AstraZeneca strikes £880m deal to buy US vaccine maker amid questions over Covid jab
AstraZeneca has struck a deal worth up to £880m to buy a US vaccine maker as it battles against claims its Covid-19 jab was defective.
The British pharmaceutical company has swooped for Icosavax, a Seattle-based company developing vaccines to treat severe respiratory infections. It is paying $800m (£636m) upfront, with further payments if the US company hits regulatory and sales milestones. The deal is worth as much as $1.1bn.
The deal is the Anglo-Swedish drug giant’s first acquisition of a vaccine manufacturer. AstraZeneca said Icosavax’s technology has the potential to “transform prevention against severe infectious diseases”.
The business is trialling a vaccine to treat both respiratory syntactical virus (RSV) and human metapneumovirus, which can lead to hospitalisation among people aged over 60 or people who have chronic conditions.
Iskra Reic, executive vice president of vaccines and immune therapies at AstraZeneca, said: “This aligns with our strategy to deliver a portfolio of therapies to address high unmet needs in infectious diseases, and our ambition to protect the most vulnerable patients who have high risk of severe outcomes.”
Shares in AstraZeneca rose 1.3pc in afternoon trade on news of the deal.
The takeover comes as AstraZeneca faces questions over its previous vaccine work. Last month, a multi-million pound legal case kicked off related to its Covid-19 vaccine.
The company is defending itself in the High Court after being sued by a father-of-two who alleges that he suffered a serious brain injury following his vaccination. He claims the injury was caused by a blood clot.
Concerns over blood clotting linked to the vaccine first emerged when the AstraZeneca Covid jab was being rolled out, although the side effect was found to be very rare.
AstraZeneca argues that the claim is “wrong in law” and “confused”, adding that the development of the vaccine was “a significant scientific achievement, which contributed substantially to bringing the Covid-19 pandemic under control in the UK”.
It says the benefit of the vaccine outweighs any risks and argues the claim is “unclear, lacking in detail and imprecise about the claimant’s case in general and the nature of the defect alleged in particular”.
Icosavax’s vaccines are developed using an innovative, protein virus-like particle, which mimics how viruses appear to the immune system when people naturally contract them. The method means people receiving the vaccine may have a stronger immune response and means patients may require fewer boosters compared to other vaccines for RSV on the market.
Rival British pharmaceutical company GSK is among the leaders in the field of RSV vaccines. It said last month it was expecting its RSV jab to generate between £900m and £1bn in revenues in 2023, meaning it would be classed as a blockbuster treatment.
