The European Union (EU) has threatened to limit exports of anti-Covid-19 vaccines to other countries after AstraZeneca plc announced EU countries will receive fewer million doses than they had ordered due to production problems.
AstraZeneca plc is a British-Swedish multinational pharmaceutical and biopharmaceutical company with its headquarters in Cambridge, UK.
The UK left the EU, a decision that took effect from January 1, 2021.
AstraZeneca told the bloc made of 27 countries that it could not meet supply targets for its vaccine up to the end of March, a blow to the block's efforts to tackle the pandemic.
The setback follows American pharmaceutical giant Pfizer Inc.’s announcement this month that supplies of its Covid-19 vaccine developed along with German Biotechnology firm BioNTech SE from a Belgian factory would be temporarily reduced as a result of works to upgrade its capacity.
Access to vaccine has become vital as countries struggle to control the pandemic with surging cases.
The European Commission said AstraZeneca’s Covid-19 supply delays would imply that there will be significantly fewer deliveries this quarter than previously agreed.
"Europe invested billions to help develop the world‘s first Covid-19 vaccines. And now, the companies must deliver. They must honor their obligations,” European Commission President Ursula von der Leyen told a virtual World Economic Forum’s virtual event in Switzerland.
EU Health Commissioner Stella Kyriakides said on Monday that "in the future, all companies producing vaccines against Covid-19 in the EU will have to provide early notification whenever they want to export vaccines to third countries."
She said the EU would "take any action required to protect its citizens".
Germany's health minister Jens Spahn on Tuesday backed the EU's proposal to limit export of vaccine produced in the block, pointing out that the move would make sense.
"I can understand that there are production problems but then it must affect everyone in the same way," Health Minister Jens Spahn told ZDF television.
"The EU need a license, so we know at least what’s produced in Europe and what leaves Europe,” he said Tuesday in an interview on ZDF television.
"This is not about Europe first but about Europe's fair share," he said.
The EU has had nearly 18 million Covid-19 infections.
An EU official has told Reuters AstraZeneca had received an upfront payment of 336 million euros ($408 million) when the block reached a deal with the company in August for at least 300 million doses and an option for another 100 million.
That was after the United States in May secured 300 million doses for up to $1.2 billion, and Britain, also in May, secured 100 million doses for 84 million pounds ($114 million).
The European Commission proposed to the EU Member States on Friday, January 8, 2021, to purchase an additional 200 million doses of the Covid-19 vaccine produced by BioNTech and Pfizer, with the option to acquire another 100 million doses.
This would enable the EU to purchase up to 600 million doses of this vaccine, which is already being used across the EU, the Commission said. That is about half of the current annual vaccine production capacity of the two pharmaceutical companies.
European Union’s population is estimated at 447.7 million.