AstraZeneca jab uncertainty will hit Oxford BioMedica’s revenue

Oxford BioMedica warned that uncertainties regarding the future of the Covid-19 vaccine contract of AstraZeneca would lower the earnings and drag the share price of the company down by 6%.

The company which is listed on London Stock Exchange had talks with AstraZeneca about extending the supply agreement. The vaccine production has been paused. These vaccines are AstraZeneca’s primary business and were originally sold on a non-profit basis.

The mRNA injections from Moderna and BioNTech/Pfizer have prevailed in even more thriving markets due to their exceptional effective rates and fewer concerns about the side effects. They have delivered more than 2.6 billion doses of vaccine around the world.


As a manufacturer of components for gene therapies and cells, Oxford BioMedica experts forecast this year’s revenue to be even lower than it was in 2021. This was when it was driven by large contracts to produce Covid-19 aircraft-19 jabs.

Upon integrating a recently acquired US Business and investing in research and development, the group expects to post a loss on operating income before interest, depreciation, taxes, and amortization in the year 2022.

In 2021, sales rose 63% year-over-year, while EBITDA was £36m. Sales spiked 63 per cent year-on-year to £143m. Roch Doliveux, the CEO and interim president, said the financial performance was because the Covid-19 vaccine of Oxford AstraZeneca, based on an adenovirus, has been produced at a large scale and over 100 million doses have been produced since they began their cooperation.

In the first quarter, AstraZeneca sold their Covid-19 vaccine in Latin America and Middle East on profit for the first time. In morning London trading, Oxford BioMedica were down by 6.1% at 599.86 points.