Marred by the controversy around the launch of Bharat Biotech’s launch of the Covaxin, the Brazilian government suspended the clinical trials of the COVID19 vaccine. Also, the Hyderabad-based pharmaceutical company announced that it has terminated its Memorandum of Understanding (MoU) with the Brazilian companies Precisa Medicamentos and Envixia Pharmaceuticals.

Bharat Biotech did not state the reason behind the termination of the MoU but issued a statement saying: “We have very recently been informed that certain letters (as attached), purported to have been executed by executives of the company, are being circulated online. We would like to emphatically state that these documents have not been issued by the Company or its executives and therefore vehemently deny the same”.

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The termination of the pact comes after the deal with the Brazilian government for supply of 20 million doses of the vaccine landed in controversy and attracted probe by authorities in the Latin American nation.

“Notwithstanding such termination, Bharat Biotech will continue to work diligently with ANVISA, the Brazilian drug regulatory body to complete the regulatory approval process for COVAXIN®. Bharat Biotech is pursuing approvals in various countries as per legal requirements applicable in each country,” the company added in its statement.

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Bharat Biotech’s agreement with the Brazil government for supplying Covaxin has been marred by a controversy about irregularities that include allegations of an increase in the vaccine’s price.

The issue has also brought Brazil President Jair Bolsonaro under fire and had prompted the country’s Parliamentary Inquiry Committee to open an investigation into the deal.