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Pin to quick picksAstrazeneca Share News (AZN)

Share Price Information for Astrazeneca (AZN)

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Share Price: 12,190.00
Bid: 12,210.00
Ask: 12,214.00
Change: 162.00 (1.35%)
Spread: 4.00 (0.033%)
Open: 12,036.00
High: 12,214.00
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UPDATE 1-EU Commission head says AstraZeneca contract contains binding orders

Fri, 29th Jan 2021 07:26

* EU Commission head says AZ contact "crystal clear"

* EU wants to publish contract today

* Says there is no "order sequencing" in contract
(Adds details)

BERLIN, Jan 29 (Reuters) - The European Union's contract
with AstraZeneca for its COVID-19 vaccine contains
binding orders, EU Commision head Ursula von der Leyen said on
Friday, as the bloc continues to press the drugmaker to deliver
supplies as promised.

The EU has been locked in a row with AstraZeneca, which
partnered with Britain's Oxford University to develop its
vaccine, after the drugmaker said last week it would cut
deliveries in the first quarter due to production issues at a
Belgian factory.

An EU official said that meant the EU would receive 31
million doses in the period, or 60% less than initially agreed,
piling pressure on the 27-country bloc which has lagged
vaccination campaigns in Israel, Britain and the United States.

"There are binding orders and the contract is crystal
clear," von der Leyen told Deutschlandfunk radio, adding it
contained clear delivery amounts for December and the first
three quarters of 2021.

"AstraZeneca has also explicitly assured us in this contract
that no other obligations would prevent the contract from being
fulfilled," she added.

Von der Leyen's comments contradict statements by
AstraZeneca Chief Executive Pascal Soriot, who told newspapers
on Tuesday the EU contract was based on a "best-effort" clause
and did not commit the company to a specific timetable for
deliveries.

Soriot has also said the EU was late to strike a supply
contract so the company did not have enough time to iron out
production problems at a vaccine factory run by a partner in
Belgium.

Von der Leyen said the "best-effort" cause was only valid as
long as it was not clear whether AstraZeneca could develop a
vaccine. She also said there was no "order sequencing"
stipulation and that it mentioned four production sites, two of
which are in Britain.

The EU wants to make a redacted version of the contract
public later on Friday, she said.

The EU contract with AstraZeneca is an advance purchase
agreement for the supply of at least 300 million doses provided
the vaccine is approved as safe and effective, with doses
delivered in stages. It is expected to be approved by the
European Medicines Agency (EMA) on Friday.
(Reporting by Caroline Copley; Editing by Maria Sheahan and
Mark Potter)

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