The European Commission intends to terminate an agreement to buy the COVID vaccine of French-Austria drug maker Valneva as the shot has yet to receive marketing authorisation, the company said Monday.
The European Union’s executive arm had signed a deal to buy up to 60 million doses of the VLA2001 vaccine—which uses the traditional technology of inactivated virus—in 2022 and 2023.
But the contract has a clause allowing Brussels to scrap the agreement if the vaccine does not receive the green light from the European Medicines Agency by April 30.
The company has 30 days from May 13 to obtain the marketing authorisation or propose “an acceptable remediation plan”, Valneva said in a statement.
“The Company will work with the EC (European Commission) and the participating EC member states to agree to a remediation plan and to make VLA2001 available to those member states who still wish to receive it,” the statement said.
Valneva shares sank on the Paris stock market following its announcement.
“The EC decision is regrettable especially as we continue to receive messages from Europeans who are looking for a more traditional vaccine solution,” Valneva chief executive Thomas Lingelbach said.
Valneva received further questions from the medicines agency last month and the company said it submitted responses on May 2 that “adequately” answers them.
The company said it would expect to receive a positive response from the agency by June if it accepts its responses.
Under the contract, Valneva said it would not be obliged to return the down payments made by the commission if the deal is terminated.
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