BRUSSELS, May 16 (Reuters) - The European Commission said on
Monday that no final decision had been made about the possible
termination of a contract with Valneva to supply its
COVID-19 vaccine to the European Union.
Valneva said earlier on Monday it had received a notice of
intent from the Commission to terminate the contract. The
statement triggered a sell-off of the company's shares, which
lost one-fifth of their value in few hours.
EU Commission spokesman Stefan de Keersmaecker confirmed the
EU executive had communicated to Valneva its intention to
terminate the contract but said the final decision would only be
made after consulting with Valneva on the matter.
He told a regular news briefing that the notice had been
sent after an agreement with EU governments, but said the notice
was only the start of a process.
Valneva can now propose alternative solutions and only after
that would the EU decide whether to terminate the contract, the
spokesman said, adding that the EU "will consider any remedial
solution the company may propose".
Under the deal, Valneva had agreed to supply up to 60
million doses of vaccine over two years.
(Reporting by Francesco Guarascio @fraguarascio; Editing by
Jason Neely and Edmund Blair)