When Pfizer (NYSE: PFE) and Modern (NASDAQ: MRNA) announced the results of their clinical trials of coronavirus vaccines at the end of last year, public health experts were delighted. With both vaccine formulas having an efficacy rate of more than 90%, health officials quickly proclaimed that a rapid implementation could be the gateway to a return to normality.
There is only one problem: the vaccine was not launched very quickly. Pfizer and Moderna formulas come with strict refrigerated storage requirements. This, combined with limited availability, made the widespread distribution of vaccines slow and challenging.
But now there is a new player in the field of the coronavirus vaccine – Johnson & Johnson (NYSE: JNJ). And it may just be what speeds up the mass vaccination process and helps to stem the pandemic in the bud.
A real game changer
The Johnson & Johnson coronavirus vaccine differs from Pfizer and Moderna in that it is not an mRNA vaccine. And while its initial effectiveness rating is lower than that of Pfizer and Moderna, the Johnson & Johnson vaccine still does an extremely good job of preventing hospitalization and serious illnesses. Let’s also not forget that Johnson & Johnson’s clinical trials took place after those of Pfizer and Moderna, when there were already more variants of the COVID-19 in circulation. As such, it is difficult to directly compare the different vaccine formulas.
But one thing we can I compare is the complexity of bringing these vaccines to the public. In that sense, Johnson & Johnson has a clear advantage. On the one hand, your vaccine does not have the same cold storage requirements as Pfizer or Moderna, so distribution logistics are easier in that respect. But an even more notable advance is that the Johnson & Johnson vaccine is a single dose injection, while the Pfizer and Moderna vaccines require two separate doses, spread over three weeks and four weeks, respectively.
From a logistical point of view, a single dose vaccine is easier to administer. And from the point of view of public health, it is preferable, as it confers immunity more quickly.
In addition, there may be less resistance to one-dose vaccination than to the two-dose schedule. Many workers are not entitled to paid time off to get a vaccine and also to recover (although some employers are, in fact, paying workers to be vaccinated). Going through this process once, instead of twice, removes a clear barrier.
How will a single dose vaccine impact real estate investors?
Real estate investors have been affected by the pandemic in several ways. Those with investments in office buildings or REITs (real estate investment funds) with office buildings in their portfolios have been hit by the widespread trend of remote work. Meanwhile, many shopping center REITs have lost value as retail stores closed in full force due to a lack of consumer traffic.
The hospitality industry has also been hit. Approximately 110,000 restaurants closed permanently in the past year, leaving commercial owners with a range of places available. And last year, hotels recorded low occupancy and revenue rates.
If the Johnson & Johnson vaccine helps to speed up mass inoculation efforts, it could help the recovery of all these industries. Once more people are vaccinated, workers can return more safely to office buildings and consumers can feel more comfortable shopping in stores.
In the meantime, restaurants could get the green light to start operating at full capacity (or at least increased), and travel could actually increase, leading to a major revival of hotels. All of which would leave real estate investors in these areas in a much stronger position than they are now.
Although there is currently limited supply of Johnson & Johnson’s single dose vaccine, the company recently announced a partnership with another pharmaceutical giant Merck (NYSE: MRK) to expand manufacturing capacity. This could, in turn, increase the schedule for mass vaccinations – and take the United States one step closer to returning to a pre-pandemic existence.