ANNOUNCEMENT 18 Sep 2020

In September 2020, the European Union signed an Advanced Purchase Agreement (APA) with Sanofi Pasteur-GSK for acquiring doses of the company’s COVID-19 vaccine. The agreement was published in 2021.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Commission. Sanofi-GSK – Redacted Advance Purchase Agreement. Available at: https://ec.europa.eu/info/sites/default/files/apa_with_sanofi_gsk.pdf

European Commission. Questions and answers on COVID-19 vaccination in the EU. Available at: https://ec.europa.eu/info/live-work-travel-eu/coronavirus-response/safe-covid-19-vaccines-europeans/questions-and-answers-covid-19-vaccination-eu_en#27

Reuters. "EU pays $384 million for Sanofi-GSK COVID vaccine as WHO scheme deadline looms". 18/09/2020. Available at: https://www.reuters.com/article/us-health-coronavirus-sanofi-vaccine-idUSKBN2691EG

Inception date: 18 Sep 2020 | Removal date: 18 Sep 2022

Localisation incentive

On 18 September 2020, the EU and Sanofi-GSK signed an Advanced Purchase Agreement (APA) for the production, purchase and supply of the company’s COVID-19 vaccine. The agreement included certain incentives to produce within the European Union. Notably, the public version of the APA was available from the first semester of 2021 on the European Commission’s website.

In particular, sections I.4.1 and I.6.1 of the APA with Sanofi-GSK together establish a "down payment for manufacturing preparedness" to help the company to “predominantly manufacture” the 300 million doses of vaccines requested in “sites in the European territory”. Notably, the public version issued by the European Commission is redacted, where the previous section in other APAs is subject to undisclosed information about the budget of the down payment. Regardless, according to Reuters, the down payment amounts to EUR 324 million (approx. USD 384 million). The downpayment can cover project costs (technology, development and scale-up), direct costs of inputs and raw materials or primary components.

Notably, other published APAs (with AstraZeneca, CureVac, and Pfizer, see related state acts) also included localisation requirements for the pharmaceuticals companies. 

The APA entered into force the day of its signature and shall remain in effect for 24 months. 

 

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