The Brussels court of first instance has ordered pharmaceutical company AstraZeneca to supply 50 million doses of its corona vaccine to European Union member states by September 27. That is fewer than the European Commission had demanded, but it nevertheless claims a victory.
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“This decision confirms our position: AstraZeneca has not complied with the commitments in the contract. It is good to see that an independent judge has now confirmed this”, chairman Ursula von der Leyen reacted Friday afternoon to the judgment of the Brussels court.
The Commission had taken AstraZeneca to court in April, alleging that the company had not complied with the pre-contract for the supply of its vaccine Vaxzevria. The two parties had entered into a pre-contract in August 2020 for the delivery of 120 million doses by the end of March 2021, and 300 million doses by the end of June. By the end of March, however, AstraZeneca had delivered only 30 million.
The Commission had demanded in court that AstraZeneca deliver the remaining 90 million doses of the first quarter by the end of June. However, the court does not go that far. On top of the 30 million doses at the end of March, it is demanding that the Anglo-Swedish producer deliver another 50 million doses: 15 million by July 26, 20 million by August 23 and 15 million by September 27. The company must pay a fine of 10 euros per vaccine that is not delivered on time.
AstraZeneca welcomed the decision on Friday. The company points out that it has now sold more than 70 million doses in the EU and is expected to exceed the 80 million mark by the end of this month. “AstraZeneca has fully complied with its agreement with the Commission and continues to focus on our urgent mission to deliver an effective vaccine,” company attorney Jeffrey Pott said in a press release. Among other things, the company concludes from the decision that the Commission had no exclusivity or priority over other customers.
“No more hiding”
The lawyers of the other camp have a different reading. They insist on the distinction between the court order and the contractual obligations. The lawyers withhold from the judge’s decision that AstraZeneca has seriously violated its contractual obligations with the Commission. Indeed, the contract did not contain a result commitment, it sounds, but a commitment to make the best possible effort to deliver on time, and AstraZeneca has failed to do that by not using the British sites for production for the EU member states.
“AstraZeneca can no longer hide behind the argument that some sites cannot be used. This provides a foundation to force the company to fulfill its contractual obligations,” it reads in the Berlaymont building. In court, the producer reportedly stated that it could take until December for all 300 million doses to be delivered. According to European sources, that could now go a lot faster.
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