World

EU, AstraZeneca reach settlement in vaccine delivery dispute

Deal sees drugs giant delivering rest of promised 300 million doses before end of March 2022

Updated 4 years ago · Published on 03 Sep 2021 11:59PM

EU, AstraZeneca reach settlement in vaccine delivery dispute
AstraZeneca says Covid-19 vaccine production bottlenecks at its European plants had been unavoidable. – AFP pic, September 3, 2021

BRUSSELS – The European Union and United Kingdom-based drugs giant AstraZeneca today announced that they have reached a settlement in a dispute over a shortfall in coronavirus vaccine deliveries.

The deal will see the firm deliver the rest of the 300 million doses it promised under contracts with the EU before the end of March next year, and brings to an end a battle in Belgian courts.

Brussels was furious when the British-Swedish pharmaceutical outfit fell far short of its delivery promises, undermining the early stages of the EU Covid-19 vaccine roll-out.

Officials accused AstraZeneca of prioritising UK vaccine deliveries over the EU order, and European Commission lawyers went to court to demand deliveries or see huge daily fines imposed for any ongoing shortfall.  

But, the firm argued that its contract with the bloc only obliged it to make “best efforts” to meet its delivery target, and that production bottlenecks at its European plants had been unavoidable.

In June, in an interim ruling pending the final settlement of the case, the Brussels court imposed a new delivery schedule on AstraZeneca that it was able to honour.

And now, the parties have agreed on dates that extend the deadline well into next year.

Ruud Dobber, executive vice-president for biopharmaceuticals at AstraZeneca, said: “I’m very pleased that we have been able to reach a common understanding that allows us to move forward and work in collaboration with the European Commission to help overcome the pandemic.”

AstraZeneca manufactures vaccines designed at Britain’s Oxford University and sells them on a non-profit basis – its version is cheaper and easier to store than many competitors’.

But, the EU has become frustrated by the slow pace of supply, and made another vaccine produced by United States giant Pfizer and Germany’s BioNTech the workhorse of its buying programme.

A European Commission statement said AstraZeneca delivered 100 million doses in the first half of 2021, will send 135 million more by the end of the year, and another 65 million doses by next March.

“This will bring the total number of doses delivered to 300 million as agreed under the contract.” – AFP, September 3, 2021

Related News

Malaysia / 2y

Current health ailments not related to AstraZeneca vaccine, says Noor Hisham

Malaysia / 2y

Govt aware of AstraZeneca vaccine side effects when it was deployed, says Noor Hisham

Malaysia / 2y

Govt to address AstraZeneca vaccine worries this week

World / 2y

AstraZeneca Covid-19 vaccine to be withdrawn globally

World / 2y

AstraZeneca admits Covishield can cause blood clots, low platelet count

Business / 2y

WTO rules against EU’s delegated act, deems it discriminatory towards M’sian palm oil biofuels

Spotlight

Malaysia

Wild boar collision claims woman’s life as husband suffers injuries in Bera

Malaysia

Joe Zakaria attack: Questions emerge over safety of voices challenging Malaysian football status quo

Malaysia

DAP withdraws support for Melaka govt after assembly approves seven appointed seats

By Alfian Z.M. Tahir

Malaysia

Zara Qairina inquest: Qualifications of 76th witness questioned

Malaysia

Melaka passes appointed assembly members bill as DAP moves to pull out of State Govt

Malaysia

Anwar rejects snap election push, says Govt must prioritise economic recovery and stability

Malaysia

Rosmah sues Harith Iskander over comedy routine, alleges defamation and body shaming

You may be interested

World

Sexual violence against women and children remains deeply entrenched in India despite legal reforms

World

Netanyahu faces four key challengers as Israel sets general election for Oct 27

World

US reimposes Iran blockade as Hormuz Strait conflict escalates

World

One dead, another missing after boat catches fire and sinks near Alcatraz island

World

Beijing warns against ‘stirring up trouble’ over 2016 arbitration ruling

World

Strong 6.3-magnitude earthquake strikes southeast of Loyalty Islands

World

Air strikes continue, tankers come under fire as US-Iran conflict escalates in Hormuz Strait