Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

AstraZeneca gets £3 billion valuation boost following global vaccine withdrawal

Published 08/05/2024, 12:33
Updated 08/05/2024, 13:11
AstraZeneca gets £3 billion valuation boost following global vaccine withdrawal
UK100
-
AZN
-

AstraZeneca (NASDAQ:AZN) has witnessed a significant increase in its market valuation, adding more than £3 billion as it announced the global withdrawal of its COVID-19 vaccine.

The company’s shares rose by 1.6 percent, contributing to a new record high for the FTSE 100.

Withdrawal driven by commercial reasons

The Anglo-Swedish pharmaceutical giant cited commercial reasons for the withdrawal of its vaccine, which has been overtaken by newer vaccines designed to combat emerging variants.

AstraZeneca confirmed that the vaccine is no longer being manufactured or supplied, marking the end of its availability in the market.

Timing and regulatory compliance

The decision to pull the vaccine from the market was officially made on March 5, with the withdrawal taking effect this past Tuesday.

This move follows the company’s voluntary withdrawal of marketing authorization in the European Union, effectively ceasing the vaccine’s use in the region.

Legal challenges and health concerns

The withdrawal occurs amidst revelations in recent court documents where AstraZeneca acknowledged for the first time that the vaccine could cause a rare and serious side effect.

This admission has cast a shadow over the vaccine’s safety profile, although the specific details of these side effects were not disclosed in the announcement.

This article first appeared on Invezz.com

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.