AstraZeneca (NASDAQ:AZN) has witnessed a significant increase in its market valuation, adding more than £3 billion as it announced the global withdrawal of its COVID-19 vaccine.
The company’s shares rose by 1.6 percent, contributing to a new record high for the FTSE 100.
Withdrawal driven by commercial reasons
The Anglo-Swedish pharmaceutical giant cited commercial reasons for the withdrawal of its vaccine, which has been overtaken by newer vaccines designed to combat emerging variants.
AstraZeneca confirmed that the vaccine is no longer being manufactured or supplied, marking the end of its availability in the market.
Timing and regulatory compliance
The decision to pull the vaccine from the market was officially made on March 5, with the withdrawal taking effect this past Tuesday.
This move follows the company’s voluntary withdrawal of marketing authorization in the European Union, effectively ceasing the vaccine’s use in the region.
Legal challenges and health concerns
The withdrawal occurs amidst revelations in recent court documents where AstraZeneca acknowledged for the first time that the vaccine could cause a rare and serious side effect.
This admission has cast a shadow over the vaccine’s safety profile, although the specific details of these side effects were not disclosed in the announcement.