Covid Scotland: How much did UK Government spend on axed vaccine contract?

A French biotech company has been paid hundreds of millions for a failed Covid vaccine contract in Scotland.

An axed Covid vaccine contract that would have seen a Scottish plant produce 100 million vaccines has cost the UK Government £358.6 million, figures have revealed.

Biotech company Valneva, headquartered in Saint-Herblain, France, was contracted to produce vaccines at its plant in Livingston, West Lothian, but the deal was scrapped in 2021.

The contract was axed over allegations of a breach of the agreement, which were "strenuously denied" by the biotech firm.

A nurse preparing to give a patient a vaccine Picture: PA

Details of how much the UK Government paid out to Valneva are contained in a filing made to the United States government agency, the Securities and Exchange Commission.

The filing states Valneva had received a total of €420.6m (£358.6m) as part of its UK Government vaccine supply agreement, including €47.5m (£40.5m) in a "settlement agreement" after the deal was terminated. There was also €78m (£66.5m) spent in capital expenditure; and the rest in non-refundable payments for manufacturing expenses.

The UK Government has previously said the cancellation of the Valneva deal did not affect the nationwide rollout of Covid vaccines.

Valneva built the Almeida plant in Livingston to make the vaccine, but the site has now been mothballed and the company is considering a sale of the property.

The company still employs around 190 people in the town, and its operations there are not thought to be affected by the possible sale of the Almeida plant.

The French firm has now hired a commercial real estate firm to explore options for the 75,000sqft facility, which was built to the high technical standards needed to manufacture vaccines.

Last month Valneva chief executive Thomas Lingelbach told Bloomberg News that several potential buyers had expressed an interest in the site.

Under the original deal between Valneva and the UK Government, the French firm had an obligation to repay £69.8m of the advances it received in the event the Almeida plant was sold or it was transferred away from the manufacture of Covid vaccines.

According to the financial statement filed by Valneva, this obligation expired on December 31 last year.