Initially, news that AstraZeneca (AZN) had paused trials of its prospective Covid-19 vaccine saw the drug maker's shares fall materially.
However, the market appeared to gain some perspective as the morning progressed with the stock down just 0.4% to £83.12 by 9.30am having traded as low as £80.96 early on.
Phase III trials of the vaccine being developed by Astra and Oxford University were halted after a participant suffered a ‘serious adverse event’.
It is not clear yet whether this was in response to the vaccine itself but progress has been halted while researchers attempt to find out what’s gone on.
This is clearly negative news for Astra but probably worth keeping in perspective as it is not unusual for drug trials to experience issues along the way.
However, it does mean that one of the likeliest candidates for a vaccine which could help restore some sort of normality is, at best, further away.
A VACCINE ISN’T GUARANTEED
Hopes of a vaccine have been one of the major catalysts for global markets in the last six months, along with government and central bank stimulus.
Shore Capital analysts Dr Adam Barker and Dr Tara Raveendran point out that this type of event isn’t unusual and typically wouldn’t draw these levels of attention: ‘The trial was expected to read out by November (as an upper estimate) and potentially in the next few weeks. However, any suspension to the trial is likely to lead to delays in these timelines.’
They added: ‘Given the focus of the scientific community on the illness, it’s likely we will see more incremental improvements in fighting the virus and this is usually how therapies for an illness work - it’s a slow walk with small improvements on the way, versus one big jump.
‘However, moments like this are an important time to reflect on “what if?” and start planning for a world where a vaccine isn’t forthcoming. Most importantly, because that isn’t a world which is impossible to imagine. As such, it’s important to hope for the best, but prepare for the worst.’
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