A week ahead of time, the British vaccine for COVID-19 developed by AstraZeneca obtained approval. The vaccination was approved by the authorities of the country under the mechanism of emergency use, that is, without following the marketing criteria. On the first day after clearance, the first ready-made batches went to clinics and vaccine centers on last Wednesday. In trading on Wednesday, AstraZeneca shares rose more than 3 percent to close at $50.18 but failed to continue the rally on last trading session of 2020. The shares took a slight dip and closed the session on Thursday down -0.38% to $49.99.
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The peculiarity of this vaccine is that it is the cheapest vaccine for developed countries and, in the future, the most effective one. The price of an AstraZeneca vaccine is not more than $4 per dose, as opposed to at least $20 for rivals. A comparatively uncomplicated manufacturing technology (based on live antiviral vaccines, although Moderna and Pfizer have used a molecular approach) and the specifications of the British authorities, who are the key consumers, are the reasons for such extensive dumping. The first 100 million doses of AstraZeneca will be administered solely throughout the United Kingdom, adequate to partly vaccinate the entire population and fully-approximately 50% of the island’s inhabitants (the entire cycle takes two injections with a break of 3 months). It is expected that the procedure will be finished by March, following which the drug will continue to reach other markets.
The fact that AstraZeneca is active in national vaccines in Britain is a neutral consideration from the investors’ point of view. The business will not be able to make money on this, since it can only meet the expenses and distribution with the delivery price. Moving to other nations, where more customers may still be competing for the vaccine, could be more necessary and the price will eventually increase. The AstraZeneca vaccine is universal, does not require specific requirements for storage, such as deep freezing, and is thus ideal for India, Brazil, Indonesia and other tropical countries with a high population and a large domestic market. On Friday, Reuters, citing sources, reported that the company is set to get approval from Indian authorities to mass vaccination in the country.
Shares and receipts of AstraZeneca remain noticeably undervalued against competitors. This year, they have the ability to rise to $62 per share in the future, relative to the present $50. An improvement of around 24 percent can be predicted by investors.
