Uncle Sam wants more vaccines. The US government is in talks with Pfizer (NYSE: PFE) and Modern (NASDAQ: MRNA) on securing an additional 100 million doses of each of their COVID-19 vaccines.
In this Motley Fool Live video, recorded on February 1, “The Wrap” host Jason Hall and Motley Fool contributors Keith Speights and Danny Vena discuss the impact these additional vaccine purchases could have on two other companies that could soon receive Emergency Use Authorization for their COVID-19 vaccines: Johnson & Johnson (NYSE: JNJ) and Novavax (NASDAQ: NVAX)
Jason Hall: Here’s some big news. The Biden administration has a pretty aggressive approach here, it’s just trying to really increase the rollout of vaccines, and wants to buy another 100 million doses, each from Pfizer and Moderna. That’s 200 million doses, which equates to 100 million people vaccinated. Here’s the thing, what does this do in terms of influencing the market for other vaccines like the J&J When – or the Novavax.
Keith Speights: Yes, so generally I’ll say this as a caveat – the deal isn’t around yet, but the Biden administration is reportedly in talks with both Pfizer and Moderna about getting an additional, as you said, 100 million doses from either company. That would bring the total to 600 million doses for just Pfizer and Moderna combined. Now divide that by two and that means 300 million Americans can be fully vaccinated just with the Pfizer and Moderna vaccines.
Danny Vena: The last time I checked, I think we had about 327 million residents.
Speights: Yes, about 330 million, and some of them are children. These vaccines are therefore not yet approved for children. Pfizer is only 16 years old. Moderna is only 18 years old. They’re doing research for children 12 and older, but actually all adults in the US could be vaccinated with the 600 million doses the US will receive. assuming these deals go ahead.
Do you think, well, does that, Johnson and Johnson, displace Novavax? Not necessary.
First of all, the US already has supply agreements with both companies for 100 million doses each, and you have to think long-term. As we said, this won’t just go away, unfortunately, vaccines will be needed in the future.
I think it could affect some of these other companies that are further behind. I think if they were hoping to get emergency use permission later this year, I think their chances are lower as a result of these deals. But I don’t think it necessarily affects the leaders like Johnson & Johnson, Novavax.
Novavax, by the way, their results came from a study in the UK and they are in the middle of an American investigation. Its results will be available in a few months. Novavax’s CEO is actually trying to lobby a bit publicly that the FDA would use the results of the UK study to get their vaccine authorized faster. We’ll see how that lobbying effort goes, but he’s trying.
Hall: We will see what happens there.
Vena: Well, you can’t blame anyone for trying.
Speights: [laughs] You can’t blame him for trying and he’s got a good point. If it’s good enough to be authorized in the UK and Europe. Why not? This is an emergency here. We want to achieve that herd immunity sooner rather than later.