AstraZeneca begins to profit from sales of its Covid-19 vaccine – Community News

AstraZeneca begins to profit from sales of its Covid-19 vaccine

The company sold for $2.2 billion of the recording in the first nine months of the year. In the quarter ended September 30, the vaccine revenue was $1.05 billion, contributing one cent to profit per share.

Announcement of his earnings on Friday, the UK’s largest pharmaceutical company said it expects modest profits from the vaccine in the last quarter of this year as it issued guidance on the sales impact of its Covid-19 vaccine for the first time.

“The company now expects to gradually transition the vaccine to modest profitability as new orders are received,” it said.

The majority of vaccine sales between October and December this year are expected to come from existing supply agreements, the company said, adding that it also expects some new orders.

A company spokesperson confirmed that AstraZeneca would continue to fulfill existing orders to developing countries on a non-profit basis, as previously promised.

“We are still very much committed to our existing agreement with Oxford [University] and will continue to fulfill [those] orders at cost,” she told CNN Business.

The company said “the limited profit contribution from the vaccine” in the fourth quarter would offset costs associated with a Covid-19 antibody combination drug it is testing.

Sales of its Covid-19 vaccine contributed to a rise in AstraZeneca’s total revenues for the first nine months of the year. years, they were on by nearly a third to $25.4 billion.

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It said the company and its sub-licensing partners “had released more than 1.5 billion doses of vaccine for delivery in more than 170 countries as of September 30, 2021.”

AstraZeneca’s total operating profit for the year to date was 63% lower than the same period in 2020 to $1.3 billion. Pre-tax profits fell to $371 million from $2.75 billion a year earlier.

According to the company, delivering the Covid-19 not-for-profit to AstraZeneca had contributed to a decline in its core profit margin of six percentage points to 74.1%, in addition to an increase in overheads and research costs.