JNJ - Here's Why Emergent BioSolutions Is Rising Today
Shares of Emergent BioSolutions (NYSE: EBS) were up by 8% as of 12:08 p.m. EDT on Friday. The market is likely responding to the news that Emergent BioSolutions signed a $135 million contract with Johnson & Johnson (NYSE: JNJ). Per the terms of the agreement between the two entities, Emergent BioSolutions -- which manufactures pharmaceutical products for other companies -- will be tasked with manufacturing Johnson & Johnson's investigational COVID-19 vaccine.
Johnson & Johnson said it was aiming to supply more than 1 billion doses of its lead vaccine candidate for COVID-19. Emergent BioSolutions will use its facilities to help ramp up the manufacturing of Johnson & Johnson's vaccine. It is, however, worth noting that Johnson & Johnson's candidate hasn't even reached the clinical trial phase yet.
The pharma giant said it was looking to start clinical trials by September. Johnson & Johnson is hoping to have its potential COVID-19 vaccine ready for emergency use in early 2021, an ambitious goal considering vaccine candidates typically take much longer than that to be approved.