# AstraZeneca says its COVID shot still has role despite global glut
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: AstraZeneca CEO discusses the future of COVID-19 vaccine
Meta Description: Discover why AstraZeneca's COVID-19 vaccine, Vaxzevria & Covishield, remains relevant despite slow sales and global supply surplus. CEO insights & more.
URL: https://financedigest.com/astrazeneca-says-its-covid-shot-still-has-role-despite-global-gluthtml

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By Natalie Grover and Pushkala Aripaka

(Reuters) -AstraZeneca’s COVID-19 vaccine still has a role to play in the fight against the pandemic, even as sales slow and the company charges more in some places, CEO Pascal Soriot said on Friday, the latest drugmaker to warn about a global supply glut.

The comments come after the company reported better-than-expected first-quarter profit and sales driven by the vaccine, its second bestseller last year raking in $3.9 billion. It also confirmed its forecast that 2022 [sales of the shot would fall](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite").

The vaccine, branded as Vaxzevria and Covishield, has struggled to compete with rivals made by Pfizer and Moderna using mRNA technology, and has hit setbacks with production, rare side-effects and relatively limited [shelf life](https://www.financedigest.com/exclusive-short-astrazeneca-shelf-life-complicates-covid-vaccine-rollout-to-worlds-poorest.html "Exclusive-Short AstraZeneca shelf life complicates COVID vaccine rollout to world’s poorest"). [Approval in the United States has been delayed](https://www.financedigest.com/eu-commission-approves-delay-in-medical-devices-law-to-avert-shortages.html "EU commission approves delay in medical devices law to avert shortages").

Soriot said the shot, which was seen early in the [pandemic as the inoculation of choice for low-income countries](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot"), should remain relevant because it’s easy to administer and distribute.

Volume will ease, though, because [people will probably only need](https://www.financedigest.com/people-need-people-humanising-the-digital-banking-experience.html "People need People – Humanising the digital banking experience") one booster.

We are no longer in a period of scarcity of [vaccine supply](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") – we have oversupply everywhere around the world. So what is out there [needs to be used and then of course we’ll be able to get a better sense for reordering,” he said on a media call](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says").

Rival Johnson & Johnson this month pulled its [sales forecast](https://www.financedigest.com/ferragamo-sales-beat-forecasts-in-h1-despite-slowdown-in-china.html "Ferragamo sales beat forecasts in H1 despite slowdown in China") for its COVID-19 vaccine, blaming oversupply on hesitancy in developing countries.

So far, 2.9 [billion shots of the AstraZeneca vaccine have been delivered globally](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks").

In the first quarter, the company recorded $1.15 billion in sales for the product, the majority of which came from initial contracts, but that number eclipsed analysts’ consensus forecast of $739 million, cited by [Credit Suisse](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout").

AstraZeneca’s [shares were down 0.6% in early afternoon trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"), underperfoming London’s blue-chip index.

The company has started earning a modest profit on the vaccine, which was initially sold at-cost, but it will continue selling in low-income countries on a non-profit basis.

Apart from the vaccine, AstraZeneca also has a COVID-19 treatment, Evusheld, which has been authorised in many regions including the United States, United Kingdom and [European Union for preventing infections in people whose immune system is too weak](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries") to respond to vaccines.

The drug generated $469 million in first-quarter revenue, below the consensus forecast of $480 million, cited by [Credit Suisse](https://www.financedigest.com/swiss-franc-grapples-with-safe-haven-identity-crisis-after-credit-suisse.html "Swiss franc grapples with safe-haven identity crisis after Credit Suisse").

Access to the drug in the United States has been limited by logistical bottlenecks that are being addressed, Soriot said, adding [Britain was one of the few developed countries](https://www.financedigest.com/britain-launches-trade-system-for-developing-countries.html "Britain launches trade system for developing countries") that has not ordered Evusheld.

It’s a sad situation, quite frankly, because people who are immunocompromised are really suffering from the [COVID crisis.”](https://www.financedigest.com/analysis-covid-crisis-could-deepen-n-korea-food-shortages-amid-drought-warnings.html "Analysis-COVID crisis could deepen N.Korea food shortages amid drought warnings")

CANCER

AstraZeneca – which unveiled plans to [open an R&D centre](https://www.financedigest.com/ukraine-grain-export-coordination-centre-opens-in-istanbul.html "Ukraine grain export coordination centre opens in Istanbul") in Cambridge, Massachusetts designed to serve as the new headquarters for rare disease unit Alexion, which it bought last summer – relies on cancer drugs for about a third of its total product sales.

Even though COVID-19 levels are beginning to wane, access to cancer diagnoses and treatment has still not rebounded to [pre-pandemic levels](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels"). Things should normalise over the [next few months](https://www.financedigest.com/prince-harry-and-meghan-to-visit-britain-next-month.html "Prince Harry and Meghan to visit Britain next month"), Soriot predicted.

Meanwhile, the company pared [back its expectations for China](https://www.financedigest.com/russia-sharply-scales-back-far-east-war-games-with-china.html "Russia sharply scales back Far East war games with China"), which accounted for about 16% of total revenue last year.

The Anglo-Swedish drugmaker said it expected sales there to decline by a mid-single-digit percentage in 2022, largely due to the impact of a programme designed to bring down the [prices of off-patent drugs](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") in the country.

The future for China, we believe is still very strong and we [expect to return](https://www.financedigest.com/lufthansa-expects-further-significant-improvement-after-return-to-profit.html "Lufthansa expects further ‘significant improvement’ after return to profit") to growth in the next couple of years,” Soriot said, cautioning that lockdowns in China this year could hurt the uptake of cancer and other drugs.

[(Reporting by Pushkala Aripaka in Bengaluru and Natalie Grover in LondonEditing by Jason Neely and Mark](https://www.financedigest.com/geoengineering-marks-scientific-gains-in-u-n-report-on-dire-climate-future.html "Geoengineering marks scientific gains in U.N. report on dire climate future") Potter)


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