In AstraZeneca’s earnings report today, the company announced it booked a “modest profit” from Covid-19 vaccine sales.
Over $1 billion of the company’s $9.7 billion in product sales came from the sales of it Covid-19 vaccine. It’s one of the cheapest Covid vaccines in the world, fetching a price between $4-$8 dollars, according to BBC.
The low prices are observably lower than Moderna, Pfizer, and even Johnson & Johnson’s vaccines. 💉 That’s because AstraZeneca chose to supply the vaccine at “no profit.” The company’s CEO, Pascal Soriot, indicated he had “no regrets” about choosing not to take profits while others did.
The company indicated its modest profit would be way less than other drugmakers, because AstraZeneca intend to keep it cheap. Most of the company’s Covid vaccine sales are also expected to support the development of a “Covid-19 antibody combination drug,” which is in clinical trials.
The rest of AstraZeneca’s business saw product revenue growth of 33% YoY. However, the company has booked just $1.35 billion in operating profit YTD, which is 63% lower than FY 2020. Almost all of those numbers are because AstraZeneca prioritized public health over profit.
$AZN fell 6.5% after hours, but the company still deserves a round of applause. 👏