Oxford Biomedica lifts outlook as AstraZeneca ramps up vaccine output

Oxford Biomedica lifts outlook as AstraZeneca ramps up vaccine output

AstraZeneca (NASDAQ:AZN) UP 0.62% AT 7944

Oxford Biomedica on Tuesday doubled the revenue expectation from its COVID-19 vaccine supply deal with AstraZeneca (NASDAQ:AZN) after the drug maker commissioned more batches from the company in the second half of 2021.

Shares of the cell therapy firm, which has an agreement to mass-produce AstraZeneca’s COVID-19 vaccine, rose 6.2% in early trading.

Oxford Biomedica raised its forecast for cumulative revenues from AstraZeneca by end-2021 to more than 100 million pounds ($141.82 million) from more than 50 million pounds earlier. The company did not provide any other details on its deal.

Liberum analysts said the increased supply deal was a “huge endorsement” of Oxford Biomedica’s capabilities, and that a further extension from AstraZeneca feels “increasingly likely”.

AstraZeneca has had a bruising start to the year as it struggled with vaccine production and faced a legal battle after cutting deliveries to Europe.

Oxford Biomedica was spun off in 1995 from the University of Oxford, which developed the COVID-19 vaccine before licensing it to AstraZeneca in April 2020.

On technical fronts AstraZeneca (NASDAQ:AZN) RSI stood at 66.31 and currently stock is trading above all Moving Average. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : AstraZeneca (NASDAQ:AZN) – BUY: 7943, TARGET: 8022, STOP LOSS : 7835

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