EU Launches Legal Action Against AstraZeneca Over Delayed Vaccine Deliveries

Strategic Insights -

The European Union's executive arm has taken legal action against AstraZeneca, accusing the pharmaceutical company of failing to meet the terms of its contract for the delivery of COVID-19 vaccines. The dispute arose from AstraZeneca's delayed delivery of doses, which hindered Europe's vaccination campaign and frustrated EU officials. The contract, signed in August 2020, required AstraZeneca to supply 300 million doses, with an option to add 100 million more. However, the company only delivered 30 million doses in the first quarter of 2021, falling short of its promised 80 million.

Key Takeaways:

  • The European Commission has launched a legal action against AstraZeneca for breaching the terms of their contract for COVID-19 vaccine deliveries.
  • AstraZeneca had promised to deliver 80 million doses in the first quarter of 2021 but only managed to send 30 million.
  • The company has proposed to deliver 70 million doses in the second quarter of 2021, instead of the initially agreed-upon 180 million.
  • The commission has criticized AstraZeneca for its failure to provide a reliable strategy for timely deliveries of doses, despite the company's efforts to improve production.
  • AstraZeneca has expressed regret over the commission's decision to take legal action, stating that any litigation is without merit and that the company is driven by a passion to help the world without profit.
  • The AstraZeneca vaccine has been endorsed for use in over 50 countries and has been a key part of the global strategy to get vaccines to poorer countries.
  • The commission has publicly criticized AstraZeneca on several occasions and has launched a dispute resolution mechanism to address the differences amicably.

Statistics:

  • 300 million: the initial number of doses AstraZeneca was required to supply to the EU under the contract.
  • 30 million: the number of doses AstraZeneca delivered in the first quarter of 2021, short of the promised 80 million.
  • 70 million: the proposed number of doses AstraZeneca is set to deliver in the second quarter of 2021.
  • 180 million: the number of doses AstraZeneca initially promised to deliver in the second quarter of 2021.
  • 50+: the number of countries where the AstraZeneca vaccine has been endorsed for use.
  • 450 million: the population of the EU, where around 123 million vaccinations have already taken place.

Sources:

  • AP: The European Union's executive branch has launched legal action against Covid-19 coronavirus vaccine-maker AstraZeneca for failing to respect the terms of its contract with the 27-nation bloc.
  • AP: AstraZeneca's contract with the EU foresaw an initial 300 million doses for distribution among member countries, with an option for a further 100 million.
  • AP: The British-Swedish drugmaker had hoped to deliver 80 million doses in the first quarter of 2021, but only 30 million were sent.
  • AP: The commission has publicly criticised the company on several occasions, and last month it launched a dispute resolution mechanism aimed at amicably addressing the differences.