BILLION POUND CONTRACT BLOW
Politicians demand jobs protection for Valneva workforce
The UK Government has cancelled a £1 billion contract for the Covid-19 vaccine being produced in West Lothian, leading to fears for local jobs.
Some 100 million doses of the vaccine were put on order to the French biotech firm Valneva after the UK increased its request by 40 million in February.
The firm also announced last month
that they were recruiting 200 new staff at their plant in Livingston.
The UK Government has now served notice over allegations of a breach of the agreement.
But the firm, which is manufacturing the jab at its site in Livingston, said it “strenuously” denies the allegations.
Sajid Javid said on Tuesday that the Covid-19 vaccine was not expected to get a licence from the UK drugs authorities and that this had prompted the cancellation.
In response to questions from Livingston
MP Hannah Bardell, Mr Javid said the contract had been cancelled for “commercial reasons”.
In a statement, Valneva said: “Valneva SE, a speciality vaccine company, today announced that it has received a termination notice from the UK Government (HMG) in relation to the Supply Agreement for its Covid-19 vaccine candidate, VLA2001.
“The contract provides HMG with the right to terminate. HMG has alleged that the company is in breach of its obligations under the supply agreement, but the company strenuously denies this.”
The company added results from its phase three trials were due later this year, adding it hopes that, dependent on the results of its continuing trials and sign-off from the UK’s MHRA, initial approval could still be granted.
In response to questions from Livingston MP Hannah Bardell at Westminster this week, Javid said: “It was also clear to us that the vaccine in question that the company was developing would not get an MHRA approval in the UK, and obviously she is not recommending that we administer vaccines that don’t get approval.”
But Ms Bardell responded by saying the UK government had to clear up the confusion and guarantee that the investment in jobs in Livingston would continue.
“The UK government have not been communicating effectively,” she said. “First, they said it was about supply now they say it is about efficacy. This has huge commercial impact on the company and on jobs in Livingston.
“There is too much confusion and we have to make sure the UK Government does not pull its funding for jobs in the area and given this vaccine could have been delivered at room temperature, Valneva was key to the international effort to delivering vaccines worldwide.
“They cancelled the contract with little notice and this latest development will be news to the company as they have had nothing formal about trials. They are at the third stage of trials, you don’t get there unless the drug is effective.”
The plant – which was visited by Prime Minister Boris Johnson in February – is producing a unique inactivated vaccine which is currently in trial stages, but it had been hoped that it could be used as a booster in the vaccination programme.
Lawrence Fitzpatrick, Leader of West Lothian Council, said:“We have contacted Valneva to find out if there is any assistance that we can provide at this stage. The news is concerning and we are closely monitoring updates.
“We certainly hope that operations at the Livingston site will continue to progress and expand which have significant benefits to the local economy. I have visited the Valneva site in Livingston recently to learn more about their important work and this has certainly come as a shock.”
MSP Angela Constance said:“The West Lothian community will be shocked at this sudden and disappointing decision by the UK Government. There are many pandemic and Brexit related challenges but the life science sector is crucial to West Lothian and the Scottish economy.
“Together with my colleagues Hannah Bardell MP and Fiona Hyslop MSP I am calling on the UK Government to fully explain their decision and guarantee that funding, facilities and jobs won’t be lost to our local economy.”
MSP Fiona Hyslop said the situation called for greater transparency from the UK Government, adding:“The circumstances of the UK Government’s decision requires greater transparency and their apparent lack of engagement with the company is of concern.
“Valneva are an important employer in the key Life Sciences sector in Scotland I am pleased that in response to my questions in the Scottish Parliament, the Scottish Business Minister Ivan McKee will be meeting with the company to discuss the world market export and the UK Government contract situation.”