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When Will Johnson & Johnson Post a Profit from its COVID Vaccine?

By Adria Cimino - Updated Mar 7, 2021 at 8:56AM

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It has to do with when the pandemic ends.

Johnson & Johnson (JNJ 1.46%) is selling its vaccine without taking a profit during the pandemic. In this Motley Fool Live video recorded on Feb. 26, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino talk about the potential duration of the pandemic and what that means for Johnson & Johnson.

Corinne Cardina: Another thing that is obviously important for investors to know is that Johnson & Johnson, like AstraZeneca, has already agreed not to profit during the pandemic from this vaccine. Let's talk a little bit about when it could profit. Obviously, in the U.S., cases and deaths have decreased, a good 6% or maybe a little more of the U.S. population is vaccinated fully. Adria, when do you think we could move into a period when the pandemic is "over" and these companies could raise their prices to the point at which they can start profiting?

Adria Cimino: Well, if we go by Dr. Fauci, he said that the U.S. may reach some sense of normality by the end of the year. We can think of that and say, "Well, maybe by some point next year." Maybe midyear we could see an end to the pandemic, things really slowing down. I would think at the earliest, the idea of raising prices could come perhaps next year. The only thing with that is, I think by then the first round of vaccine will have gone out, so we can't expect immediately governments to be ordering tons and tons of doses. It might be more long term when we have to think of real profit for these companies. But I think in the long term it could be interesting because if it is every couple of years. And as a long-term investor we're looking at the revenue source years out, so I think this is something you want to keep in mind for the long term for these companies.

 

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Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$182.29 (1.46%) $2.63
AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$10,776.00 (3.81%) $396.00

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