Add Category
Biotech giant CSL’s finances won’t be impacted by the shock overhaul of the federal government’s COVID-19 vaccine strategy but the company cannot shift its focus from making AstraZeneca doses to alternatives such as Novavax.
The $120 billion company said it would continue to make the AstraZeneca vaccine in its facilities in Melbourne, as part of an agreement with the federal government to produce 51 million doses in Australia.
Its commitment to AstraZeneca comes despite new federal guidance on Thursday recommending the use of the Pfizer vaccine over AstraZeneca for under-50s due to blood clot concerns.
A worker rolls a batch of AstraZeneca vaccines onto a truck at a CSL factory in Melbourne. Credit:Getty Images
A CSL spokeswoman said the new vaccine advice from the government would not have an adverse effect on the biotech firm’s bottom line. The ASX-listed company expected to continue to be able to keep making doses according to the agreement with AstraZeneca and the Australian government.
“Our contract manufacturing arrangement with AstraZeneca does not have any material impact to the financials of the company. We remain very focused on fulfilling our commitment to the Australian government to provide the AstraZeneca vaccine to those Australians most vulnerable to COVID-19,” the spokeswoman said.
Australia has ordered 51 million doses of the Novavax vaccine but CSL cannot manufacture it locally at the same time as the AstraZeneca vaccine. In a hearing of the Senate select committee on COVID-19 last month, senior vice-president of manufacturing at CSL’s vaccine arm Seqirus, Chris Larkins, said making Novavax required “a different process” compared to other vaccines.
“It would be quite technically challenging for us to do,” he said.
“I go back to the fact that we just couldn’t do them at the same time. As soon as we finish the [AstraZeneca], we are open to perhaps investigate doing other vaccines.”
Making the Novavax product in Australia would require significant retooling of CSL’s facilities. As part of CSL’s agreement to make the AstraZeneca vaccine onshore, the Australian government provided funding to CSL to prepare its facilities.