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(Alliance News) - Oxford Biomedica on Tuesday said it has signed an 18 month supply agreement under a three year master supply and development deal with AstraZeneca for Covid-19 vaccine candidate AZD1222.
Astra is developing the AZD1222 Covid-19 vaccine candidate alongside the University of Oxford.
The deal covers the large-scale commercial manufacture of AZD1222, Oxford Biomedica said, and the two may extend the supply period by a further 18 months into 2022 and 2023 by mutual agreement.
Under the terms of the deal, AstraZeneca will pay Oxford Biomedica GBP15 million upfront as a capacity reservation fee. Subject to the scale up of manufacturing capacity and continuation of the vaccine programme, Oxford Biomedica expects to receive additional revenue in excess of GBP35 million plus costs for the manufacture of multiple large-scale batches of AZD1222 until the end of 2021.
Oxford Biomedica will reserve capacity for AstraZeneca in up to three manufacturing suites in its commercial manufacturing centre, Oxbox, for an initial 18 month period.
"We have been working hard with AstraZeneca and other partners to establish GMP manufacturing of AZD1222 at scale, and we are therefore very pleased to extend our current partnership to include large-scale manufacturing of the vaccine candidate, AZD1222," said Oxford Biomedia Chief Executive Officer John Dawson.
News of the deal came after AstraZeneca late on Monday said it has expanded US trials of AZD1222.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called 0.1% lower at 5,958.00
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Hang Seng: up 0.1% at 25,190.31
Nikkei 225: closed flat at 23,138.07
DJIA: closed down 0.8% at 28,430.05
S&P 500: closed down 0.2% at 3,500.31
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GBP: higher at USD1.3412 (USD1.3347)
EUR: higher at USD1.1988 (USD1.1900)
Gold: higher at USD1,985.99 per ounce (USD1,968.01)
Oil (Brent): flat at USD45.79 a barrel (USD45.78)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
10:00 CEST EU Manufacturing PMI
11:00 CEST EU Flash euro area inflation
11:00 CEST EU Unemployment
09:55 CEST Germany Labour market statistics (incl unemployment)
09:55 CEST Germany Manufacturing PMI
01:01 BST Ireland Manufacturing PMI
11:00 BST Ireland Monthly unemployment
09:30 BST UK Monetary & financial statistics
09:30 BST UK CIPS/Markit Manufacturing PMI
09:45 EDT US Manufacturing PMI
10:00 EDT US ISM report on business manufacturing PMI
10:00 EDT US Construction spending
16:00 EDT US Domestic auto industry sales
16:30 EDT US API weekly statistical bulletin
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China's manufacturing conditions improved in August, helped by the sharpest increases in output and new orders since the start of 2011, according to data from Caixin. The headline seasonally adjusted purchasing managers' index climbed to 53.1 in August, from 52.8 in July. A number above 50.0 denotes expansion. "Helping to lift the headline PMI were steeper increases in both output and new orders in August. Total new work expanded at the sharpest rate since the start of 2011 amid reports of firmer client demand as the domestic and global economy continued to recover from the pandemic. Notably, manufacturers registered the first increase in new export sales since December 2019," Caixin added. Employment moved closer to "stablisation", Caixin noted, with job cuts in the manufacturing sector falling at a fractional pace, the slowest decline so far in 2020. Optimism waned however, with some survey respondents fearing over future demand levels.
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UK Prime Minister Boris Johnson is facing fresh pressure from his backbenches for clarity on taxes, education and coronavirus policy as MPs return to Westminster after the summer recess. The prime minister has come under fire for presiding over a series of U-turns, including on exam results and face coverings in schools, over the last few weeks. After months of what one Tory MP said had been a "megadisaster from one day to the next", many are demanding reassurances from ministers as Parliament resumes on Tuesday afternoon. A senior Conservative MP told the PA news agency that backbenchers were "tired of the U-turns". Johnson will chair a meeting of his cabinet on Tuesday morning, and is later expected to announce Simon Case as the new Cabinet Secretary – the UK's most senior civil servant.
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Ireland's manufacturing sector retreated from July peaks but still remained in growth during the month of August, data showed. The AIB Ireland manufacturing purchasing managers' index came in at 52.3 in August, still above the 50.0 no-change mark, but below July's 57.3. The five-point drop in August was the fourth-largest in series history. The July figure was the highest in almost two years, while August's print was the second-highest reading in 16 months. "Growth rates for output and new orders eased sharply from July, while there were renewed cuts to employment and purchasing. The 12-month outlook remained positive, but has stalled since an initial rebound at the end of the second quarter," AIB said. Survey respondents remained optimistic over the sector's prospects in the next 12 months. Positive sentiment was maintained for the fourth month on-the-trot, AIB added. "That said, amid mounting uncertainty about a second wave of Covid-19 and the long-term impact on the economy and jobs from the pandemic, firms were no more confident than they were in June and July. The future output index eased to a three-month low and was well below its long-run average," AIB added.
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BROKER RATING CHANGES
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JPMORGAN CUTS INTERNATIONAL CONSOLIDATED AIRLINES TO 'NEUTRAL' (OVERWEIGHT) - PRICE TARGET 2.50 (9) EUR
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JEFFERIES RAISES HARGREAVES LANSDOWN TO 'HOLD' ('UNDERPERFORM') - TARGET 1520 P
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RBC RAISES OXFORD BIOMEDICA PRICE TARGET TO 1050 (1000) PENCE - 'OUTPERFORM'
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COMPANIES - FTSE 100
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AstraZeneca late on Monday said it has expanded US trials of its Covid-19 vaccine and the drugmaker added that its applications for regulatory approvals across the globe will meet "stringent" requirements. The US probe of the AZD1222 vaccine will see trial centres recruit up to 30,000 adults from a variety of ethnic groups and will also include those with underlying medical conditions which leave them more exposed to the SARS-CoV-2 virus. "Participants are being randomised to receive two doses of either AZD1222 or a saline control, four weeks apart, with twice as many participants receiving the potential vaccine than the saline control. The trial is assessing efficacy and safety of the vaccine in all participants, and local and systemic reactions and immune responses will be assessed in 3,000 participants," Astra said. In July, AstraZeneca ported encouraging interim results from a trial of the vaccine, being developed alongside Oxford University. The much-anticipated findings showed that a single dose of AZD1222 resulted in a four-fold increase in antibodies fighting SARS-CoV-2, the virus strain which causes Covid-19.
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COMPANIES - FTSE 250
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Dunelm Group reported a sharp rise in sales over the past two months, but was still unable to provide financial guidance. The retailer said sales have been strong in the last two months, with total year over year sales growth up 59% in July and up 24% in August. Dunelm said the rise was partly "as a result of pent up demand" following the store closure period and the timing of its summer sale. "Whilst the year to date performance has been materially ahead of our initial expectations, it is very difficult to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns. However, we remain confident in our ability to adapt to the environment and are well-positioned to continue to grow market share," Dunelm said.
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COMPANIES - MAIN MARKET AND AIM
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Saga on Sunday said it plans to raise GBP150 million through the issue of shares, adding that former chief executive & chair Roger De Haan plans to invest up to GBP100 million as part of the fundraise. Saga said it plans to launch a GBP150 million equity raise on or around next Thursday, comprising a placing and open offer. The Kent-based company added that de Haan plans to make his investment through the placing of 224 million new shares - around 20% of the company's issued share capital - at 27p each, totalling GBP60.6 million. The share price represents a 98% premium to the Friday closing price. De Haan will also participate in a further placing, raising GBP14.9 million through the purchase of shares at the same price. He will also participate as a conditional placee for shares representing GBP24.5 million of the placing and open offer - expected to raise GBP74.5 million - subject to a maximum issue price of 15p per share. Alongside his investment, de Haan will rejoin the company in the role of non-executive chair, taking over from Patrick O'Sullivan upon completion of the fundraise. He will remain in the role for three years subject to an annual re-elction by shareholders.
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COMPANIES - GLOBAL
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Facebook has threatened to block users and media organisations in Australia from sharing news stories in an escalating challenge to government plans to force digital giants to pay for content. Australians would be stopped from posting local and international articles on Facebook and Instagram, the company said, claiming the move was "not our first choice" but the "only way to protect against an outcome that defies logic". Government officials quickly shot back, with Treasurer Josh Frydenberg rejecting what he called "coercion or heavy-handed threats" from the social media giant. Rod Sims, head of the Australian Competition and Consumer Commission, which drew up the draft law, called the threat "ill-timed and misconceived". In one of the most aggressive moves by any government to curb the power of US digital giants, Canberra has drawn up legislation to force Facebook and Google to pay struggling local news organisations for content or face millions of dollars in fines.
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Sanofi said a trial of its Kevzara medication in severely ill Covid-19 patients failed to meet its primary endpoint. The drug also failed to meet its secondary endpoints during the 420 patient strong study. "Although this trial did not yield the results we hoped for, we are proud of the work that was achieved by the team to further our understanding of the potential use of Kevzara for the treatment of Covid-19," Sanofi's Global Head of Research & Development John Reed said. Sanofi added: "Serious adverse events were experienced by 26% to 29% of Kevzara patients and 24% of placebo patients. The incidence of adverse events leading to death was approximately 10% in all three treatment arms. Serious infections (including Covid-19 pneumonia) were observed in 11% to 13% of Kevzara patients and 12% of placebo patients."
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Tuesday's Shareholder Meetings
Applegreen
Arena Events Group
Gear4Music
Monks Investment Trust
Custodian REIT
BB Healthcare Trust - GM re authorisation of new shares
Aggreko - re rights issue
Hammerson - GM re rights issue
HWSI Realisation Fund - GM re acquisition by Cubitt Trade Holdings
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By Lucy Heming;Â lucyheming@alliancenews.com
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