AstraZeneca stated losses on Vaxzevria have been the primary issue that shaved seven share factors off its Reported Gross Revenue Margin, which fell to 73.5 p.c within the first half of the yr.
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This story initially appeared on The Epoch Instances
AstraZeneca, which pledged to supply its COVID-19 vaccine at no revenue in the course of the pandemic, stated Thursday that losses within the first half of the yr on its vaccine shaved 4 cents off the pharmaceutical large’s earnings per share.
Gross sales of Vaxzevria, the corporate’s COVID-19 vaccine, generated $1.17 billion in income in the course of the first six months of the yr, together with $894 million within the second quarter, in line with AstraZeneca’s earnings report, launched on July 29.
However whereas these revenues narrowed AstraZeneca’s hit from providing the COVID-19 vaccine at no revenue, the corporate stated losses on Vaxzevria have been the primary issue that shaved seven share factors off its Reported Gross Revenue Margin, which fell to 73.5 p.c within the first half of the yr.
“The efficiency predominantly mirrored the numerous impression of the equitable provide, at no revenue to AstraZeneca, of the pandemic COVID-19 vaccine, along with an rising impression from profit-sharing preparations,” AstraZeneca stated within the report.
AstraZeneca stated losses on Vaxzevria shaved three cents off earnings per share within the first quarter, and one cent within the second quarter. In keeping with a Wall Avenue Journal evaluation, AstraZeneca misplaced $40 million on its COVID-19 vaccine within the first quarter, and $13 million within the second quarter.
The corporate reported a internet revenue within the second quarter of $550 million, lacking the Factset consensus forecast of $1.19 billion. AstraZeneca’s internet revenue within the second quarter of 2020 got here in at $756 million.
On the identical time, internet revenue within the first half of 2021 got here in at $2.1 billion, 42 p.c greater than $1.5 billion within the first half of final yr.
“AstraZeneca has delivered one other interval of robust development due to strong performances throughout all areas and illness areas,” stated AstraZeneca CEO Pascal Soriot, in a press release commenting on the outcomes.
On Thursday, AstraZeneca stated it intends to hunt U.S. approval for its COVID-19 vaccine later this yr. The Anglo-Swedish drugmaker stated the appliance has been delayed as a result of the corporate determined to ask the Meals and Drug Administration (FDA) for full regulatory approval, slightly than the fast-track emergency use authorization.
Among the many issues AstraZeneca should deal with are experiences that the vaccine could also be linked to uncommon blood clots, which have induced some international locations to restrict its use in youthful individuals.
AstraZeneca has promoted its comparatively low-cost, easy-to-handle shot as a “vaccine for the world” and has already acquired authorization from greater than 170 international locations. The corporate stated it supplied about 90 p.c of the doses distributed by the COVAX facility for low- and middle-income international locations within the first half of the yr.
AstraZeneca is the second drugmaker to say it has delivered greater than 1 billion doses of COVID-19 vaccine globally, following Pfizer’s announcement on Wednesday.
By Tom Ozimek
The Related Press contributed to this report.
Comply with Tom on Twitter: @OZImekTOM