Covid-19: EU accuses AstraZeneca of "flagrant breach" of contract after delivery delays

The European Union accused AstraZeneca on Wednesday of "flagrant violation" of the contract to purchase anti-Covid vaccines.

She criticizes the pharmaceutical laboratory for not having quickly mobilized the maximum of its production capacities in Europe to supply the Twenty-Seven.

In this dispute now arbitrated by the Belgian courts, the first offensive was brought by Me Rafaël Jeffareli, who defends the interests of the member countries and of the Commission (having negotiated the terms of purchase on their behalf).

At the heart of the debate: the EU accuses AstraZeneca of having delivered in the first quarter of 2021 only 30 million doses of its serum, or 25% of the quantities promised at the end of a contract concluded last September.

A slowed down vaccination campaign

The Swedish-British group denies any violation of the terms of the agreement, and considers “unfounded” the action brought against him in the civil court of Brussels.

The subject is sensitive because the much smaller deliveries than expected of this vaccine - one of the four approved in the EU against the coronavirus - had the effect of slowing down vaccination campaigns this winter.

Discussions revolve around the interpretation of the notion of "best reasonable efforts" to satisfy the customer, in this case the EU countries.

The European bloc believes, unlike the laboratory, that these efforts were not made by the latter, which has for too long favored the supply of the United Kingdom to the detriment of the continental market.

Jeffareli explained at the hearing that for several weeks after the September agreement, the Dutch AstraZeneca plant (operated by its subcontractor Halix) continued to supply markets other than the EU. .

50 million doses diverted according to the EU

“The best reasonable efforts imply flexibility!

Why did the switchover of the Halix site (to EU supply) only start on October 13?

», Launched the lawyer.

"AstraZeneca did not even use all the tools that were at its disposal", he added, affirming that the group could at the time mobilize "six production sites to respect the fixed schedule".

Read also AstraZeneca vaccine orders: what is Europe up to?

The Halix factory in Leiden, the Netherlands, also supplied Japan late last year, he said.

In total, "50 million doses have been diverted to third countries in flagrant violation of the contract", accused Me Jeffareli.

Financial penalties for the laboratory in the event of non-compliance with the schedule

After the failure of an amicable settlement attempt, the European Commission announced on April 26 that it had taken legal action to arbitrate this conflict.

Initially, before a judge seized urgently (the signed contract is under Belgian law), the 27 member countries claim to receive the doses promised for the first quarter.

The contract expires in mid-June, according to the Commission.

The EU believes that the laboratory will have to pay financial penalties if it does not meet this schedule.

We have "saved tens of thousands of lives"

In the first half of the year, the delay to be made up could relate to 200 million doses: 90 not delivered in the first quarter and 110 others in the second (where AstraZeneca has planned to deliver only 70 of the 180 million doses initially announced).

"If we look at the glass half full, we have delivered more than 400 million doses (worldwide) and saved tens of thousands of lives", defended this weekend in the Financial Times the boss of the multinational Pascal Soriot.

In an interview with the Italian newspaper La Repubblica at the end of January, Mr. Soriot had already delivered his vision of "best reasonable efforts".

A decision expected in several weeks

"We said: we will do our best, without any guarantee of success," said the Franco-Australian leader, arguing about "performance" difficulties due to the delay taken by the group's partners having to "learn" the production process. .

A Belgian factory operated by another subcontractor was also inspected in January by order of the Commission.

After the pleadings of the lawyers of the EU, the floor was to return Wednesday afternoon to those of the pharmaceutical group. Another hearing could be scheduled if necessary by early June. The decision of the summary judge should not be rendered for several weeks.