AstraZeneca confuses investors after reporting two different efficacy rates achieved by its Covid-19 vaccine
AstraZeneca will sell its vaccine to governments at significantly lower prices as compared to Pfizer and Moderna.
Staff or Guest writer for The Dog of Wall Street.
2020-11-23 14:45

AstraZeneca PLC (NASDAQ: AZN) on Monday reported that its vaccine achieved a 70 percent efficacy rate on average in preventing the Covid-19. The results are based on the data from a late-stage trial. AZN shares fell nearly 2 percent this morning following the news. 

The apparent reason behind the drop seems to be a comparatively much lower effectiveness percentage achieved by AZN’s vaccine as compared to rivals Pfizer Inc. (PFE) and Moderna Inc. (MRNA), who accomplished more than 90 percent efficacy in preventing the virus.

However, British drugmaker AstraZeneca said its vaccine was 90 percent effective when tested in a small subgroup of nearly 2,700 people in Brazil and the United Kingdom who were given a half dose followed by a full dose with a four-week interval. Though, the company achieved an efficacy rate of 62 percent after testing the vaccine on a large group of around 8,900 people, giving them two complete doses with an interval of a month. 

AstraZeneca, which is developing the vaccine in collaboration with the University of Oxford, faced criticism from industry experts for reporting two different efficacy rates. However, AstraZeneca has one notable edge over its rivals. It will sell its vaccine to governments at significantly lower prices as compared to Pfizer and Moderna. 

Moreover, AstraZeneca’s vaccine can be shipped and stored at normal refrigeration temperature, making it easy to distribute, particularly in developing countries. On the other hand, Pfizer’s vaccine needs to be kept at -70C. So, the company’s vaccine may do well in less developed countries. 

AstraZeneca stock is currently trading on a heavy volume of 12 million shares, as compared to the daily average volume of 4.52 million shares. The stock has seen many ups and downs this year. Overall, AZN share price rose nearly 9 percent on a year-to-date basis.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-23 14:45

About the Author
Staff or Guest writer for The Dog of Wall Street.

Analyst Ratings
Target Price $62.21
# of Analysts 22
Last updated 2020-11-29

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