The Covid-19 vaccine being developed by AstraZeneca and Oxford University has been successful in the first phase of its clinical trials.
The AZD1222 vaccine has generated concrete results from the first clinical trials, involving 1,077 healthy adults aged between 18 and 55. The vaccine is proven to be able to generate antibodies and T-cells for at least 56 days, creating a protective shield for the immune system against the coronavirus.
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By GlobalDataHowever, this doesn’t mean the vaccine will be overall successful, it means it is ready for the second stage. People and overall investors placing their hopes on AstraZeneca and Oxford University have to keep in mind that the AZD1222 vaccine it is not ready yet and it has to go through intense testing before commercial use. This is only an indication that based on the data, the vaccine could be successful.
And this is what investors believe as well, placing their trust in AstraZeneca even more than before.
AstraZeneca share price has been on the rise due to recent news of the Covid-19 vaccine being successful
AstraZeneca’s share price traded on the London Stock Exchange has experienced an almost 10% increase under 6 days. Investors reaction to the successful trial announcement of the AZD1222 vaccine raised AstraZeneca’s price to £9,320 from £8,549, under a six-day period.
AstraZeneca has been one of the top 5 performers in FTSE 100, demonstrating the levels of trust investors have placed on the pharmaceutical giant to deliver a Covid-19 vaccine. AstraZeneca’s share price has been on the rise since last April, reflecting early news of the company being on the right course of producing a successful coronavirus vaccine, and how investors react to that news, by buying even more company shares.
However, investors reacting only to news could raise long-term issues if the AZD1222 vaccine turns out to be unsuccessful.
AstraZeneca’s future is placed on the AZD1222 vaccine
As long as the AZD1222 vaccine is successful at the final stage and the use of the vaccine doesn’t have major after effects, then the company will be successful, experiencing the biggest share price increase it has ever.
On the other hand, if the AZD1222 vaccine turns out to be unsuccessful or it would have after-effects placing human life at risk, then it is most certain investors will dump AstraZeneca’s share price by the hundreds.
When a company of that calibre takes a big bet as producing a Covid-19 vaccine, then at the end it could either be very successful or doomed. AstraZeneca seems to be in the right track at the moment, with investors boosting its share price, thus being unsuccessful or not, in the long run, is something that only time and concrete data will tell.
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