Benzinga | May 26, 2021 02:18PM EDT

EU Seeks Fines For AstraZeneca Over COVID-19 Vaccine Delays: Reuters

* The European Union took on AstraZeneca Plc (NASDAQ:AZN) in a Brussels court and accused it of diverting doses promised to the bloc to other nations.

* EU's lawyer, Rafael Jafferali, asked the court to force the company to pay (euro)10 per dose for each day of delay as compensation for breaching the EU contract, reports Reuters.

* The fine could be as high as (euro)200 million ($244 million) per day from July 1, AstraZeneca's lawyer Hakim Boularbah told the court, asking the judge to revise it down in case of an unfavorable verdict.

* AstraZeneca's contract signed with the European Commission foresaw an initial 300 million doses, with an option for another 100 million.

* The doses were expected to be delivered throughout 2021, but only 30 million were sent during the first quarter.

* Brussels wants the company to deliver at least 120 million vaccines by the end of June. AstraZeneca had delivered 50 million doses by the beginning of May, just a quarter of the 200 million vaccines foreseen in the contract by then.

* Jafferali said the EU was seeking an additional penalty of at least (euro)10 million for each breach of the contract that the judge may decide.

* A verdict is expected next month.

* AstraZeneca has long insisted that the doses mentioned were not binding targets and that the deal stated it only had to "best reasonable efforts" in delivering them.

* "It's very shocking to be accused of fraud," Boularbah said, branding the EU's claim "a groundless accusation."

* Price Action: AZN shares are down 0.62% at $56.56 during the market session on the last check Wednesday.