Oxford Biomedica to double AstraZeneca vaccine production
Oxford Biomedica is doubling the volume of Covid vaccine it is making for AstraZeneca on the back of soaring demand for the jab.
The biotech is one of two companies in the UK that manufactures the jab for AstraZeneca and is the pharmaceutical giant's biggest domestic supplier.
John Dawson, chief executive of Oxford Biomedica, said production volumes would double by the end of the year to meet increased demand after the two companies revised their supply agreement.
AstraZeneca would not confirm if the additional doses were being made for the domestic market or exported. The company said the extra supply was due to higher demand rather than manufacturing constraints elsewhere.
The increase is a boon for Oxford Biomedica, which will see its vaccine sales rise from £50m to £100m by the end of the year and significantly boost profits. The news sent shares in the company up by more than 13pc.
Oxford Biomedica said it had worked to increase the number of large-scale batches of vaccine it produces at its labs by improving technology and efficiency.
“We have been working on the deal for a while, and AstraZeneca had to make sure it had a commitment for the additional vaccine before it could give us a commitment,” Mr Dawson said.
Apart from a small batch of vaccine imported from India’s Serum Institute a few months ago, all of the UK supply of the Astra vaccine has been made by Oxford Biomedica and Newcastle-based Cobra Biologics.
GSK vaccine update
It came as GlaxoSmithKline announced positive results from a phase two trial of a Covid vaccine it is developing in partnership with Canada’s Medicago.
The phase II/III study showed the jab induced a strong immune response in patients that was 10 times higher than in those who were recovering from the illness. There were no serious side effects.
GSK is supplying Medicago with an adjuvant for the vaccine at no profit. Adjuvants help boost vaccines by creating a stronger immune response and can also make them safer.
A final phase three study is ongoing, and if all goes to plan the vaccine could be approved and on the market by the end of the summer.
It is good news for GSK, which has lagged behind in the race to launch a Covid jab, despite being one of the world's biggest vaccine makers.
Trials with France's Sanofi had to be halted and re-started earlier this year after it was discovered that the dosage was not strong enough, delaying an eventual launch by about eight months.
Medicago's Covid vaccine is different to others as it is derived from the tobacco plant. It uses living plants as bioreactors to produce antigens that mimic the virus. The plant cells act like mini-factories producing virus-like particles that are harvested and made into a vaccine.
Shares in AstraZeneca and GSK were flat by mid-afternoon.
