Astrazeneca to profit from Covid jabs as virus becomes ‘endemic’

‘We started this to help, but we also said that at some stage we will transition to commercial orders’

ASTRAZENECA is to start taking a profit from its Covid jab in a sign that one of the world’s biggest drug makers believes the pandemic is at an end.

The pharmaceutical company said that coronavirus is becoming endemic and a pledge to deliver its vaccine at cost price is no longer needed.

Astra’s chief executive Pascal Soriot urged countries to accept that coronavirus will continue to circulate in a similar way to flu as life returns to normal. He said: “We did actually start this project to help, but we also said that at some stage in the future, we will transition to commercial orders.

“The virus is becoming endemic and we have to learn to live with it.”

Experts believe Britain is on the cusp of endemicity – where infection levels are relatively stable rather than surging in massive waves – after cases steadily declined in the absence of restrictions this month. Other European countries such as Austria and Germany are experiencing sharp rises but are thought likely to reach endemicity within months.

Astra has said that it will “progressively transition the vaccine to modest profitability”, and has started to strike deals with buyers for next year on this basis. It will continue to supply the developing world at cost.

The Cambridge-based business was one of only two vaccine makers to forgo a profit on its jabs when Covid hit, as part of efforts to ensure it was affordable to as many countries as possible. Its US rival Pfizer has profit margins on its jab of close to 30pc and expects to make $36bn (£27bn) from sales.

Despite this, Astra became a political football during the pandemic. It has faced heavy criticism from EU politicians over the past year.

Mr Soriot said Astrazeneca would make lower profits on its vaccine than its rivals and that the vaccine would never be “high priced”.

Profits made in the fourth quarter from the jab will offset Astrazeneca’s spending on its new Covid antibody treatment, the company said.

The company had revenues of $1bn from its vaccine in the third quarter, helping send sales 48pc higher to $9.9bn.

Astra is the second largest Covid vaccine supplier by volume and still accounts for much of the Covax supply, delivering doses to developing nations. It has sold more than $2.2bn of vaccines since the start of this year.

Its shares fell by 6.8pc to £88.01 yesterday after quarterly profits missed expectations.