AstraZeneca will get modest profit from coronavirus vaccine
The British-Swedish pharmaceutical company AstraZeneca said on Friday that as it moves away from the non-profit model of operating during the pandemic, it will begin to make modest profits from its coronavirus vaccine.
In the third quarter update, the company stated that “it now expects to gradually transform the vaccine into moderate profitability as new orders are received.” The company stated that the vaccine’s “limited” profit in the fourth quarter will be offset Costs associated with the antibody cocktail developed to prevent and treat COVID-19.
So far, AstraZeneca has stated that after reaching an agreement with Oxford University, which develops the vaccine, it will provide the vaccine “at cost” during the pandemic—approximately US$2 to US$3. Other COVID-19 vaccine manufacturers, such as Pfizer and Moderna, have been making huge profits for their injections.
AstraZeneca confirmed on Friday that it will not receive any coronavirus vaccine profits from developing countries.
This change happened when AstraZeneca announced plans to establish an independent department for vaccines and antibody treatments focused on COVID-19. This marks the fact that AstraZeneca was only a small player in providing vaccines before the pandemic.
In the three-month update ending in September, the company stated that revenue increased by about 50% to a record $9.9 billion. The reason for the increase is that the sales of COVID-19 vaccines exceeded US$1 billion, and approximately US$1.3 billion in revenue from its rare disease business unit was included for the first time after the recent acquisition of Alexion.
Daniel Chancellor said: “Although the year-on-year growth rates of these two special projects have deviated, the company’s core businesses such as oncology, cardiovascular, kidney and metabolism, and respiratory and immunology continue to maintain strong momentum and industry-leading growth rates. Informa Pharmaceutical Intelligence.
AstraZeneca said that positive sales trends will continue after eight positive phase III trials including treatments for liver cancer and prostate cancer.
“AstraZeneca’s scientific leadership continues to provide strong revenue growth and excellent pipeline delivery. Since June, eight positive late readings of seven drugs, including our long-acting antibody portfolio, have been used in prevention and treatment. COVID-19 is showing promise,” said CEO Pascal Soliot.
AstraZeneca also adhered to its annual earnings guidance of US$5.05 to US$5.40 per share.