Johnson & Johnson Corporation (JNJ) is continuing to test its own COVID-19 vaccine. Its low price is the key advantage of its production.
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Two types of vaccine trials are currently being performed by Johnson & Johnson. A single dose of the vaccine is used in the first of these while in the second, dose has been used twice. The research platform that has been used for both trials was previously used by the company to produce an approved Ebola vaccine.
Johnson & Johnson has also published single vaccine injection studies that have shown safety and efficacy. At the end of the year the company intends to publish updated results. Johnson & Johnson will start distributing the vaccine in early 2021 if everything goes according to plan.
While Johnson & Johnson has not pioneered the production of COVID-19 vaccination, thanks to many significant advantages, its vaccine may gain significant market share. First of all, the low single-dose price is roughly $10. This is slightly more costly than AstraZeneca’s price, but considerably less than Moderna’s and Pfizer’s price. Provided that a $456 million vaccine initiative has been sponsored by the US government, profits at cheaper rates would not damage the cash balance of Johnson & Johnson.
Furthermore, the JNJ vaccine stays stable for three months in a traditional refrigerator, which also differentiates it from more challenging rivals.
The Johnson & Johnson vaccine’s other value is its dosage. Tests indicate a high level of single vaccination efficiency. This means that Johnson & Johnson’s production will become more convenient for patients; one visit to a medical centre will be sufficient to generate immunity.
Johnson & Johnson is increasing production potential at this point with the goal of achieving one billion doses available by the end of 2021. Over the course of a year, this will earn the business $10 billion in additional profits if sold at cost and profits may be even higher if the company increases price.
The sale of the vaccine is a small part of Johnson & Johnson’s business, but given the high demand for the product, it can provide about 10 percent of annual revenue even at the lowest selling price. Johnson & Johnson Corporation (JNJ) stock was worth $153.10 at ring of the bell on Wednesday.
