U.S. officials said they were told AstraZeneca could publish outdated information about the results of studies for the Covid-19 vaccine.
Photo:
Rouelle Umali / Zuma Press
AstraZenecaS
AZN -2.91%
The volume of vaccine data is unlikely to cost the company much, at least in the short term. Wall Street should pay close attention anyway.
U.S. officials said they were told AstraZeneca could publish outdated information about the results of studies for the Covid-19 vaccine – a surprising revelation that immediately called into question the company’s claim the day before the results showed the shot was extremely effective. AstraZeneca said in response that it will share a new data analysis in 48 hours.
This situation is extremely unusual, but investors may find reasons not to worry: it will not affect the company’s finances in the short term. The AstraZeneca Covid-19 vaccine has been widely used in places like the United Kingdom, and Dr. Anthony Fauci said on Tuesday that the vaccine is probably safe and effective. Vaccine sales are not included in the company’s year-round financial guide.
These reasons make sense, but they are ultimately short-sighted. Reliable data are the backbone of pharmaceutical activity; clinicians, regulators, and the general public must be able to trust that the clinical results are valid for selling, approving, or taking drugs. Data integrity concerns are rare even for small biotechnologies. In the modern era, any problem on this front surrounding a giant like AstraZeneca is inconceivable and especially worrying during a global pandemic.
Doubts about integrity are difficult to remove once they are sown. And a good working relationship with US drug regulators is essential even for overseas companies, as this is by far the most profitable pharmaceutical market in the world. A slower drug approval process – almost given for AstraZeneca in the future – makes it more difficult to compete with rivals that develop other drugs.
Investors who reject the current imbroglio also take a high risk that a similar problem will not arise in more profitable areas of the AstraZeneca business. For example, the company’s oncology sales reached $ 11.5 billion in 2020, up 23% from a year earlier. If data problems arose on that side, the stock would freeze.
With modestly low shares on Tuesday morning, investors can learn their lesson in an easy way.
Europe’s top regulator has approved the AstraZeneca vaccine after it was suspended in several countries due to blood clot problems. WSJ explains what’s at stake for a photo that has been widely used around the world and could soon be considered for emergency use in the US Photo: Mykola Tys / SOPA Images
Write to Charley Grant at [email protected]
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