The UK Government has terminated an agreement with French pharmaceutical company Valneva for its Covid-19 vaccination, the company said.

Some 100 million doses of the vaccine were put on order after the UK increased its request by 40 million in February.

The Government served notice over allegations of a breach of the agreement, but the firm, which is manufacturing the jab at its site in Livingston, West Lothian, in Scotland said it “strenuously” denies the allegations.

In a statement, 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 vaccine candidate is currently in Phase 3 trials, the firm said, with results due in the fourth quarter.

“Subject to these data and MHRA (Medicines and Healthcare products Regulatory Agency) approval, Valneva believes that initial approval for VLA2001 could be granted in late 2021”, the company added.

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 continues to be committed to the development of VLA2001 and will increase its efforts with other potential customers to ensure that its inactivated vaccine can be used in the fight against the pandemic.”