EU takes legal action against AstraZeneca over Covid vaccine contract

The European Union has begun legal action against AstraZeneca (AZN.L), alleging the pharmaceuticals giant has failed to fulfil promises made in its contract to supply Covid-19 vaccines.

The EU's executive branch, the European Commission, has launched legal action against AstraZeneca alleging breach of contact.

"Every vaccine dose counts," Stella Kyriakides, the European Commissioner for Health and Food Safety, said in a tweet confirming the action. "Every vaccine dose saves lives."

Shares in AstraZeneca were flat shortly after the news broke. The EU had been widely expected to launch legal action.

The EU has been furious at the low levels of Covid-19 vaccines delivered so far by AstraZeneca. The bloc believes the company has been unfairly and illegally routing jabs to the UK at the expense of Europe.

AstraZeneca had agreed to deliver around 100 million doses of its vaccine to the EU in the first quarter of 2021. However, the pharmaceuticals giant has only been able to deliver around a third of that number. The shortfall has contributed to the slow vaccination campaign across Europe, which has lagged both the UK and US.

AstraZeneca has consistently denied breach of contracting, saying it had only promised its "best efforts" to deliver the promised levels.

Both AstraZeneca and the European Commission have been contacted for comment.