional $57 million in funding from the Biomedical Advanced Research and Development Authority (BARDA) to boost domestic glass tubing and vial manufacturing capacity. This initiative aligns with the U.S. government’s COVID-19 response efforts, aiming to accelerate vaccinations. The funding supplements the previous $204 million contract, amounting to a total of $261 million invested in this capacity. Corning is committed to delivering high-quality glass vials crucial for the ongoing vaccination efforts against COVID-19.

Positive

• Secured $57 million in funding from BARDA for glass tubing and vial manufacturing.
• Total funding for manufacturing capacity now stands at $261 million.
• Corning is scaling up production to meet increasing demand for COVID-19 vaccines.

Negative

• None.

Company to receive an additional $57 million in funding to address growing demand for domestic glass tubing and vial manufacturing capacity as part of the U.S. COVID-19 response to accelerate vaccinations

CORNING, N.Y., March 26, 2021 (GLOBE NEWSWIRE) -- Corning Incorporated (NYSE: GLW) today announced it will receive $57 million in additional funding from the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services (HHS), through its partnership with the Department of Defense’s (DoD) Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense and Army Contracting Command. Under the agreement, Corning will further increase domestic manufacturing capacity of pharmaceutical glass tubing and vials to support the accelerated mass vaccination effort critical to ending the pandemic.

Corning has accelerated its advanced glass vial production capacity to support pharmaceutical manufacturers that are delivering hundreds of millions of doses of potentially life-saving vaccines to Americans. This expansion effort, to support President Joe Biden’s goal of vaccinating the majority of Americans against COVID-19 in the next few months, will increase production of Corning’s pharmaceutical glass tubing and vials, including Corning Valor^® Glass vials.

Ron Verkleeren, Corning’s senior vice president and general manager, Life Sciences, said, “We’re at an inflection point in the COVID-19 response. At this critical moment, every vaccination counts, which means every vial we deliver counts. We’re proud to do our part working with the U.S. government to help ensure that enough glass is available in the supply chain. With this additional infusion of resources, we can significantly scale our tubing and vial capacity to help meet rapidly expanding demand.”

This award is in addition to the $204 million contract announced in June 2020, for a total of $261 million invested in Corning’s pharmaceutical vial and tubing manufacturing capacity. Corning has met every milestone to date under the original contract.

Corning’s innovative vials continue to set a new standard for glass quality and performance in the pharmaceutical industry. The company is committed to helping protect patients by improving pharmaceutical quality as well as helping accelerate manufacturing through advantages specific to Corning’s coated vial technology.

Caution Concerning Forward-Looking Statements

The statements contained in this release that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” and “target” and similar expressions are forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These estimates are subject to change and uncertainty which are, in many instances, beyond our control. There can be no assurance that future developments will be in accordance with management’s expectations. Actual results could differ materially from those expected by us, depending on the outcome of various factors. We do not undertake to update forward-looking statements. 

Although the Company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business, and key performance indicators that impact the Company, actual results could differ materially.  The Company does not undertake to update forward-looking statements.  Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: the duration and severity of the COVID-19 pandemic, and its ultimate impact across our businesses on demand, operations and our global supply chains; the effects of acquisitions, dispositions and other similar transactions; global business, financial, economic and political conditions; tariffs and import duties; currency fluctuations between the U.S. dollar and other currencies, primarily the Japanese yen, new Taiwan dollar, euro, Chinese yuan and South Korean won; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; possible disruption in commercial activities due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; unanticipated disruption to equipment, facilities, IT systems or operations; effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; rate of technology change; ability to enforce patents and protect intellectual property and trade secrets; adverse litigation; product and components performance issues; retention of key personnel; customer ability, most notably in the Display Technologies segment, to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws and regulations including the 2017 Tax Cuts and Jobs Act; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning’s SEC filings.

For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.

Web Disclosure
In accordance with guidance provided by the SEC regarding the use of company websites and social media channels to disclose material information, Corning Incorporated (“Corning”) wishes to notify investors, media, and other interested parties that it uses its website (http://www.corning.com/worldwide/en/about-us/news-events.html) to publish important information about the company, including information that may be deemed material to investors, or supplemental to information contained in this or other press releases. The list of websites and social media channels that the company uses may be updated on Corning’s media and website from time to time. Corning encourages investors, media, and other interested parties to review the information Corning may publish through its website and social media channels as described above, in addition to the company’s SEC filings, press releases, conference calls, and webcasts.

About Corning Incorporated
Corning (www.corning.com) is one of the world's leading innovators in materials science, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people's lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning's capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping our customers capture new opportunities in dynamic industries. Today, Corning's markets include optical communications, mobile consumer electronics, display, automotive, and life sciences.

Corning Media Relations Contacts:           
Gabrielle Bailey                                 
(607) 684-4557                                              
BaileyGR@corning.com  

Amy Washco             
(828) 228-7320                                  
WashcoA@corning.com
           
Investor Relations Contact:
Ann H.S. Nicholson
(607) 974-6716
NicholsoAS@corning.com

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FAQ

What is the recent funding amount Corning received for vial manufacturing?

Corning received an additional $57 million in funding from BARDA.

How much total funding has Corning secured for its pharmaceutical manufacturing capacity?

Corning has secured a total of $261 million for pharmaceutical glass vial and tubing manufacturing.

What is the purpose of the funding received by Corning?

The funding aims to increase domestic manufacturing capacity for glass tubing and vials to support COVID-19 vaccinations.

Which government agency provided funding to Corning for its glass manufacturing?

The funding was provided by the Biomedical Advanced Research and Development Authority (BARDA).

How does Corning's glass vial production support the COVID-19 vaccination effort?

Corning's increased production of glass vials supports pharmaceutical manufacturers delivering vaccines to Americans.