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UPDATE 2-AstraZeneca says EU loses legal bid for more vaccine supplies by end-June

Fri, 18th Jun 2021 14:06

(adds EU lawyer)

BRUSSELS/LONDON, June 18 (Reuters) - AstraZeneca
said on Friday the European Union had lost a legal case against
the pharmaceutical firm over the supply of COVID-19 vaccines,
with a court in Brussels rejecting an EU request for more
deliveries by the end of June.

But European Commission President Ursula von der Leyen said
Friday's ruling supported the EU's view that AstraZeneca --
against which the bloc has recently launched a second lawsuit --
had failed to meet its commitments.

The Anglo-Swedish pharmaceutical giant committed in a
contract to do its best to deliver 300 million doses to the
27-nation bloc by the end of June, but production problems led
the company to revise down its target to 100 million vaccines.

The supply cuts delayed the EU's vaccination drive in the
first quarter of the year, when the bloc had initially bet on
AstraZeneca to deliver the largest volume of its shots. That led
to a bitter dispute and to the EU's legal action to get at least
120 million doses by the end of June.

But the judge ruled that it should deliver only 80.2 million
doses by a deadline of Sept. 27. The company said it would
"substantially exceed" that amount by the end of June.

The court said in a statement that AstraZeneca must deliver
15 million doses by July 26, another 20 million by Aug. 23 and
another 15 million by Sept. 27, for a total of 50 million doses.
The EU had asked for 90 million doses in the second quarter.

Should the company miss these deadlines it would face a
penalty of "10 euros ($11.8) per dose not delivered", the EU
Commission said. The EU had asked for a fine of 10 euros per
dose per day.

AstraZeneca said other measures sought by the Commission had
been dismissed, and the court had found that the EU had no
exclusivity or right of priority over other parties the
drugmaker had contracts with.

"The judgment also acknowledged that the difficulties
experienced by AstraZeneca in this unprecedented situation had a
substantial impact on the delay," AstraZeneca said in a
statement.

"AstraZeneca now looks forward to renewed collaboration with
the European Commission to help combat the pandemic in Europe."

The European Union last month launched a second lawsuit
against the drugmaker seeking financial penalties for the delays
to vaccine supply.

"This decision confirms the position of the Commission:
AstraZeneca did not live up to the commitments it made in the
contract," Commission President von der Leyen said on Friday.

The EU lawyer said the EU will analyse the situation before
deciding whether to go ahead with second legal case.
(Reporting by Francesco Guarascio in Brussels, Alistair Smout
in London, additional reporting by Muvija M in Bengaluru;
Editing by David Evans, Catherine Evans and Louise Heavens)

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