Fallout from AstraZeneca Snafu data could be bigger than it looks

AstraZeneca’s vaccine data flap is unlikely to cost the company dearly, at least in the short term. Either way, Wall Street should be very careful.

U.S. officials said AstraZeneca may have released outdated information on trial results for its Covid-19 vaccine – a surprise disclosure that immediately cast doubt on the company’s claim a day before the results were released. showed that the shot was very effective. AstraZeneca responded that it would share a new analysis of the data within 48 hours.

This is very unusual, but investors might find reasons not to worry – it won’t affect the company’s finances in the short term. The AstraZeneca Covid-19 vaccine has been widely used in countries like the UK, and Dr Anthony Fauci said on Tuesday the vaccine was likely still safe and effective. Sales of the vaccine are not included in the company’s annual financial forecast.

These reasons make sense, but are ultimately short sighted. Reliable data is the backbone of pharmaceutical business; clinicians, regulators, and the general public need to be confident that clinical results are valid for selling, approving, or taking drugs. Concerns about data integrity are rare, even for small biotechs. In the modern age, any problem on this front around a giant like AstraZeneca is unthinkable, and particularly worrying during a global pandemic.

Doubts about integrity are difficult to dispel once they are sown. And a good working relationship with US drug regulators is essential, even for foreign companies, because it is by far the world’s most lucrative market for pharmaceuticals. A slower drug approval process – almost acquired for AstraZeneca in the future – makes it harder to compete with competitors who are developing other drugs.