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Johnson & Johnson To Sell A COVID-19 Vaccine Worth $1 Billion To Us Authorities

Johnson & Johnson To Sell A COVID-19 Vaccine Worth $1 Billion To Us Authorities

American Johnson & Johnson, the world's largest manufacturer of medical products, has joined the list of companies that have signed multi-billion-dollar agreements to sell coronavirus vaccines to the US government.

The company said it had entered into a deal worth "more than $1 billion" to supply the US with 100 million doses of the experimental COVID-19 vaccine if the US food and Drug Administration (FDA) approves the use of the drug or its use in emergency situations.

The Biomedical Advanced Research and Development Authority (BARDA), part of the U.S. Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response, in collaboration with the U.S. Department of Defense, is committing over $1 billion for this agreement.

Unlike other companies, Johnson & Johnson did not name the exact amount it will receive from the US authorities in accordance with the terms of the agreement, however, it seems that it estimates the cost of its vaccine at about $10 per dose, writes the publication Barron's.

Earlier, European drugmakers Sanofi and GlaxoSmithKline announced a $2.1 billion agreement to supply 100 million doses of their coronavirus vaccine to the US government. A similar agreement, worth $1.95 billion, was signed by Pfizer Inc. and BioNTech.

Johnson & Johnson has been conducting the first human trials of its vaccine since the end of July.

Johnson & Johnson shares were up 0.6% in Wednesday trading.