(Adds AstraZeneca comment, other details)
BRUSSELS, April 26 (Reuters) - The European Commission said
on Monday it had launched legal action against AstraZeneca
for not respecting its contract for the supply of
COVID-19 vaccines and for not having a "reliable" plan to ensure
timely deliveries.
AstraZeneca said in response that the legal action
by the EU was without merit and pledged to defend itself
strongly in court.
"AstraZeneca has fully complied with the Advance Purchase
Agreement with the European Commission and will strongly defend
itself in court. We believe any litigation is without merit and
we welcome this opportunity to resolve this dispute as soon as
possible," AstraZeneca said in a statement on Monday.
Under the contract, the Anglo-Swedish company had committed
to making its "best reasonable efforts" to deliver 180 million
vaccine doses to the EU in the second quarter of this year, for
a total of 300 million in the period from December to June.
But AstraZeneca said in a statement on March 12 it would aim
to deliver only one-third of that by the end of June, of which
about 70 million in the second quarter. A week after that, the
Commission sent a legal letter to the company in the first step
of a formal procedure to resolve disputes.
"The Commission has started last Friday a legal action
against AstraZeneca," the EU spokesman told a news conference,
noting all 27 EU states backed the move.
"Some terms of the contract have not been respected and the
company has not been in a position to come up with a reliable
strategy to ensure timely delivery of doses," the spokesman
said, explaining what triggered the move.
Under the contract, the case will need to be resolved by
Belgian courts.
"We want to make sure there is a speedy delivery of a
sufficient number of doses that European citizens are entitled
to and which have been promised on the basis of the contract,"
the spokesman said.
"Every vaccine dose counts," EU health commissioner Stella
Kyriakides said on Twitter, announcing the legal proceedings
against AstraZeneca.
Germany, France and Hungary were among EU states that were
initially reticent to sue the company, diplomats said, but
eventually they supported the move.
The EU wants AstraZeneca to deliver the promised 300 million
doses, but in a further sign of its irritation towards the
company, it has already forgone another 100 million shots that
it had an option to buy under the contract signed in August.
(Reporting by Francesco Guarascio; additional reporting by
Marine Strauss; Editing by Alex Richardson and Bernadette Baum)
Astrazeneca (AZN)