J&J Starts Ebola Vaccine Study, Updates Production Goal

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Johnson & Johnson (JNJ) announced that it has commenced a phase I study on a preventive Ebola vaccine, which is being developed by its subsidiary Janssen Pharmaceuticals. The study is of the first-in-human type and aims to evaluate the safety and tolerability of the Ebola vaccine regimen.

This study will evaluate different regimens combining the vaccine components or placebo in 72 healthy adult volunteers. While the first set of volunteers has already received an initial dose of the vaccine, patient enrolment in this study is expected to be completed by the end of this month. Patients are given a dose to prime their immune system at first and then a boost to enhance their immune response over time.

The immune response generated by the regimen will also be assessed in the long term. The study is being conducted under the Oxford Vaccine Group, part of the Department of Paediatrics of the University of Oxford.

Projection on Ebola Vaccine Production

J&J has updated its projection regarding the production of Ebola vaccine regimens in 2015. The company said that a total of 2 million regimens will be available throughout 2015 with an added capacity of scaling up to 5 million over a 12- to 18-month period.

Up until the issuing of the press release, J&J had produced more than 400,000 regimens of the prime-boost vaccine in collaboration with Bavarian Nordic. These regimens will be released for use in large-scale studies by Apr 2015.

We note that in Oct 2014, the company had projected the production of 1 million regimens by the end of 2015 with 250,000 regimens to be available for use in studies by May 2015.

According to the London School of Hygiene and Tropical Medicine, the current projected demand for a preventive vaccine lies in the range of a minimum of 100,000 doses (to protect frontline workers) to 12 million doses (for large-scale adult vaccinations in Liberia, Sierra Leone and Guinea). This estimate is based on the goal of bringing the epidemic under control.

Meanwhile, J&J intends to initiate additional studies in this indication in the U.S. in late Jan 2015 and Africa soon after. The company intends to invest up to $200 million to accelerate the Ebola vaccine program and expand production.

While several companies are competing to develop vaccines for the prevention and treatment of Ebola, Roche (RHHBY) has managed to bag the Emergency Use Authorization for its LightMix Ebola Zaire rRT-PCR Test for use on patients showing signs and symptoms of the Ebola Zaire virus infection in concurrence with epidemiological risk factors, such as individuals traveling from West Africa. The test will enable quick detection of the virus leading to the early commencement of treatment.

Meanwhile, Tekmira Pharmaceuticals (TKMR) and GlaxoSmithKline (GSK) are also developing therapies for Ebola. We expect investor focus to remain on Ebola vaccine updates going forward.

J&J carries a Zacks Rank #3 (Hold). Tekmira is a better-ranked stock with a Zacks Rank #2 (Buy).

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