EU-Astra vaccine dispute descends into chaos over crunch call

The clash between the European Union and drugmaker AstraZeneca Plc over Covid-19 vaccine delivery delays turned from bitter to chaotic on Wednesday, with the two sides disagreeing over whether a planned call to resolve the issue would take place.

Hours before the scheduled discussion between the European Commission, governments and Astra executives, the EU said the company had pulled out. But that was disputed by Astra, which said it still planned to take part.

The contradictory statements are the latest twist in a saga that erupted late last week when Astra warned of delays at a production plant in Belgium. That’s since been followed by days of public disagreement over contract terms, accusations of blame, and even threats to Astra’s business.

The EU wants the call to get more details from the company about the delay to the rollout of shots. Governments are desperate to speed up the vaccination rollout, as it’s proved sluggish so far, and also keen to avoid taking the blame.

But Astra Chief Executive Pascal Soriot, in an interview with European newspapers, deflected the responsibility to the EU. He said the company has a so-called best-effort agreement that doesn’t specify a quantity. That’s because the EU insisted on receiving the AstraZeneca vaccine about the same time as the U.K. despite putting in its order three months later.

A key part of the disagreement is the use of vaccines produced in U.K. factories. Speaking on condition of anonymity, an EU official said that Soriot’s claim that the U.K. has priority on vaccines from British plants doesn’t exist in the contract.

The EU’s vaccination pace is lagging way behind the U.S. and the U.K. in terms of the share of its population inoculated, according to Bloomberg’s global tracker. Soriot said that once Astra gets EU regulatory approval—expected within days—it will ship at least 3 million doses immediately, with a target of 17 million by February.

Governments are pushing to accelerate vaccinations to help economies exit damaging lockdowns that have crippled industries and caused growing discontent. Soriot suggested he understands that the situation is difficult for leaders across Europe, where Brussels has coordinated a vaccine-buying program.

“Everybody is getting kind of a bit, you know, aggravated or emotional about those things.” he said in the comments published in La Repubblica and other newspapers. “But I understand because the commission is managing the process for the whole of Europe.”

In an effort to alleviate supply shortages, French drugmaker Sanofi said it has agreed to help produce more than 125 million doses of the shot Pfizer Inc. developed with Germany’s BioNTech SE. That shot, and one by Moderna Inc., are already authorized for use.

Sanofi will provide BioNTech access to its production sites in Frankfurt starting this summer, it said in a statement Wednesday. The goal is to accelerate efforts to package and distribute the vaccine, which needs to be kept at ultra-cold temperatures.

Meanwhile, the European Commission is due to present its export monitoring proposal by the end of this week. In addition to AstraZeneca’s vaccine, the one from Pfizer and BioNTech is also made within the bloc, with some of the production sent outside the EU.

While the details of the EU’s plans have yet to be revealed, the World Trade Organization would not prevent vaccine export restrictions or even an outright ban. Its rules have exemptions in the event of critical shortages of essential products or if action is necessary to protect human life and health.