The news appears to be improving for coronavirus fighting operations. Not only did we recently get some good news out of Gilead Sciences (NASDAQ:GILD) after its remdesivir got a full approval from the FDA, but now, there's new word that AstraZeneca (LON:AZN) is back in play as well. Its vaccine trials are up and running again, and the outcomes are actually improving.
A False Start Leading to a Better Ending?
Back in mid-September, one of the worst possible outcomes hit for AstraZeneca during its coronavirus vaccine trials: a serious spinal injury. While the exact nature of what happened is still kept quiet, reports suggest that one of the subjects involved in the testing had transverse myelitis, which impacts the spinal cord and is often made worse by viral infections. Considering that a vaccine is basically just a scaled-down viral infection, it's a safe bet the vaccine and the spinal injury were therefore connected.
It's worth noting also that the initial trials featured around 18,000 participants, so for only one such incident to occur seems like a solid outcome. A tragedy for the one, sure, but for the 17,999 not affected, likely a win.
Fast forward to the latest set of trials that were restarted not long after the first incident occurred, and the news is impressive. The reports out of the newest trials suggest that a “similar immune response” was produced up and down the demographic lines, meaning that both younger and older adults generated similar results. Better yet, the vaccine's testing in the elderly found out that negative responses were actually lower in number. That opens up the possibility for a lot more use and better patient outcomes.
Back in the Horse Race
The latest word out of the World Health Organization (WHO) says that there are “dozens” of candidate vaccines currently in progress, with some looking to conclude their late-stage testing before actually getting formal approval. A variety of options will be good all around, as it will serve to not only have enough vaccine on hand quantity-wise, but also help serve to keep prices down as competitive factors kick in.
Better yet, the infrastructure is already in place; the Trump Administration recently inked deals with both Walgreens (NASDAQ:WBA) and CVS Health (NYSE:CVS) to deliver coronavirus vaccine to elderly and staff members in long-term care facilities, which have overwhelmingly been hit by this disease.
Analysts are Less Sure About This Race
Certainly, the recovery of AstraZeneca's position in the vaccine stakes is good news, and the market is responding accordingly, with the company up around 1% in pre-market and up 2.36% as of this writing. Despite these gains, however, the analysts are less than sure overall that AstraZeneca is a good stock to pick up, according to the results of our latest research.
The current word puts six “sell” ratings on the company, along with two “hold” and 12 “buy.” That's improved a bit from recent figures—30 days ago there were only 11 “buy”, but 90 days ago, there were 12—but with half as much “sell” as “buy”, it's not a ringing endorsement. The price target, however, has increased nicely, currently at its highest level in 180 days. With Berenberg and Citigroup holding their “buy” ratings from just under a month ago, there's certainly an element in favor of picking up AstraZeneca stock, and this latest news should help the company out further.
A Horse in the Race is Almost as Good as a Win
AstraZeneca is indeed making a comeback from its earlier slip in the race, and it seems to be on track to deliver a functioning vaccine to the market, which will definitely give it a leg up in terms of product sales overall. Sure, it will have some challenges, like plenty of competitors in similar stages of release and a public who isn't exactly on board with the notion of taking a vaccine in general. Yet considering that the early stuff will be proceeding to long-term care facilities first, the point is comparatively moot.
There won't be vaccine available for the youth market or the middle-aged folks for some time to come anyway. There will likely also be production concerns—they can only make so much so fast—but with several companies producing at the same time, most everyone who wants it will be able to get it one way or another, and pretty rapidly. That means businesses will be able to divide up the market accordingly, and that's good news for everyone who can actually get a vaccine in play, like AstraZeneca. Throw in the company's other product lines, and if you didn't already get in on AstraZeneca when we were covering it earlier, you may still have the chance to do so and catch future upticks.
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