AstraZeneca

Shocking_Blue

Dear all,
Just wondered why the AZN share price isn't making more upward movement, bearing in mind the recent vaccine approval.
Thanks in advance

Alistair31

It’s a not-for-profit endeavour.

Shocking_Blue

Alistair31 said:

It’s a not-for-profit endeavour.

Ok. Cleared that question up. Thanks.

Aretnap

Alistair31 said:

It’s a not-for-profit endeavour.

Not quite. They've said it will be sold in developing countries at cost price in perpetuity - but those aren't very big markets anyway. In developed countries they've reserved the right to increase the price once the pandemic has ended, and they'll decide for themselves when it has ended. Assuming Covid becomes endemic and the vaccination becomes an annual jab like the flu jab, it could still be quite lucrative for them in the longer term.

I assume that the collective "meh" from the stock market was more because nobody who has been paying any attention was surprised by today's news. It was widely reported over Christmas that approval was imminent and that might explain the fact that their share price went up by nearly 5% when the markets reopened yesterday.

Apodemus

With all the ongoing (and properly deserved) hype about the Oxford/Astra Zeneca vaccine, since early summer, I suspect that this was priced-in long ago!

Thrugelmir

Apodemus said:

With all the ongoing (and properly deserved) hype about the Oxford/Astra Zeneca vaccine, since early summer, I suspect that this was priced-in long ago!

Many vaccines in the pipeline. No certainty as to those that meet approval first. At least we are good at something in the UK!  Also fair. Unlike the price gouging US medical companies. 

Sue58

Hence the share price will remain stagnant for the forceable future? It has already had its rise in value to 10,000!

AnotherJoe

Shocking_Blue said:

Dear all,
Just wondered why the AZN share price isn't making more upward movement, bearing in mind the recent vaccine approval.
Thanks in advance

Plus the rise would have been baked in weeks ago.

Plus its a one-shot (well OK two shot) deal, its not like a drug for a condition thats taken for years. 

Aretnap

AnotherJoe said:

Plus its a one-shot (well OK two shot) deal, its not like a drug for a condition thats taken for years. 

Not many vaccines provide strong protection for life. There are good reasons to think that Coronavirus vaccines will not be among them. Obviously nobody knows exactly how long the protection will last; however the likelihood is that people, particularly the vulnerable, will need booster shots every year, or at least every few years. And that's before you consider the possibility of new strains emerging over time which will need tweaks to the design of the vaccine. I suspect that there will be a long term market for Covid vaccines. 

AnotherJoe

You could be right, and if you are, I suspect the market hasn't take that into account so you should buy shares now.

The reason i think it hasn't taken that into account is, when the news of the new variant came out, shares in vaccine companies dropped, presumably on the thinking that "oh well the current one wont work so well then (hopefully wrong) rather than "oh that means more vaccine needed".

The market is not always efficient or right.

Thrugelmir

AnotherJoe said:

Shocking_Blue said:

Dear all,
Just wondered why the AZN share price isn't making more upward movement, bearing in mind the recent vaccine approval.
Thanks in advance

Plus its a one-shot (well OK two shot) deal, its not like a drug for a condition thats taken for years. 

Covid is here for the foreseeable future. Reassuring that the UK has world leading expertise.