EU seeks large AstraZeneca fine for alleged contract breach

EU seeks large AstraZeneca fine for alleged contract breach
EU seeks large AstraZeneca fine for alleged contract breach

Hello and welcome to the details of EU seeks large AstraZeneca fine for alleged contract breach and now with the details

Nevin Al Sukari - Sana'a - 'This is not a contract for the delivery of shoes or T-shirts,' AstraZeneca’s lawyer Hakim Boularbah told the court later today. — Reuters pic

Subscribe to our Telegram channel for the latest updates on news you need to know.


BRUSSELS, May 26 — A lawyer for the European Union accused AstraZeneca today of failing to respect its contract with the 27-nation bloc for the supply of Covid-19 vaccines and asked a Belgian court to impose a large fine on the company.

The EU took the Anglo-Swedish firm to court in April after the drugmaker said it would aim to deliver only 100 million doses of its vaccine by the end of June, instead of the 300 million foreseen in the supply contract.

Brussels wants the company to deliver at least 120 million vaccines by the end of June. AstraZeneca had delivered 50 million doses at the beginning of May, one-fourth of the 200 million vaccines foreseen in the contract by then.

“AstraZeneca did not even try to respect the contract,” the EU’s lawyer, Rafael Jafferali, told a Brussels court in the first hearing on the substance of the legal case.

He said the EU was seeking €10 (RM50.6) for each day of delay for each dose as compensation for AstraZeneca’s non-compliance with the EU contract. This penalty would apply from July 1, 2021, if the judge accepted it.

The EU lawyer said the EU was seeking an additional penalty of at least €10 million for each breach of the contract that the judge may decide.

A verdict is expected next month.

Not a contract for shoes

“This is not a contract for the delivery of shoes or T-shirts,” AstraZeneca’s lawyer Hakim Boularbah told the court later today, stressing the complexity of manufacturing a new vaccine.

The company has repeatedly said the contract was not binding as it only committed to make “best reasonable efforts” in delivering doses. AstraZeneca’s lawyer told the judge the vaccine was sold at cost.

Jafferali said that principle had not been respected because the drugmaker had not delivered to the bloc 50 million doses produced in factories that are listed in the contract as suppliers to the EU, of which 39 million doses manufactured in Britain, 10 million produced in the United States and 1 million in the Netherlands.

The lawyer said these doses were “diverted” to other clients.

The company has said that doses produced in Britain were reserved under a contract the British government signed with the University of Oxford, which developed the vaccine.

Jafferali said AstraZeneca had pledged in the EU contract not to have other engagements that would prevent it from abiding by the terms of the deal.

The lawyer also said AstraZeneca had failed to communicate to the EU in a timely manner the magnitude of its supply problems because it repeatedly sent messages, including publicly, that it was able to meet its targets, before finally admitting there were large shortfalls in March.

The company had warned the EU in December of production problems, but communicated only at the end of January, just before the start of deliveries, a much larger cut than initially expected for the first-quarter. — Reuters

These were the details of the news EU seeks large AstraZeneca fine for alleged contract breach for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Malay Mail and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV S.Korea starts vaccination for 55-59 age group as Covid-19 caseloads remain high
NEXT Vietnam’s economic hub imposes night curfew as country battles virus surge