Pharmaceutical company AstraZeneca PLC (LSE: AZN-GB) has caught the attention of investors after news reports indicated that US President Donald Trump is fast-forwarding the company’s COVID-19 vaccine candidate, in an effort to offer it to US citizens ahead of the presidential election scheduled for November.
In the meanwhile, the company has issued a statement revealing the beginning of clinical trials for a dual-use antibody drug which, if successful, can be used to prevent and treat Coronavirus infections. The stock of AstraZeneca closed at $57.01, up $0.25 or 0.44% from the prior close.
The news first published by FT indicates that the US FDA (Food and Drug Administration) will issue “emergency use authorization (EUA)” for the COVID-19 vaccine developed in the UK by AstraZeneca in partnership with Oxford University.
Notably, on Saturday last week, Trump had accused the FDA from hindering the drug companies from trialing the potential COVID-19 vaccines and other therapies for political considerations.
In a tweet, Nancy Pelosi, the House Speaker, responded to Trump’s accusations by asking the FDA not to yield to the political clout of the White House. She further stated that Trump’s “dangerous attempt to inject himself into the scientific decisions of @US_FDA jeopardizes the health & well-being of all Americans.”
Neither AstraZeneca nor the FDA has confirmed the media news so far.
If a vaccine for COVID-19 becomes available before the presidential election, Trump will have an opportunity to boast his handling of the pandemic and minimize the criticism against him. Last Thursday, while giving a convention speech, ex-Vice President Joe Biden, made a scathing attack on Trump’s management of the COVID-19 crisis, terming it as the “worst performance of any nation on Earth.”
So far, over 5.8 million people in the US have been infected by the COVID-19 disease in the US, reflecting almost 25% of the cases worldwide, as per data provided by Johns Hopkins University. The death toll due to the coronavirus has crossed 175,000 in the US.
Notably, on Sunday, the regulator issued a EUA for convalescent plasma treatment of coronavirus patients who are hospitalized. White House staff had earlier alleged that politically driven postponements by the FDA in endorsing a vaccine are decreasing the probability of Trump’s victory in the election.
As mentioned earlier, AstraZeneca’s partner in vaccine development, University of Oxford, had begun human trials in April. The scientists involved in the trial revealed that the vaccine generated a “strong immune response” in the outcome of Phase I/II trial in July.
The vaccine is now undergoing mass Phase II/III trials involving 30,000 volunteers in the US, pediatric research, and trials in lower-income to middle-income nations, such as South Africa and Brazil. The company stated that it is not anticipating efficacy results until the end of this year.
The US inked an agreement with AstraZeneca in May to produce 300 million doses of the COVID-19 vaccine for Americans, with the first batch to be delivered in October. Under the agreement, the US Biomedical Research and Development Authority has granted over $1 billion in funding for the project.
A spokesperson for AstraZeneca clarified that the company “has not discussed emergency use authorization with the US government and it would be premature to speculate on that possibility.”
Regarding Trump’s initiative, CMC Markets analyst David Madden opined that the President was “keen to get a grip on the health crisis. The drug in question still has a long way to go in terms of development, but the bulls have jumped on the story.”
In a separate news release, the company has stated that it has begun a clinical trial of a drug candidate named AZD7442, which can be used both as a vaccine (to prevent COVID-19 infection) and a drug (treat infected patients).
In the early-stage trial, AZD7442, which uses a combo of two monoclonal antibodies (mAbs), was found to be risk-free and bearable in 48 healthy volunteers aged between 18 and 55 years.
It is not the first time such an approach is being made to treat a disease. Regeneron, Roche, Eli Lilly and Molecular Partners have used the approach earlier, with recognition from top scientists.
Anthony Fauci, the US infectious diseases specialist, expressed a positive view about mAbs by calling them “almost a sure bet” against coronavirus infection. Notably, AstraZeneca was awarded $23.70 million in funding by the US government agencies to develop antibody-based therapy for COVID-19.
Regarding mAbs, Mene Pangalos, Astra’s executive vice president of biopharmaceuticals R&D, said: “This combination of antibodies, coupled to our proprietary half-life extension technology, has the potential to improve both the effectiveness and durability of use in addition to reducing the likelihood of viral resistance.”
The possibility of expediting AstraZeneca’s COVID-19 vaccine through EUA certification and the start of a clinical trial of dual-use antibody-drug AZD7442 is expected to keep the stock range-bound with bullish bias in the short-term.
The price chart indicates that the stock is moving along the ascending trend line, as shown in the image below. The stochastic rsi indicator is in the oversold region. Therefore, we are anticipating the stock to remain in an uptrend for the next 2-3 days.
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