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AstraZeneca vaccine ‘not perfect’ but will save thousands of lives, CEO says

Click to play video: 'WHO panel recommends AstraZeneca’s COVID-19 vaccine even in countries with South Africa variant' WHO panel recommends AstraZeneca’s COVID-19 vaccine even in countries with South Africa variant
AstraZeneca’s COVID-19 vaccine is safe and effective and should be deployed widely across all age groups, including in countries where the South African variant of the coronavirus may reduce its efficacy, WHO's Strategic Advisory Group of Experts on Immunisation (SAGE) chair Alejandro Cravioto said on Wednesday – Feb 10, 2021

AstraZeneca‘s COVID-19 vaccine is not perfect, but will have a big impact on the pandemic, its chief executive predicted on Thursday, as the drugmaker pledged to double output by April and the African Union gave its backing for the shot.

The two-dose inoculation, developed with Oxford University, has been hailed as a “vaccine for the world” because it is cheaper and easier to distribute than some rivals.

But its rapid approval in Europe and elsewhere has been clouded by doubts over its most effective dosage and interval between doses.

Data at the weekend also showed it was less effective against a fast-spreading variant of the virus in South Africa, prompting the country to pause rollout of the shot, and the company has also been embroiled in a row with the European Union over supply delays.

“Is it perfect? No, it’s not perfect, but it’s great. Who else is making 100 million doses in February?” CEO Pascal Soriot said on a conference call about the vaccine.

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“We’re going to save thousands of lives and that’s why we come to work everyday.”

Read more: South Africa replaces AstraZeneca with unapproved J&J vaccine over variant concerns

The company said it aimed to produce more than 200 million doses per month by April, double this month’s level as the world tries to tame a pandemic that has killed 2.35 million.

Head of operations Pam Cheng said on the call that the group was working to further expand global capacity and productivity.

AstraZeneca has set a target to produce 3 billion doses this year, with India’s Serum Institute making much of that aimed at poorer nations.

On Wednesday, the company enlisted Germany’s IDT Biologika as a contract manufacturer, but the bulk of IDT’s contribution will only come onstream late next year.

AstraZeneca said it expected much-anticipated data from the U.S. trial of the vaccine before the end of March, and that it was confident the shot offered relatively good protection against severe disease and death for the South African variant. Its disappointing results were against milder cases.

However, after rising to become Britain’s most valuable company last summer, the company has now slipped to sixth, in a move some analysts attribute to doubts over the vaccine.

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“In a year or two we will look back and everybody will realize we made a big impact,” Soriot said.

Click to play video: 'Concerns about Oxford-AstraZeneca vaccine for seniors' Concerns about Oxford-AstraZeneca vaccine for seniors
Concerns about Oxford-AstraZeneca vaccine for seniors – Feb 5, 2021

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AstraZeneca’s shares were up 0.95 per cent in afternoon trade, paring some earlier gains, after the company forecast a pick up in earnings growth this year on strong demand for its cancer and other new therapies.

It has pledged not to make any money from its COVID-19 vaccine during the pandemic.

It has been a tumultuous week for the drugmaker after South Africa put on hold giving the shot to its citizens, choosing one developed by its U.S. rival Johnson & Johnson instead.

That came after the trial data raised concerns about the AstraZeneca vaccine’s effectiveness on mild symptoms from the more infectious 501Y.V2 variant of the virus dominant in South Africa, which has spread to 41 nations around the world.

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Despite that blow, the World Health Organization endorsed the British vaccine on Wednesday and the African Union said it would target its use in countries that have not reported cases of the variant.

Read more: South Africa suspends AstraZeneca vaccine drive amid tweaks to fight variant

Kenya and Morocco are also planning to administer it.

AstraZeneca said it expected 2021 revenues to rise by a low teens percentage and core earnings of $4.75 to $5.00 per share, as it beat expectations for fourth-quarter sales.

The earnings guidance equates to 18-24 per cent growth, after 15 per cent in 2020, but was a little lower than the $5.10 per share analysts were expecting, as the company flagged more spending this year.

The COVID-19 vaccine is not included in the guidance and the company said its sales would be reported separately from the first quarter of 2021.

While public interest is focused on the vaccine, AstraZeneca’s core business of diabetes, heart, kidney, and cancer medicines has been steadily growing, helping the company to turn around years of decline.

“The company is arguably the poster child for big pharma turnarounds,” said Third Bridge senior analyst Sebastian Skeet.

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(Reporting by Pushkala Aripaka and Ludwige Burger. Editing by Josephine Mason and Mark Potter)

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