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Pin to quick picksAstrazeneca Share News (AZN)

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UPDATE 2-EU's AstraZeneca contract includes UK vaccine production

Fri, 29th Jan 2021 11:40

(Updates with some content of contract, adds dateline)

BRUSSELS, Jan 29 (Reuters) - The European Commission's
contract with AstraZeneca to supply COVID-19 vaccines includes
Britain along with the EU as places where the Anglo-Swedish
drugmaker should make its best efforts to manufacture its
vaccines for the EU.

The contract is at the heart of a dispute over access to
vaccines, after AstraZeneca announced last week it would fall
short of delivering promised vaccines to the EU by March because
of production problems in Belgium.

AstraZeneca has been making large quantities of its vaccine
in Britain, but has said a contract it signed with the British
government requires it to fulfil Britain's order before it can
send doses manufactured there abroad, including to the EU.

The company agreed on Friday to publication of its advance
purchase agreement with the European Commission. The 41-page
contract was published, although certain parts were redacted. (https://bit.ly/2MBIaoU).

In a section on manufacturing sites, the contract reads:
"AstraZeneca shall use its Best Reasonable Efforts to
manufacture the vaccine at manufacturing sites located within
the EU (which for the purpose of this Section 5.4 only shall
include the United Kingdom)".

At the time the contract was signed, Britain had left the EU
but was still subject to most EU rules in a transition period
which ended at the start of this year.

The contract goes on to say that AstraZeneca may manufacture
at facilities elsewhere to accelerate supply of the vaccine in
Europe, provided that it gives prior notification.

The contract does not say whether AstraZeneca is obliged to
send vaccines produced in Britain to the European Union. The
Commission has said it does have the right to doses made in
Britain.

The Commission said it welcomed the company's commitment
towards more transparency.

AstraZeneca and the EU had signed a deal for up to 400
million doses of the vaccine. Last week, the firm unexpectedly
announced cuts of up to 60% in supplies to the bloc, citing
production problems at a Belgian factory, triggering a furious
response from the bloc.

The EU is now looking into a scheme to monitor and authorise
export of vaccines, potentially blocking them if its own supply
is not met.
(Reporting by Philip Blenkinsop in Brussels and Pushkala
Aripaka in Bengaluru
Editing by John Chalmers)

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