AstraZeneca Buys US Vaccine Company for $1.1B

Facts

• On Tuesday, the Britain-based pharmaceutical powerhouse AstraZeneca announced that it had reached an agreement to purchase Icosavax, a US-based biopharmaceutical company developing vaccines using a protein virus-like formula.¹
• The drugmaker struck a $1.1B deal that will allow the company to expand its vaccine and immune-therapy capabilities. AstraZeneca began this work initially in response to the COVID pandemic.²
• Icosavax develops vaccines for the respiratory syncytial virus (RSV) and human metapneumovirus which are on the rise in children and adults over the age of 60. Both viruses can cause severe illnesses such as kidney, cardiovascular, and respiratory diseases.²
• The cash purchase immediately bolstered the stock value of Icosavax to $15.25 per share on Tuesday — an increase of 45% in the US premarket trade.³
• AstraZeneca recently went public regarding a separate $2B deal to purchase and develop an obesity treatment. These moves prompted Goodbody’s head of healthcare equity research, Adam Barker to say, 'I would view this [vaccine] acquisition as potentially the start of a larger franchise and not just a one-off.'⁴
• In response to the announcement, Icosavax CEO Adam Simpson said, 'We believe it offers the opportunity to accelerate and expand access to, our...vaccine for older adults at risk...” Before becoming final, the deal will need to clear regulatory approvals and final logistical issues.⁵

Sources: ¹Archive, ²Guardian, ³Reuters, ⁴Financial times and ⁵Forbes.

Narratives

• Establishment-critical narrative, as provided by Public citizen. Big Pharma’s greed is spreading across the United States and the world. Greed-filled deals lead to monopolies on critical lifesaving drugs that result in greater costs for Americans while maximizing profiteering. It’s high time that Americans recognize this tragedy and call out these companies and the elected officials supporting them. This latest merger and acquisition is just the latest example of monopolization in this sector.
• Pro-establishment narrative, as provided by The hill. Leading a successful pharmaceutical company is a good deed that's often punished. There are constant news stories of professionals saving lives, yet pharmaceutical companies saving millions of lives are often defamed. Companies labeled as “Big Pharma” took the lead during the COVID pandemic and got heads of governments to prepare products that have saved millions. These companies work hand-in-hand with government regulators too — mergers like this one are a boon for healthcare and consumers.

Predictions