The Jerusalem Post

EU opens new front in AstraZenec­a legal fight that may lead to fines

- • By FRANCESCO GUARASCIO

BRUSSELS (Reuters) – The European Union launched a new lawsuit against AstraZenec­a on Tuesday that could lead to financial sanctions for the company, which the EU alleges has breached a supply contract for COVID-19 vaccines.

The lawsuit is the EU’s second against AstraZenec­a after the bloc took action at the end of April over delayed vaccine supplies.

AstraZenec­a has said the EU’s first legal action is without merit, saying it complied with the contract. The new lawsuit was not needed because there was already one underway, the company’s lawyer said Tuesday.

EU lawyer Rafael Jafferali, speaking in a Belgian court at Tuesday’s hearing, asked that AstraZenec­a deliver a total of 120 million vaccine doses by the end of June in Brussels’s first formal request on the exact volume it is seeking to receive by midyear.

The Anglo-Swedish drugmaker had originally committed to deliver 300 million vaccine doses from December to the end of June. But it has delayed shipments, having delivered only 50 million, which under the contract were due in January.

As a partial and immediate compensati­on for the delays, the company should deliver 120 million doses by the end of June, including 90 million in the second quarter, in addition to the 30 million shots shipped by the end of March, the EU’s lawyer told the court.

AstraZenec­a’s aim is to ship 100 million shots by midyear, which the company’s lawyer Hakim Boularbah confirmed at the hearing on Tuesday.

AstraZenec­a was not obliged to deliver the entire volume of doses set in the contract because it only committed to doing its “best reasonable efforts” to achieve it, he said.

When asked by Reuters if the company could accept the EU’s demand to deliver 120 million doses by the

end of June, Boularbah declined to comment. The company has cited production problems and export restrictio­ns as reasons for its delayed supplies to the EU.

The EU hoped the remainder of the contracted 300 million doses could be delivered by AstraZenec­a by September, the EU lawyer told the court, although he did not submit a formal request on this.

AstraZenec­a was not immediatel­y available for comment.

FINE LOOMING?

Officials familiar with the case said the second lawsuit was mostly procedural, pertaining to the merits of the issue, but would also allow financial penalties to be imposed on the company.

A request for a provisiona­l compensati­on of one euro was put forward by the EU while damages were assessed. A demand for real compensati­on for what the EU has alleged is a breach of contract by AstraZenec­a would be decided at a later stage.

One official said the fine could be “significan­t” but declined to quantify the financial claim, which would need to be approved by the judge.

The ultimate objective of the lawsuits was to get doses and not to punish AstraZenec­a or seek a fine, a spokesman for the European Commission told a news conference later on Tuesday. But financial penalties could be imposed on the company, he said.

The EU lawyer also asked AstraZenec­a to share confidenti­al documents, a request that AstraZenec­a opposes.

The EU had previously urged AstraZenec­a to present evidence of how it spent the €224 million ($272m.) the EU paid in September to buy vaccine ingredient­s.

The EU’s executive had launched a second case because one had already been opened, AstraZenec­a’s lawyer complained in the court hearing.

The judge decided in favor of allowing the second case to proceed and set September 24 as the date for the next hearing.

Another hearing has been set for May 26 on the first legal case in which the EU is seeking an immediate accelerati­on of deliveries.

A verdict on the first case is expected before the end of June, whereas the second case on the merits of the matter will last at least until next year.

 ?? (Phil Noble/Reuters) ?? PEOPLE ATTEND a demonstrat­ion outside AstraZenec­a’s site in Macclesfie­ld, near Manchester, England, yesterday.
(Phil Noble/Reuters) PEOPLE ATTEND a demonstrat­ion outside AstraZenec­a’s site in Macclesfie­ld, near Manchester, England, yesterday.

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