Valneva: UK scraps Covid-19 vaccine deal with French firm

French pharmaceutical company Valneva says the UK government has scrapped a deal for its Covid-19 vaccine.

The government had about 100 million doses on order, after it increased its request by 40 million in February.

The pharmaceutical firm said in a statement that the government served notice over allegations of a breach of the agreement, which it "strenuously denies".

Valneva's jab is still being tested in trials.

Although regulators must be satisfied before the rollout of any vaccine, manufacturing at a site in West Lothian, Scotland, had already started.

In a statement on its website, Valneva said: "Valneva SE, a specialty vaccine company, today announced that it has received a termination notice from the UK Government (HMG) in relation to the Supply Agreement for its Covid-19 vaccine candidate, VLA2001.

"The contract provides HMG with the right to terminate. HMG has alleged that the company is in breach of its obligations under the supply agreement, but the company strenuously denies this."

The firm said on Monday that results from its phase three trials were due later this year.

It added: "Valneva has worked tirelessly, and to its best efforts, on the collaboration with HMG including investing significant resources and effort to respond to HMG's requests for variant-derived vaccines.

Valneva said that it would look to other potential customers to ensure that the vaccines can still be used in the fight against the pandemic.

The Department for Health did not immediately respond to the BBC's request for comment.