Bharat Biotech terminates Covaxin deal with Brazil after graft allegations

Bharat Biotech has terminated a memorandum of understanding to sell its COVID-19 vaccine Covaxin to Brazil's Precisa Medicamentos, the Indian company said on Friday without disclosing the reason.

Bharat's statement said it will continue to work with Brazilian healthcare regulator Anvisa to obtain all required approvals for the use of Covaxin in the country.

The termination of the MoU came after the deal with the Brazilian government for supply of 20 million doses of the vaccine landed in controversy and attracted investigation by authorities in that country.

Precisa Medicamentos is Bharat Biotech's partner in Brazil, providing assistance, guidance and support with regulatory submissions, licensure, distribution, insurance and conduct of phase III clinical trials, among others.

Bharat Biotech is pursuing approvals in various countries as per legal requirements applicable in each country, it said.

The company had signed a MoU with Precisa Medicamentos and Envixia Pharmaceuticals LL.C on November 20 for the purpose of introducing Covaxin in the territory of Brazil.

The global pricing of the vaccine has been set between $15-20 and accordingly, the jab was offered to the Government of Brazil at the rate of $15 per dose, Bharat Biotech said.

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, the company said.

The vaccine maker stressed that all its actions, including its global dealings, are done in accordance with local laws and the company employs and follows the highest standards of ethics, integrity and compliance at all times