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     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3288 Registered: 05-2011 Posted From: 65.35.45.47 Rating: N/A |
JNJ Johnson & Johnson injects dose of optimism into market as FDA approves vaccine on emergency use basis (160.20 +1.74) Johnson & Johnson (JNJ) is providing the market with a booster shot after the FDA granted Emergency Use Authorization (EUA) for the company's COVID-19 vaccine, which is being produced by its Janssen Pharmaceuticals subsidiary. Along with Pfizer (PFE) and Moderna (MRNA), JNJ becomes the third company to gain a COVID-19 vaccine approval for use in the U.S. The addition of JNJ to the mix should significantly accelerate the pace of vaccinations, especially since it's a single-shot vaccine compared to the two-dose regimens from PFE and MRNA. At first glance, JNJ's vaccine doesn't seem to stack up to PFE's and MRNA's. Back in late January, JNJ reported that its shot was only 66% effective in preventing COVID-19 compared to around 95% for PFE's and MRNA's injections. However, that statistic doesn't paint the entire picture. What's most encouraging about the JNJ data is that overall efficacy for severe disease across all regions studied was very high at 85%. This includes South Africa, where a new, more contagious strain of the virus has emerged. Combined with positive safety data, the vaccine's strong protection against severe cases was the likely impetus for the unanimous approval from the FDA's advisory committee. Furthermore, the known efficacy rate against the new strain provides JNJ with an important competitive advantage. PFE and its partner BioNTech (BNTX) recently disclosed that they are in discussions with the FDA and EMA regarding potential clinical studies to evaluate a variant-specific vaccine. As the timeline for any additional trials remains unclear, the PFE/BNTX team will have some ground to make up here. Overall, though, PFE and MRNA have already vaccinated around 15% of the U.S. population. With only 4 mln doses currently available, JNJ will fall further behind the lead. The good news, though, is that the company plans to have 20 mln doses ready to go by the end of March, enabling an acceleration of the inoculation rate. By the end of June, JNJ expects to complete its full commitment of 100 mln doses to the U.S. government. It's important to note that JNJ's vaccine is "not for profit", unlike the vaccines from PFE and MRNA. Still, the vaccine represents a meaningful catalyst for JNJ's top line in FY21 and FY22. The company has exceeded analysts' revenue estimates for four straight quarters. and the vaccine approval should help JNJ keep that upside streak alive. With the approval of JNJ's vaccine, the road to normalization and to a full economic recovery has been shortened. From a company-specific perspective, JNJ's ability to quickly branch out into vaccine development and rapidly produce an effective treatment is a testament to its versatility and scientific aptitude. |