AstraZeneca has reached an agreement with the European Commission (EC) to supply up to 400 million doses of its AZD1222 COVID-19 vaccine candidate.
AstraZeneca (AZN) said that the agreement builds on the existing accord with Europe’s Inclusive Vaccines Alliance spearheaded by Germany, France, Italy and the Netherlands. The new agreement will give all EU member states the option to access the vaccine candidate in an equal manner at no profit during the coronavirus pandemic. The terms also allow EU member states to redirect doses to other European countries.
“This first vaccine agreement with the European Commission will ensure that millions of Europeans have access to the AZD1222 vaccine following its approval,” AstraZeneca CEO Pascal Soriot said. “With production in our European supply chain soon to be started, we hope to make the vaccine available widely and rapidly, with the first doses to be delivered by the end of 2020.”
The British pharmaceutical company has in recent weeks signed supply chain agreements for the capacity to produce 3 billion doses of its vaccine candidate, which it is developing together with Oxford University. The drugmaker has inked supply deals with the US, other European Union countries, and China. Last week, the company announced that Argentina and Mexico will manufacture the COVID-19 vaccine candidate for most of Latin America.
Late-stage Phase II/III trials of the vaccine are currently underway in the UK, Brazil and South Africa and are due to start in the US, AstraZeneca said.
AZD1222 is one of several vaccine candidates supported by Operation Warp Speed (OWS), the US government program to accelerate the development, manufacturing, and distribution of COVID-19 vaccines available for Americans by Jan. 2021.
AstraZeneca shares have advanced 11% this year as the drugmaker joined the list of companies engaged in the development of a potential coronavirus vaccine. Looking ahead, the $81.84 average analyst price target puts the upside potential at a promising 48% in the coming 12 months.
Overall, the stock scores a Strong Buy consensus from the analyst community based on 3 unanimous Buy ratings. (See AstraZeneca stock analysis on TipRanks)
Related News:
Baxter Gets FDA Emergency Use Nod For Regiocit During Covid-19 Pandemic
Novavax Pops 7% On South Korea Deal For Global Covid-19 Vaccine Supply
EU Secures 200M Doses Of Johnson & Johnson’s Covid-19 Vaccine Candidate
