European Commission President Ursula von der Leyen gives a press release at the end of a videoconference meeting of European Council members focused on the Covid-19 pandemic in Brussels on 21 January 2021.
OLIVIER HOSLET | AFP | Getty Images
LONDON – The European Union released a drafted version of the contract signed with AstraZeneca on Friday, as the bloc puts pressure on the drugmaker to deliver the promised supply of the Covid vaccine.
The EU, which has been criticized for the slow release of inoculations, was hit by AstraZeneca last week, when the company said it would only be able to deliver a fraction of the agreed-upon photos for the first quarter.
AstraZeneca denied that it did not honor its commitments, saying that the delivery figures to the bloc of the 27 nations are targets rather than promises. The company also cited production problems at its European factories for delays.
The European Medicines Agency is expected to take a decision on the effective approval of the AstraZeneca vaccine for use on Friday.
Speaking on German radio on Friday morning, European Commission President Ursula von der Leyen said: “There are binding orders and the contract is clear.”
“AstraZeneca has explicitly assured us in this contract that no other obligation would prevent the fulfillment of the contract,” she told Reuters.
The head of the EU’s executive arm said the agreement contained clear delivery amounts for December and the first three quarters of 2021.
AstraZeneca was not immediately available for comment when contacted by CNBC on Friday.
Concerns about international competition
Earlier this week, AstraZeneca CEO Pascal Soriot reportedly said the EU contract was based on the so-called “best effort” clause and did not formally hire the drug manufacturer on a specific delivery schedule.
EU leader Von der Leyen rejected the suggestion on Friday, adding that the clause is only valid if it is not clear whether AstraZeneca can develop a safe and effective vaccine. She also claimed that the contract specifically mentions four production sites that would supply the vaccine to Europe, two of which are in the UK.
EU officials have indicated that deliveries could be redirected from the UK to Europe if European production delays persist.
The EU, with a population of around 450 million, is struggling to transform its vaccination mechanism as it has no supplies and is now far behind countries such as Israel and the United Kingdom in providing vaccines to its citizens.
A view of the headquarters of the British-Swedish multinational pharmaceutical and biopharmaceutical company AstraZeneca as a Covid-19 vaccine developed by AstraZeneca was inspected in Brussels, Belgium on 28 January 2021.
Dursun Aydemir | Anadolu Agency Getty Images
The first time was a blow to the vaccine manufacturer Pfizer-BioNTech, which announced that it must temporarily reduce production in order to improve its production capacity in Belgium. This was followed by AstraZeneca last Friday, lowering its delivery estimates for the region.
A senior, unnamed EU official told Reuters that the bloc expected about 80 million doses by March, but was told it would receive only 31 million doses in return. The company did not confirm the quantities involved.
An in-depth dispute between the EU and AstraZeneca has raised concerns about international competition for a limited vaccine supply. It is hoped that vaccinations could help end the coronavirus pandemic.
– CNBC’s Holly Ellyatt contributed to this report.