Shares of Cambridge-based pharmaceutical company Astrazeneca (LON:AZN) have slipped over 1% on Monday morning despite news that the coronavirus vaccine has been proven to be up to 90% effective in preliminary trial data in partnership with Oxford University.
Early results showed that the first half dose could provide 70% protection against the virus, but secondary full doses of the vaccine increased immunity to 90%.
Additionally, additional data showed that the AstraZeneca Oxford vaccine helps prevent the spread of coronavirus in asymptomatic patients after researchers reported a decrease in infection among patients without symptoms.
So far, clinical trials have shown that the vaccine is safe, with only a few complaints about pain in the patient’s arm and fever. There was no major concern in the database of over 24,000 volunteers from the UK, Brazil and South Africa.
The 70% effectiveness result could leave investors disappointed, but following the news last week’s news that Pfizer and Moderna jabs offer up to 95% protection, the Astrazeneca-oxford vaccine is much cheaper to produce and store only the transatlantic counterparts.
The UK government has already pre-ordered 100 million doses in preparation for a mass deployment as soon as the vaccine becomes widely available, but AstraZeneca has pledged to offer 3 billion doses for global use over the next year.
“Today’s announcement brings us one step closer to an era where vaccines can be used to end the devastation caused by (the virus),” said Sarah Gilbert, professor of immunology at Oxford.
British Prime Minister Boris Johnson has also welcomed “incredibly exciting news” and despite additional safety checks before the vaccine hit the market, he has welcomed “great results” as an early victory over the pandemic.
Nevertheless, shareholders appear to receive news of effectiveness at 70% at face value, with AstraZeneca’s shares slipping from 1.76% to 8,171.00p at noon, continuing from a week’s downward orbit of 3.96%.
The company has a P/E ratio of 22.4, with future dividend yields over 2.6% over the next 12 months.
