EU publishes AstraZeneca vaccine contract as supplies battle heats up

European Commission President Ursula von der Leyen gives a statement at the end of a videoconference by members of the European Council on the Covid-19 pandemic in Brussels on 21 January 2021.

OLIVIER HOSLET | AFP | Getty Images

LONDON – The European Union on Friday published a drafted version of the contract signed with AstraZeneca, while the bloc is pressuring the drugmaker to deliver the Covid vaccine supplies it promised.

The EU, which has been criticized for its slow implementation of vaccines, was delivered by AstraZeneca last week, when the company said it would only be able to deliver a fraction of the agreed doses for the first quarter.

AstraZeneca denied that it failed to honor its commitments, saying that delivery numbers for the 27-nation bloc were targets, not promises. The company also cited production problems at its European factories for the delays.

The European Medicines Agency must make a decision on whether it actually approves the AstraZeneca vaccine for use on Friday.

Speaking to German radio on Friday morning, European Commission President Ursula von der Leyen said: “There are binding orders and the contract is crystal clear.”

“AstraZeneca also explicitly assured us in this contract that no other obligations would prevent compliance with the contract,” she said, according to Reuters.

The head of the EU’s executive branch claimed that the agreement contained clear delivery figures for December and the first three quarters of 2021.

AstraZeneca was not immediately available for comment when contacted by CNBC on Friday.

Concerns about international competition

Earlier this week, AstraZeneca’s CEO, Pascal Soriot, reportedly said the EU contract was based on the so-called “best effort” clause and did not formally commit the drugmaker to a specific delivery schedule.

Von der Leyen of the EU rejected this suggestion on Friday, adding that the clause was only valid if it was not clear whether AstraZeneca could develop a safe and effective vaccine. She also stated that the contract specifically mentioned four production sites that would supply the vaccine to Europe, two of which are in Britain.

EU officials have indicated that supplies can be diverted from the UK to Europe if delays in European production persist.

The EU, with a population of around 450 million people, is struggling to start its vaccination campaign as it lacks supplies and is currently far behind countries like Israel and the UK in providing vaccines to its citizens.

A view of the central office of the Swedish-British pharmaceutical and biopharmaceutical multinational AstraZeneca as a Covid-19 vaccine developed by AstraZeneca inspected in Brussels, Belgium, on January 28, 2021.

Dursun Aydemir | Anadolu Agency | Getty Images

It was the first blow by vaccine maker Pfizer-BioNTech, who announced that it would have to temporarily reduce production in order to increase its manufacturing capacity in Belgium. This was followed by AstraZeneca last Friday, reducing its delivery estimates for the region.

An unidentified senior EU official told Reuters that the bloc expected about 80 million doses by March, but was told it would receive only 31 million doses. The company has not confirmed the quantities involved.

The deepening of the dispute between the EU and AstraZeneca has raised concerns about international competition for limited supplies of vaccines. It is hoped that inoculations can help end the coronavirus pandemic.

– Holly Ellyatt from CNBC contributed to this report.

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