Scrapped Covid vaccine deal cost taxpayers £358m
New figures show a Covid vaccine contract which the UK government axed cost taxpayers £358.6 million.
French company Valneva had been contracted to produce over 100 million vaccines at its West Lothian plant, but the agreement was controversially scrapped in 2021.
Valneva’s financial records, filed with the US Securities and Exchange Commission, indicate that the company received significant payments, totalling hundreds of millions of pounds, which were non-refundable. The breakdown of these payments includes €47.5 million (£40.5 million) as part of a settlement agreement following the contract termination, €78 million (£66.5 million) for capital expenditure, and the remaining amount for non-refundable manufacturing expenses.
The UK government reached a final settlement with Valneva last year, concluding any financial obligations towards the company. At the time, government ministers stated that further details regarding the resolution were subject to commercial confidentiality. Meanwhile, Valneva has revealed it is considering selling its Scottish plant which was built to make Covid vaccines. The UK government scrapped its vaccine deal with the company over allegations of a breach of the agreement – something the biotech firm denies.