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BREAKING: AstraZeneca walk out of talks with EU as tensions continue to grow between both sides regarding contract and supplies of Covid vaccines.
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Looks like their bully boy tactics have badly backfired.
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They signed up for the Oxford-AstraZenica vaccine three months after the UK but demanded supplies on the same basis as the UK. AZ told the European Commission this simply would not be possible because establishing new production capacity always throws up teething problems that take time to fix. The deal AZ signed with the EU was therefore on a “best effort” basis. As long as AZ has been working hard and in good faith to fulfil the order from the EU then the contract is being met. If AZ people turned up in Brussels today to find out they were in for a carpeting for not doing something they always warned they couldn’t guarantee to do, then I’m not surprised they decided not to go through with the meeting. The question now is whether the EU decides to try to interfere in export of vaccine products. Pascal Soriot (AZ CEO) has warned that due to the nature of its supply chains, all this will achieve will be to slow things down still further. |
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My hope is that tests are currently being undertaken to confirm the levels of cover the single Pfizer vaccination has actually given us and whether those levels of cover start to decrease over the coming weeks/months. |
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Army carries out a controlled detonation on a suspicious package delivered to a plant making COVID vaccine:
https://www.bbc.co.uk/news/uk-wales-55822838 |
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This looks a far more constructive move than trying to stop companies honouring their contracts.
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Coronavirus: EU demands UK-made AstraZeneca vaccine doses
The EU has urged pharmaceutical firm AstraZeneca to supply it with more doses of its Covid-19 vaccine from UK plants, amid a row over shortages. Health Commissioner Stella Kyriakides said the company was wrong to say its agreement with the EU was non-binding. https://www.bbc.co.uk/news/world-europe-55822602 |
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There’s nothing quite so amusing as impotent rage. Especially when it’s the sound of a jumped-up Brussels Eurocrat having a full-on, dummy-spitting tantrum. |
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Germany is urging Brussels to allow members states to block exports of EU-made jabs - to ensure that the continent gets its "fair share". |
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Someone's going to be updating the List of medicines that cannot be exported from the UK or hoarded pretty sharpish!
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Already this week we’ve had a badly briefed German hack trying to question the efficacy of the Ox-AZ vaccine, then the German government suggesting an export ban on vaccine made in the EU, and now a Greek Eurocrat demanding the export of vaccines contracted by the British government for use in the UK. What a mess. |
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The UK paid for the development of the AZ vaccine. Without the UK it wouldn't be at the advanced stage of production. It is also made in the EU under contract and permission of Oxford, AZ,(and the UK?).
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The UK’s deal specifies that UK production is initially for UK use. This is unsurprising given that AZ is manufacturing a vaccine invented by Oxford University with funding from the UK government. The EU can’t get hold of it any earlier than AZ has already planned, no matter how loudly it squeals. |
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I know it's RT but it's an interesting take.:D
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Nobody actually wants a lockdown, it's a question of whether one is needed or not.
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Not an EU vs UK issue at all. |
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AstraZeneca put up its CEO for an interview earlier this week to let it be known that the entire basis on which it was given the vaccine formula by Oxford university was that it would produce it, at cost, for the UK, in the UK, in the first instance. The EU is not a completely brainless outfit - it is well aware that in insisting on diverting UK produced vaccine, it is demanding that AstraZeneca breach a contract it has explicitly stated that it has with the UK government. Pascal Soirot went on the record with his comments just a day before AstraZeneca management met EU officials. There is no way he didn't know they were going to be asked to divert vaccines that are produced in the UK and are therefore factored in to the UK government's public vaccination plan. There is no way the EU does not understand that its demands (if met) have direct consequences for that plan. Just because the EU and UK are not publicly talking face to face at this point does not mean this is not an intensely political issue - nor that informal, private contact hasn't occurred. AstraZeneca has presented the UK government as the immovable reason why it won't give the EU vaccine stock from the UK. So it is going to have to get overtly political before long, unless the EU quietly backs off and agrees to assist AZ in getting its European production up to full whack, in order to supply the EU, which is what AZ has said was its plan all along. ---------- Post added at 11:02 ---------- Previous post was at 09:36 ---------- Gove has been out on manoeuvres this morning. He's told BBC R4's Today programme that UK-made vaccine that has been factored into our vaccination schedule will not be getting exported to the EU: Quote:
1. Not going to allow vaccine scheduled to be used in the UK to be exported 2. Wants to do what it can to help the EU out of the mess it has caused itself thanks to its stuttering, indecisive procurement policy; 3. Has nevertheless warned the EU that "friendship" is key ... that's a pretty strong veiled demand that the European Commission stop making ludicrous demands for UK vaccine to be exported for its use. He has definitely left some wriggle room however. If AstraZeneca can increase UK production beyond the UK government's requirements to meet its vaccination programme timetable, there is nothing in Gove's comments to suggest that can't be sent to Brussels to help them out. https://www.bbc.co.uk/news/uk-55838272 |
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If we decide to help the EU out it should be Ireland first because of the common travel area and as a sign of good will.
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Presumably if you leave the emotive issue of who is involved out of it a private sector entity has failed to fulfill orders and now has to decide with limited resource how, where and when to fulfil orders.
I presume that comes down to £££. As always my cynicism around the UK media makes me wonder what news stories are being covered up right now as nationalism is deployed as a distraction. Either the EU claims hold up or they don't, if they don't then AZ aren't in breach of contract. If they do, it's up to AZ to decide which contract to breach and now. |
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I would imagine the EU procurement program isn't popular anyway but even so there is an obvious cop-out by saying it's about the Common Travel Area and Northern Ireland. |
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The story has been brewing all week but the UK media is really only waking up to it now, and Gove's comments to the Today programme are the first time anyone within the UK government has explicitly waded into the issue. |
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They signed a contract saying they would deliver 30m doses to the UK by last September. As that has yet to happen, the EU is still way behind the UK in the queue. A business would always be expected to prioritise an order with an earlier "supply by" date, UK Sept 2020 vs EU April 2021. The fact that the UK signed a contract wasn't hidden for 3 months, therefore the EU upon hearing the UK news, could've then jumped in right after the UK. |
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Equally, the customer have a public relations interest in robustly defending their position. I don't really see the complexity here - the contracts either say one thing or they don't. But let's distract people in the meantime waving some flags. ---------- Post added at 11:56 ---------- Previous post was at 11:52 ---------- Quote:
Agreeing to supply at cost is particularly problematic if there are penalties linked to being unable to supply elsewhere. Very quickly your financial considerations swing to that customer if your contracts haven't covered yourself. If you take flags and the fact it's one of the most important products of our lifetimes there's cold hard underlying capitalism and economics. |
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It's really not our concern whatever deal AZ have with the EU. That's between them and the EU.
Our concern is that the EU doesn't block vaccines we have already ordered being delivered or that AZ send vaccines we already have meant for U.K delivery to the EU to make up for whatever issues exist their end. As long as our deal is being honoured from each company we've ordered from then then we can stay out of it. |
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If you sign a contract with X saying you will deliver by a certain date, Y cannot come along and say "our delivery that is due 7 months later, comes first". May 2020. Quote:
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If company A has two orders, to supply company B by a given date and company C by a later date. However failure to supply company B doesn’t incur penalties “sorry lads, we tried our best” and company C incurs penalties for failure to meet the demand then it’s highly likely that company A as a rational actor in a capitalist marketplace would prioritise company C. Who placed what order, when, is unlikely to feature in the consideration except in terms of reputational risk. I, obviously, don’t know what’s in the contracts but the detail will be very important in the next steps for AZ. |
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Pascal Soirot is French, and the company he leads is UK-Swedish. He makes the points most forcefully that this isn’t, in his view, a nationalistic issue, but simply a matter of contract. He gives a detailed explanation of his company’s position on that, which the EU has since refuted, but as there’s a confidentiality clause we may never be able to judge for ourselves. It has only become a UK v EU issue in the last 24 hours because the EU’s health commissioner has insisted UK produced vaccines must be sent to the EU, in the full knowledge that the UK government would at some point be forced into defending its own contract with AstraZeneca. BoJo resisted answering direct questions on that last night, but they have come up with their Line To Take overnight and Michael Gove was tasked with getting that message out this morning. Even here it’s really not reasonable to perceive jingoistic flag waving - HMG is responding to comments the EU was fully aware would be incendiary. This really ought to be an end to the issue because Soirot has been abundantly clear that he will not authorise export of UK product to the EU and the EU can’t compel him to do so. HMG has made its position clear; its ready to do what it can to help but this stops short of releasing product that has already been allocated to the UK’s vaccination schedule. So will the EU take the only reasonable option, and work directly with AstraZeneca to expedite improvements at its EU-based facilities, or will it now take steps to prevent Pfizer product leaving the EU for the UK? |
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We can only guess by the next steps. ---------- Post added at 13:22 ---------- Previous post was at 13:14 ---------- Quote:
I doubt the CEO or company are interested in flag waving they need to defend their positon. As I've said I believe that cold, hard, capitalism and what's actually in the contracts that's important not the headlines in the British press (or EU press for that matter). |
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The corrupted EU showing it’s true bully boy tactics. It’s attempt to shame AstraZeneca, massively shown them up to be con job cretins. Showing how Brexit is justified.
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Hypocrisy from the EU. Link Quote:
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There is an important sense in which the AstraZeneca vaccine actually is courtesy of the UK. AstraZeneca was handed a completed formula and a manufacturing process, all devised by Oxford University with funding from the UK government. AZ was given this on condition that it produce vaccine during the pandemic at cost. All it has had to do is use its expertise to scale up the recipe handed to it by Oxford. Pascal Soirot explains all of this in interesting detail. Look, I've even scrolled back and found you the link: ;) https://www.repubblica.it/cronaca/20...nes-284349628/ |
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I'm loving this. If the EU can't go and do one (which is what they should be told), then its Remainer friends can be substituted.
First the British Sausage (I joke of course) and now the British Vaccine. Shameless doesn't cover it. |
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Latest: AstraZeneca Belgian offices raided at the request of European Commission.
These dictators are not happy and now their mask is removed. |
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I guess we'll find out.
It's extraordinarily aggressive. A few posts ago I suggested that, so long as our supplies are not impacted, the U.K. Government has little reason to get involved but if the EU are going after a British/Swedish company to this extent out of spite or to cover their own failings then we might have too. Maybe AstraZeneca have screwed up something here but raiding their offices seems extreme. |
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It seems Today also had Sir Jeremy Farrar (SAGE committee member) on this morning, and he thinks 'vaccine nationalism' is now a reality in the EU.
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In other news, Germany is recommending over-65s are not given the AstraZeneca vaccine. https://www.theguardian.com/world/li...0847b489d2b7d7 |
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---------- Post added at 14:46 ---------- Previous post was at 14:46 ---------- I wonder what the legal basis for the raid was meant to be. They're throwing one enormous hissy fit. Perhaps this is why. Link Quote:
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This is the announcement of the AstraZeneca deal with Europe:
https://www.astrazeneca.com/media-ce...no-profit.html Here is the redacted Curevac contract which is in the public domain. Probably the closest we can get to at this stage as to what the AstraZeneca one will have looked like. https://ec.europa.eu/info/sites/info...greement_0.pdf |
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The EU yesterday tried to insist it has a stake in the UK facilities because its money helped to develop them. AstraZeneca appears to refute this. It will be interesting to see if the EU continues to press that point, because it will get very political very quickly if the EU and the UK governments have to argue in public over whether the plants in Oxford, Keele and Wrexham were tooled up with British or European money. *If* Paragraph I is taken to mean that AZ undertook to develop facilities with EU money only after it signed a contract with the EU, and if EU funding was indeed only spent on new facilities in Belgium and elsewhere in the EU (and, notably, *not* on further developing facilities within the UK) then paragraph L holes the EU case below the waterline: Quote:
Of course, whether they will find one is highly debatable. AstraZeneca's press release last June announcing the deal with the EU was quite explicit about its strategy for developing complete supply chains in each major territory where it signs a deal: Quote:
I really think the EU is sunk here. |
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It's fascinating, this is a bigger deal that it really should be because what is actually happening is that the EU are losing face big time and that is their concern much more over and above that actual roll out of the vaccine.
In the sky news article I just read it does state Quote:
And if it is a similar contract as the posted above, the EU are going to lose more face. They should really focus their efforts in supporting the AZ facilities in the EU to get up to speed rather than being envious at what may be happening in a 3rd country! |
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David Allen Green has had a bit of a dive into the language used by AZ and the EU to see if we can understand where the issue in which is interesting - https://davidallengreen.com/2021/01/...ply-agreement/
My gut feeling? AZ sales signed up to something that manufacturing couldn't deliver either through enthusiasm or poor information. Buyers know that the demand will potentially outstrip supply and will do their damnedest to get clauses into contracts to secure their supplies. See it all the time in my industry - a jewellers eyepiece needed to go through those contracts and a wide view is needed to see what impact each contract will have on all the other ones you have on the go. |
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What's somewhat worse for the EU than their unified vaccine strategy going mammaries perpendicular is that the UK's is going swimmingly. The EU doesn't have any role, based in treaty, for this sort of action, and the last time there was a need for extra-treaty intervention (the financial crisis and Greek implosion) it took a lot of haggling and summitry to bring it about. This time of course the EU was smarting over Brexit and latched on to the vaccine procurement programme as a means of demonstrating the power of European unity. They have achieved the exact opposite.
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In D A Green's analysis it still comes back to whether or not AstraZeneca's existing capacity in the UK can be regarded as part of the capacity from which it is obliged to deliver product to the EU. One comment from the EU that he seems to have missed is their attempt to claim that EU development funds have been used in the UK. This suggests to me that the EU thinks it can only claim a share of UK product on the basis that they helped fund its manufacture - i.e. the poduct's mere existence as part of AstraZeneca's capacity to supply is not enough. |
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Was EU money used only to set up & develop the facilities in the EU only. If so then there is no argument or claim to be had from the EU. IF AZ did use UK & EU money to set up production in the UK, EU could claim a % of the output based on a % of funding. This will rattle on for a while, lawyers will be licking their lips, but it won't get resolved quickly and I would hope that at the speed we're going we'll have all had our shots from one of the many vaccines in the pipeline by the time it's resolved. |
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Elements of the EU supply chain were already in place, so can't have been EU funded. Quote:
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Other sites involved also were built before Covid surfaced. Quote:
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The Curevac agreement defines "reasonable best efforts" and that one factor is "yield of product". It also refers to "estimated delivery schedule", implying delivery dates are not to be set in stone. |
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If that’s the basis on which the EU is claiming to have funded AstraZeneca’s production infrastructure in the UK, that is an extremely tenuous pretext indeed.
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They are now making the Oxford-AZ vaccine.Your second link is from spring 2015 and includes references to UK DTI funding. Quote:
The list of sites on the EU-AZ agreement will be to avoid being required to ship it from places such as the Brazil plant. It is not a list of sites that the EU "owns". |
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Time to warm up the SAS to defend our supplies :)
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I don't think the EU has any claim on the O/AZ vaccines produced in the UK, but the denial of the facts that EU put some funding into the process is not accurate. ---------- Post added at 21:21 ---------- Previous post was at 21:19 ---------- Quote:
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The way EU funding worked for the UK was that 66% of any money that came back to the UK, was taken off the rebate. Therefore well over 66% of the EU money actually came from the UK. Eg if the EU spent 3m Euros in the UK, 2m of that would be knocked off the rebate and be extra money the UK had to pay. Anything that the EU is supposed to have funded, is completely unrelated to Covid. The EU will still have the Pfizer vaccine... Quote:
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If the EU wants to lay claim to the output of anything in the UK that has at some point benefited from an EU grant, that’s ridiculous, and obviously isn’t going to get them anywhere. EU development funds have been spent all over the place. And let’s not even get started on the whole business of us being net contributors to the whole party, so it was our flaming money before they appropriated it and then sent it back across the channel with an EU flag on it. But I digress ... |
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Breaking news
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David Allen Green, a procurement lawyer, has looked at the contract with Curevac and drawn some conclusions, assuming that the contract with AstraZeneca is very similar.
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More detail available on the author's personal blog: https://davidallengreen.com/2021/01/...ply-agreement/ |
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Having a Parmo makes visiting worthwhile though |
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How long does the AZ vaccine last for in longer-term storage? Can it be stored for several months? It has occurred to me that the early output of the EU-based plants has to go somewhere, and as the EU has yet to authorise it, it possibly has had to go somewhere such as the UK. Under EU rules, can a product, of whatever type, that is not authorised for use in the EU, only be sent outside the EU? Eg Can an EU business, produce products destined for the US, that would not be allowed to be marketed and sold in the EU? |
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Now, as you say, more post-apocalyptic - a wasteland. |
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It's good to see to see the plant being used for something like this. |
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The only redress I can think of here is that whatever quantity of vaccines were exported from the EU is replaced with an equivalent exported from outside the EU into the EU. Perhaps the raid on the Belgium factory was to establish the scale of the exports and determine if it was significant or not. But I'm not a procurement lawyer nor have I seen the AstraZeneca contract so this is pretty speculative. I would encourage AstraZeneca to allow the contract to be published. |
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Careful you don’t disappear down a rabbit hole here. There’s absolutely no evidence of vaccine from AstraZeneca in Belgium being sent to the UK, and nor is it at all likely to have occurred. Unopened multi-dose vials of the Oxford-AstraZeneca vaccine have a shelf life of 6 months, and that’s one of the reasons they took a chance and started manufacturing it in the UK many weeks before trials concluded it was safe and effective. If AZ was working to its best effort it will have been manufacturing as much vaccine as possible to be ready to meet the EU order as soon as it was approved.
https://assets.publishing.service.go...eca-reg174.pdf |
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This suggests it can be stored for months. Quote:
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The EU is whinging because of their dithering and consequential egg-on-face.
If we get to see the contracts, then the legal boffs can tell us what they think the EU's chances are in litigation or taking stock from the UK. But the bottom line is their dithering has jeopardised their members' health. |
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The EU may not believe in first come first served (at least, not when it didn't get there first) but the logic of greatest need shows pretty clearly that we have had the hardest time controlling the pandemic with social measures and must therefore rely most heavily on the vaccine. |
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As the new vaccine (Novavax) is 89% effective and can keep pace with the new, more deadly, mutations, I wonder if they will eventually go back and vaccinate those already injected with the less effective vaccines?
https://www.telegraph.co.uk/global-h...n-end-schools/ |
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The EU have released a reacted version of the AZ contract.
Link Page 11 para 5.4, Sneaky of them to talk about EU plants and non-EU plants, but include the UK in the definition of EU manufacturing plants. Page 12 para 6.2, Also sneaky to say that AZ would not be in breech of the agreement if they were unable to deliver because of competing agreements, but only if those competing agreements were with the EU itself. Page 23 para 13.1(e), It also says AZ are under no obligation to anybody else to fulfil their agreements, until AFTER the "Initial Europe Doses"(300m) of them has been fulfilled. They are trying to hijack a whole years worth of UK production.:shocked::mad: |
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Section 5.4 is very clearly there to favour production inside the EU rather than outside it, and to prevent AstraZeneca producing EU vaccine outside of the EU, without first getting written permission from the EU. That clause includes the UK within the definition of the EU, purely to exempt AstraZeneca from needing EU permission to use the facilities there. The inclusion of the UK within the definition of EU is explicitly limited to section 5.4. There's nothing in 5.4 that gives the EU first call on vaccine produced in the UK. ---------- Post added at 12:47 ---------- Previous post was at 12:39 ---------- Pro tip by the way, if you're trying to search the PDF, the only mention of the UK is on one of only three pages in the document that are photocopy images rather than searchable electronic text. If I was a cynical person I might even find that a bit suspicious. |
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The UK is included in a clause designed to govern where AstraZeneca is *allowed* to produce vaccine for the EU, without further written permission from the EU. AZ is obliged to use its best effort to make the vaccine inside the EU, not outside it. It is a clause designed to ensure they didn't just go off and make it all in a factory in America, or Brazil or wherever. Furthermore, Section 5.4 limits the definition of EU as including UK, to itself only. It is absolutely explicit on that point. The purpose of the clause is to permit AZ to choose to use UK production facilities without needing additional permission first. The clause does not have the intention of naming existing UK facilities, that are already engaged in fulfilling another contract, as being co-opted to the EU contract. That is why AstraZeneca has in good faith given assurances that it has no other commitments that stand in the way of the fulfilling of the EU contract - because there aren't any. The EU may bleat that it doesn't believe in first come, first served, but if it comes to having this contract read in court, the prior existence of a contract with HMG, committing UK facilities to UK production, will be of material interest. |
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Attached is a fully searchable (I think) version of the APA.
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§5.4 could make things awkward for the UK because AZ signed up to the definition in Schedule A.
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13.1 is where AZ said no other agreement "would impede the complete fulfillment of its obligations under this Agreement;". Supplying the UK and other countries, effectively "impedes" fulfilling the EU order. |
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"AstraZeneca shall use its best reasonable efforts to manufacture the vaccine at manufacturing sites within the EU (which, for the purpose of this section 5.4 only shall include the United Kingdom)". They even helpfully underlined it. Section 5.4 has nothing to do with allocation of supply, it is about the EU's preference for where AstraZeneca should conduct its operations. Quote:
Furthermore, Schedule A still doesn't allocate existing UK manufacturing capacity to the EU. In nominating three UK locations (these can only be the Oxford and Keele 'drug substance' plants and the Wrexham plant where the vials of 'drug product' are filled and packaged) Schedule A acknowledges that AstraZeneca can develop production capacity for the EU there. The fact is, by the time this contract was signed, what was already in existence (or under construction) at those locations was already under obligation to the UK government. Doubtless the EU will contest that reading of it, but possession is 9/10ths of the law as they say - there is simply no way the British government is going to allow any AstraZeneca product to leave the country unless it can be done without affecting the UK's planned vaccination schedule. |
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It's hard to work out what the EU is fighting here.
A the virus B the UK |
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We can't blame them I guess. Brexit Britain was supposed to be an impoverished wasteland by now, languishing at the back of the queue for vaccinations against Covid and ruing the day we failed to join the illustrious EU procurement programme. But we turn out to have been rather better at it than them. The project intended to showcase the power of European unity has instead demonstrated the advantages of a nimble nation state marshalling its own resources. And whatever the short-term destination of vaccines made in the UK, there's no doubt that the massive production capacity taking form in this country is going to be a source of relief all over the world. |
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I’ve seen continuity Remainer Ultra’s scorn the corrupted EU stance on this.
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