Shares in pharmaceutical firm AstraZeneca (AZN) gained 0.5% to £84.67 as it announced the progression of its long-lasting Covid-19 antibody treatment AZD4772 into phase three trials, backed by around $486 million of funding from the US government.
The trials, which are the last stage of clinical tests, will enroll around 6,000 patients from inside and outside the US with the first trial looking to establish safety and efficacy of the drug to prevent infection for up to 12 months.
The second trial will enroll around 1,000 patients to evaluate post infection exposure and preemptive treatment. Further trials are planned involving another 4,000 patients.
The company said the combination could be complementary to vaccines as a prophylactic agent, for example for people for whom a vaccine may not be appropriate or to provide added protection for high-risk populations. It could also be used to treat people who have been infected.
AstraZeneca is expected to supply approximately 100,000 doses towards the end of 2020 with the US government securing a further one million doses via a separate agreement.
The government funding is expected to be offset by manufacturing and scaling up costs in progressing the trials and therefore not expected to impact 2020 financial results according to analysts at Shore Capital, who note that the shares trade on a 40% premium to the sector.
