EU preparing legal case against AstraZeneca over vaccine shortfalls -
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[April 22, 2021]
By Francesco Guarascio and Gabriela Baczynska
BRUSSELS (Reuters) -The European Commission
is working on legal proceedings against AstraZeneca 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.
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Vial labelled "AstraZeneca coronavirus disease (COVID-19) vaccine"
placed on displayed EU flag is seen in this illustration picture
taken March 24, 2021. REUTERS/Dado Ruvic
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.
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)
(Reporting by Francesco Guarascio and Gabriela Baczynska in
Brussels, Pushkala Aripaka and Aakriti Bhalla in Bengaluru; Editing
by John Stonestreet, Nick Macfie and Alex Richardson)
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