EU Seeks Fines For AstraZeneca Over COVID-19 Vaccine Delays: Reuters

The European Union took on AstraZeneca Plc AZN in a Brussels court and accused it of diverting doses promised to the bloc to other nations.
EU’s lawyer, Rafael Jafferali, asked the court to force the company to pay €10 per dose for each day of delay as compensation for breaching the EU contract, reports Reuters.
The fine could be as high as €200 million ($244 million) per day from July 1, AstraZeneca’s lawyer Hakim Boularbah told the court, asking the judge to revise it down in case of an unfavorable verdict.
AstraZeneca’s contract signed with the European Commission foresaw an initial 300 million doses, with an option for another 100 million.
The doses were expected to be delivered throughout 2021, but only 30 million were sent during the first quarter.
Brussels wants the company to deliver at least 120 million vaccines by the end of June. AstraZeneca had delivered 50 million doses by the beginning of May, just a quarter of the 200 million vaccines foreseen in the contract by then.
Jafferali said the EU was seeking an additional penalty of at least €10 million for each breach of the contract that the judge may decide.
A verdict is expected next month.
AstraZeneca has long insisted that the doses mentioned were not binding targets and that the deal stated it only had to “best reasonable efforts” in delivering them.
“It’s very shocking to be accused of fraud,” Boularbah said, branding the EU’s claim “a groundless accusation.”
Price Action: AZN shares are down 0.62% at $56.56 during the market session on the last check Wednesday.