Government cancels contract with French vaccine-maker Valneva

13 September 2021, 07:55 | Updated: 13 September 2021, 08:01

French Covid-19 vaccine manufacturer Valneva has ended its supply arrangement with the government over allegations of a breach of the agreement, the company said.

The government has cited a breach of their agreement, but Valneva, which is manufacturing the jab at its site in Livingston, West Lothian, in Scotland, said it "strenuously" denies the allegations.

In February the firm said No10 had ordered a total of 100m doses, with the possibility of a further 90m doses between 2023 and 2025.

In a statement, the French biotech company said: "Valneva SE, a specialty vaccine company, today announced that it has received a termination notice from the UK Government ("HMG") in relation to the Supply Agreement for its Covid-19 vaccine candidate, VLA2001.

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"The contract provides HMG with the right to terminate. HMG has alleged that the company is in breach of its obligations under the Supply Agreement, but the company strenuously denies this.

"Valneva is continuing its VLA2001 development plan. Testing for the Company's pivotal Phase 3 trial, Cov-Compare, is ongoing at Public Health England ("PHE").

"Valneva recently announced that its Phase 3 results are expected to be available early in the fourth quarter and that these results will form part of its rolling submission for conditional approval of VLA2001 with the UK's Medicines and Healthcare products Regulatory Agency ("MHRA"). Subject to these data and MHRA approval, Valneva believes that initial approval for VLA2001 could be granted in late 2021.

"Valneva has worked tirelessly, and to its best efforts, on the collaboration with HMG including investing significant resources and effort to respond to HMG's requests for variant-derived vaccines. Valneva continues to be committed to the development of VLA2001 and will increase its efforts with other potential customers to ensure that its inactivated vaccine can be used in the fight against the pandemic."

This story is being updated