LONDON— AstraZeneca PLC said sales of its Covid-19 vaccine—which it has promised to sell initially without profit—haven’t kept up with its costs, resulting in a hit to earnings and a warning the vaccine effort could continue to affect margins.
The drug giant’s booked $275 million in revenue in the first three months of the year from sales of its Covid-19 vaccine, developed in partnership with the University of Oxford. The company delivered 68 million doses globally during the first quarter, far short of targets.
In Europe, AstraZeneca shortfalls totaling tens of millions of doses have inflamed political tensions. This week, the European Union sued the company, alleging failure to satisfy its vaccine contract with the bloc. AstraZeneca has said it is working to catch up with supply pledges.
Most of AstraZeneca’s vaccine sales revenue in the quarter, $224 million, came from Europe, with $43 million in sales to emerging-markets countries. The numbers pale in comparison with multibillion-dollar sales forecasts of other vaccine makers including Pfizer Inc. and Moderna Inc.
For AstraZeneca, initially at least, the vaccine effort was a drain on earnings during an otherwise strong quarter. Costs from the effort shaved 3 cents off its per-share earnings for the quarter. Earnings per share came in at $1.18 in the quarter, versus 59 cents in the comparable quarter in 2020.