AstraZeneca (AZN) has booked its first profit from sales of its Covid-19 vaccine.
The company sold $2.2 billion worth of the shot in the first nine months of the year. In the quarter ending September 30, the vaccine's sales totaled $1.05 billion, contributing one cent to earnings per share.
Announcing its earnings on Friday, the UK's largest pharmaceutical company said it expected to see modest profits from the vaccine in the final quarter of this year, as it gave guidance on the sales impact of its Covid-19 vaccine for the first time.
"The company is now expecting to progressively transition the vaccine to modest profitability as new orders are received," it said.
The majority of vaccine sales between October and December this year were expected to come from existing supply agreements, the company said, adding that it also expected some new orders.
A company spokesperson confirmed that AstraZeneca would continue to fulfill existing orders to developing countries at no profit, as previously pledged.
"We are still very much honoring our existing agreement with Oxford [University] and will continue to fulfill [those] orders at cost price," she told CNN Business.
The company said that "the limited profit contribution from the vaccine" in the fourth quarter would offset costs related to a Covid-19 antibody combination drug it is trialling.
Sales of its Covid-19 vaccine contributed to a rise in AstraZeneca's total revenues for the first nine months of the year, which were up by nearly a third to $25.4 billion.
It said the company and sub-licensing partners had released "more than 1.5 billion vaccine doses as of the 30 September 2021, for supply in over 170 countries."
AstraZeneca's overall operating profit for the year to date was down 63% from the same period in 2020 at $1.3 billion. Pretax profit slumped to $371 million from $2.75 billion the previous year.
According to the company, supplying the Covid-19 at no profit to AstraZeneca had contributed to a drop in core profit margin of six percentage points to 74.1%, alongside a rise in general expenses and research costs.
See all the news
LEADx Change Unveils Season 4 of Leadership Accelerator & Public Square Summit
Forbes to be Acquired by Entrepreneur and Philanthropist Austin Russell
Arrival Hosts Yet Another Successful Metaverse Event: A Recap of the Latest Conference
#საქმიანიდილა - 28 აპრილი - პროლოგი
The company "Tam Management" makes an explanation
#forbesკვირა - ქალაქები,სადაც ცხოვრებაში თანხებს გიხდიან
წერეთლის გამზირის რეაბილიტაცია - სავაჭრო ობიექტების მოლოდინები
როგორ შეიცვალა საცხოვრებელი უძრავი ქონების ფასი 12 წელში?
როდის გაიხსნება რიკოთი?
სახელმწიფო მხარდაჭერის ეფექტიანობა DCFTA-ის ბაზრებზე – ISET-ის კვლევა
"Georgia will be faithful to the European path... I serve this path" - Ambassador of Georgia to France
Cavea plus-ის 6 თვის შედეგები და გამოწვევები
Gold is shining in the new geopolitical world
VR Holding is starting a large-scale and innovative project in Shekvetili
JSC “Rustavi Azot” was sold
We Are Creating An Innovative Co-Working Space In Tbilisi - Sergi Gvarjaladze
State to build Anaklia Port
NG Georgia - თარგმანი ყველა ენაზე
The Rich Often Enjoy Tax Break - Deputy Minister
Israel Got Acquainted With The Business Tourism Potential Of Georgia