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AstraZeneca to ramp up vaccine production and adapt for new strains
FTSE 100 pharma giant to make 100m doses in February and 200m a month by April, with new vaccines in clinical trials by the Spring
By Julia Bradshaw and Simon Foy 11 February 2021 • 1:29pm
AstraZeneca will manufacture 100m doses of its Covid vaccine this month and is adapting the treatment to combat new strains of the infection, its chief executive said.
Pascal Soriot said the monthly total would reach 200m by April as AstraZeneca ramps up manufacturing. It is also adjusting the vaccine to tackle different strains of the virus and hopes they will be ready for delivery in the autumn.
"It is becoming clear now that we will move to a stage where we are closer to what is done with the flu [vaccinating every year], where you adjust the vaccine as you go," he said.
AstraZeneca's existing vaccine, developed with Oxford University, is being produced at more than 25 manufacturing sites in 15 countries.
Production will rise sharply over the next couple of months, putting the company on track to reach its goal of delivering 3bn doses this year.
About 17m jabs will have been delivered to the EU within the next few weeks, representing 3pc of the EU population.
“That means within a month our supply we will be able to double the vaccination rate in Europe,” said Mr Soriot.
“This means hundreds of thousands of severe infections will be avoided and thousands of deaths. Who else is making 100m doses in the month of February? That is why we come to work every day as individuals.”
AstraZeneca’s head of global operations, Pam Cheng, said scaling up production over eight months, a process which normally would take years, had not been without its challenges.
“I have not seen anything like this in my entire career, everyone is working so hard,” she said.
“We are increasing output in the second quarter and strengthening Europe’s supply chain for the long-term. We are moving at an incredible pace and the supply curve will increase rapidly as we progress.”
Mr Soriot defended AstraZeneca’s vaccine, which has been the subject of unfounded criticism in recent months.
“You have to look at the big picture .... even though things have not been perfect along the way, what we have today is a vaccine that has been approved by several regulators," he said.
"It offers 100pc protection against severe disease, has more than 70pc efficacy after one dose and 80pc after two doses. In a year or two we will look back and everyone will realise we made a big impact.”
Unlike other Covid jabs, AstraZeneca is selling at cost, making it more accessible for poorer countries. It is easy to administer because it does not need to be kept frozen like the Pfizer offering.
“A year ago everyone was talking about 150 vaccines being developed, where have they all gone? There are only six to eight, and ours is one of those and is having a huge impact,” said Mr Soriot.
The comments came as AstraZeneca reported annual profits had more than doubled to $3.92bn (£2.83bn). Revenues increased by 10pc to $26.6bn last year, driven by strong growth in the oncology and respiratory divisions.
Importantly, the free cashflow comfortably covered its dividend payout - a key metric for investors and a driver of the share price. Shares rose 0.7pc to £73 in afternoon trading.
In the final quarter of 2020, sales topped the $7bn mark, the first time this has happened since 2012, when Mr Soriot joined the company and was tasked with boosting its pipeline as a number of key drugs lost their patents.
He expected strong growth this financial year and said this guidance did not include any revenue or profit impact from sales of its Covid vaccine, which it will report separately from the next quarter.
The results came after the World Health Organization recommended the Astra/Oxford Covid vaccine for over-65s on Wednesday.
AstraZeneca was the most valuable company on the FTSE 100 for many months last year with a value above £100bn, but that has since fallen to £95bn and allowed BHP, worth £118bn, to take the crown.
FTSE 100 pharma giant to make 100m doses in February and 200m a month by April, with new vaccines in clinical trials by the Spring
By Julia Bradshaw and Simon Foy 11 February 2021 • 1:29pm
AstraZeneca will manufacture 100m doses of its Covid vaccine this month and is adapting the treatment to combat new strains of the infection, its chief executive said.
Pascal Soriot said the monthly total would reach 200m by April as AstraZeneca ramps up manufacturing. It is also adjusting the vaccine to tackle different strains of the virus and hopes they will be ready for delivery in the autumn.
"It is becoming clear now that we will move to a stage where we are closer to what is done with the flu [vaccinating every year], where you adjust the vaccine as you go," he said.
AstraZeneca's existing vaccine, developed with Oxford University, is being produced at more than 25 manufacturing sites in 15 countries.
Production will rise sharply over the next couple of months, putting the company on track to reach its goal of delivering 3bn doses this year.
About 17m jabs will have been delivered to the EU within the next few weeks, representing 3pc of the EU population.
“That means within a month our supply we will be able to double the vaccination rate in Europe,” said Mr Soriot.
“This means hundreds of thousands of severe infections will be avoided and thousands of deaths. Who else is making 100m doses in the month of February? That is why we come to work every day as individuals.”
AstraZeneca’s head of global operations, Pam Cheng, said scaling up production over eight months, a process which normally would take years, had not been without its challenges.
“I have not seen anything like this in my entire career, everyone is working so hard,” she said.
“We are increasing output in the second quarter and strengthening Europe’s supply chain for the long-term. We are moving at an incredible pace and the supply curve will increase rapidly as we progress.”
Mr Soriot defended AstraZeneca’s vaccine, which has been the subject of unfounded criticism in recent months.
“You have to look at the big picture .... even though things have not been perfect along the way, what we have today is a vaccine that has been approved by several regulators," he said.
"It offers 100pc protection against severe disease, has more than 70pc efficacy after one dose and 80pc after two doses. In a year or two we will look back and everyone will realise we made a big impact.”
Unlike other Covid jabs, AstraZeneca is selling at cost, making it more accessible for poorer countries. It is easy to administer because it does not need to be kept frozen like the Pfizer offering.
“A year ago everyone was talking about 150 vaccines being developed, where have they all gone? There are only six to eight, and ours is one of those and is having a huge impact,” said Mr Soriot.
The comments came as AstraZeneca reported annual profits had more than doubled to $3.92bn (£2.83bn). Revenues increased by 10pc to $26.6bn last year, driven by strong growth in the oncology and respiratory divisions.
Importantly, the free cashflow comfortably covered its dividend payout - a key metric for investors and a driver of the share price. Shares rose 0.7pc to £73 in afternoon trading.
In the final quarter of 2020, sales topped the $7bn mark, the first time this has happened since 2012, when Mr Soriot joined the company and was tasked with boosting its pipeline as a number of key drugs lost their patents.
He expected strong growth this financial year and said this guidance did not include any revenue or profit impact from sales of its Covid vaccine, which it will report separately from the next quarter.
The results came after the World Health Organization recommended the Astra/Oxford Covid vaccine for over-65s on Wednesday.
AstraZeneca was the most valuable company on the FTSE 100 for many months last year with a value above £100bn, but that has since fallen to £95bn and allowed BHP, worth £118bn, to take the crown.