Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

EU-AstraZeneca disputed vaccine contract made public

EU-AstraZeneca disputed vaccine contract made public

The European Commission has published its contract with drug-maker AstraZeneca to buy the company's Covid vaccine, amid a row over supplies.

The move, agreed with AstraZeneca, came hours after Commission chief Ursula von der Leyen increased pressure on the firm over its decision to cut supplies.

The contract signed in August contained "binding orders", she told German radio, and called for an explanation.

The vaccine was approved by the EU medicines regulator on Friday.

The EU wanted to publish the contract to bolster its argument that the company had reneged on its commitments.

The company's chief executive, Pascal Soriot, said in an interview earlier this week that the contract obliged AstraZeneca to make its "best effort" to meet EU demand, without compelling the company to stick to a specific timetable.

Large sections of the contract have been blanked out - redacted - to protect sensitive information.

These include some paragraphs dealing with costs, guaranteed delivery dates and intellectual property.

What is the issue?


The August deal was for 300 million doses for the EU, to be delivered after regulatory approval, with an option for 100 million more.

But EU sources say they now expect to get only about a quarter of the 100 million vaccines they were expecting to receive by March, a shortfall of about 75 million jabs.

The EU is under pressure after criticism that the pace of vaccinations in several member states has been too slow.

AstraZeneca says the production problems are at its plants in the Netherlands and Belgium.

Supplies of another vaccine, produced by Pfizer-BioNTech, have also dropped due to production issues.

What is the EU saying?


EU officials say AstraZeneca has been asked to send some doses manufactured in the UK to the continent to make up the shortfall, but the company said on Wednesday that its contract for UK supplies prevented this.

An EU source familiar with the talks told the BBC that AstraZeneca's UK facilities were obliged to supply vaccine to the EU.

"This is not an option, it is a contractual obligation… a declaration by AstraZeneca as to where the drug substance manufacturing will take place." The UK plants are not back-up facilities; they are part of the main network, the source added.

"There are binding orders and the contract is crystal clear," Mrs von der Leyen said in Friday morning's radio interview.

"'Best effort' was valid while it was still unclear whether they could develop a vaccine. That time is behind us. The vaccine is there.

"AstraZeneca has also explicitly assured us in this contract that no other obligations would prevent the contract from being fulfilled," she said.

The BBC's Europe correspondent, Gavin Lee, says it may come down to specialist legal interpretation, and some fine tooth-combing, to understand who's right.



AstraZeneca has found itself in a deeply uncomfortable position in this fight over vaccine supply.

The heavily redacted publication - agreed by both sides - of its contract with the EU does not settle the issue of who is at fault.

As one source told me - "Neither side would have published this if either side thought it was legally conclusive. AstraZeneca are working hard to find a solution to a row that serves no-one".

The problem with vaccine production is that it is a biological process that can't be hurried.

A source close to the company said they knew vaccine nationalism was a danger. That's why, they claim, different contracts were tied to separate manufacturing bases. That is disputed by the EU.

So what happens next? The thought of going to court horrifies everyone involved; a needless and unseemly sideshow in the face of the real battle against the virus.

But suggestions that UK manufactured vaccines would be redirected to EU countries were downplayed by company insiders.

One final thought expressed was that while it was convenient for the European Commission to cast AstraZeneca as the villain - that would only work for so long, before member states started directing their displeasure at the Commission itself.

Warning of a 'vaccine war'


A spokesman for UK Prime Minister Boris Johnson would not comment on Friday on any contractual arrangements between the UK and AstraZeneca, or whether they may conflict with the company's agreement with the EU.

The spokesman said only that the UK remained "confident in our supply of vaccines" and that it was committed to its vaccine rollout plan.

But EU Justice Commissioner Didier Reynders has warned of a "vaccine war".

Speaking on Belgian radio, he said: "The EU Commission has pushed to co-ordinate the vaccines contracts on behalf of the 27 precisely to avoid a vaccines war between EU countries, but maybe the UK wants to start a vaccine war?

"Solidarity is an important principle of the EU. With Brexit, it's clear that the UK doesn't want to show solidarity with anyone."



On Friday, the EU confirmed it was introducing export controls on coronavirus vaccines made in the bloc, to try to ease the shortfalls.

Supplies run low in Europe


Vaccinations in parts of Europe are already being held up and in some cases halted because of a cut in deliveries of the Pfizer-BioNTech vaccine:

*  In Spain, Madrid and the northern Cantabria region have halted first vaccinations to focus on second doses for at least two weeks

*  Regional health authorities in France are delaying vaccination appointments. More than 1.1 million people have received a jab so far

*  Vienna's city councillor for health says delivery problems are leading to delays in vaccinations by up to two weeks. "We are really operating in a dramatic form of shortage economy," said Peter Hacker

*  The Dutch government was the last in the EU to start a vaccination programme and by the end of January the Netherlands will have had no more than 757,000 doses, mainly from Pfizer. It initially based its strategy on the assumption the AstraZeneca vaccine would be available first.


AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
×