AstraZeneca Resumes Late-Stage Covid-19 Vaccine Trials In UK

Phase three trials for the AstraZeneca (AZN)/ Oxford coronavirus vaccine, AZD1222, have now resumed in the UK following confirmation by the Medicines Health Regulatory Authority (MHRA) that it was safe to restart.

On 6 September, AZN paused all its global vaccine trials to allow the review of safety data by independent committees, and international regulators. The company said the voluntary move was triggered by its standard review process, but did not disclose any further information.

“The UK committee has concluded its investigations and recommended to the MHRA that trials in the UK are safe to resume” AZN stated on September 12. The company also reaffirmed a year-end timeline for its Phase three data.

It is less clear when trials will resume outside the UK. “The company will continue to work with health authorities across the world and be guided as to when other clinical trials can resume to provide the vaccine broadly, equitably and at no profit during this pandemic,” AZN said.

Meanwhile the University of Oxford pointed out that globally some 18,000 individuals have received study vaccines as part of the trial. “In large trials such as this, it is expected that some participants will become unwell and every case must be carefully evaluated to ensure careful assessment of safety” it said.

AZD1222 was co-invented by the University of Oxford and its spin-out company, Vaccitech. It uses a replication-deficient chimpanzee viral vector based on a weakened version of a common cold virus (adenovirus) that causes infections in chimpanzees and contains the genetic material of the SARS-CoV-2 virus spike protein.

After vaccination, the surface spike protein is produced, priming the immune system to attack the SARS-CoV-2 virus if it later infects the body.

AZN shares have gained 8% so far this year as the drugmaker joined the list of companies engaged in the development of a potential coronavirus vaccine. (See AstraZeneca stock analysis on TipRanks)

Overall, the stock scores a bullish Strong Buy consensus from Wall Street with 3 unanimous Buy ratings. Looking ahead, the $92 average analyst price target puts the upside potential at a promising 71% in the coming 12 months.