EU calls for high penalties on AstraZeneca for 'failure' in its COVID-19 vaccine delivery

The European Union (EU) on May 26 has asked a Belgian court to impose penalties as high as millions of euros per day on AstraZeneca for failing to deliver the promised COVID-19 vaccine shots to the 27-nation-bloc. The request for large penalties on AstraZeneca came as EU nations and their executive, the European Commission mounted legal challenges for Anglo-Swedish pharmaceutical company for "flagrant violation" of the contract it had signed with the bloc. 

EU’s take on the vaccine producer came after AstraZeneca signed a deal with the European Commission that foresaw at least 300 million doses for distribution among all 27 countries, with an option for a further 100 million. While these promised doses were expected to be delivered throughout 2021, the bloc has only received 30 million in the first quarter which has significantly impacted the vaccination drives in the member nations. 

According to European Commission, the deliveries have increased minutely but still, the drugmaker is set to provide 70 million COVID-19 vaccine doses in the second quarter even though it had promised 180 million. 

‘It’s obviously a failure’

As per The Associated Press, EU lawyer Rafael Jafferali told the court on Wednesday that the company now expects to deliver the total number of doses by the end of December, however, he added that “with a six-month delay, it’s obviously a failure." The bloc’s lawyer’s main argument is that the vaccine producer should have utilised the production sites in the bloc and the UK for the supplies to the European Union as part of a “best reasonable effort.” Jafferali also said that 50 million doses that should have been delivered to the bloc went to third world countries “in violation” of the signed contract. 

While accusing AstraZeneca of misleading the EU’s executive arm by providing unclear data on the delivery delays, the bloc’s lawyer said “The information provided by AstraZeneca did not allow us to fully understand the situation before mid-March 2021.” EU has reportedly also said that it invested 2.7 billion euros ($3.8 billion), including 336 million ($408 million) to finance the production of AstraZeneca’s serum at four factories.

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