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Coronaviruses

AstraZeneca to Start Booking Modest Profits on COVID-19 Vaccine

Strategic Insights

— 1 min read

AstraZeneca, a British-Swedish pharmaceutical company, has announced that it will begin to book modest profits from its COVID-19 vaccine as it transitions away from its non-profit model. The vaccine, developed in partnership with the University of Oxford, had been provided at a cost of around $2 to $3 per dose for the duration of the pandemic. However, AstraZeneca plans to start making limited profits from the vaccine in the fourth quarter, which will help offset costs related to its antibody cocktail developed to prevent and treat COVID-19.

Key Takeaways:

  • AstraZeneca will start booking modest profits from its COVID-19 vaccine, marking a shift away from its non-profit model.
  • The vaccine will be sold at a limited profit, offsetting costs related to its antibody cocktail developed to prevent and treat COVID-19.
  • The company will continue to provide the vaccine at a cost to developing countries.
  • AstraZeneca's revenue jumped by about 50% in the third quarter, reaching a record $9.9 billion, driven by sales of over $1 billion in COVID-19 vaccines and $1.3 billion from its rare disease business.
  • The company has secured eight positive phase three trials, including treatments for liver and prostate cancer.
  • AstraZeneca's chief executive, Pascal Soriot, highlighted the company's strong revenue growth and pipeline delivery, with eight positive late-stage readouts across seven medicines since June.
  • The company has reaffirmed its earnings guidance for the year, indicating a range of $5.05 to $5.40 per share.

Statistics:

  • AstraZeneca's revenue jumped by about 50% in the third quarter, reaching a record $9.9 billion.
  • Sales of COVID-19 vaccines contributed over $1 billion to the company's revenue.
  • AstraZeneca's rare disease business generated $1.3 billion in revenue for the first time.
  • The company has secured eight positive phase three trials, including treatments for liver and prostate cancer.
  • AstraZeneca's earnings guidance for the year ranges from $5.05 to $5.40 per share.

Sources:

  • AstraZeneca's third-quarter update, citing the company's financial performance and pipeline delivery.
  • Pascal Soriot, chief executive of AstraZeneca, as quoted in the company's release.
  • Daniel Chancellor of Informa Pharma Intelligence, commenting on AstraZeneca's industry-leading growth rates.
  • The Associated Press, citing AstraZeneca's statement and analyst commentaries.

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