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J&J stock is set to significantly benefit if the United States FDA approves the company’s coronavirus vaccine for emergency use.
Johnson & Johnson (NYSE: JNJ) stock closed yesterday trading at $166.27, up 0.82%. Meanwhile, J&J stock had slipped approximately 0.1% during the after-hours trading session.
Despite not having jumped a double-percentage rate last year, J&J stock remains somehow undervalued if its coronavirus vaccine is approved for emergency use and later for public mass use. Notably, Johnson & Johnson applied for an emergency use approval with the United States FDA earlier this month, based on its clinical test results.
With the coronavirus still being a major challenge to our normalcy, more efficient vaccines are needed to help revamp the global economy. According to data provided by worldometers.info, the total number of reported coronavirus cases globally is approximately 107 million, with approximately 2.3 million fatalities, and approximately 79 million already recovered. Out of the total figure, the United States is leading among other countries with approximately 27.7 million reported cases, approximately 479K fatalities and 17 million have already recovered. However, there are approximately 9.6 million active cases reported in the United States, thus the need for speed intervention.
The Biden administration took over from the previous administration’s work and has promised to speed up the process of vaccine development and approvals.
J&J Stock and the Coronavirus Vaccination
J&J stock is set to significantly benefit if the United States FDA approves the company’s coronavirus vaccine for emergency use. Over the past year, bulls have been gathering momentum awaiting such a time when the coronavirus vaccine is ready.
According to metrics provided by MarketWatch, J&J stock jumped approximately 9%, 12%, and 5% in the last year, three months, and one month respectively. JNJ stock investors and analysts remain optimistic about the company’s ability to deliver quality coronavirus vaccines and other drugs. Notably, having been rated 18 times, J&J stock received an average of Over rating.
With the coronavirus still a challenge to scientists due to its mutation factor, Johnson & Johnson anticipates people will need to be vaccinated annually for several years.
“Unfortunately, as [the virus] spreads it can also mutate. Every time it mutates, it’s almost like another click of the dial so to speak where we can see another variant, another mutation that can have an impact on its ability to fend off antibodies or to have a different kind of response not only to a therapeutic but also to a vaccine,” Johnson & Johnson CEO Alex Gorsky told CNBC on Tuesday.
As a result, the company is prepared to deliver quality products in quantity as the demand dictates. Mind you, with a market capitalization of approximately $434.16 billion, the company is capable of delivering as promised.