Johnson & Johnson currently behind Pfizer, Moderna and some other producers in the timing of release of its vaccine COVID-19. However, experts point to two key factors that can play in favor of J&J in the achievement of leadership in the future global supply of the vaccine.
Johnson & Johnson (NYSE: JNJ) was one of the first companies who had allocated large resources to fight COVID-19 and vaccine development, as well as one of the first to receive support from the U.S. government.
Currently, however, J&J is not included in the number of companies that conduct the final clinical study of their vaccine candidates from COVID-19 people. Among others, the leaders now companies such as Pfizer (PFE) and BioNTech (BNTX), Moderna (MRNA).
However, J&J is the world’s largest healthcare company with vast resources, and its candidate vaccine COVID-19, according to currently available data, has a great trump card that could make him the biggest winner of all.
Johnson & Johnson has to offer in just one dose for a strong immune system
Published by J&J on 30 July the results of preclinical studies of the lead candidate vaccines “Ad26.COV2-S” on primates have shown the formation of a stable immune response with production of high levels of neutralizing antibodies that can prevent infection with coronavirus.
Especially optimistic that a strong immune protection, the primates received after a single dose of the vaccine. Although the company plans to include both single-and double dose in its planned study on people, there is a possibility that it can confirm the effectiveness of a single injection of the vaccine. This could potentially be cheaper and more acceptable for public vaccination programmes.
“The long game”
In addition to a potential more preferable approach “a single dose”, J&J also intends to charge much less for the vaccine than its main competitors.
Last week, J&J made a deal with the U.S. government to supply 100 million doses of Ad26.COV2-S about $1 billion For comparison, Pfizer and BioNTech will supply 100 million doses in the U.S. is almost twice as expensive – over $1.9 billion.
Lower prices with fewer required doses may seem unreasonable strategy, but experts ask investors to “write off J&J from the accounts” because, according to epidemiologists, COVID-19 may long to live on our land. There is a high probability that vaccination from COVID-19 may become a traditional annual procedure like a flu shot.
In the current environment, while the pandemic continues, J&J will probably sell it at cost. A single, inexpensive vaccine from the world famous company can be very attractive to governments around the world. It can create the vaccine to good advertising and potential sales at a higher price in the future, when you add in the traditional annual vaccination calendar.
Further details about the vaccine Ad26.COV2-S from Johnson & Johnson investors will know in September when the company will proceed to late-stage study.
