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AstraZeneca Rakes In Sale Revenue Of $275 Mln For Its Covid-19 Vaccine In Q1


04/30/2021


AstraZeneca Rakes In Sale Revenue Of $275 Mln For Its Covid-19 Vaccine In Q1
The Covid-19 vaccine developed jointly by the British pharmaceuticals giant AstraZeneca and University of Oxford has brought in the pharma company sale revenues of $275 million (227 million euros) during the first quarter of the current year.
 
This is the first occasion that the company has discloses figures of sales revenues of one of the leading Covid-19 vaccines of the world.
 
AstraZeneca’s Covid-19 vaccine has been at the core of the rapid vaccination drive in the United Kingdom.  The company said that it sold the vaccine at the cost price.
 
However concerns and worries related to very rare blood clots in a few people who had taken the vaccine has dented public confidence in the vaccine to some extent. Additionally, the company is also in a legal tussle with the European Union over breach of delivery of contract for supplying of its vaccines.
 
Making this disclosure of revenues from its Covid-19 vaccine sale in its earnings statement, the company reported that the first quarter its net profit doubled $1.56 billion compared to $780 million reported by the company in the same period a year earlier.
 
The company said that there was a 15 per cent growth in revenues of the company for the quarter - or 11 per cent at constant exchange rates, and reached to $7.32 billion. Excluding the contribution from the Covid-19 jab, revenues of the company increased by 11 per cent — or 7.0 per cent at constant rates — to $7.045 billion.
 
Strong demand and sales of new cancer drugs had boosted the quarterly performance of the company in the quarter, AstraZeneca added.
 
However there has been a “negative impact" on both the diagnosis and treatment of other conditions apart from Covid-19 because of the pandemic, the company also cautioned.
 
“We delivered solid progress in the first quarter of 2021 and continued to advance our portfolio of life-changing medicines," said chief executive Pascal Soriot in the earnings release. “New medicines contributed over half of revenue and all regions delivered encouraging growth," Soriot said.
 
“This performance ensured another quarter of strong revenue and earnings progression, continued profitability, and cash-flow generation, despite the pandemic’s ongoing negative impact on the diagnosis and treatment of many conditions," Soriot added.
 
The past week however has been a difficult one for AstraZeneca as a legal action against the company over shortfalls in Covid-19 vaccine delivery - that upended the efforts to speed up the inoculations process, was launched by the European Union.
 
Allegations of breaches of an advanced purchase agreement have been levelled by the EU against the company. However the pharma company has denied the charges and described the legal action to be one “without merit". AstraZeneca said that it will strongly fight for itself in court.
 
AstraZeneca was supposed to deliver about 50 million doses to EU by the end of April but was nowhere close to the amount that is being claimed by Brussels, the company said.
 
(Source;www.nasdaq.com)