AstraZeneca Shares Are Growing Though Its Vaccine Has Been Rejected
3 minutes for reading
The most interesting news on global vaccination these days is the decision of many countries against AstraZeneca drug. It's no less peculiar that the shares of the company has not only withstander the blow but are even demonstrating growth. How come? Let's find out.
Which countries rejected AstraZeneca vaccine?
The anti-COVID campaign based on the AstraZeneca drug has been put on halt in Denmark, Iceland, Norway, Austria, Italy, Lithuania, Latvia, Bulgaria, Luxemburg, France, Germany, Portugal, Spain, Slovenia, the Netherlands, Sweden, Cyprus, South Africa, and Indonesia.
The first country on the list above is Denmark. It rejected the drug officially on March 11th. This is the country where acute side effects in vaccinated patients had been noticed.
Is the vaccine dangerous?
The decision of the EU against the vaccine is explained by the fear that AstraZeneca product can provoke thrombosis. However, no European country has provided any statistics or proofs.
In Indonesia, the rejection was due to a possible coagulation disorder. In South Africa, the alleged reason is different: they say that new research proved tge vaccine inefficient against the local strain of the virus.
World Healthcare Organization states that AstraZeneca drug has never been proven dangerous or lethal. The company's representatives insist on the same.
What’s up in AstraZeneca shares?
The list of countries that decide against the vaccine keeps growing every day. The volumes of production and supply are below the plan: out of 100 million doses for EU countries, only 30 million doses will be supplied.
Meanwhile, the quotations of the pharma company is not losing its position. Moreover, on March 15th, AstraZeneca (NASDAQ: AZN) shares grew by 0.72% to 48.77 USD. On the next day, they grew by 2.62% more to 50.05 USD.
Why are AstraZeneca shares growing?
Some analysts say that the risk of such a situation has already been included in the price, proving this idea of initially low announced efficacy of the drug compared to the products of Moderna and Pfizer.
Other experts say that the company is a huge biotech conglomerate, and its position can hardly be harmed by problems with just one drug.
However, there are experts who say that AstraZeneca played back their gradual decline thanks to good news from Canada and Australia. In these countries, the drug will be used by the plan.
Summing up
Almost all countries of the EU have put the use of the English-Swedish vaccine on a pause in fear of possible thrombosis in patients. Moreover, the company is again violating the supply plan.
However, all this does not influence the quotations of the company: the shares react moderately to both bad and good news .Experts have different explanations of what is going on.
