Covid vaccine Covaxin manufacturer Bharat Biotech on Friday said that it has terminated its deal with its Brazilian partners Precisa Medicamantos and Envixia Pharmaceuticals LLC that was signed last year.
The deal, which was signed through a Memorandum of Understanding (MoU) back in November 2020, has been scrapped with immediate effect, Bharat Biotech officials said in a statement.
The move comes after Brazilian authorities suspended the $324 million contract, signed for procuring a total of 20 million covid vaccines, amid a major political row in Brazil. It even launched an investigation into the deal.
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However, the Indian biotechnology company said that it will continue working with the Brazilian drug regulatory body in order to complete the approval process for its vaccine.
"The company has terminated the said MoU with immediate effect. Notwithstanding such termination, Bharat Biotech will continue to work diligently with ANVISA, the Brazilian drug regulatory body to complete the regulatory approval process for Covaxin," it said in a statement.
Putting out a statement after a lot of speculation about the termination of the deal started making rounds on social media, Bharat Biotech clarified, “We have very recently been informed that certain letters, purported to have been executed by executives of the company, are being circulated online. We would like to emphatically state that these documents have not been issued by the company or its executives and therefore vehemently deny the same.”
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The Indian medico multinational company, however, did not give out the reason for calling off the deal. Instead, it reserved its integrity and said that the company’s actions always pertain to the local laws.
“The company also stresses that all its actions, including its global dealings, are done in accordance with local laws and that the company employs and follows the highest standards of ethics, integrity and compliance at all times,” it said in a statement issued late on Friday evening.
Bharat Biotech further stated the global pricing for its vaccine and said that it has not received any advance payments from Brazil.
“The global pricing (save for India) of Covaxin has been set between US$ 15-20. Accordingly, Covaxin has been offered to the government of Brazil at the rate of US$ 15 per dose. It is further stated that the company has not received any advance payments from, nor has it supplied any vaccines to the Ministry of Health in Brazil,” it said.
