AstraZeneca’s vaccine data flap is unlikely to cost the company much, at least in the short term. Wall Street should pay close attention anyway.
U.S. officials said they were informed that AstraZeneca may have released outdated test results for its Covid-19 vaccine – a surprise announcement that immediately cast doubt on the company’s allegation a day before the results showed that the shot was very effective. AstraZeneca said in response that it would share a new analysis of the data within 48 hours.
This situation is very unusual, but investors may find reasons not to worry: it will not affect the company’s finances in the short term. The AstraZeneca Covid-19 vaccine has been widely used in places such as the United Kingdom, and dr. Anthony Fauci said Tuesday that the vaccine is likely to be safe and effective. The sale of the vaccine was not included in the company’s annual financial guidance.
These reasons make sense, but are ultimately short-sighted. Data that can be trusted is the backbone of the pharmaceutical business; clinicians, regulators and the general public must be able to trust that clinical results are valid for selling, approving or taking medicines. Concerns about data integrity are rare, even for small biotechnologies. In the modern era, any issues on this front around a giant like AstraZeneca are unthinkable and especially worrying during a global pandemic.
Doubts about integrity are difficult to remove once sown. And a good working relationship with US drug regulators is essential even for overseas companies, as it is by far the world’s most profitable market for pharmaceutical products. A slower drug approval process – which AstraZeneca offers almost a given in the future – makes it harder to compete with competitors developing other drugs.