CSL in deal with commonwealth to produce Oxford University and University of Queensland COVID-19 vaccines

CSL has struck a deal with the commonwealth to produce two coronavirus vaccines by early 2021, if trials are successful.

Associate Professor Keith Chappell, inventor of UQ’s Molecular Clamp technology used to develop uni's SARS-CoV-2 vaccine now backed by CSL and the Australian Government, University of Queensland School of Chemistry & Molecular Biosciences. Photographer: Liam Kidston

Australia’s biggest company CSL is betting on Oxford University and AstraZeneca’s COVID-19 vaccine immunising half of the country’s population, with a lesser advanced vaccine it is developing with the University of Queensland inoculating the other half – and the hope that most Australians will only need one shot.

CSL shares firmed 1.1 per cent to $282.13 after it signed a $1.7bn production and supply deal with the Morrison government to manufacture the two types of COVID-19 vaccines at its Melbourne factory.

The deal will include producing a total of 80 million doses, with the first tranche expected to roll off production lines in early 2021. 30 million of the doses will be the Oxford University, AstraZeneca (AZ) vaccine, which is the world’s most advanced vaccine, currently undergoing phase three clinical trials.

The remaining 50 million doses will be the vaccine CSL has been developing with the University of Queensland (UQ) since January. It is currently undergoing phase one trials, which if successful will lead to phase two and three trials later this year.

The government has ordered enough for two doses per Australian plus some coverage in countries across the Pacific and Southeast Asia. If clinical trials are successful, 3.8 million doses of the Oxford University vaccine will be available from January next year, with the remaining doses ready by September.

The deal came a day after Victorian Premier Daniel Andrews extended the state’s hard lockdown until late October – a move criticised by businesses, including Federal Small Business Ombudsman Kate Carnell said thousands of small and family-owned businesses would struggle to survive another seven weeks of restrictions.

Russell Basser, senior vice president research and development at CSL’s vaccine arm Seqirus said the company was approaching the vaccine development with “a sense of urgency” and it was “not cutting corners” to provide a safe and effective vaccine.

Dr Basser said Seqirus said the plan was to use both the Oxford University and UQ vaccines to ensure there are enough doses available for all Australians.

“The supply of the AZ product will only cover about half the population. That will take a period of time – the logistics of vaccinating many millions of people takes some months,” Dr Basser said.

“And if the UQ product is successful that will cover the remaining part of the population. That’s the plan.”

Under the deal, the Commonwealth will pay CSL $300m to help prepare its advanced manufacturing facility at Broadmeadows in Melbourne’s north to produce the two types of vaccines side-by-side.

“Our facility at Broadmeadows is very well placed to make the UQ vaccine but we do need to make some modifications for the AstraZeneca vaccine,” CSL senior vice president research & chief scientific officer Andrew Nash said.

The Oxford University, AstraZeneca is developing a live virus vaccine, which requires transportation in cool temperatures down to -80 degrees celsius and Dr Nash said the commonwealth funding would pay for new freezers at Broadmeadows, machinery and structural works, including new airlocks.

Dr Nash stressed that both the Oxford University, AstraZeneca and UQ vaccines have a “while to go” passing clinical trials and said the funding from the federal government was about “sharing the risk”.

“Both of these (vaccine) candidates have quite a way to go. They have to pass through important clinical trials and regulatory approvals. They have been showing some encouraging signs and it’s time that we look towards locking in a manufacturing process so if they are successful we are well placed to respond.”

Dr Nash said both vaccines were aiming for an effectiveness rate of about 50-60 per cent, with a minimum of 30 per cent – similar to the seasonal influenza vaccine. But unlike influenza, he said yearly inoculations might not be needed.

“We need a yearly vaccine for influenza because the virus changes and mutates. There is no indication that coronavirus changes in any significant way. There are some minor mutations that have been described but they don’t change the virus in any significant way.

“I don‘t think that we can draw the conclusion for yearly vaccinations (for COVID-19) at this time. I think it’s premature.”

The accelerated development of a COVID-19 vaccine has triggered some concerns from vaccine experts that it is being rushed to market without fully understanding its safety and efficacy.

The Russian government approved a COVID-19 vaccine without any appropriate clinical data, while Papua New Guinea banned workers from a Chinese mining company following claims it had immunised its employees against COVID-19 in an apparent vaccination trial.

But Dr Nash said CSL was “not cutting corners”.

“We have had good robust discussions with TGA (Therapeutic Goods Administration). We all demand of ourselves the need for high quality manufacturing and adequate safety in the clinical studies so I can reassure people we are not cutting corners.

“We are acting with the appropriate sense of urgency.”

University of Queensland Vice-Chancellor Professor Deborah Terry said, “We are proud of the contributions that UQ researchers have been making in response to the COVID- 19 pandemic.

“UQ has a reputation for transitioning its innovations and discoveries to delivering solutions for the world’s challenges,” she said.

“Federal and Queensland governments, philanthropists and donors, a multitude of research collaborations and particularly our remarkable partnership with CEPI and CSL have made our accelerated timeline possible. And we are grateful to the Queenslanders who have stepped up for our phase one trials, with an overwhelming response to our recent call for volunteers aged 56 and over.”