EC launches legal action against AstraZeneca over vaccine contract

Vials of the Oxford/AstraZeneca coronavirus vaccine. File Picture: Yui Mok/PA

The European Commission says it has launched legal action against vaccine maker AstraZeneca for failing to respect the terms of its contract with the EU.

Spokesman Stefan De Keersmaecker said: “The commission has started last Friday legal action against the company AstraZeneca on the basis of breaches of the advance purchase agreement.”

He said “some terms of the contract have not been respected” and “the company has not been in a position to come up with a reliable strategy to ensure a timely delivery of doses”.

(PA Graphics)

AstraZeneca’s contract with the European Union foresaw an initial 300 million doses for distribution among the 27 member countries, with an option for a further 100 million.

But only 30 million doses were delivered in the first quarter of 2021, and the company says it can only provide 70 million in the second quarter, rather than the 180 million it promised.

AZ statement

In a statement issued Monday, AstraZeneca said it regretted the European Commission’s decision to take legal action.

"Following an unprecedented year of scientific discovery, very complex negotiations, and manufacturing challenges, our company is about to deliver almost 50m doses to European countries by the end of April, in line with our forecast. 

"AstraZeneca has fully complied with the Advance Purchase Agreement with the European Commission and will strongly defend itself in court. 

"We believe any litigation is without merit and we welcome this opportunity to resolve this dispute as soon as possible."

The company said it appreciates work done by political leaders and healthcare professionals across the Member States "that has made the rollout of vaccination campaigns in Europe possible." 

It said it is committed to helping as much as possible. 

"Vaccines are difficult to manufacture, as evidenced by the supply challenges several companies are facing in Europe and around the world," the statement said.

"We are making progress addressing the technical challenges and our output is improving, but the production cycle of a vaccine is very long which means these improvements take time to result in increased finished vaccine doses.

"Much work is ahead of us in the EU and elsewhere, as we continue to deal with the terrible pandemic and the roll out of vaccination programmes."

AstraZeneca said that it "has an important role to play" and that the company's intent remains "to do that fairly and equitably at no profit during the pandemic in the EU and around the world."

"The EU has supported the COVAX facility for equitable distribution of vaccines to low-and middle-income countries. AstraZeneca is currently the leading supplier to more than 100 countries through COVAX providing 97% of its supply to date.

"Each dose has been made with vaccine serum originating from outside the EU."

Lastly, AstraZeneca said it was looking forward to "working constructively with the EU Commission to vaccinate as many people as possible." 

"Many thousands of our employees working around the clock have been driven by a passion to help the world at no profit; they remain firmly committed to delivering our vaccine to the people of Europe and around the world."