[HN Gopher] AstraZeneca/EU contract
       ___________________________________________________________________
        
       AstraZeneca/EU contract
        
       Author : hannob
       Score  : 143 points
       Date   : 2021-01-29 18:18 UTC (4 hours ago)
        
 (HTM) web link (fragdenstaat.de)
 (TXT) w3m dump (fragdenstaat.de)
        
       | ape4 wrote:
       | "AstraZeneca has committed to use its Best Reasonable Efforts (as
       | defined below) to build capacity to manufacture 300 million Doses
       | of the Vaccine, at no profit and no loss to AstraZeneca, at the
       | total cost currently estimated to be ** Euros for distribution
       | within the EU"
        
       | hannon4 wrote:
       | Seems much more convoluted than the pzifer contract with Israel.
        
       | s_dev wrote:
       | The fact that the EU and UK are already fighting illustrates how
       | imporant the EU is. Imagine if the EU didn't intervene in the
       | vaccine programme and it was 28 rich countries trying argue to 28
       | contracts with AZ instead of just two -- and all the complexity
       | that emerged from just two contracts.
        
         | PJDK wrote:
         | The EU is fighting with Astrazenica. The UK has mostly kept out
         | of it - only just commenting once the EU decided to change
         | export rules and around the Northern Ireland agreement.
        
         | UK-Al05 wrote:
         | I'm thinking a lot of countries are regretting joining the EU
         | vaccination scheme considering how slow it's been.
        
       | [deleted]
        
       | hannob wrote:
       | To explain what this is: The EU mistakenly uploaded a censored
       | version of the contract earlier today where some blacked out
       | parts could be reconstructed using PDF metadata.
       | 
       | This version has those included in red.
        
         | raverbashing wrote:
         | Not sure if it was the EU or AZ that did the (failed)
         | redaction. (Yes, despite the fact that it was published on an
         | EU website)
         | 
         | Anyway it seems that orgs keep falling for the "PDF redaction"
         | caveats
        
           | vinay427 wrote:
           | To be fair, I've grown paranoid about PDF metadata and
           | redactions, so I prefer taking screenshots and making a new
           | PDF out of those as long as the document is only a few pages
           | in length, or using imagemagick or similar to flatten it. I
           | haven't found an easier way to be absolutely sure that my
           | annotations are permanent, and this metadata issue is perhaps
           | even trickier.
        
             | toast0 wrote:
             | Print, review, and scan is probably easier than
             | screenshotting, if you have the equipment.
        
               | tormeh wrote:
               | That this is the state of things is pretty amazing
        
               | ur-whale wrote:
               | PDF is a shitty format.
               | 
               | As proof, I offer: can't grep on it.
               | 
               | Which, BTW, if it was possible, would have prevented this
               | mess.
        
               | statquontrarian wrote:
               | Linux has a pdfgrep command which works pretty well
               | (unless the PDF has images of text).
        
               | ur-whale wrote:
               | Unless the PDF has every letter placed by independent
               | PostScript like commands or - worse - text has been
               | imported from an SVG file.
               | 
               | pdfgrep is at best probabilistic and I stand by my
               | comment..
        
               | Aerroon wrote:
               | And yet it is the format documents are in. Government
               | websites are full of PDFs.
        
               | [deleted]
        
             | exhilaration wrote:
             | If you have a scanner, the easiest way is to take the
             | redacted version provided by your attorneys, print it, then
             | scan it through a document feeder to PDF. Nobody's
             | reconstructing anything from that.
        
               | [deleted]
        
           | [deleted]
        
       | lhnz wrote:
       | AstraZeneca is currently struggling to produce 2 million doses a
       | week for the UK [0]. How does the EU expect to use UK production
       | to shore up a shortfall of 49 million doses that they require in
       | February/March?
       | 
       | The doses that exist in the UK only exist because of a
       | manufacturing ramp up done under their own contract during the
       | period of time that the EU was still negotiating a lower price.
       | How does it make sense that a separate contract with AstraZeneca
       | allows them to then get the doses produced for the UK re-
       | allocated to another contract?
       | 
       | The Commission is only entitled to those doses that AZ have,
       | after best reasonable efforts, produced for them under their
       | contract. This attempt to grab doses only in existence because of
       | another prior contract is a disgrace.
       | 
       | [0] https://committees.parliament.uk/oralevidence/1505/html/
        
         | YeGoblynQueenne wrote:
         | >> AstraZeneca is currently struggling to produce 2 million
         | doses a week for the UK [0]. How does the EU expect to use UK
         | production to shore up a shortfall of 49 million doses that
         | they require in February/March?
         | 
         | IANAL but it seems to be part of the agreement. From the posted
         | pdf:
         | 
         |  _5.4 Manufacturing sites
         | 
         | AstraZeneca shall use its Best Reasonable Efforts to
         | manufacture the Vaccine at manufacturing sites located within
         | the EU (which, for the purpose of this Section 5.4 only shall
         | include the United Kingdom) (...)_
         | 
         | In short, AstraZeneca agreed to use UK facilities to
         | manufacture doses for the EU.
         | 
         | >> The doses that exist in the UK only exist because of a
         | manufacturing ramp up done under their own contract while the
         | EU was still negotiating a lower price.
         | 
         | Presumably, AstraZeneca agreed to provide a certain number
         | (censored in the pdf above) of doses to the EU after
         | AstraZeneca had initiated the "ramp up" you describe. They did
         | not object to selling those doses that were manufacture during
         | the "ramp up" to the EU. The contract doesn't mention any ramp
         | up at all.
        
           | [deleted]
        
           | damagednoob wrote:
           | I guess it comes down to the legal interpretation of "Best
           | Reasonable Efforts".
        
             | flipbrad wrote:
             | I've been a lawyer for quite some time, and I can't recall
             | the last time I saw this phrase used. I'm not sure I ever
             | have.
        
               | kerneis wrote:
               | The term is capitalized, which means it is defined in the
               | first section of the document, more precisely on p. 3 in
               | that case:
               | 
               | 1.9. "Best Reasonable Efforts" means (a) in the case of
               | AstraZeneca, the activities and degree of effort that a
               | company of similar size with a similarly-sized
               | infrastructure and similar resources as AstraZeneca would
               | undertake or use in the development and manufacture of a
               | Vaccine at the relevant stage of development or
               | commercialization having regard to the urgent need for a
               | Vaccine to end a global pandemic which is resulting in
               | serious public health issues, restrictions on personal
               | freedoms and economic impact, across the world but taking
               | into account efficacy and safety; and (b) in the case of
               | the Commission and the Participating Member States, the
               | activities and degree of effort that governments would
               | undertake or use in supporting their contractor in the
               | development of the Vaccine having regard to the urgent
               | need for a Vaccine to end a global pandemic which is
               | resulting in serious public health issues, restrictions
               | on personal freedoms and economic impact, across the
               | world.
        
             | matthewheath wrote:
             | "Best Reasonable Efforts" is defined in clause 1.9 of the
             | contract:
             | 
             | > 1.9. "Best Reasonable Efforts" means (a) in the case of
             | AstraZeneca, the activities and degree of effort that a
             | company of similar size with a similarly-sized
             | infrastructure and similar resources as AstraZeneca would
             | undertake or use in the development and manufacture of a
             | Vaccine at the relevant stage of development or
             | commercialization having regard to the urgent need for a
             | Vaccine to end a global pandemic which is resulting in
             | serious public health issues, restrictions on personal
             | freedoms and economic impact, across the world but taking
             | into account efficacy and safety; and (b) in the case of
             | the Commission and the Participating Member States, the
             | activities and degree of effort that governments would
             | undertake or use in supporting their contractor in the
             | development of the Vaccine having regard to the urgent need
             | for a Vaccine to end a global pandemic which is resulting
             | in serious public health issues, restrictions on personal
             | freedoms and economic impact, across the world.
             | 
             | On this basis, AZ can argue that they have indeed made
             | reasonable best efforts to manufacture the vaccine within
             | the EU: I believe most vaccine companies are struggling to
             | fulfil their targets at the moment because of things like a
             | shortage of supplies, worker sickness because of
             | coronavirus, etc. It would seem to be difficult for the
             | Commission to point to a company who's doing it any better
             | except perhaps US-based companies.
             | 
             | Furthermore the contract does not mark their UK
             | manufacturing facilities as being exclusively for the EU -
             | AZ can then argue that this contract is naturally subject
             | to available resources in their UK manufacturing facilities
             | and so, given this is a condition precedent, their
             | obligations under this part of the contract have not become
             | due just yet.
        
           | 7952 wrote:
           | That does not say anything about exclusivity of doses. It
           | just states that manufacturing has to occur in particular
           | places. What the EU gets out of this is parity between
           | different purchasers within the group.
           | 
           | Also it doesn't seem reasonable to expect AZ to ignore other
           | contracts.
        
           | lhnz wrote:
           | > In short, AstraZeneca agreed to use UK facilities       >
           | to manufacture doses for the EU.
           | 
           | Section 5.1 of the PDF seems to imply that the "Initial
           | Europe Doses" are to be manufactured within Europe [0]
           | "following EU marketing authorization".
           | 
           | Section 5.4 which you quote from specifies that "this section
           | _only_ shall include the United Kingdom ". As written, this
           | section does not relate to the distribution of the initial
           | doses in Section 5.1, but instead is about where AstraZeneca
           | _could_ choose to manufacture the vaccine. That is why it
           | explains the process by which they might get prior written
           | notice for non-EU manufacturing sites, and discusses how they
           | could be contracted with if they are unable to deliver doses.
           | 
           | I think that gives them some leeway to ask AstraZeneca to
           | increase capacity in the EU, but it strongly suggests to me
           | that the capacity has meant to come from EU facilities,
           | particularly for the "Initial Europe Doses".
           | 
           | Somebody also linked to this [1] which implies that
           | AstraZeneca stated that they would have no other contracts
           | that should conflict with the "Initial Europe Doses",
           | however, I can imagine AstraZeneca will argue that this is
           | achieved by segregating production in the initial doses stage
           | and that the problem is due to low yields in the EU
           | facilities and not due to competing arrangements.
           | [0]
           | https://twitter.com/faisalislam/status/1355120024378335238
           | [1]
           | https://twitter.com/antoguerrera/status/1355137923411279878
        
             | Closi wrote:
             | Thanks - your explanation gives a lot of clarity.
             | 
             | I assume a lot of people are reading it as "the EU is
             | defined as just the U.K. for the purpose of this section"
             | but you are right that it's just saying "this section is
             | about the U.K., not the EU"
        
       | calpaterson wrote:
       | The EU's approach to resolving this dispute makes absolutely no
       | sense.
       | 
       | Regardless of the fact that, this contract does not, to my
       | reading (IANAL), support their position that they have a claim
       | over the UK-produced vaccines: pursuing a legal resolution seems
       | silly because getting a judgement in your favour will take weeks
       | or months. That is far too long for the timelines the EU wants.
       | 
       | Then, even if such a judgment is forthcoming - you still aren't
       | that much closer to getting more doses because as any solicitor
       | will tell you, possession is nine tenths of the law and the doses
       | are in the UK. There is no realistic chance of any export
       | occurring without the approval of the UK government. The UK has a
       | very serious outbreak of coronavirus too.
       | 
       | Instead of getting on their high horse and starting an enormous
       | public row why don't the EU: a) recognise that this is one of
       | many vaccines and that perhaps, while important, is not
       | singularly important to the effort b) make an arrangement with
       | the UK government to have some kind of expedited access to
       | vaccines? The UK will soon have a surplus of vaccines (and in
       | fact has extra stock already by some accounts - people are being
       | given unused doses). There is an existing trade issue that is
       | causing problems for the UK that I am sure that the UK would like
       | to get sorted...
       | 
       | This kind of over-legalistic attitude is how the EU got into this
       | hole in the first place. Waiting for a single purchase agreement
       | was a mistake because the vaccines have (mostly) turned out to be
       | extremely cheap and the fact that many companies are working on
       | vaccines likely means that none will be able to charge over the
       | odds.
        
         | YeGoblynQueenne wrote:
         | >> Regardless of the fact that, this contract does not, to my
         | reading (IANAL), support their position that they have a claim
         | over the UK-produced vaccines: (...)
         | 
         | See my other comment here. IANAL either, but it seems this was
         | part of the agreement. From the pdf above:
         | 
         |  _5.4 Manufacturing sites
         | 
         | AstraZeneca shall use its Best Reasonable Efforts to
         | manufacture the Vaccine at manufacturing sites located within
         | the EU (which, for the purpose of this Section 5.4 only shall
         | include the United Kingdom) (...)_
         | 
         | AstraZeneca agreed to use the UK sites to produce vaccines for
         | the EU.
        
           | calpaterson wrote:
           | It's a big step from agreeing to use UK sites as part of
           | "Best Reasonable Efforts" to the EU having the right to
           | recieve certain manufacture from UK sites.
           | 
           | Anyway, as I said: it's totally irrelevant as no amount of
           | litigating the contents of their contract will get them what
           | they want. They want doses that are inside the borders of a
           | third country. That third country also has designs on those
           | doses the EU is not in their good books.
           | 
           | It requires a political solution, not a legal one - but try
           | telling the commission that, apparently.
        
         | alibarber wrote:
         | I think your proposal is what will end up happening.
         | 
         | Johnson has refused to commit to blocking exports of the
         | vaccine. He's a long way from my preffered politician, but
         | people who describe him as a British Trump are wrong. He is no
         | idiot (1). He knows he's been handed a politically interesting
         | situation and is also aware of what state the UK is in with
         | regard to vaccine supply (one of the best in the world at this
         | time) and what benefits some careful political manoeuvering
         | will be able to bring in this time.
         | 
         | Allow me some hyperbole, but the optics of 'Generous UK offers
         | salve to unfortunate vaccine-poverty stricken EU' - whilst
         | sickening would make for some lovely press in the right-wing
         | tabloids and might even go a little way towards his desired
         | 'comming together' of a divided nation.
         | 
         | (1) Yes - Brexit was indeed idiotic but I truly believe he
         | never actually wanted it, and it just got him his longed-for
         | premiership by unfortunate accidental means.
        
           | YeGoblynQueenne wrote:
           | He fumbled and stumbled into premiership- but now he's going
           | to be capable of "some careful political manoeuvering". The
           | man who made his career as a journalist by badmouthing the
           | EU? I find this very unlikely.
        
             | alibarber wrote:
             | Yes, I guess it's a bit of a push, and maybe I'm grasping
             | at straws here. But the man is insincere in everything he
             | does, and I'd include his badmouthing the EU in that.
             | 
             | He'll do what he thinks is best for his vote share, and my,
             | admittedly amateur, reading of this situation is that he
             | might well make a trade off in that direction. Although the
             | latest news from Northern Ireland might be rocking the boat
             | a bit too much. We'll just have to see I guess - but these
             | days I'll expect anything.
        
               | YeGoblynQueenne wrote:
               | Who knows, you may be right. That would actually be the
               | best outcome, regardless of the Comission losing face and
               | Boris getting bragging rights.
        
             | peteretep wrote:
             | > He fumbled and stumbled into premiership
             | 
             | He took a razor-thin majority and turned it into a huge
             | one. He's PM because he ruthlessly executed a plan to
             | become it. He won almost every brinkmanship point with the
             | EU that he took on over the last year.
             | 
             | He's not who I want as PM, and I think his record is
             | dismal, but if you think he "fumbled and stumbled" his way
             | in then you've fallen for his con: he's bright and
             | ruthless.
        
               | sbuk wrote:
               | He did so against the weakest opposition, overwhelmed
               | with infighting and a lacklustre leader, seen in a
               | generation, campaigning solely on the notion of "Getting
               | Brexit Done (tm)" (barely) after 4 years of MPs arguing
               | about it. Traditional Labour seats were lost based on
               | Brexit fence-sitting. They will revert, especially as
               | those constituents are slowly realising that getting
               | Brexit done meant screwing them over. Johnson's Tories
               | didn't so much win, it was essentially a one horse race.
        
           | jariel wrote:
           | I think the 'political optics' win for Johnson is going to
           | more likely be: "We are the first major country to reach near
           | full vaccination".
           | 
           | Bibi in Israel is facing intense political ambiguity, and
           | they are paying 3-4x (for the vaccines) what other countries
           | are paying, and have apparently been doing some behind the
           | scenes shenanigans for acquisition, I mean it's Isreal,
           | that's what they do (no offence to those who might take it
           | that way but they are the most realpolitik country on planet
           | earth). They are _way_ ahead of anyone else and I suggest
           | this is Bibi 's political salvation plan.
           | 
           | Boris, similarly.
           | 
           | It's a little bit conspiratorial, but wouldn't be surprised
           | if there are some behind the scenes actions by UK gov. to
           | make sure the UK is first.
           | 
           | Also consider that the EU is frankly playing a losing hand
           | and they look really bad from this.
           | 
           | This is a major existential crisis and if China, US and UK
           | end up with full vaccinations months ahead of the EU it's
           | going to be very, very damaging.
           | 
           | At minimum, the EU has to make a very big public stink about
           | it to ensure people know/believe that the EU is doing what is
           | possible, to mitigate the damage and possibly to be able to
           | push the blame a little bit to others.
           | 
           | Finally - there's nothing wrong with the UK offering the EU
           | help, and that it would also end up being good PR. The
           | problem with the claim is not that it's 'sickening' but
           | rather it's frankly not a huge material PR win. It's a nice
           | thing but it's only worth a news cycle or two.
           | 
           | Having the UK immunized a few months ahead of the EU,
           | irrespective of the underlying realities, is going to be
           | something that will be remembered and analyzed for a decade.
           | 
           | Frankly, in the end, I actually think it's far too risky for
           | any EU/UK politicos to be playing underhanded games, the
           | blowout would be devastating. I just think it's a matter of
           | operational reality that the UK is doing well on this (note
           | they are doing very poorly on infections), though I do feel
           | EU has dropped the ball on securing vaccines from a wider
           | base. Even Canada has put in options to purchase from a
           | variety of sources.
        
         | michaelt wrote:
         | _> The UK will soon have a surplus of vaccines (and in fact has
         | extra stock already by some accounts - people are being given
         | unused doses)._
         | 
         | Eh, that's just a sign that you have to administer an entire
         | box of vaccines after opening the box.
         | 
         | After all, some no-shows are inevitable and it's not like they
         | can turn away the people at the end of the queue to avoid
         | starting a new box given the people in the queue are there by
         | invitation.
        
       | cblconfederate wrote:
       | I'm for the EU and of course hope the vaccine problems are solved
       | ASAP, but i'm troubled by the way this has become a political,
       | lawyeristic issue. On the one hand UK media is deseperate to
       | somehow prove brexit worked, on the other hand EU is , once
       | again, trying to solve problems magically by legal means. Are we
       | forgetting we are in an urgent pandemic that threatens the world
       | economy with collapse? This requires a warlike level of
       | mobilization of engineers, not lawyers.
        
         | martinald wrote:
         | You sound like the "UK media" is one thing. The Guardian, FT,
         | etc are staunchly pro EU and have been endlessly pointing out
         | the problems.
        
         | hef19898 wrote:
         | It isnot, at least not yet, a legal issue. As you said, it is
         | an engineering (manufacturing) and supply / logistics
         | (distribution) issue. None of which are even remotely
         | discussed, not politially, not in the media, no where. So I
         | suspect we won't see any changes on these two fronts. At least
         | no coordinated ones, the manufacturers will have quite
         | motivated engineers working on manufactring ramp ups, I asume.
        
           | codeulike wrote:
           | _As you said, it is an engineering (manufacturing) and supply
           | / logistics (distribution) issue. None of which are even
           | remotely discussed, not politially, not in the media, no
           | where._
           | 
           | The Guardian, a few days ago:
           | 
           | "Analysis: technical problem at Belgium plant failed to
           | produce enough vaccine but EU demanding fulfilment of
           | contract"
           | 
           | https://www.theguardian.com/world/2021/jan/26/why-has-
           | astraz...
        
         | kazen44 wrote:
         | I agree with your sentiment. Also, why not let other
         | manufacturers produce vacciness aswell? Getting the vacinnes
         | produced rapidly and in enough numbers seem to be the number
         | one priority in this.
        
           | stefano wrote:
           | Sanofi will be producing the Pfizer-Biontech vaccine, but it
           | takes a lot of time to set up a new production line. Last
           | estimate I saw was saying July.
        
           | thinkindie wrote:
           | apparently this is going to happen with Sanofi producing
           | Pfizer vaccine after they closed their own trials without a
           | successful candidate.
        
       | mrtksn wrote:
       | 5.4.
       | 
       |  _manufacturing sites_. AstraZeneca shall use its Best Reasonable
       | Efforts to manufacture the Vaccine at manufacturing sites located
       | within EU(which, for the purpose of this Section 5.4 only shall
       | include the United Kingodm) and may manufacture the Vaccine in
       | non-EU facilities if appropriate, to accelerate supply of the
       | Vaccine in Europe; provided, that AstraZeneca shall provide prior
       | written notice of such non-EU manufacturing facilities to the
       | Commission which shall include an explanation for such
       | determination to use non-EU manufacturing facilities. If
       | AstraZeneca is unable to deliver on its intention to manufacture
       | the Initial Europe Doses and /or Optional Doses under this
       | Agreement in the EU, the Commission or the Participating Member
       | States may present to AstraZeneca, CMOs within the EU capable of
       | manufacturing the Vaccine Doses, and AstraZeneca shall use its
       | Best Reasonable Efforts to contract with such proposed CMOs to
       | increase the available manufacturing capacity within the EU. The
       | manufacturing site planning is set out in Schedule A.
       | 
       | Probably needs a lawyer specialised in this stuff and the
       | jurisdiction where the contract is signed, but it seems like this
       | is the part that EU says the contract included the UK facilities.
       | 
       | Anyway, whatever happens people of Europe wont forget this, even
       | if it was purely EU's fault. You don't say you belong to a team,
       | omit the vaccines of China and Russia and then be let to die off
       | because the rest of the team says you should have signed better
       | contract. Next time something important comes up, EU should think
       | beyond the UK/USA.
        
         | dstick wrote:
         | It's mind boggling to me that "best reasonable effort" made it
         | in there multiple times. That's so vague and up to
         | interpretation, who can blame them that they sold the supplies
         | for 3x as much to another country?
         | 
         | Anything can be construed as "best reasonable effort" - or is
         | this specific legalese I'm unaware off?
        
           | airstrike wrote:
           | IANAL but I think it qualifies as legalese you're unaware of.
           | 
           | Also, just by definition, whatever the lawyers agreed on is
           | likely appropriate in a legal context and a layman's
           | criticism of the language is almost invariably because
           | they're missing the knowledge. Imagine said lawyer reading
           | your code and challenging you on your API design.
           | 
           | Anyway, if challenged in court, AZ would have to demonstrate
           | that they actually made genuine efforts before going down a
           | different path.
           | 
           | The addition of the word "reasonable" is because they need an
           | out in case they feel they've spent a decent amount of
           | efforts. Whether that amount was actually decent or not is
           | for the judge to decide.
        
           | mrtksn wrote:
           | Isn't it obvious that the "best effort" is not fulfilled if
           | you you manage to produce 6 hamburgers to UK and one to EU
           | when you specifically said in the contract that your
           | facilities in the EU and UK are to be used?
        
             | DoingIsLearning wrote:
             | The official statement from AstraZeneca's CEO is that they
             | have a fully operational production in the UK and are still
             | resolving production issues in the EU sites.
             | 
             | From his explanation the EU signed their contract with a 3
             | month delay from the UK contract. Arguing that he is being
             | accused of EU production issues on sites that have not had
             | the 3 month lead time that the UK sites had to resolve any
             | production issues.
             | 
             | You can argue that the UK production output could
             | potentially be distributed proportionally for worldwide
             | demand but to me the real question is why isn't anyone in
             | the media or in the European Commission asking questions on
             | why did it take 3 months to draft such a bland generic
             | urgent supply contract?
             | 
             | I am sure the truth is probably somewhere in between but to
             | me it seems the EC is playing the media game and trying to
             | through AstraZeneca under a bus to cover for their own
             | ineptitude in such a clutch time.
        
               | mrtksn wrote:
               | It's specifically stated in the contract that the UK
               | facilities are covered. It's literally written in plain
               | English, like you can read it from the document(the black
               | markings on the white background). The continental
               | facilities not getting online is irrelevant.
        
               | DoingIsLearning wrote:
               | We can agree that indeed this should be demanded.
               | 
               | However, I ask again, why is no media outlet questioning
               | our representatives about why they burned 3 months of
               | people dying, to then come up with essentially the same
               | terms as the unilateral contracts that the Dutch and the
               | French were initially drafting?
               | 
               | This isn't a contract to squeeze the best deal out of
               | AZN, it is an emergency purchase, what was there to
               | negotiate?
        
               | mrtksn wrote:
               | AFAIK this is not correct, they negotiated on stuff like
               | liability. Not price.
        
               | DoingIsLearning wrote:
               | For 3 whole months though? This isn't a 20 year down the
               | line trade agreement it's a medical emergency.
        
               | mrtksn wrote:
               | I don't think that it has anything to do with deliveries.
               | They were not shipping vaccines when EU was negotiating
               | the liability stuff. Instead, they put it on the contract
               | that both UK and EU facilities are to be used and no
               | other contracts to prevent EU's deliveries.
        
               | PJDK wrote:
               | Would "best reasonable efforts" generally include
               | breaking of stronger worded contacts signed earlier? The
               | UK contract was more along the lines of "you can partner
               | with Oxford to get their IP and we'll help set up
               | production lines on the condition we get first refusal of
               | vaccines from those lines"
        
               | kitd wrote:
               | _why isn 't anyone in the media or in the European
               | Commission asking questions on why did it take 3 months
               | to draft such a bland generic urgent supply contract?_
               | 
               | It's worse than that. The contract they finally signed
               | was an almost carbon copy of one prepared by Germany,
               | Netherlands and Italy 3 months earlier, before the EU
               | stepped in to take over and "expedite" matters.
        
               | mrtksn wrote:
               | Source?
        
               | kitd wrote:
               | https://www.itv.com/news/2021-01-26/covid-vaccine-what-
               | is-th...
        
               | mrtksn wrote:
               | That source needs sources.
        
               | hef19898 wrote:
               | And it is a bad contract at that.
        
           | notahacker wrote:
           | 'Best reasonable effort' is defined for both parties
           | elsewhere in the contract, but it's still very open to
           | interpretation
        
             | hef19898 wrote:
             | I only have ever seen "best reasonable effort" in the
             | ontext of recovering from sitations where contractual
             | obligations aren't met. my understanding, and how it was
             | applied, is that these situation are impossible to predict,
             | thus the rather ominous wording.
        
           | jorvi wrote:
           | Even if AstraZeneca gets away with it legally, they will be a
           | leper to the EU and be crushed in whatever other medicine
           | negotiations they end up having with the EU or its
           | constituent national governments. Burning the goodwill that
           | gets you access to a relatively rich 450 million consumers
           | market is pretty boneheaded.
        
             | danieldk wrote:
             | I am not sure why this is downvoted. The EU is a very large
             | market and if the EU feels like it is badly treated, they
             | have a lot of options to make AstraZeneca's life miserable.
             | Anything from stronger regulation of medicine pricing to
             | relinquishing patents. In fact, the president of the EU,
             | Charles Michel has already hinted at invoking Article 122
             | of the Treaty on the Functioning of the European Union,
             | which could force vaccine-makers to share their patents
             | [1].
             | 
             | I think first it remains to be seen if AstraZeneca did
             | something problematic. But if that is the case, one can be
             | sure there will be political repercussions. Though I think
             | that they are now just using the threat of repercussions to
             | force AstraZeneca to change their policies. If they do so,
             | this will be the first big test for the new relation
             | between the EU and Brittain and AstraZeneca will be in the
             | middle of it.
             | 
             | [1] https://www.politico.eu/article/charles-michel-says-eu-
             | could...
        
               | kazen44 wrote:
               | > In fact, the president of the EU, Charles Michel has
               | already hinted at invoking Article 122 of the Treaty on
               | the Functioning of the European Union, which could force
               | vaccine-makers to share their patents
               | 
               | In my opinion they should, This is no time to play silly
               | games regarding contract law. Vaccines should be produced
               | as quickly as possible by as many capable facilities as
               | possible.
               | 
               | Let's also not forget that most of the developing world
               | is dead last in receiving vaccines, and greatly
               | increasing production could prevent the death of
               | countless lives.
        
             | pkaye wrote:
             | But EU had months of negotiations to save a buck on a
             | vaccine which if delayed causes far more economic damage on
             | a daily basis.
        
           | kitd wrote:
           | Actually, it's specifically defined in one of the appendices.
        
           | tomas wrote:
           | There is a definition in the document:
           | 
           | 1.9. "Best Reasonable Efforts" means
           | 
           | (a) in the case of AstraZeneca, the activities and degree of
           | effort that a company of similar size with a similarly-sized
           | infrastructure and similar resources as AstraZeneca would
           | undertake or use in the development and manufacture of a
           | Vaccine at the relevant stage of development or
           | commercialization having regard to the urgent need for a
           | Vaccine to end a global pandemic which is resulting in
           | serious public health issues, restrictions on personal
           | freedoms and economic impact, across the world but taking
           | into account efficacy and safety; and
           | 
           | (b) in the case of the Commission and the Participating
           | Member States, the activities and degree of effort that
           | governments would undertake or use in supporting their
           | contractor in the development of the Vaccine having regard to
           | the urgent need for a Vaccine to end a global pandemic which
           | is resulting in serious public health issues, restrictions on
           | personal freedoms and economic impact, across the world.
        
           | legulere wrote:
           | How is one country paying 3x as much when AstraZeneca still
           | has an obligation to produce more or less at cost? (https://w
           | ww.ft.com/content/e359159b-105c-407e-b1be-0c7a1ddb6...)
        
           | addicted wrote:
           | The fundamental problem is that AstraZeneca has conflicting
           | contracts with the UK and the EU.
           | 
           | AstraZeneca, which apparently has no experience with maki
           | vaccines, has messed up every part of their job. Starting
           | with the trials (which is why the EU delayed the emergency
           | authorization and the US hasn't given it yet) continuing with
           | manufacturing, and apparently now it's becoming evident their
           | legal department has screwed up as well.
        
       | phonebucket wrote:
       | I'm not a lawyer.
       | 
       | But if reallocating UK doses to the EU, would Astra Zeneca then
       | be in a predicament of not fulfilling their contract to the UK? I
       | have no idea, but presumably this would depend on knowing the UK
       | contract.
       | 
       | So from my perspective, it's tough to know what Astra Zeneca
       | ought to be doing without knowing all of their contractual
       | obligations. That sounds tough.
       | 
       | So I'm glad that I'm not a lawyer.
        
         | ChrisKnott wrote:
         | Yes, the UK contract has an explicit clause that says doses
         | manufactured from the UK plants can only be exported once the
         | UK order is fulfilled. The UK government demanded this as a
         | condition of partnering with Oxford, and vetoed Oxford
         | partnering with Merck because they wanted a UK HQed company.
         | 
         | Whether AZ is breaching the contract with the EU seems to be
         | debatable, but the EU are certainly expecting AZ to explicitly
         | break their contract with the UK.
        
       | temp667 wrote:
       | So weird - and a good lesson for business. Generally the customer
       | that gives you the most hassle on front end and is the cheapest
       | will demand the most and hassle you the most for the entire
       | period.
       | 
       | This argument reminds me of someone who I once tried to work
       | with, I said, I'll just charge you my costs instead of full rate
       | (this is like a 3x difference in price). So many arguments around
       | cost, so many demands on quick delivery. Meanwhile, the folks
       | paying 3x kept on reasonably agreed program and took 1/10th the
       | time.
       | 
       | Anyone else have this experience?
       | 
       | Rumor had it astra wasn't going to mark up a huge amount.
        
         | itronitron wrote:
         | A friend of mine who used to own a small Inn learned within a
         | year to turn away customers who either asked too many questions
         | before booking a room or that showed up complaining.
        
           | temp667 wrote:
           | Yeah - there are folks I think interested in having things
           | done. They pay, you do it, they are happy.
           | 
           | And then there are folks who have their own problems - they
           | may be disorganized? Have internal conflicts? Have other
           | financial issues. So they come in saying - hey give us a
           | break on cost. you do. And then you are in for it, because
           | they can't agree internally, complain about everything.
           | 
           | This EU situation reminds me of that. Instead of saying how
           | can we help increase production its endless blaming etc.
           | Isn't the company an EU company? Why wouldn't they make wht
           | they can?
        
       | eznzt wrote:
       | What is the excuse to have this contract censored? I understand
       | what it's in the interest of security for example, but this...?
       | 
       | Also, where are the people who laughed about Brexit now?
        
         | Ninn wrote:
         | Person who laughed and still laughs at Brexit here. The
         | contract terms of the british contract has not been uncensored
         | as far as I know?
        
           | eznzt wrote:
           | AZ is holding the vaccines for the UK and the EU is moaning
           | about it: https://www.bbc.com/news/world-europe-55822602
        
             | skrause wrote:
             | In 13.1. (e) of the contract AstraZeneca warrants that:
             | 
             | > _it is not under any obligation, contractual or
             | otherwise, to any Person or third party in respect of the
             | Initial Europe Doses or that conflicts with or is
             | inconsistent in any material respect with the terms of this
             | Agreement or that would impede the complete fulfillment of
             | its obligations under this Agreement;_
        
             | jiofih wrote:
             | So you are celebrating the ability of one country to screw
             | over others, ignoring contractual obligations and human
             | decency? Good riddance, stay out of the EU for as long as
             | you like...
        
             | Ninn wrote:
             | In addition to be in quiet explicit breach of contract and
             | extremely unethical, attitude given the world situation,
             | you still do realise that if EU had done the same and
             | restricted exports of the BioNTech vaccine GB had been even
             | more in the shitter.
             | 
             | GB is by far one of the worst performers in the region in
             | handling covid: https://www.reddit.com/r/europe/comments/l7
             | meq9/covid_deaths...
             | 
             | Now try to imagine a world where the development of the
             | Oxford vaccine had failed. And EU based companies had had
             | the success in their place, would you still be having a
             | laugh, given that GB would be on the end of the unfulfilled
             | contract?
        
         | DangerousPie wrote:
         | Commercially sensitive information? Doesn't seem too unusual to
         | me.
         | 
         | And I'm not sure what this has to do with Brexit.
        
           | DC-3 wrote:
           | I think they're alluding more generally to the idea that the
           | EU's bureaucratic sluggishness caused its member states to
           | not have a contract in place with AZ until three months after
           | Britain, putting them proverbially to the 'back of the
           | queue'.
        
             | alibarber wrote:
             | I think this is also where the size and 'buying power' of
             | the EU actually works against it. The UK has bought
             | something like 5 courses of vaccine for each of its
             | population across numerous suppliers, expecting that a few
             | of them will be damp squibs or arrive/be approved too late
             | or not at all. I don't really know - but I don't think the
             | EU is actually in a position to do the same given the size
             | of the combined poplulation and the limited political
             | appeal of wealthier countries to subsidise others for
             | vaccines that won't be needed.
        
         | jiofih wrote:
         | The EU financed the development of this vaccine to the tune of
         | 300M. The UK contributed 65M, the US 1.2B.
        
           | alibarber wrote:
           | Which per person works out as the least. Not that I'm saying
           | this situation is justified by that, but I don't find it
           | surprising that AZ are not prioritising the EU based purely
           | on this.
        
             | jiofih wrote:
             | That's for development - the population doesn't really
             | matter for the creation of the vaccine?
        
         | maxerickson wrote:
         | There's a confidentiality clause in the contract (page 26 of
         | the link).
         | 
         | Perhaps AstraZeneca asked for it and the member states didn't
         | think it was worth fighting over?
        
         | frombody wrote:
         | EU is massive and has a lot of negotiating power.
         | 
         | Allowing everyone else to see the contract would give other
         | countries stronger leveraging positions against AstraZeneca.
        
         | addicted wrote:
         | I'm not sure what this has to do with Brexit.
         | 
         | The exact same arrangement would have been possible and likely
         | before Brexit as well.
        
           | that_guy_iain wrote:
           | People who were pro-Brexit seem to think this one thing
           | proves they were right. They seem to think other EU members
           | will be angry with how the EU are treating the UK in this
           | matter and will also want to leave. This point seems nuts
           | since the EU is basically fighting for it's members vs a non-
           | member, kind of shows why it's better to be with them than
           | againist them. Considering this hasn't fully played out,
           | their constant bragging on the matter seems foolish.
           | Especially considering the EU clearly has more power. The UK
           | is in an extremely vulnerable position overall and seem to be
           | making their position unsafer by the day. The damage the UK
           | goverment is doing to the EU relations will, I suspect, haunt
           | the UK for decades. I suspect if this carries on for a year
           | or so, the UK will end up in a trade war with their closet
           | and largest trading partner during one of the largest
           | recessions ever.
           | 
           | I highly suspect this is going to cost AstraZeneca big.
        
             | outoftheabyss wrote:
             | Perhaps you can point to what in particular the UK has done
             | wrong on this vaccine issue.
             | 
             | With the EU introducing export controls against existing
             | (and actually binding) vaccine contracts and now
             | threatening war time-esque controls over production and
             | intellectual property rights of private pharma companies,
             | it is not AstraZeneca that this will cost big, actions like
             | these are much much bigger than uk vs EU
        
               | that_guy_iain wrote:
               | > Perhaps you can point to what in particular the UK has
               | done wrong on this vaccine issue.
               | 
               | This is the thing. The EU is complaining about
               | AstraZeneca and not the UK itself. AstraZeneca is being
               | accused of transferring supplies from EU factories to UK
               | ones and only providing those to the UK.
               | 
               | > now threatening war time-esque controls over production
               | and intellectual property rights of private pharma
               | companies, it is not AstraZeneca that this will cost big,
               | 
               | I think we think differently on this matter. You think
               | Pharma won't want to deal with the EU if their IP isn't
               | protected. It doesn't matter, another company will enter
               | using their IP and make that money anyways. Their IP
               | being protected is only in the interested of the company,
               | if their IP is not protected they will lose out to
               | generic companies. Doesn't matter where it's developed,
               | someone get it and figure it out and produce it where the
               | IPs are not protected. Drug companies have lots to lose.
        
             | travem wrote:
             | > They seem to think other EU members will be angry with
             | how the EU are treating the UK in this matter and will also
             | want to leave.
             | 
             | UK pro-brexit reporting I have seen has been focusing not
             | on other countries (such as Germany) being upset at the
             | EU's treatment of the UK, but the fact that the EU
             | prevented them from negotiating individually and securing
             | vaccines earlier, and instead imposing additional
             | bureaucracy that delayed the ordering of the vaccine by
             | multiple months.
        
               | that_guy_iain wrote:
               | I was talking about the actual people not the reporting.
               | Yea, reporters are not that stupid.
        
             | jiofih wrote:
             | Especially considering that AZ is half swedish, and the
             | vaccine was mostly funded by other countries, the UK only
             | responded for 1/10 of it.
             | 
             | Oxford uni and the production plant just happen to be on
             | the other side of the fence right now, there is very little
             | to claim it as a British triumph. They need something to
             | hold onto I guess.
        
               | lhnz wrote:
               | If this tweet is correct [1] then the EU hasn't even paid
               | the down payments yet so the contract isn't even
               | enforceable.
               | 
               | [1] https://twitter.com/BarristersHorse/status/1355187738
               | 3042539...
        
           | johannes1234321 wrote:
           | Correct at the time of writing that document UK was still
           | bound by the single market rules (transition period) but EU27
           | decided to not fight over vaccines, but coordinate and go for
           | bigger central orders.
        
         | scythe wrote:
         | >Also, where are the people who laughed about Brexit now?
         | 
         | Please don't throw grenades.
         | 
         | https://www.flamewarriorsguide.com/warriorshtm/grenade.htm
        
           | cardinalfang wrote:
           | Too late, this affair has already been used as artillery by
           | the pro-brexit press.
        
             | Bombthecat wrote:
             | Well, it doesnt help that astrazeneca joined the pro
             | brexiters..
        
         | netsharc wrote:
         | Just because someone did something stupid, doesn't mean the
         | previous actions of their opponent were clever...
        
         | afavour wrote:
         | > Also, where are the people who laughed about Brexit now?
         | 
         | The idea that this one event makes up for the colossal mess of
         | Brexit is... interesting.
        
       | omginternets wrote:
       | Am I unreasonable in thinking it scandalous that the EU's
       | contract with AstraZeneca is censored? Shouldn't this kind of
       | thing be public?
        
         | jackweirdy wrote:
         | If it makes you feel any better, their attempt at redaction was
         | poor and the whole text is present in the bookmarks of the PDF:
         | 
         | https://twitter.com/lijukic/status/1355164987212390402
        
       | hef19898 wrote:
       | I just started to read it, not finished yet, so I will update
       | this post a needed. Also, I look at it from a purely supply chain
       | / logistics erspective. I also asusme that the other contracts
       | (Biontech/Pfizer, Moderna, Jihnsson&Johnsson,...) are similar.
       | 
       | So far, I found this:
       | 
       | - Paragraph 5.2: The delivery schedule in the main contract is
       | quite short ( I assume based on quarters) and blacked out. I
       | don't like that lack of transparence.
       | 
       | - Paragraph 6.2: I read that paragraph concerning capacit
       | limitations, that of any additional EU orders result in capacity
       | shortfalls, AZ has to increase capacity. And in case AZ is not
       | able to adhere to the schedule agreed in 5.2, AZ is not in breach
       | of contract. If the Pfizer contract is the same, that would mean
       | the EU really shot itself in the foot with the additional orders,
       | that forced a temporary / partial shitdown of Pfizers Belgian
       | plant.
       | 
       | - 6.3: Regular reporting intevalls are not specified, neither is
       | any appendix referenced. That could be an issue.
       | 
       | - 8.1, Delivery: Coordination of deliveries is supposed to happen
       | between the central AZ rep and the reps o the EU member states.
       | Again no details, no mention of working groups, no detailed time
       | tables, eg AZ has to inform "in good time" before doses will be
       | available. I'd say very hard o implement once deliveries are
       | supposed to start, and a clear indication that nobody thought of
       | how the whole purchasing and delivery to member state hubs is
       | supposed to work in real life.
       | 
       | - 8.4 and 8.5: Now the contract specifies "in good time" to be 5
       | working days. Distribution is up to member states. And in case
       | the hub cannot take the delivery within these 5 days, any storage
       | is on the member state. The period behind this is blacked out.
       | The focus here is purely cost, again I'd say the cintract is
       | falling short on the logistcs side of things.
       | 
       | - 18.7, Force Majeur: Sure, pandemics are usually included as
       | Force Majeur incidents. But really, for a COVID-19 vaccine as
       | well? Come on. The means either the pandemic is delcared over
       | (which it won't be), or AZ has a constant option to just declare
       | Force Majeur if they run into issues. Why not explicitly exclude
       | the ongoing pandemic from being a Force Majeur event?
       | 
       | - Order Form (pages 35 through 38): This is honestly the first
       | contract I saw in my whole life, that spends fou complete pages
       | on cntractually specifying the purchase order. Honestly, I don't
       | see reason why.
       | 
       | - Delivery Schedule (page 40): Now we have a table with monthly
       | quantities. All blacked out. Again, the contract references
       | payment terms, but not a single word on what happens if AZ canno
       | adhere to the schedule. Not good.
       | 
       | I have to say, from a supply chain perspective, this contract is
       | dangerously lacking. Based on my experience with government
       | sourcing, they tend to include everything in the cntract they
       | think about, I assume nobody spared a thought at how the
       | deliveries wil bemanaged,how the schedule will look like, or what
       | will happen if there are delays. That almost borders negligence.
       | 
       | Again, asuming the contracts with the other suppliers are
       | similar, I'm almost sure that there is no organization put in
       | place on EU level, at the suppliers or member states to manage
       | the actual deliveries. None. There is no word in that contract
       | about thecoordination between local vaccination efforts and
       | deliveries. I have the impression, that as with masks, the
       | governments think that you sign a contract, place an order and
       | then have the goods are delivered without issues. It didn't work
       | out like that with masks, it won't with vaccines.
        
         | Closi wrote:
         | I'm in logistics too, although deliveries seemed pretty
         | flexible from my perspective. 5 days is a huge window
         | (retailers will fine you if you arrive outside their 2 hour
         | window!).
         | 
         | Delivery into any specified single NDC seems sensible.
         | 
         | More specifics around delivery requirements and regulations
         | will differ on a by-country basis regardless.
        
       | yread wrote:
       | Is there anything that goes right with this vaccine? First they
       | mess up the trial giving it to only 18-55 year old, then the
       | manufacturing of half doses instead of full, then the efficacy is
       | not so great, then they manage to manufacture only 1/3 of the
       | doses they promised, then it turns out efficacy in old people is
       | basically nothing and now this. As Derek Lowe said: if there is
       | one pharma company that comes out of pandemic looking worse it
       | will be AZ.
        
         | johnghanks wrote:
         | > then it turns out efficacy in old people is basically nothing
         | 
         | didn't this turn out to be false
        
         | snet0 wrote:
         | > giving it to only 18-55 year old
         | 
         | This is simply untrue, the mixed-dose regimen was limited to
         | those under 55, but 4% of the study population were over 70.
         | 
         | > the efficacy is not so great
         | 
         | While the efficacy numbers indeed look lower than the mRNA
         | vaccines, I'm lead to believe that at least part of this is due
         | to methodology. As far as I am aware, neither the Moderna or
         | the Pfizer mRNA vaccines tested for asymptomatic cases, and
         | presented their efficacy _against symptomatic cases only_.
         | 
         | > it turns out efficacy in old people is basically nothing
         | 
         | I believe this claim is totally untrue, also.
        
           | yread wrote:
           | Don't get me wrong I would still take if I got the chance
           | (and I will according to the plan as I work in a hospital)
           | but it was a sloppily done trial.
           | 
           | > This is simply untrue, the mixed-dose regimen was limited
           | to those under 55, but 4% of the study population were over
           | 70.
           | 
           | It was given only to 18-55 in the UK. 4% doesn't compare well
           | to 20+% for all the other trials. Brilliant for a disease
           | which kills people with median age of 82 years (in the UK).
           | Why would you even design a protocol that looks only at young
           | people?!
           | 
           | They used a different protocol in Brazil and South Africa.
           | Why did they use a different protocol in different places?
           | Pfizer and other companies managed with one. Having different
           | protocol is treated as different trials - so the trial in
           | South Africa didn't have enough cases and wasn't even
           | considered in the EMA authorization. EMA estimates 60%
           | efficacy.
           | 
           | https://www.ema.europa.eu/en/news/ema-recommends-
           | covid-19-va...
           | 
           | > methodology
           | 
           | Ok so the efficacy looks worse but is not directly
           | comparable. That doesn't really detract from my point that
           | the trial(s) was not well designed, no? It just wasn't given
           | to enough old people.
           | 
           | EDIT: Also, the efficacy in preventing asymptomatic infection
           | was only 27% (again with insanely wide confidence interval).
           | So, they designed the trial to measure it, but it doesn't do
           | really well at that.
           | 
           | > I believe this claim is totally untrue, also.
           | 
           | It could be true, could be untrue but it's not falsifiable
           | from the data. The confidence interval for efficacy in 65+ is
           | -140.5% (yes there is a minus) - 94.2%. We just don't know.
           | 
           | https://twitter.com/olivernmoody/status/1354781400071860230
        
       | ucha wrote:
       | In 7.1., when they say the EU will provide funding at an amount
       | equal to the "cost of goods", does it mean that AZ doesn't make
       | profits on the vaccine they sell to the EU?
       | 
       | There is also a mention of a cost of good estimate and how if the
       | cost of good was off by more than 20%, the EU should pay the
       | difference...
        
         | JumpCrisscross wrote:
         | > _does it mean that AZ doesn 't make profits on the vaccine
         | they sell to the EU?_
         | 
         | During the pandemic period, which is defined to expire on 1
         | July 2021. A stupid contractual provision to include, since it
         | creates monetary incentives to delay delivery.
         | 
         | (Not saying that's why this is happening. But if I were
         | negotiating something like this, I'd include a bonus for early
         | deliveries. It keeps interests aligned, and gives the supplier
         | ammunition with which to add redundancies.)
        
           | DangerousPie wrote:
           | Pretty sure that's a standard part of any agreement AZ made,
           | since Oxford University only licensed the vaccine to them if
           | they provided it at cost.
        
           | kitd wrote:
           | I believe the "no profit" clause comes from Oxford Uni who
           | own the IP.
        
         | trebligdivad wrote:
         | Right, AZ is doing all of this at cost for everyone, not just
         | the EU (until the end of the Pandemic); I feel sorry for AZ
         | having to take this hastle when they're not making anything out
         | of it.
        
           | thow-01187 wrote:
           | Don't they get their manufacturing facilities upgraded for
           | free?
        
       | cinntaile wrote:
       | Apparently it was mistakenly uploaded uncensored before this was
       | changed? Where can we find the uncensored version?
        
         | DangerousPie wrote:
         | This is the "uncensored" version. Parts in red were originally
         | censored but have been revealed.
        
       | DangerousPie wrote:
       | Nothing particularly interesting or shocking about the parts that
       | got un-censored. The important part seems to be 5.4, which was
       | already readable before.
       | 
       | To me that section seems so suggest that production facilities in
       | the UK should/could indeed be used to supply the EU, which is
       | what the EU seems to want and AZ/UK are denying. But I'm sure
       | there are a lot of highly paid lawyers looking at this from all
       | sides right now.
        
         | cs02rm0 wrote:
         | Certainly one Belgian lawyer has already stated that he thinks
         | the EU Commission don't have a leg to stand on here. Not that I
         | expect that to slow them down.
         | 
         | https://twitter.com/JeremyC64/status/1355156181753475073?s=1...
         | 
         | Awkwardly it seems Pfizer might shift to supplying the UK from
         | the US and the UK seem content that they have no contractual
         | need to share the AZ doses from the UK facility. So the EU
         | don't seem to have any leverage on this issue.
         | 
         | Some have tried to say this debate is EU vs AZ but this map
         | suggests otherwise.
         | 
         | https://thumbsnap.com/sc/JtrAXvhv.jpg
        
           | DangerousPie wrote:
           | Can we have a zoomed out version of that map please? I
           | suspect it's been framed for maximum controversy.
           | 
           | And I'd also like to hear from more reliable lawyers than "a
           | guy on Twitter".
        
             | smnrchrds wrote:
             | Yeah. Canada is not exempted either. And we have no
             | domestic production of COVID-19 vaccine. All our vaccines
             | are coming from Europe.
        
         | mytailorisrich wrote:
         | From what I gather from the media here in the UK one problem is
         | that AstraZeneca's contract with the UK government is that they
         | will not export vaccines produced in the UK until the British
         | government's order is fulfilled.
         | 
         | Pretty smart stipulation by the UK government but it may be
         | putting AstraZeneca, which agreed to it, in an awkward
         | position...
        
           | Bombthecat wrote:
           | So basically, two exclusive contracts? Lol..
        
             | JumpCrisscross wrote:
             | > _two exclusive contracts?_
             | 
             | The EU signed second and, to my knowledge, did not include
             | similar language in their agreement. They are also paying
             | less than the UK and US.
        
               | makomk wrote:
               | Including similar language in their agreement would
               | probably have made the EU's already terrible case even
               | worse anyway, since it would almost certainly have only
               | covered AstraZeneca's non-UK European facilities, and the
               | whole problem seems to be that those can't produce nearly
               | enough vaccine to cover EU demand. Note that the current
               | clause about the initial supply of doses only covers
               | manufacturing them _within the EU_ ; the part about the
               | EU including the UK explicitly does not apply to that
               | clause. (Indeed, the only mention of UK manufacturing
               | seems to be exempting it from a clause _banning_ the use
               | of non-EU manufacturing sites.)
        
               | DangerousPie wrote:
               | According to AZ they are selling the vaccine at cost to
               | all customers, so the price should have nothing to do
               | with it. Unless they're lying I guess.
        
               | hef19898 wrote:
               | I think profits will come from page 5, paragraph a (the
               | second a on that page):
               | 
               | "(a) costs related to the operation of the facility
               | incurred while using the facility to manufacture other
               | products;"
               | 
               | are included in the vaccine costs.
        
           | rsynnott wrote:
           | AstraZeneca's real problem seems to be that they, on the face
           | of it, promised contradictory things to different customers.
        
             | krona wrote:
             | Except the wording in the EU contract is too vague and
             | loose, and isn't a commitment beyond best reasonable
             | efforts.
             | 
             | Obviously the Commission (publically) disagrees and is
             | using AstraZeneca as a scapegoat for its incompetence.
        
           | DangerousPie wrote:
           | Ah, that's an interesting aspect I didn't know about.
           | 
           | But if that's true it seems very hypocritical of the UK to
           | complain so much about the EU's plan to introduce vaccine
           | export controls, since they are doing the exact same thing
           | already...
        
             | [deleted]
        
             | notimetorelax wrote:
             | Wouldn't be the first time a politician behaved
             | hypocritically, would it?
        
               | freeone3000 wrote:
               | It's not hypocritical at all. Keeping vaccine in the
               | borders of the UK gives more vaccine to the UK, and
               | importing vaccine from Europe gives more to the UK.
        
             | usrusr wrote:
             | It seems like the gloves have come off wrt the idea of
             | fair(ish) vaccine access across the board recently.
             | 
             | I'm usually not much of an aficionado of free market
             | radicalism, but I suspect that the vaccine ramp-up would go
             | better, eventually better for everyone, if it had started
             | with a honest commitment to the highest bidder mindset that
             | we can't goodwill out of existence anyways. Only suspect,
             | because who knows what failure modes the other path would
             | hold, but I think that for example early arrangements for
             | mandatory sublicensing (in case of research success) would
             | have been much more likely to have found their way into
             | research subsidy contracts if nation state representatives
             | had been in a gloves-off situation from the beginning.
        
             | alastor2020 wrote:
             | It's different though surely? UK had an exclusivity
             | agreement with a private company (AZ). EU had their own
             | agreement. There is now a contractual dispute between EU
             | and AZ. In retaliation, EU wants to use export controls to
             | prevent another EU company (Pfizer) honouring its legal
             | civil contract with the UK. This is trade war sort of
             | stuff. EU should go to court with AZ to settle the dispute.
             | The UK isn't a party here.
        
               | makomk wrote:
               | An exclusivity agreement for, as I understand it, a
               | production line that the UK basically paid to set up in
               | exchange for that exclusivity. Which seems like a pretty
               | normal commercial arrangement.
        
               | Scarblac wrote:
               | No, the EU wants to stop exporting to the UK from
               | Belgium, as they have already done,as long as they are
               | behind on the agreed EU schedule.
        
             | cs02rm0 wrote:
             | There's a quite a difference between a contract signed by a
             | company who could walk away without the money and imposed
             | law that restricts trade!
        
             | mytailorisrich wrote:
             | Of course. As I said in my other comment, there is a lot of
             | politics involved, not least because of Brexit and, frankly
             | because the EU did not do very well (they may be looking
             | for a diversion...) here while the UK did.
        
               | thow-01187 wrote:
               | To be fair, despite the heavy criticisms, it's not clear
               | whether the EU objectively made any major mistake. The
               | countries ahead of them in the vaccination effort did so
               | by writing a blank check to the pharma companies -
               | definitely not an ideal outcome either.
               | 
               | EU diversified their vaccine contracts, negotiated fair
               | prices, generously funded the manufacturing rollout,
               | avoided vaccine nationalism between member states,
               | equitably distributed the vaccines amongst their members
               | and the key point - holds the manufacturers liable for
               | possible damages.
               | 
               | All of those points are entirely reasonable. One could
               | argue that EU should have paid more, but there are two
               | counterarguments: Firstly, it doesn't really move a
               | needle, as both US and UK have home-front-first clauses,
               | leaving only Israel and Arab oil producers skipping the
               | queue. Secondly, said countries could just amend their
               | contracts, bid up the price, and everyone is back at
               | square one.
               | 
               | Date of contract signing doesn't really matter either - a
               | credible commitment to massive orders has been there from
               | the very beginning.
               | 
               | European Medical Agency gets a lot of undeserved flak for
               | being slow and bureaucratic. Pfizer was approved mere 10
               | days later than in the US, Moderna got approved earlier
               | than in the UK, and now AstraZeneca earlier than in the
               | US. Allegedly, even those slippages were caused by the
               | companies simply prioritizing their US/UK approvals.
               | 
               | Partially, EU got unlucky - Sanofi vaccine flopped, AZ
               | plant has technical problems, Curevac got delayed. In a
               | world where Pfizer and AZ wouldn't underdeliver by an
               | order of magnitude, EU plan would be praised and touted
               | as a gold standard. Partially, EU was always fighting an
               | uphill battle - the corporations that cleared the
               | approvals simply care more about their image in the
               | US/UK, don't like to face competent regulators, and
               | really dislike being liable. Afaik, they face no
               | liability in US and Israel.
               | 
               | That being said, absent the EU policy, I'm quite
               | confident that small countries like Latvia, Slovenia or
               | Finland would end up with the short end of the stick.
        
               | libertine wrote:
               | How would EU be painted if they demanded all vacines
               | produced in Europe to stay in Europe before all their
               | orders are fulfilled?
               | 
               | That would be "doing very well"?
               | 
               | Because it seems that's what UK is doing with AZ, their
               | production stays in the UK. And that's doing well?
               | 
               | If so, then EU should most definitely lock out exports of
               | vaccines.
        
               | xioxox wrote:
               | The vaccine basically would not exist without the UK
               | government helping putting together the organisation to
               | make this, before AZ even got involved, plus the academic
               | research funding. This vaccine is sold at cost and is
               | allowed to be manufactured elsewhere such as in India. It
               | seems perfectly reasonable that the UK can fund a
               | facility to guarantee supply after all the investment and
               | effort.
        
         | riedel wrote:
         | The other part is the definition of Best Reasonable Effort . I
         | wonder if the behaviour of Pfizer has an impact here.
        
           | ldng wrote:
           | Yes it does. They used it to announce that they deliver 20%
           | bottle because they are not billing 6 doses per bottle while
           | at the same time arguing publicly that they contains 5. They
           | are then hiding behind that contract the talks about doses,
           | not bottles and best effort not hard delivery. They all have
           | the same contract and are following Pfizer example.
           | 
           | BigPharma is screwing up UE big time and that is
           | unacceptable.
           | 
           | Source for downvoters :
           | https://www.mediapart.fr/journal/france/290121/retards-de-
           | va... (FR)
        
             | hef19898 wrote:
             | Oh, there is also a paragraph in the AZ contract, that
             | frees AZ from breach of contract if additional orders from
             | the EU result in capacity shortfalls. Not that dditional
             | orders would have been necessary, but hey, the press called
             | for it.
        
       | noncoml wrote:
       | If you listen to UK BBC news, they spend half of their airtime
       | saying how the UK government placed the order months before the
       | EU, and that the EU is in the wrong, since they haven't even
       | approved the vaccine yet(as of the last time I listened to the
       | BBC news), so they shouldn't complain and so on.
       | 
       | I am surprised by the polarization and demonization of the EU
       | they are promoting. Was not expecting that from BBC. And then
       | they wonder why British people voted for Brexit.
        
         | YeGoblynQueenne wrote:
         | It's the same if you read the Guardian. It's clear that the
         | apparent europhilia of some liberal media was nothing but a
         | political play. They pretended to support Europe only because
         | their rivals, the Tory-supporting media, were against it.
         | 
         | Or pretended to be. None of those people believe anything at
         | all.
        
         | oliwarner wrote:
         | They spend half their time talking to their government, who say
         | that.
         | 
         | The BBC can't win. When they editorialise to try to dig into a
         | subject, it's left wing pandering, and when they just listen to
         | official sources, they're right wing mouthpieces.
        
           | simonswords82 wrote:
           | True that - which is why it's so important to obtain news
           | from multiple sources and then attempt to form your own view.
        
         | salicideblock wrote:
         | I am surprised why anyone is discussing who signed first, given
         | that in the contract AstraZeneca warrants that:
         | 
         | "it is not under any obligation, contractual or otherwise, to
         | any Person or third party in respect of the Initial Europe
         | Doses or that conflicts with or is inconsistent in any material
         | respect with the terms of this Agreement or that would impede
         | the complete fulfillment of its obligations under this
         | Agreement;"
         | 
         | This ended up not being true, which was not totally unexpected.
         | 
         | AstraZeneca ends up in the bad position of choosing on which of
         | their contracts their will fail, and they evidently chose to
         | fail the EU's _in its near totality_ for the next few months.
         | 
         | It pains me to see the cynicism in shielding behind "best
         | effort" clauses (standard in any procurement under R&D) or in
         | "who came first". It's a serious matter that warrants a cooler
         | and more balanced solution that this.
        
           | JumpCrisscross wrote:
           | > _in respect of the Initial Europe Doses_
           | 
           | There is text blacked out in the definition of Initial Europe
           | Doses after "within the EU" that I'm curious about.
           | 
           | Also, the clause reads "AstraZeneca has committed to use Best
           | Reasonable Efforts...to build capacity to manufacture 300
           | million Doses of the Vaccine...for distribution within the
           | EU..." That's ambiguous with respect to distribution.
           | 
           | AstraZeneca _are_ using Best Reasonable Efforts to build this
           | manufacturing capacity. But they aren 't under Best
           | Reasonable Efforts obligations to _use_ this capacity for the
           | EU. (The definition of Best Reasonable Efforts overlooks
           | distribution entirely.)
           | 
           | It's a shitty situation. Pain has to be allocated. But based
           | on contract, versus loose notions of fairness, AstraZeneca is
           | under no obligation to export British-made doses to the EU.
        
             | hef19898 wrote:
             | AZis only obliged to deliver to hubs in each member state.
             | That's it, nothing else. Hubs have to take the delivery
             | within 5 days of being notofied of that delivery. That's
             | about it regarding actual deliveries. Pretty thin,
             | especially compared to the 4 pages covering the order form.
        
             | throwawaymanbot wrote:
             | well ok. Let them return all the money the EU gave them.
             | And let them understand how AZ might have market access
             | problems to the EU from now on.
        
             | eyko wrote:
             | I'm also curious about what dates were agreed. Looking at
             | the document, here's what they state regarding
             | manufacturing and supply (emphasis mine):
             | 
             | "5. Manufacturing and Supply.
             | 
             | 5.1. Initial Europe Doses. AstraZeneca shall use its Best
             | Reasonable Efforts _to manufacture the Initial Europe Doses
             | within the EU_ for distribution, and to deliver to the
             | Distribution Hubs, following EU marketing authorisation, as
             | set forth more fully in Section 7.1. approximately
             | [censored] 2020 [censored] Q1 2021, and (iii) the remainder
             | of the Initial Europe Doses by the end of [censored] "
             | 
             | It looks like the EU expected to have the vaccine approved
             | by the end of 2020 and delivered soon after that. Based on
             | media reporting, it would appear that AZ notified the EU
             | that it would not meet the first deadline, but did so with
             | only a short notice (15 days according to some outlets?).
             | 
             | Without getting into speculation, one date that isn't
             | censored is that which specifies when the "Additional
             | Doses" would stop being offered at the agreed price: 1 July
             | 2021:
             | 
             | "9.3.Additional Doses. AstraZeneca shall provide any agreed
             | Additional Doses at Cost of Goods until 1 July 2021, unless
             | AstraZeneca determines in good faith that the COVID-19
             | Pandemic has not ceased as of 1 July 2021, in which case
             | AstraZeneca shall [censored]"
             | 
             | So, if the initial doses are delayed, then the optional
             | doses are delayed after that, and then the additional doses
             | are delayed after that, it would seem that the agreed
             | prices would only apply for a small fraction of the
             | additional doses that would've been expected, whatever
             | seemed reasonable. It seems that any delays in the "Initial
             | Doses" could have an effect on the rest of the contract
             | agreement.
        
         | bitcharmer wrote:
         | I don't understand, where is BBC incorrect here? How would you
         | like them to report on this?
         | 
         | EU _was_ months late and they move much slower than other
         | parties in the whole process and on top of that they signed
         | agreements with  "best effort" clauses instead of hard
         | obligation of vaccine delivery. How is this UK's fault?
        
           | DangerousPie wrote:
           | Nobody is saying it's the UK's fault, but just because they
           | signed the agreement a few months later doesn't mean that AZ
           | isn't bound to that agreement. There is no "first come first
           | serve" clause in there.
        
             | adrianb wrote:
             | Interesting. How are these contracts supposed to work? In
             | general when I buy something and have to wait, I expect to
             | get it before everyone who buys after me. Not sure how
             | these contracts work.
        
               | krona wrote:
               | Which is _exactly_ why AZ split the UK /EU supply chain
               | to try avoid such issues entirely (CEOs words.) The
               | contract is vague and nonspecific about commiting UK
               | factories to supply the EU.
               | 
               | The whole thing is a parody of Brussels bureaucratism.
        
               | mrtksn wrote:
               | >The contract is vague and nonspecific about the UK
               | factories supplying the EU.
               | 
               | It's not, it's clearly stated that the contract covers
               | the UK facilities.
               | 
               | Check article 5.4
        
               | krona wrote:
               | My interpretation comes from 2 seperate lawyers. Why are
               | they wrong?
        
               | mrtksn wrote:
               | I don't know your lawyers, can't tell. Are they internet
               | lawyers, like on reddit or YouTube or something?
        
               | krona wrote:
               | Unless you're an expert in contract law then your
               | interpretation of "Best Reasonable Efforts" for a pharma
               | company during a global pandemic is less than worthless.
               | As is my own.
        
               | [deleted]
        
               | DangerousPie wrote:
               | I guess ideally AZ wouldn't enter multiple contracts that
               | conflict with each other...
        
               | Diggsey wrote:
               | So you're suggesting AZ should never have agreed to
               | supply the EU at all?
               | 
               | The contract clearly says they're to make their "best
               | reasonable effort" to satisfy this contract. Breaking
               | previous contracts would be unreasonable.
               | 
               | There are so many things the EU could do here that could
               | help: - Provide more resource to AZ to get more
               | facilities up and running. - Offer to sell some of that
               | future ramped up production back to countries like the UK
               | in exchange for getting some vaccines now. - Expedite the
               | approval process of other vaccines. - Allow member states
               | to negotiate indepently.
               | 
               | What did they choose to do? Raid the EU vaccine
               | production facilties, and threaten legal action against
               | the very company trying to supply them the vaccine. Like
               | yeah, that's really going to help people.
               | 
               | The UK government directly paid for the research and
               | development of the AZ vaccine, and paid for the
               | manufacturing facilities in the UK to be built, when
               | there was a lot of pressure to simply partner with US
               | firms. Where was the EU when this was happening? Why
               | didn't the EU take it upon themselves to do the same
               | thing?
               | 
               | The presumptiveness of the EU to dictate that AZ should
               | redirect UK vaccines to the EU is astounding.
        
               | libertine wrote:
               | I don't understand why:
               | 
               | - approval timing;
               | 
               | - contract celebration date;
               | 
               | Has anything to do with the fact that AZ is failing to
               | comply with it's duties.
               | 
               | AZ isn't waiting for EU approval to start producing stock
               | to fulfill their initial order, that makes no sense - it
               | takes WEEKS to build stock for the goal of the 80 million
               | doses. The stock that will be delivered, 30% of what was
               | expected, is being produced before this approval. So this
               | "approval process" argument makes no sense.
               | 
               | Regarding the contract celebration date, same applies -
               | they were expected to deliver 80 million doses in a
               | timeframe, which they agreed upon.
               | 
               | Why don't we do this the other way around, why don't we
               | all be transparent and see if they are also failing to
               | supply the UK? Because if it's supply issues, then it
               | should be a problem of both countries no?
               | 
               | Or they were shifting stock made in Europe to fulfill UK
               | orders?
               | 
               | I really hope the EU gets to the bottom of this, because
               | it stinks.
        
               | Silhouette wrote:
               | _The contract clearly says they 're to make their "best
               | reasonable effort" to satisfy this contract. Breaking
               | previous contracts would be unreasonable._
               | 
               | To me reading the contract as a non-lawyer, the BRE
               | conditions felt like game, set and match to AZ.
               | 
               | For one thing, the definition of "best reasonable
               | efforts" does seem to be ambiguous, but evidently it's
               | intended to relate to what a business comparable to AZ
               | would be expected to do. It seems unreasonable to expect
               | that a large, multinational business manufacturing
               | essential drugs during a public health crisis would
               | knowingly and deliberately breach an existing contract to
               | supply a fixed number of doses on a fixed schedule to
               | another party, which is what AZ reportedly has with the
               | UK.
               | 
               | On top of that, there is the discrepancy between 5.1 and
               | 5.4. The latter says the UK counts as "within the EU"
               | while talking about manufacturing at sites located within
               | the EU, but it also explicitly says the inclusion of the
               | UK is only for that specific clause. Clause 5.1 is
               | specifically about the initial doses and requires AZ to
               | use its BREs to manufacture the initial doses within the
               | EU with no such including-the-UK qualifier.
               | 
               | So it appears that, contractually, AZ is actively
               | required to make BRE to manufacture the initial doses for
               | the EU _not_ in the UK, and in any case, unless there is
               | something very strange hidden in the censored wording,
               | the obligations relating to delivery are also covered by
               | a BRE qualifier.
               | 
               | Presumably this will all end up being decided in court,
               | probably long after it really matters for anything other
               | than financial compensation, but on a first reading by
               | this layperson, it does look like AZ have the stronger
               | case here.
        
             | Neil44 wrote:
             | The significance of the earlier commitment from the UK is
             | that UK manufacturing of the vaccine is now 3 months more
             | mature than the EU plant. It's not a legal significance but
             | a practical and moral one.
        
           | Scarblac wrote:
           | The EU claims there are no best effort clauses, which is why
           | they asked AZ to make this public. We'll find out.
           | 
           | The rest of your comment makes OP's point: this is a contract
           | dispute. Why is it relevant when the UK signed their
           | contract, or that the EU hadn't approved the virus yet? Such
           | comments only serve to make UK citizens angry at the EU.
        
             | the-dude wrote:
             | > the EU hadn't approved the virus
             | 
             | We are working on that!
        
               | mrtksn wrote:
               | UK had two variants until EU approves one!
        
             | JumpCrisscross wrote:
             | > _EU claims there are no best effort clauses, which is why
             | they asked AZ to make this public. We 'll find out_
             | 
             | Best Reasonable Efforts are defined on page 3 of this post.
             | 
             | "The activities and degree of effort that a company of a
             | similar size and with similarly-sized infrastructure and
             | similar resources as AstraZeneca would undertake or use in
             | the development and manufacture of a Vaccine..."
             | 
             | Couple problems:
             | 
             | - "Development and manufacture" doesn't include
             | distribution.
             | 
             | - AstraZeneca has practically zero track record in
             | vaccines. "Similar resources" is a potential out.
        
             | [deleted]
        
           | noncoml wrote:
           | I don't think I implied that UK is in fault, or that EU is in
           | the right here.
           | 
           | The problem, in my opinion, is with the way the report it,
           | the time they spend on it and the demonization of the EU.
           | 
           | Even if EU is 100% in the wrong, do they need to spend half
           | their air-time covering a dispute between AstraZeneca and the
           | EU, arguing how the EU is unreasonable and pretty much the
           | monster that tries to steal the vaccines from the UK people?
           | 
           | My disappointment is the with the division, polarization and
           | demonization of the EU they are promoting.
           | 
           | After listening to that rhetoric with my (British) wife for
           | 10 minutes straight, I heard heard saying "yeah, fuck these
           | EU assholes".
        
             | mike-cardwell wrote:
             | That's how you get eyeballs.
        
               | adimitrov wrote:
               | The BBC is publicly funded. The entire idea behind
               | publicly funded news and broadcast is that they shouldn't
               | care about eyeballs, singe they don't need and money.
        
               | mike-cardwell wrote:
               | The BBC is staffed by humans. Humans who want their
               | programming to be popular and watched widely. If people
               | stopped watching BBC news, you better believe they'd make
               | changes to reverse that, whatever it takes. Their
               | incentives are just different.
        
           | barrkel wrote:
           | The best effort relates to _setting up_ the manufacturing of
           | the vaccine, not distributing it. See e.g.
           | https://davidallengreen.com/2021/01/what-can-be-worked-
           | out-a...
           | 
           | There's no doubt the UK has been nimble and reasonably
           | effective on the vaccine front (as we all know, the EU is a
           | very mixed bag by construction); just as well since it has
           | been dreadful on the mortality front. The UK commentariat is
           | a little bit shocked, but it is to be expected - it's out of
           | the club. There will be more consequences later.
           | 
           | I, for one, am leaving the UK with my family.
        
             | hef19898 wrote:
             | Distribution is critical. AZ is only responsible for the
             | deliveries to the national hubs. After that, it's up to the
             | memeber staes. The contract is extremely thin on
             | distribution, generally on supply chain and logistics.
             | These two parts being the most critical aspects, after
             | develpment and certification, makes this lack of details a
             | real problem.
        
         | alibarber wrote:
         | But surely the EU hasn't exactly covered itself in glory here?
         | 
         | They, factually, objectively, _were_ later in signing an
         | agreement, and have taken longer to approve a vaccine in use
         | elsewhere in the world. Why should they not share some blame
         | from their citizens like any other politician should? The UK
         | government deserves scorn for their handling of the pandemic in
         | the UK. The EU should be criticised for this. It is not a
         | football match. We do not need to 'support' one 'side' against
         | the other.
        
           | alibarber wrote:
           | Instead of downvoting - please do tell me what is offensive,
           | or how you feel this does not add to the discussion. Or at
           | least do both.
        
           | GizmoSwan wrote:
           | There is/was issues with submitted vaccine data. Technically
           | it wouldn't have been approved in normal times till they
           | could get better proven data.
           | 
           | Now it is all water under the bridge because countries are
           | desperate to have enough vaccines.
           | 
           | 6 months from now, all countries are going to pretend to be
           | nice nice and when there will be oversupply and new variant
           | of the COVID, they will be dumping the old vaccines on other
           | countries.
        
         | gutnor wrote:
         | That was the same in the Touring Visa that for a while was "The
         | EU refused" and it became just the opposite a few weeks later.
         | 
         | But that's the story of Brexit and its 40 years of media
         | support. Even the BBC has often been on the technically correct
         | side happily reporting welcome change as "UK change" and
         | blaming unwelcome on the EU, even if the UK voted for it.
        
         | calpaterson wrote:
         | Those are the simple facts and they are pretty operative:
         | 
         | - The UK signed months before
         | 
         | - The EU has been slow to vaccinate independent of that AZ
         | dispute
         | 
         | - The EMA did only approve this vaccine (which the UK is
         | already using) a few hours ago
         | 
         | This dispute has sadly been made into a hugely sensitive
         | national dispute as a distraction from the poor performance of
         | the EU's vaccination programme. Even if nothing had gone wrong
         | with the AZ vaccine production, the EU still would have much
         | poorer rollout than the UK. It's just a cover of jingoism.
        
           | agd wrote:
           | Not sure why you've been downvoted. It seems very clear that
           | the commission is whipping up a political storm here to
           | deflect from the fact it's done a bad job with vaccine
           | procurement, which will cost thousands of European lives.
        
             | calpaterson wrote:
             | It takes a certain bravery to post any opinion that is
             | critical of the EU on HN. Always a danger to your karma :)
        
             | hef19898 wrote:
             | I don't see procurement as the main issue. The EU ordered
             | around 2.3 billion doses, for 450 million inhabitants.
             | Quantity wise, that's more than enough.
             | 
             | They did screw up distrbution so, royaly. And with
             | distribution being the responsbility of the member states,
             | well go figure. This contract has its defiencies, I really
             | hate it that there are n consequences when delivery
             | schedules aren't met. And how delivery schedules will be
             | defined.
        
               | agd wrote:
               | It wasn't the total quantity that was the problem. It was
               | the timing. It's no use having hundreds of millions of
               | doses if they aren't available until Q4.
        
               | hef19898 wrote:
               | nd everybody is having issues with supply, regardless of
               | when contracts were signed. AZ has issues, Moderna has
               | issues, Pfizer has issues. Instead of playing a blame
               | game, I would have argely preferred to see a coordinated
               | effort of getting the ordered doses earlier, and have
               | deliveries coordinated with vaccination campaines. We
               | have neither, and at least in germany I doubt we have
               | anything like a planned vaccination campaig. None of
               | which can be blamed on the suppliers or the EU.
               | 
               | And none of the urrent discussion are helpfull in solving
               | any of these issues.
        
         | GizmoSwan wrote:
         | Every country is for itself when shit hits ceiling, that is my
         | conclusion. Territorial dogma took over with PPP and
         | respirators too.
         | 
         | Now the Swiss and Brits are not part of EU and their own
         | interest supersedes their alliance with EU obviously.
        
           | jack_riminton wrote:
           | Nitpicking but the phrase is "shit hits the fan" i.e. it
           | would go everywhere
           | 
           | Shit hitting the ceiling wouldn't be that dramatic in
           | comparison :)
        
             | GizmoSwan wrote:
             | LOL yup...
        
         | kcartlidge wrote:
         | I'm British. I do however believe we should vaccinate the most
         | at risk groups, then be more generous with the UK production
         | facilities for the EU's more at risk groups whilst slowing down
         | our efforts for our own less at risk ones (which includes me).
         | It's the humane thing to do.
         | 
         | That said, my sympathy for the EU (as an opponent of Brexit)
         | has been diminished by their attempted bullying behaviour.
         | 
         | They initially wanted the UK in on their EU procurement. Unlike
         | the EU members of the grouping we were to be excluded from any
         | say in the vaccines chosen, the quantities, the pricing, the
         | manufacturing, and the distribution. No say on anything; take
         | what you're given. They left us with no choice but to do our
         | own deals.
         | 
         | We did those deals faster and with less guarantees at that
         | early stage, fronted virtually the whole cost of the
         | AstraZeneca UK production, accepted liability rather than
         | insisting (as per the EU) that the vaccine makers did, and paid
         | much more, just to get a faster agreement (and we still had the
         | same teething issues the EU are facing now; we weren't special
         | in that regard). Despite all that risk, up front cost, higher
         | prices, and accepted liability, the EU is now demanding that
         | the instant they approve the vaccine they can dip into the
         | supply that has cost the UK far more than most people realise
         | we gave up in order to get that swift delivery.
         | 
         | The EU stumbled by not realising the urgency last year, then
         | stumbled again by badly insulting the UK with the EU
         | procurement "offer" terms which forced us to negotiate
         | separately.
         | 
         | I have a great amount of sympathy for the EU people (I may not
         | be in the EU any more, but I'm still European) but none of this
         | is the doing of the UK - who are simply carrying on using the
         | vaccines delivered - and the first 'shot' at actual vaccine
         | nationalism has been fired not by the mad brexiteers but by the
         | EU with their Northern Ireland border statements and not-
         | export-control-really new 'monitoring' and 'agreement'
         | position.
         | 
         | I really expected coming into this year to find myself part of
         | a massive UK villain state facing a more reasonable EU. I
         | didn't foresee a desparate EU attacking a UK just going about
         | it's own business.
        
           | paganel wrote:
           | > That said, my sympathy for the EU (as an opponent of
           | Brexit) has been diminished by their attempted bullying
           | behaviour.
           | 
           | I'm a EU citizen and I'm with you on this one. Also, I now
           | realise (meaning after Brexit has been actually put in place)
           | that the officials in Bruxelles could have been more
           | forthcoming towards us, the remaining EU citizens, about how
           | UK's exit will effect us. All I was hearing were things like
           | "those dastardly British, they'll pay for it!" while now one
           | cannot receive a package from a relative or close friend in
           | the UK without being flooded with customs forms to fill, to
           | say nothing of the extra money one has to pay for the
           | privilege.
        
           | senko wrote:
           | As a EU citizen, I agree with your assessment completely.
           | 
           | The EU bungled this and it would not be fair if we were to
           | bully our way out of it.
           | 
           | It's sad to see this being a zero sum game, and no way you
           | cut it people are going to suffer (already are) somewhere.
           | 
           | I was expecting a bit more decency on our side. Shattered
           | superiority complex after Brits mismanaged Brexit, maybe?
           | 
           | Our lack of coordination and flailing in this regard is
           | equally impressive.
        
           | noncoml wrote:
           | On the other hand I am a EU citizen married to UK citizen,
           | living in the US, so my skin in the game is mainly emotional.
           | 
           | I am not saying EU was/is always right, as they don't seem to
           | be right in this case, but I was just hoping that BBC would
           | be more subtle about it. I am totally fine with
           | UK/AstraZeneca pushing back hard.
           | 
           | Just don't see the need for BBC to turn it to a "us vs them"
           | thing. I think I am still living in denial in regards to
           | Brexit. I guess I will have to get used to it.
        
         | pasabagi wrote:
         | It's hard to overstate how tight the british establishment is,
         | media included. It's a small country, and power is concentrated
         | in a vanishingly small number of hands, many of whom are
         | married, or went to school together, or are close friends.
         | 
         | This is why when britain passed 100,000 coronavirus deaths,
         | with the worst death rate in the world, nobody resigned, and
         | nobody called for anybody to resign.
         | 
         | The BBC is part of this kind of tight, teflon kernel that's at
         | the heart of why the UK is such a dysfunctional country these
         | days.
        
           | isbvhodnvemrwvn wrote:
           | Very relevant "Yes, Minister";
           | 
           | https://www.youtube.com/watch?v=B9tzoGFszog
        
           | subsubzero wrote:
           | > It's a small country, and power is concentrated in a
           | vanishingly small number of hands
           | 
           | This is very true, I chatted at length with my neighbor who
           | lived his entire life in the UK(up to a few years ago) and
           | was shocked how stratified the society is. Basically there is
           | small group of people(who went to Eton, are lords or
           | knighted, from famous families) that form a clique that runs
           | everything in the country. No matter how much money you make
           | or how successful you are, you can never join that circle.
           | 
           | An example was told to me that even David Beckham (famous
           | soccer star) is looked down upon by that segment and does not
           | associate with them and could never join that part of
           | society.
        
             | mattmanser wrote:
             | Err, same in America man. Bushes? Father and son were the
             | president. Kennedys? Brothers were almost presidents, one
             | was a President, the other governor. Clintons? Spouses were
             | almost presidents! If that's not cliquey I don't know what
             | is.
             | 
             | Your mate is also massively over-egging how bad it is,
             | there is still an Eton clique (the present/last government
             | being a good example), but we've had a range of recent
             | prime minister's educated normally, outside of the Eton
             | clique. Brown, Blair, even Thatcher just went to a Grammar
             | school (generally a better school you have to pass exams to
             | qualify for, which is semi-meritocratic, though gamed by
             | the rich)
             | 
             | Our election system is even worse than America's though so
             | we keep getting conservative governments who win 40-45% of
             | the popular vote but somehow get landslide majorities.
             | 
             | Also, what do you mean by "small", it's got 70 million
             | inhabitants. At worst a country with a population of a size
             | of France and Germany might be called "medium".
        
               | chrisseaton wrote:
               | > who win 40-45% of the popular vote but somehow get
               | landslide majorities
               | 
               | In a system with four major parties, 43% _is_ an
               | absolutely huge popular landslide. How can you describe
               | it as anything else? Ten percentage points above their
               | nearest rival? How much more of a majority do you think
               | it could possibly be?
        
               | lou1306 wrote:
               | But at least the US has a pretty sognificant percentage
               | of people that reach the upper echelon of society from
               | basically nothing (Obama, RBG, Biden). And the dinasties
               | you mention are what, 50 years old? In the UK it seems
               | that the ruling circle has been at the wheel literally
               | for centuries.
        
               | kevin_thibedeau wrote:
               | The people who really control things in the US aren't
               | politicians. That is way beneath the scions of multi-
               | generational wealth. Even T* isn't in their club.
        
               | Nasrudith wrote:
               | If anybody thinks they are really in control of things
               | they are highly arrogant and out of touch at best or an
               | outright delusional at worst. Especially when it comes to
               | the US. Where even the overly rigid minutae obsessed
               | military take pride in being considered unpredictable
               | madmen who don't even pay attention to their own
               | doctrines consistently and are at home in chaos. The
               | people of the US aren't even consistently individualistic
               | and would make herding cats look easy - you can get them
               | to follow you with a tin of tuna.
               | 
               | There isn't "the" Man. Why would there be when even
               | positions of petty power are contested for so tightly and
               | dirtily and there are so many striving to rise?
               | Consequences are not a strong deterrent - if they were
               | the world would look very different.
               | 
               | Wealthy individuals may have power but nobody has control
               | over the a process of contention across all layers with
               | nominal goals served imperfectly with cargo-culting and
               | skewed priorities.
               | 
               | All of this and there is nothing inherently special about
               | the people - human nature and control oppose each other.
        
               | triceratops wrote:
               | > we keep getting conservative governments who win 40-45%
               | of the popular vote but somehow get landslide majorities.
               | 
               | Can you explain more about this? Is the UK heavily
               | gerrymandered?
               | 
               | EDIT: It's an honest question. I don't know anything
               | about UK politics, other than that it's a parliamentary
               | constitutional monarchy.
        
               | chrisseaton wrote:
               | > Is the UK heavily gerrymandered?
               | 
               | No it isn't gerrymandered. And if it is very slightly
               | accidentally gerrymandered in some places, that works
               | _against_ the Conservatives - Labour MPs often have
               | smaller constituencies.
               | 
               | So no that's not relevant or part of what is being talked
               | about here.
               | 
               | The reality is that 43% popular vote for a single party
               | in a system with four major parties, 10 percentage points
               | more than their nearest rival, _is_ nothing but an
               | enormous popular vote landslide. The Conservatives are
               | popular amongst broad sections of society, incomes,
               | ethnicities, regions. All other parties serve limited
               | niches so are fundamentally constrained.
               | 
               | Why don't they form a coalition? Well I'm not sure they
               | really have deeply shared values to do that.
        
               | subsubzero wrote:
               | I think the point I am getting at is there is a group of
               | people that largely descends from the British aristocracy
               | that is extremely cliquish and has a large majority of
               | its members in positions of power.
               | 
               | My neighbors wife knew Eddie Redmayne and his brother(I
               | think both went to Eton) and although she said they were
               | nice, they were in a totally different world and only
               | really associated with people who also went to Eton/had
               | large trustfunds. In England you would never see people
               | like Elon Musk, Sergey Brin, Steve Jobs etc who came from
               | middle class families move to the highest strata of
               | society and be accepted by those in that highest strata.
               | 
               | I am by no means bashing England, I think the country is
               | awesome and have family that lives there, I am just not
               | keen on the stratified nature of its society.
        
               | hcho wrote:
               | And yet British have James Dyson, Richard Branson and so
               | on...
               | 
               | Old money vs new miney strife is an age old thing and I
               | can assure you none of the tech barons is rubbing
               | shoulders with former barons let alone American gentry.
        
               | pasabagi wrote:
               | I said small country in the original post, because while
               | I imagine the US has similar levels of dynastic cliquey
               | stuff going on, it's a colossal nation, so it doesn't
               | hurt so much.
               | 
               | In the UK, I think Eton is more a symptom than a cause.
               | The problem is, London is a world-class city that
               | concentrates the entire political and financial
               | establishment. It's also a city with very obvious
               | parallel worlds, where if you move in certain circles,
               | you meet the same people, so while it is a massive city,
               | it sometimes feels quite small.
               | 
               | To me, the worst part is not that both Johnson and
               | Cameron went to the same school, the same university, or
               | even the same exclusive dining club - the bad bit is that
               | because any given person with political, social or
               | economic power in the UK is so closely connected with any
               | other, there's a real incentive not to rock the boat. You
               | get an enormous amount of cohesion, because if you go
               | around making enemies, you're ultimately making things
               | awkward for a lot of your friends and acquaintances.
               | 
               | On top of that, the fact most people in this world have
               | similar backgrounds makes a lot of them 'on the same
               | page' by default.
        
             | krona wrote:
             | David Beckham is looked down upon by 50% of society
             | (conservative estimate.) The clique of which you speak
             | doesn't seem very exclusive at all.
        
         | JumpCrisscross wrote:
         | As a (Swiss) American, I can't see the flaw in that logic. The
         | UK signed first, is paying more and included a provision
         | preventing the export of British-manufactured doses. The EU
         | didn't. The EU also added a provision mandating AstraZeneca
         | make no profit prior to 1 July 2021 (the end of the Pandemic
         | Period), a counter-incentive to ramping up production.
         | 
         | It's not fair. But neither is the UK and EU getting wildly more
         | doses per capita than Africa, South America or Oceania.
        
           | double-a wrote:
           | I don't understand why there's a comparison with the UK
           | vaccination program at play here. Your comment is precisely
           | the type of incendiary fallacy that OP is accusing the BBC
           | if.
           | 
           | EU is claiming that AZ is breaching the contract it had with
           | them. Whether they are in the right or not, what does the
           | UK's relationship with AZ have to do with it?
        
             | hef19898 wrote:
             | INAL, but I'd say nothing. The contract includes the UK as
             | part of the EU as far as manufacturing is concerned
             | (paragraph 5.4). But kicking AZ already now with breach of
             | contract is a bit wild. As is pushing false numbers
             | regaridng efficiency of the vaccine for eople above 60 (or
             | 65), as happened in Germany. Not quite a good way to
             | motivate AZ to deliver, it rather makes it a legal question
             | from the getgo. Which is, well, not good.
        
             | JumpCrisscross wrote:
             | > _I don 't understand why there's a comparison with the UK
             | vaccination program at play here_
             | 
             | Because the EU wants AstraZeneca to export doses made in
             | Britain to the EU.
        
               | odiroot wrote:
               | In order to fulfil the provisions of the contract the
               | company willingly signed, and not out of spite for
               | Britain, as far as I'm aware.
        
               | JumpCrisscross wrote:
               | > _In order to fulfil the provisions of the contract the
               | company willingly signed, and not out of spite for
               | Britain_
               | 
               | Correct. Just pointing out why Britain is relevant.
        
               | double-a wrote:
               | And has AstraZeneca claimed that this would cause them to
               | fail on their commitments to the UK? Or are we presuming
               | that because it benefits some other agenda?
        
               | JumpCrisscross wrote:
               | > _has AstraZeneca claimed that this would cause them to
               | fail on their commitments to the UK?_
               | 
               | I believe the UK has made the claim that they have
               | exclusive contractual right to domestically-made vaccines
               | until a certain point. Not sure if AstraZeneca
               | corroborated.
        
               | eyko wrote:
               | > Not sure if AstraZeneca corroborated.
               | 
               | Apparently so
               | https://www.theguardian.com/world/2021/jan/26/head-of-
               | astraz...
        
           | kitd wrote:
           | Tbf, I believe the "no profit" clause comes from Oxford
           | university, the IP owner.
        
           | radiator wrote:
           | Why on Earth is it not fair that the UK and EU get more doses
           | _of their own vaccines_ per capita than Africa, South America
           | or Oceania?
           | 
           | Why would they be obliged to export even one dose of
           | something they produced, before they have provided for every
           | single one of their citizens?
        
             | JumpCrisscross wrote:
             | > _Why on Earth is it not fair that the UK and EU get more
             | doses of their own vaccines per capita than Africa, South
             | America or Oceania?_
             | 
             | My point is fairness is in the eye of the beholder. What
             | we're left with are contracts. And contractually,
             | AstraZeneca seems to be in the right. The EU negotiated, at
             | first glance (and to this non-expert), a poor agreement.
        
               | Isinlor wrote:
               | Under international trade agreements we (EU) can also
               | stop exports of the vaccines as did UK in the contracts.
               | 
               | Whatever the means, as long as they are legal, we can and
               | should force equal burden of delays.
               | 
               | I guess EU didn't play it the best way from political
               | perspective, since we are now labeled as bad.
               | 
               | Still, I'm personally impressed that EU is actually able
               | to do something of consequence in somewhat short time
               | frame.
        
               | JumpCrisscross wrote:
               | > _(EU) can also stop exports of the vaccines as did UK
               | in the contracts_
               | 
               | It's different--one is an executive action, the other
               | contractual duty--but yes. Moreover, it doesn't solve the
               | problem. The EU wants doses made in the UK. The EU doses
               | have already been exported to the UK.
               | 
               | This whole thing looks incompetent on the EU's part, from
               | the outside. First, the delays in signing. Second, the
               | sloppiness of the contract. And third, the incompetence
               | of the post-problem situation. The EU has something
               | Britain wants--a trade deal. Strike a deal with the UK to
               | get their vaccines. Instead, we have a song and dance,
               | empty threats and name calling.
        
               | Silhouette wrote:
               | _The EU has something Britain wants--a trade deal. Strike
               | a deal with the UK to get their vaccines. Instead, we
               | have a song and dance, empty threats and name calling._
               | 
               | It's hard to imagine any such deal being countenanced by
               | the UK government. It's clearly in the stronger position
               | here, and after its response to the virus situation has
               | had so many problems in most areas, the handling of the
               | vaccine has so far been a rare but very welcome
               | exception. It seems implausible the government would give
               | up such a huge PR win and instead do something that would
               | surely be represented as risking their citizens' lives or
               | worse, even in the already extremely unlikely event that
               | the EU offered a much better deal than the one just
               | concluded after years of negotiations.
               | 
               | As long as government ministers can confidently confirm
               | that they believe the UK/AZ agreement is solid and enough
               | doses will be available to meet the schedule the
               | government has stated, they can try to maintain a
               | dignified silence on the EU/AZ situation and let it be
               | seen as a dispute over a contract to which the UK is not
               | a party. They have little to gain by getting involved and
               | much to lose.
        
             | adimitrov wrote:
             | Because we're humans and not profit-seeking self serving
             | automatons. Or at least I aspire to not be one
             | 
             | If there is suffering, and if we can, we ease the
             | suffering. The US and EU have bought way more vaccine doses
             | than they need.
             | 
             | It even makes sense from a utilitarian perspective, as we
             | live in a global market economy.
             | 
             | Since when did people become so nationalistic again? We're
             | humans, first and foremost.
        
               | kcartlidge wrote:
               | Agree entirely.
               | 
               | However this is not about how many vaccines have been
               | _bought_ , but how many are being _delivered_ via current
               | production. The US, EU, UK, etc have indeed bought more
               | than they needed, but they won 't (by definition) be
               | using more than they needed - the extra purchases were
               | due to spreading the production and vaccine approval risk
               | to ensure that _enough_ were available.
               | 
               | You could reasonably argue they shouldn't be vaccinating
               | whole populations, by which I mean including low-risk
               | elements, whilst poorer countries cannot vaccinate even
               | high-risk ones. That's a different question though.
        
             | hef19898 wrote:
             | The EU purchased around 5 doses per inhabitant, including
             | children (from all suppliers). With the explicit goal to
             | share these doses with other states. I like that idea a
             | lot.
             | 
             | That being said, none of the short term measures curently
             | being discussed, will help getting any doses earlier. And
             | the total amount ordered is more than enough.
        
             | eyko wrote:
             | I'd reckon because a private company is getting paid to
             | manufacture and sell the vaccines, at "Cost of Goods"
             | initially, then at a profit after an agreed period, in
             | exchange for funding and, eventually more profits. These
             | are pre-orders for a vaccine, and the contract has a
             | section on how it will be funded. AstraZeneca is under no
             | obligation to not do business with anyone else (provided
             | they can meet their contractual obligations).
             | 
             | If the both the UK and the EU wanted a million doses each
             | and AZ has the capacity to manufacture 5 million, then
             | nothing stops them from entering into other agreements with
             | countries in Africa, South America, or Oceania.
             | 
             | They probably overestimated their capacity and are now
             | pushing back on deadlines. I don't have much to criticise
             | AZ for on that since we've all been there, but you can't
             | tell a paying customer that you have other customers that
             | paid you first, when you signed a contract agreeing to
             | meeting certain deadlines. It simply does not matter. Did
             | AstraZeneca lie in their negotiations regarding their
             | capacity? Let's also remember that this was likely brought
             | up when discussing the funding for manufacturing sites in
             | Europe and the UK.
        
         | oli5679 wrote:
         | The capacity to manufacture it in UK was developed by a UK
         | government grant that was issued in May and a UK government
         | order that was issued soon after. It is being produced at cost
         | by AstraZeneca. The UK acted quickly, realising that each week
         | of lockdown costs a similar amount to their entire vaccine
         | expenditure. They got scientific advice and backed a range of
         | different technologies.
         | 
         | Meanwhile the EU acted bureaucratically and treated this like a
         | procurement exercise, squabbling about spending and placing
         | orders in December. It is now scapegoating andsuing a company
         | that is producing the vaccine at cost.
         | 
         | GSK has every inventive to scale up capacity and produce as
         | many doses as possible, and has no profit motive to divert
         | doses. It is simply abiding by its agreement with the UK to use
         | UK funded capacity to supply the country first, whilst making
         | best efforts to iron out kinks for European orders.
         | 
         | https://www.politico.eu/article/europe-coronavirus-vaccine-s...
        
       | NiceWayToDoIT wrote:
       | > "Uncensored"
       | 
       | So what are those black out parts?
       | 
       | Maybe just partly "uncensored"
        
         | arendtio wrote:
         | https://news.ycombinator.com/item?id=25960718
        
       | zoobab wrote:
       | See https://twitter.com/VrlPlt/status/1355219237745405954
        
       | beefield wrote:
       | EU:You've... you've got a nice IP protection here, AstraZeneca
       | 
       | AstraZeneca: Yes.
       | 
       | EU: We wouldn't want anything to happen to it.
       | 
       | AstraZeneca: What?
       | 
       | Germany: No, what EU means is it would be a shame if...
        
       | mytailorisrich wrote:
       | There's a lot of controversy and arguments on this at the moment,
       | a lot of it is political with a good dose of Brexit added in.
       | 
       | So to stir towards more positive aspects:
       | 
       | AstraZeneca, which are between a rock and a hard place here, has
       | agreed to supply the EU at cost. I don't know if it's their
       | global policy, I hope it is, but they should be commended for
       | that. That's _not_ what all suppliers of Covid vaccines do.
       | 
       | More generally regarding the Covid vaccines: I find quite
       | extraordinary that less than 12 months after Covid-19 was first
       | analysed we have _several_ vaccines available and we also have
       | the capacity to produce hundreds of millions of doses. Science +
       | technology + capitalism is a hugely potent combination (ok, sorry
       | that last sentence may seem political but this is what drove the
       | development of these large scale production technologies).
       | 
       | Edit:
       | 
       | It looks like I may need to clarify my mentioning capitalism. I
       | was referring to production capability.
       | 
       |  _Private_ companies (not only in biotech, in every industry)
       | have developed extremely effective and efficient ways to produce
       | huge quantities of whatever they produce because driving down
       | costs and increasing efficiency and quantities is how you
       | increase profit. This is why we can now produce so many doses of
       | Covid vaccines quickly and at relatively low cost.
        
         | DoingIsLearning wrote:
         | > AstraZeneca, which are between a rock and a hard place here,
         | has agreed to supply the EU at cost
         | 
         | For the sake of completeness AstraZeneca have agreed to supply
         | _all_ markets at cost, not just EU.
         | 
         | This was part of their contractual obligation with Oxford
         | University.
         | 
         | The vaccine was developed with Oxford Uni funding, AstraZeneca
         | signed an agreement to mass manufacture under the condition
         | that it would be sold worldwide without a profit margin.
        
           | mytailorisrich wrote:
           | Thanks for giving details and to make clear that this is
           | their global policy. They should indeed be commended for
           | that.
        
             | addicted wrote:
             | Oxford University should be commended for that.
             | 
             | We would all have been better off of Oxford had partnered
             | with someone with more experience that hadn't already
             | messed up: 1) The scientific trials 2) Manufacturing the
             | vaccine 3) The legal agreements they signed with various
             | governments.
             | 
             | Moderna, for example, has also fallen behind on their
             | supplies but they signed sensible contracts (and followed
             | sensible policies) and don't have governments hounding them
             | for more supplies.
        
               | mytailorisrich wrote:
               | > _Oxford University should be commended for that._
               | 
               | If you go that way it depends on the terms of the deal
               | and how much AstraZeneca is paying them. But yes, good on
               | them for making that demand.
               | 
               | AstraZeneca, a private commercial company, has agreed to
               | produce a vaccine at cost in huge volumes and they should
               | be commended for it in any case. As I said, not all Covid
               | vaccines are produced at cost, some of them are even sold
               | at, I suspect, eye watering margins.
        
           | soperj wrote:
           | Thanks for this, makes it much clearer. I do wonder though if
           | there will be any Hollywood creative accounting there with
           | the "no profit margin".
        
         | [deleted]
        
         | tsimionescu wrote:
         | > Science + technology + capitalism is a hugely potent
         | combination
         | 
         | Wait till you see what science + technology - capitalism can
         | achieve!
         | 
         | But more seriously, we're also seeing the problems of
         | capitalism here. Apart from the problems with its price,
         | especially for the third world, I also think it's important to
         | realize that the main motivation for vaccine skepticism is
         | capitalism and the bad incentives it creates for companies.
         | People understand that it's in any of these companies' best
         | interest to lie about effectiveness and safety of these
         | vaccines, and that they have more than enough money to hide any
         | potential wrong doing for a long time.
         | 
         | I am NOT an anti-vaxxer. I take flu shots every year, and I
         | will get this vaccine as well as soon as I am offered the
         | chance (I'm neither at risk nor working in a crucial industry).
         | But the pharmaceutical industry deserves its reputation to some
         | extent, and it is mostly capitalism's fault that we have these
         | huge behemoths that can act with impunity.
        
           | tomcam wrote:
           | A sincere question here. There may be many positive answers
           | that I don't know about. Which non-capitalist ventures have
           | done as good a job as capitalist ones at creating drugs?
        
             | itronitron wrote:
             | besides religion?
        
             | tsimionescu wrote:
             | The best examples would be many vaccines - the polio
             | vaccine, the flu vaccine, the BCG vaccine for TB, the
             | rabies vaccine , the measles vaccine (not the modern MMR -
             | which was created at Merck - but the older measles-only
             | vaccine) and others. Paracetamol/acetaminophen is a very
             | common drug that was also developed in a University
             | setting.
             | 
             | The Pasteur Institute in France is a major source of non-
             | corporate medical research, at least historically. There
             | are similar institutes in many countries which produce both
             | research and actually manufacture drugs to be used in
             | public health campaigns directly.
        
               | tomcam wrote:
               | With respect, those are all half a century ago. Corporate
               | pharmaceutical companies are treating out hundreds of new
               | solutions a year. Again, I feel that system is fairly
               | corrupt and mismanaged. I'm not trying to defend it. But
               | practically speaking it seems to be doing an immensely
               | better job these days than government sectors.
        
               | tsimionescu wrote:
               | Yes, but that is by design - the state has retreated or
               | stagnated in this space, preferring to let companies
               | drive research and reap profits. We can't then be
               | surprised that the companies are out-competing the state.
               | 
               | Not to mention that one example I forgot about is exactly
               | the Oxford/AZ vaccine - the vaccine itself was developed
               | by a (private, true) university, not a pharmaceutical
               | company.
        
           | xiphias2 wrote:
           | There's no capitalism going on here. I have parents over 70
           | in the EU, I would gladly pay $5000 per person to get them
           | vaccinated with an mRNA vaccine (Pfeiser or Moderna), but
           | people under 60 are being vaccinated in Israel right now for
           | free.
           | 
           | Vaccination right now is completely political, governments
           | took over control instead of just regulating safety and
           | efficiency of the vaccines.
        
             | tsimionescu wrote:
             | There is no market for the vaccine at the consumer level,
             | but the vaccine is still bought and sold in a capitalist
             | market, with states as buyers. Governments that could
             | afford this have done what they can for their populations,
             | that's great, but many countries were unable to access the
             | initial doses and are not allowed to manufacture the
             | vaccine themselves.
             | 
             | The situation has improved since the beginning of the year,
             | and some companies are better than others at supporting
             | public health.
        
           | maxerickson wrote:
           | How do you make a vaccine that doesn't have a price?
           | 
           | It's going to require resources no matter what, and the $5 to
           | $10 that the AstraZeneca and J&J vaccines are estimated at is
           | a pretty good value.
           | 
           | (for instance, the US could buy vaccine for the entire globe
           | and not worry about the cost)
        
             | tsimionescu wrote:
             | You create the formula and make it public so that it can be
             | produced easily. Then, many manufacturers, ranging from
             | generic drug manufacturers to public health institutes can
             | produce the drug at cost, even in third world countries.
        
               | maxerickson wrote:
               | It's a complex product (the AstraZeneca vaccine is a
               | virus that stimulates the body to produce a protein that
               | is present on SARS-CoV2). Maybe sharing the IP more
               | widely would have been the better thing to do, but it
               | wouldn't have resulted in it being 'produced easily'.
        
               | tsimionescu wrote:
               | True, 'produced easily' was an overstatement. Still, I
               | doubt AZ is the only company with the know-how and
               | equipment required to produce such a vaccine (and it's
               | also likely that some of the know-how is itself a
               | protected secret or patent of AZ, which just throws the
               | ball further down the line).
        
         | tomatocracy wrote:
         | As I understand it, their policy is to supply developed markets
         | at cost until the pandemic is over (whatever that means) and
         | developing markets at cost in perpetuity.
        
           | hef19898 wrote:
           | The pandemic could e over on July 1st 2021, according to the
           | contract. No idea how that is actually defined, I would hve
           | expected some stipulations around the WHo delaring it or
           | something.
           | 
           | Fun fact, epidemics are included as force majeur events. And
           | the Force Majeur paragraph is a carbon copy from the last
           | fulfillment contract I read.
        
       | ajvarparadise_ wrote:
       | Sorry for asking, is there a tldr: ?
        
       ___________________________________________________________________
       (page generated 2021-01-29 23:01 UTC)