AstraZeneca To Book Modest Profit From COVID-19 Vaccine
British-Swedish pharmaceutical company AstraZeneca said Friday that it will start to book a modest profit from its coronavirus vaccine as it moves away from the nonprofit model it has operated during the pandemic, Pan Pylas reported for the Associated Press (AP).
Photo Insert: AstraZeneca's COVID-19 vaccine
In a third-quarter update, the company said it is “now expecting to progressively transition the vaccine to modest profitability as new orders are received.” It said the “limited” profits from the vaccine in the fourth quarter will offset costs related to its antibody cocktail developed to prevent and treat COVID-19.
Until now, AstraZeneca said it would provide the vaccine “at cost” — around $2 to $3 — for the duration of the pandemic following an agreement with the University of Oxford, which developed the vaccine. Other COVID-19 vaccine producers, such as Pfizer and Moderna, have been booking hefty profits on their shots all along.
AstraZeneca confirmed Friday that it will not be making any coronavirus vaccine profits from developing countries. The change came as AstraZeneca unveiled plans to set up a separate arm for vaccines and antibody treatments that focus on COVID-19.
It marks the fact that AstraZeneca was only a minor player in the provision of vaccines before the pandemic. In its update for the three months through September, the company said revenue jumped by about 50%, to a record $9.9 billion.
The uptick was due to sales of more than $1 billion in COVID-19 vaccines and the inclusion for the first time of some $1.3 billion worth of revenue from its rare disease business unit following the recent acquisition of Alexion.