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EU preparing legal case against AstraZeneca over vaccine shortfalls - sources

Published 22/04/2021, 07:01
Updated 22/04/2021, 12:35
© Reuters. FILE PHOTO: Vials labelled "Astra Zeneca COVID-19 Coronavirus Vaccine" and a syringe are seen in front of a displayed AstraZeneca logo in this illustration photo

© Reuters. FILE PHOTO: Vials labelled "Astra Zeneca COVID-19 Coronavirus Vaccine" and a syringe are seen in front of a displayed AstraZeneca logo in this illustration photo

By Francesco Guarascio and Gabriela Baczynska

BRUSSELS (Reuters) -The European Commission is working on legal proceedings against AstraZeneca (NASDAQ:AZN) after the drugmaker cut COVID-19 vaccine deliveries to the European Union, sources familiar with the matter said.

The move would mark a further step in an EU plan to sever ties with the Anglo-Swedish company after it repeatedly cut supplies to the bloc, contributing to major delays in Europe's vaccine rollout.

The news about the legal case was first reported on Thursday by Politico. An EU official involved in talks with drugmakers confirmed authorities in Brussels were preparing to sue the company.

"EU states have to decide if they (will) participate. It is about fulfillment of deliveries by the end of the second quarter," the official said.

The matter was discussed on Wednesday at a meeting with EU diplomats, where most EU states supported the legal action, two diplomats told Reuters.

However its largest, Germany and France, asked for more time to think about the possible move, the diplomats said.

"What matters is that we ensure the delivery of a sufficient number of doses in line with the company's earlier commitments," a commission spokesman said in an emailed statement. "Together with the member states, we are looking at all options to make this happen."

Later the spokesman told a news conference: "No decision has yet been taken with regards to this legal action."

A spokesman for AstraZeneca said the company was not aware of any legal proceedings "and continues to hold regular discussions on supply with the commission and member states".

Brussels in March sent a legal letter to the company in the first step of potential court proceedings.

When the deadline for a reply expired this month, a spokesman for the commission said the matter was discussed in a meeting with AstraZeneca but the EU was still seeking further clarification from the company on "a number of outstanding points".

The spokesman did not elaborate, but details of the letter published by Italian newspaper Corriere della Sera show the EU was seeking clarification on what it deemed a delayed application to the EU regulator for approval of the vaccine.

Brussels also questioned how AstraZeneca spent more than 224 million euros ($270 million) granted by the EU in September to buy vaccine ingredients and for which the bloc said the company had not provided sufficient documents confirming the purchases.

Under the contract, the company had committed to making its "best reasonable efforts" to deliver to the EU 180 million vaccine doses in the second quarter, for a total of 300 million in the period from December to June.

But the company said in a statement on March 12 it would aim to deliver only one-third of that. The EU letter was sent a week after that statement.

Under the contract, the parties agreed that Belgian courts would be responsible for settling unresolved disputes.

© Reuters. FILE PHOTO: Vials labelled

The EU has already decided not to take up an option to buy 100 million extra doses of AstraZeneca under the contract, an EU official said, after safety concerns about very rare cases of blood clots linked to the vaccine as well as supply delays.

($1 = 0.8304 euros)

Latest comments

Good people, the Vaccine is just for testing now. open your eyes. They use people like guinea pigs.
First they banned their vaccines for alleged terrible side-effects, which slows down production and distribution. Then they sue them for not being able to deliver the agreed-upon amount of vaccines. This is basically like tying you up, then beating you then saying it is your fault for getting beat up so bad because you did not defend yourself.
lol and what does that have to do with anything bud? contracts exist for a reason. so both parts are bounded to act as the contract says. If the greedy pharma CEOs signed numbers they knew would not be fulfilled, just to get money, the EU is acting in the people's behalf by suing their greedy asses
is Asta one of the only vaccine companies who are not profiteering from the vaccine. The UK signed a contract with them early giving them priority over supplies, the EU were late to the game and had to settle for a "best endevours" clause. Unfortunalty for the EU the UK had a well planned vaccine plan and used averythi g astra could manufacture, leaving very little surplus supplies for the EU.
How can Astrazeneca be greedy when they aren't making a profit from their vaccine? They are giving it away at cost price!
The EU wants the AZ jab ,then it doesn’t, then it wants it again. The EU does anything to tarnish the UK funded vaccine. Now it wants to sue! Politics. EU is a bully.
UK had been bullying all the other countries for 40 years by using the VETO against great proposals...enjoy the collapse of the UK and a new civil war in Ireland. Cheers
Have you actually signed a contract?! Do you know what may occur in case u break said contract? These comments are 1. made by pharma bots or 2. school dropouts
People in the EU forget that they mean nothing if they'd bene on their own.Everyone that is complaining without valid, constructive criticism can ******* off to another area in the world and realise how good they have it here.
how do I sue I had head pains for 6 weeks and wearing glasses due to sunlight
Lol you cant sue. You shoud have done your reseqrch and listned to the “conspiracy theorists” whi tried to warn you. Also they are exempt from any damages. Sue yourself
conspiracy theorist spotted
More political posturing. Fact is, Azn is producing as much as it can, so no court case is going to make them do anything excessive, becuae the contract is a best reasonable efforts one. This will only serve to increase prices, reduce willingness of pharma to enter contracts and confirm to many that the EU is out of its depth.
the Evil Union in full force
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