Johnson & Johnson ducked out of the RSV vaccine race Wednesday, leaving Pfizer, GSK and Moderna to duke it out. JNJ stock and Moderna stock jumped.
The company pinned its decision on a portfolio review "to prioritize the most transformational assets for ongoing investment." As a result, J&J said it would drop the respiratory syncytial virus program and discontinue its Phase 3 study.
Respiratory syncytial virus, or RSV, causes cold-like symptoms in most people. But in older adults and newborns, it can be serious or deadly. The Food and Drug Administration is currently reviewing RSV vaccines from Pfizer and GSK with an approval decision expected in May. Moderna plans to submit a request for approval in the first half of this year.
On today's stock market, JNJ stock edged up 1% to end the day at 153.31. Moderna stock jumped 1.3% to close at 148.80. GSK stock fell a fraction, while Pfizer shares rose less than 1%.
JNJ Stock: Refocusing Its Portfolio
The RSV vaccines from Pfizer and GSK are widely expected to be the first ever to gain approval.
Last month, a split panel of FDA experts voted 7-4 in support of the safety and effectiveness of Pfizer's shot. Soon after, the same committee voted unanimously in support of the effectiveness of GSK's shot and 10-2 on the safety question.
Though Moderna is trailing, the company stands a chance of gaining approval in time for the upcoming RSV season this fall. That puts all three on deck to compete. News on the RSV vaccine front could spark shares. Pfizer and Moderna stocks remain below their 50-day lines, while GSK stock is trading in line with that key marker.
Johnson & Johnson didn't expect to wrap up its Phase 3 study until November 2024, according to ClinicalTrials.gov. That would have given the other three a vast lead. Meanwhile, JNJ stock is already under pressure this year, having fallen more than 16% from a high point in late December.
J&J biotech division, Janssen, says discontinuing the RSV vaccine program is part of a broader effort to focus on medicines with the best potential to make a difference for patients.
"By periodically refocusing our portfolio, Janssen ensures that we are deeply invested in products that haver the power to transform patients' lives," Bill Hait, interim head of Janssen's research and development, said in a written statement.
According to MarketSmith.com, JNJ stock fell below its 50-day moving average on Jan. 9 and has remained there since.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
