The U.S. government said Wednesday it had signed a $1 billion investment deal for a coronavirus drug being developed by Johnson & Johnson. It hopes to supply 100 million doses to treat COVID-19.
Through a subsidiary Johnson & Johnson was granted $456 million by the U.S. government in March to develop its SARS-CoV-2 investigational vaccine. The fresh funding will enable the group to accelerate its production so vaccines will be ready for shipping if and when they get regulatory approval.
U.S. health authorities have the option to buy sufficient additional doses to treat 300 million people. The deal allows for an additional 200 million shots in the future.
The U.S. Department of Health and Human Services' Biomedical Advanced Research and Development Authority and the U.S. Defense Department have promised more than $1 billion for the program.
Research shows Johnson & Johnson's experimental drug triggered a strong antibody reaction in monkeys and provided a good layer of protection with just one dose. Its potential vaccine is expected to commence late-phase testing next month.
Recently, the U.S. government signed deals with biotech giants like Moderna, Inc. and Pfizer Inc. to secure access to the drug. Johnson & Johnson's primate data are positive for the company - giving it a competitive edge against others further along in trials but requiring two doses over time.
U.S. President Donald Trump's administration has spent nearly $9.5 billion on vaccine deals with five biotech groups agreeing to produce at least 700 million doses, an Agence France-Presse tally showed.
Under Operation Warp Speed, these agreements foresee production in consonance with clinical tests and the government taking the financial risk away from private groups.
Johnson & Johnson appreciates the government's confidence in, and support for, its research and development and the scalability of its vaccine technology, according to chief scientific officer Dr. Paul Stoffels.
Johnson & Johnson's vaccine will be sold at cost internationally. Healthcare groups can charge to administer doses. The company plans to distribute the vaccine around the world by end of next year.
