AstraZeneca Signs More Coronavirus Vaccine Supply Deals
June 04 2020 - 5:39PM
Dow Jones News
By Peter Loftus and Joseph Walker
AstraZeneca PLC said Thursday it signed new agreements aimed at
broadening global distribution of a coronavirus vaccine being
developed by Oxford University researchers, after the drugmaker
signed supply deals that reserved initial doses for the U.K. and
the U.S.
The U.K. drugmaker said it would receive $750 million to
manufacture and allocate about 300 million doses for a global
distribution system being set up by international foundations as
part of one agreement. Under the other deal, AstraZeneca said it
would supply one billion doses for low- and middle-income
countries.
The company said in total it has secured manufacturing capacity
to support production of two billion doses of the Oxford vaccine,
which is being tested in clinical trials.
The distribution deals are the latest signed by a drugmaker
working on a coronavirus vaccine. The companies have been
straddling competing demands from national leaders who want to
secure supplies for their own populations and from those who want
to set up global allocation systems, including programs to
vaccinate health-care workers around the world before the general
population.
In the first agreement, the Coalition for Epidemic Preparedness
Innovations, an Oslo-based nonprofit that has funded several
coronavirus vaccine projects this year, said it is setting up a
global development and distribution system for coronavirus vaccines
with another nonprofit.
CEPI will lead development and manufacturing, while the other
nonprofit, Gavi, will lead procurement. Geneva-based Gavi provides
access to vaccines in poor countries.
Under the terms, CEPI will provide $383 million and GAVI will
give $367 million, an AstraZeneca spokeswoman said. AstraZeneca
will provide the 300 million doses on a "no-profit" basis during
the pandemic, CEPI said.
It is still unknown whether the vaccine will prove safe and
effective in clinical trials, but it is one of the most promising
of more than 50 vaccines reviewed by CEPI, CEO Richard Hatchett
said on a conference call with reporters on Thursday.
"We believe the probability of success is high enough that we
are willing to support the manufacturing at-risk," Dr. Hatchett
said.
AstraZeneca aims to have results of clinical trials of the
vaccine in August and begin delivering doses in the U.S. and U.K.
in September and October.
That timeline, though, is dependent on having enough clinical
trial participants as the rate of new infections slows in many
countries, AstraZeneca CEO Pascal Soriot said on the conference
call.
"We are chasing the disease in many parts of the world," Mr.
Soriot said. "We're doing our very best."
Separately, AstraZeneca said it reached a second agreement with
the Serum Institute of India to provide one billion doses for low
and middle-income countries, including 400 million by the end of
this year. The Serum Institute of India is a major manufacturer of
low-cost vaccines for the developing world. Terms weren't
disclosed.
Last month, AstraZeneca agreed to provide 100 million doses to
the U.K., with an initial supply of 30 million doses as soon as
September. Also last month, the drugmaker agreed to receive up to
$1.2 billion from the U.S. to secure 300 million doses as early as
October.
Initial supplies of any successful vaccine are expected to be
limited. Some drugmakers have sought to set up manufacturing
capacity in multiple countries, in case individual countries impose
export bans on any successful vaccines produced within their
borders.
CEPI's Dr. Hatchett said the group will work with the World
Health Organization, which will develop guidelines for allocating
vaccines.
It is likely that health-care workers and high-risk people such
as the elderly and those with pre-existing conditions like diabetes
would be prioritized for vaccination, he said. The goal, CEPI said,
is to ensure equitable access to Covid-19 vaccines for countries
that wish to participate.
The CEPI partnership with AstraZeneca will support the transfer
of vaccine-production technology to manufacturing of the doses at
sites in Europe.
Write to Peter Loftus at peter.loftus@wsj.com and Joseph Walker
at joseph.walker@wsj.com
(END) Dow Jones Newswires
June 04, 2020 17:24 ET (21:24 GMT)
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