Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

AstraZeneca accused of breaking promises as it looks to make a profit on COVID-19 vaccine

AstraZeneca accused of breaking promises as it looks to make a profit on COVID-19 vaccine

More than a billion doses of the jab have so far been released around the world by AZ and its partners but until now they have been sold at cost.

Oxfam has accused AstraZeneca of breaking its promises after the drugs firm said it planned to start earning a "modest" profit from its COVID-19 vaccine having previously sold it at cost.

The Anglo-Swedish company has until now not been making a profit from the Oxford coronavirus jab and said it would not do so during the pandemic.

The vaccine has in fact proved a drag on earnings so far this year according to latest financial results.

Third quarter revenues at the firm rose 50%


But explaining the change of approach, chief executive Pascal Soriot told reporters: "We started this project to help... but we also said that at some stage in the future, we will transition to commercial orders.

"It will never be high priced. Because we want the vaccine to remain affordable to everybody around the world."

Mr Soriot said the virus was becoming endemic, a term for a background level of infections that is part of everyday life.

But Anna Marriott, Oxfam's health policy manager, said: "AstraZeneca is breaking its repeated and celebrated public promises of a non-profit vaccine for all countries for the duration of this pandemic and to never to make a profit in any low and middle-income country from this publicly funded vaccine.

"It is turning its back on these commitments at a time when the pandemic still rages and 98% of people in the poorest countries are not yet fully vaccinated."

AstraZeneca pointed out that, when speaking to reporters, Mr Soriot had emphasised that its key focus remained delivering on its no-profit commitments.

Pfizer expects sales of its vaccine to top $36bn this year


The AZ chief executive also said: "Of course, we remain always true to our contracts and nothing has changed as it relates to the low-income countries."

The change of approach on the vaccine came in a trading update as AZ said it had supplied $2.22bn worth of the drug, representing delivery of 580 million doses, in the first nine months of 2021 - including $1.05bn in the third quarter.

When including partners sub-licensed to make the vaccine it has released 1.5bn doses for supply in more than 170 countries, the company said.

It said that it was "now expecting to progressively transition the vaccine to modest profitability as new orders are received".

That will result in a "limited" profit contribution from the last three months of this year though the "large majority" of sales in the period will come from agreements already in place, AZ said.

The results showed that, over the year-to-date, the company's profit margins have shrunk compared to last year "predominantly reflecting the equitable supply, at no profit to AstraZeneca, of the pandemic COVID-19 vaccine".

However for the third quarter the vaccine did make a small positive contribution to earnings.

AstraZeneca said its revenues for the quarter rose 50% to $9.87bn.

But profits fell short of expectations as the costs of integrating rare disease specialist Alexion, following a takeover, as well as a writedown on an experimental kidney treatment and investments into its drug pipeline took their toll.

In contrast, US rival Pfizer recently said that it expected to enjoy margins in the "high-20s" as a percentage of sales of the COVID-19 vaccine it developed with Germany's BioNTech.

Those sales are expected to total $36bn this year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
×