Budapest Post

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

AstraZeneca's vaccine rollout nets $275m in sales - but drags on its profits

AstraZeneca's vaccine rollout nets $275m in sales - but drags on its profits

The FTSE 100 drugs is actually being financially hurt by the pandemic despite its key role in trying to defeat the virus.

Today's quarterly results from AstraZeneca are a very timely reminder that, for all the debate about the drug-maker's involvement in the Oxford COVID vaccine, it is of very little importance to the financial fortunes of what is currently the fifth-largest company in the FTSE 100.

In fact, AZ is actually losing money on its involvement in the vaccine rollout.

AZ today reported sales for the first three months of the year of $7.3bn - up some 15% on the same period last year.

The vaccine is being sold at cost


To put that into context, $275m of that came from sales of the COVID vaccine AZ devised with the University of Oxford, representing a mere 4% of the total.

Moreover, because AZ is selling the vaccine at cost, the product actually turned out to be a drag on the company's earnings.

These came in at $1.63 per share, up 55% on the same period last year, way ahead of the $1.48 that analysts had been expecting.

AZ said today the figure would have been $1.66 were it not for the cost of producing the Oxford vaccine.

Given that, one could be forgiven for asking whether AZ regrets its involvement in the vaccine rollout, particularly given the criticism it has received in some countries and the legal battle with the European Commission in which the company now finds itself.

Pascal Soriot, AZ's chief executive, insisted today that was absolutely not the case.

AstraZeneca has found itself in a legal battle with the EU over the vaccine

He told reporters: "We actually got involved because we wanted to help and we thought we could make a difference and develop this vaccine.

"We never pretended that we were going to be perfect, and certainly, we've learned a few things along the way.

"But imagine if we had not stepped up.

"A year ago people were talking about there being 120, 130 different vaccines.

"Where are all those vaccines? They are nowhere.

"We never overpromised, we communicated what we thought we would achieve at the time based on the capacity that we had put together.

"We don't regret anything because we look forward, not backward.

"We did our very best to help the world, and overall the team should be very proud of the difference we've made and lives we've saved.

Chief executive Pascal Soriot said: "We are proud of what we have done"


"We are proud of what we have done, and only disappointed we could not do even more."

The disclosure is nonetheless significant because it is the first time that AZ, which with its manufacturing partners has so far supplied 300 million doses of the vaccine around the world, has actually disclosed its sales to date from the Oxford vaccine.

And, happily, it does not appear to have distracted investors too much from what was nonetheless a strong set of results and which at one point sent shares of AZ up by more than 4%.

This is a company which, a decade ago, looked like a sitting duck.

Sales from its blockbuster drugs were falling as they came off patent and attempts to deliver new blockbusters had misfired.

Sure enough, an unwanted bid from US giant Pfizer materialised in early 2014.

Mr Soriot and his colleagues fought off that approach partly by promising that investors were better off waiting for AZ to bring to market the new products in its pipeline.

Today's results prove again how AZ is delivering on that promise and especially in the key therapy area of oncology.

Sales were up 20% across the piece, with revenues for Tagrisso, the lung cancer treatment, rising by 17% to $1.2bn and sales of Lynparza, a treatment for ovarian cancer, up by 37% to $543m in the quarter.

Imfinzi, a treatment for lung and bladder cancer, saw its sales rise during the quarter by 20% to $556m.

The picture was no less encouraging in other therapy areas.

Farxiga, AZ's diabetes treatment, saw quarterly sales rise by 54% to $625m while sales of Fasenra, an asthma treatment, were up by 31% to $260m.

Elsewhere, there was little news on Alexion, the rare disease specialist specialist that AZ agreed to buy in December last year for $39bn.

The City was initially lukewarm on the deal but, gradually, shareholders appear to have come around to the idea.

AZ reiterated today that the deal is due to close between July and September this year.

There were one or two blemishes.

AstraZeneca fought off an unwanted approach from Pfizer in 2014


Sales of Brilinta, AZ's heart attack drug, were down by 8% during the quarter to $374m, reflecting fewer acute coronary syndrome hospital admissions, hitting demand in China in particular.

Similarly, sales of Pulmicort, another asthma treatment, fell by 13% to $330m as COVID-19 impacted the hospital treatment of respiratory patients and cheap generic versions of the drug appeared in some markets.

Those setbacks highlight the extent to which the pandemic has actually hurt AZ.

It has hit demand for some of AZ's other products by preventing patients with conditions other than COVID getting the hospital treatment they need.

And that is even before taking into account the fact that not only has producing the COVID vaccine hit its earnings, it has dragged AZ into unwanted legal rows, which will surely have been a drain on management time.

Mr Soriot could be forgiven for reflecting on the old adage that "no good deed goes unpunished".

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
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
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×