LONDON (Reuters Breakingviews) – Concise insights on global finance in the Covid-19 era.
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TUNNEL VISION. AstraZeneca is trying to divert attention from vaccines. While the $ 130 billion group has created one of the world’s leading Covid-19 jabs, questionable efficacy for over-55s and snafus in the supply chain in Europe has caused a headache for Chief Executive Pascal Soriot. On Thursday, he highlighted the success of the core business, where sales of new drugs outpace older drugs, and revenue projected to rise by a low percentage of teens in 2021, excluding the roll-out of vaccines.
As of the first quarter, AstraZeneca will withdraw vaccine sales from its core businesses as a result of its decision to sell the injections at cost for the duration of the pandemic. This should reassure investors who have been pushing shares 11% since last September, when the company was forced to halt a vaccination trial. AstraZeneca is still trading at 20 times its expected earnings, well above peers like GlaxoSmithKline. Soriot doesn’t want the vaccine to contaminate its premium rating. (By Aimee Donnellan)
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