Uncle Sam wants more vaccines. The US government is in negotiations with Pfizer (NYSE: PFE) and Modern (NASDAQ: MRNA) about securing another 100 million doses of each of the COVID-19 vaccines.
In that 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 that these additional vaccine purchases could have on two other companies that may soon obtain Emergency Use Authorization for your COVID-19 vaccines: Johnson & Johnson (NYSE: JNJ) and Novavax (NASDAQ: NVAX).
Jason Hall: Here is some great news. The Biden government is taking a very aggressive approach here, just trying to really increase the distribution of vaccines, and wants to buy another 100 million doses from Pfizer and Moderna. There are 200 million doses, that is, 100 million people vaccinated. What happens is that it affects the market for other vaccines like J&J when – or Novavax.
Keith Speights: Yes, so in general I will say this as a warning: the deal has not yet been closed, but the Biden administration is reportedly in discussions with Pfizer and Moderna to secure an additional, as you said, 100 million additional doses of each of these companies. This would bring the total just for Pfizer and Moderna combined for 600 million doses. Now, you divide that by two, and that means that 300 million Americans could be fully vaccinated, with the Pfizer and Moderna vaccines alone.
Danny Vena: The last time I checked, I think we had a population of around 327 million.
Speights: Yes, about 330 million, and some of them are children. Therefore, these vaccines are not yet authorized for children. Pfizer is only up to 16 years old. Moderna is only up to the age of 18. They are doing studies for children from 12 years old, but basically, all adults in the United States would be able to be vaccinated with the 600 million doses that the United States will receive starting, assuming these deals are completed.
You think, well, does that exclude, Johnson and Johnson, does that exclude Novavax? Not necessarily.
First, the United States already has supply agreements with these two companies for 100 million doses each, and it is necessary to think in the long term. As we already said, this will not simply pass, unfortunately, there will be a need for vaccines going forward.
I think it could impact some of those other companies that are falling behind. I think if they hoped to get an emergency use permit perhaps later this year, I think their chances are less as a result of those deals. But I don’t think it necessarily impacts leaders like Johnson & Johnson, Novavax.
Novavax, by the way, their results came from a study in the United Kingdom, and they are in the middle of a study in the United States. The results will be available in a few months. Novavax’s CEO is actually trying to lobby a little publicly so that the FDA would use the results of the UK study to get its vaccine authorized more quickly. We’ll see how this lobbying effort goes, but it’s trying.
Hall: Let’s see what happens there.
Vein: Well, you can’t blame a guy for trying.
Speights: [laughs] You can’t blame him for trying and he’s right. If it is good enough to be authorized in the UK and Europe. Why not? This is an emergency here. We want to achieve this collective immunity sooner or later.