EU launches legal action against AstraZeneca over vaccine contract

AstraZeneca allegedly failed to respect the terms of its contract with the EU

AstraZeneca
AstraZeneca | File photo
AP | PTI Brussels
1 min read Last Updated : Apr 26 2021 | 6:15 PM IST

The European Commission on Monday said it has launched a legal action against vaccine maker AstraZeneca for failing to respect the terms of its contract with the EU.

Spokesman Stefan De Keersmaecker said, The Commission has started last Friday legal action against the company AstraZeneca on the basis of breaches of the advance purchase agreement.

He said that the reason for the legal action was that some terms of the contract have not been respected and that the company has not been in a position to come up with a reliable strategy to ensure a timely delivery of doses.

AstraZeneca's contract with the European Union foresaw an initial 300 million doses for distribution among the 27 member countries, with option for a further 100 million.

But only 30 million doses were delivered in the first quarter of 2021, and the company says it can only provide 70 million in the second quarter, rather than the 180 million it had promised.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :European UnionAstraZenecaCoronavirus Vaccine

First Published: Apr 26 2021 | 6:13 PM IST

Next Story