Johnson & Johnson: The stock is not excited – Global

Not on the Corona alone: ​​Johnson & Johnson wants to develop vaccines for “other areas of the portfolio as well,” CEO Alex Gorsky said in an interview. The giant company announced last week the FDA approval for the vaccine for Corona, but the stock has actually fallen since then. Entering the corona vaccine market that is gradually becoming saturated (meanwhile 5 competitors), will probably not provide it with significant cycles and significant profits.

The question of the profitability of vaccine development hovers over the activities of Johnson & Johnson and its competitors, and as the market believed, behind the jump into the deep water of corona vaccines is the thought that vaccine key technology will further benefit them in further developments and open other doors. It will be said that Johnson & Johnson has admitted that the activity is unprofitable, and that the technology at the heart of Johnson & Johnson’s vaccine is different from that of Pfizer and Moderna.

While the other two have developed a vaccine using mRNA technology that causes the body to produce its own shell-like protein of the COVID19 virus, in the case of Johnson & Johnson it is a vaccine based on a vector called “adeno virus”, thanks to which it can be stored in less extreme cooling conditions. 2-8 degrees. The vaccine is also given in a single dose and not in two doses.

Even before the new uses that emerge, according to Gorsky, the corona alone will continue to provide Johnson & Johnson with a fertile cushion for vaccine activity. “We are doing this (developing vaccines – AP) for the long term, because we understand that this virus is not going to leave overnight,” Gorsky claimed in the same interview. The CEO further noted that Johnson & Johnson is investing heavily in partnerships for mass production of the vaccine.

Over the weekend, the company’s vaccine was approved by the US FDA for emergency use, making it the third vaccine against corona distributed in the country, after those of Pfizer and Moderna. “The trucks are carrying the vaccines right as we speak, 3.9 million vaccine doses will be distributed in the next day or two in the United States,” Gorsky said. By the end of the month, 20 million rations will be distributed in the country, and by the end of June, the number will increase to one hundred million.