Johnson & Johnson (JNJ) and GlaxoSmithKline (GSK) are interested in inking a deal for the accelerated development of an Ebola vaccine and have already discussed the possibility of a collaboration, as per a report by Reuters. However, no formal announcement has been made yet.
Both Johnson & Johnson and Glaxo have been working separately on developing an Ebola vaccine.
Johnson & Johnson’s Ebola Vaccine Status
Earlier this week, Johnson & Johnson announced that it will invest up to $200 million in its Ebola vaccine program. This program is geared to develop a combination vaccine from Johnson & Johnson’s stable and that from Denmark-based Bavarian Nordic to treat the deadly virus.
The combination vaccine regimen is expected to move into human trials in the U.S., Europe and Africa in early Jan 2015. The regimen has demonstrated promising results in preclinical studies.
Johnson & Johnson targets to produce more than 1 million doses of the combination Ebola vaccine regimen in 2015 out of which 250,000 are expected to be released for use in clinical trials by May.
Glaxo’s Ebola Vaccine Status
Meanwhile, Glaxo is also developing its Ebola vaccine at a fast-track pace. Glaxo’s vaccine candidate is already in phase I studies in the U.S., UK and Mali with more studies due to start in the coming weeks.
The company expects to report initial data from phase I studies by the end of this year. If the data from the phase I studies is positive, the company will start vaccination of frontline health care workers in the worst affected countries – Sierra Leone, Guinea and Liberia – by early 2015.
WHO has declared the Ebola epidemic a public health emergency of international concern. As per the Centers for Disease Control and Prevention (CDC) reports, the current outbreak of the disease has affected almost ten thousand people worldwide. Ebola has a high fatality rate of around 50%.
Several companies including Tekmira Pharmaceuticals (TKMR) and Allergan, Inc. (AGN) are developing Ebola vaccine candidates.
We believe investors will remain glued on Ebola vaccine/treatment related updates and companies working on Ebola therapies stand to make the most of it.
Glaxo is a Zacks Rank #5 (Strong Sell) stock while Johnson & Johnson carries a Zacks Rank #3 (Hold). Allergan is a better-ranked stock in the health care sector carrying a Zacks Rank #2 (Buy).
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