Johnson & Johnson Stock Is Rising as Company Is Going to Create Coronavirus Vaccine

Coinspeaker Johnson & Johnson Stock Is Rising as Company Is Going to Create Coronavirus VaccineThe stock market is famous for its volatility. While companies operating in one industry are on the rise, businesses in other spheres are suffering drops in prices. Currently, the world is obsessed with the rapidly spreading coronavirus that initially appeared in China. And obviously, it could not just pass by the pharmaceutical industry and such companies like Johnson & Johnson, producer of medical devices and pharmaceutical goods. Johnson & Johnson stock has seen growth last week. Some predict it may soon reach incredible highs.The company’s common stock is a component of the Dow Jones Industrial Average that has by the way fallen for the fifth trading day in a row today. In 2019, Johnson & Johnson had a 13% return. Besides, the company posted quite good profits and revenues in its third and fourth-quarter reports. For example, during the third quarter, Johnson & Johnson’s net earnings were $1.8 billion. The revenue from its pharmaceuticals segment during the third quarter was $10.9 billion, a 5.1% year-over-year increase. The consumer business brought $3.5 billion and increased by 1.6%. But its medical devices segment recorded a revenue figure of $6.4 billion, a 3.1% year-over-year decrease.Gains amid CoronavirusDespite experiencing some tough times because of product liability lawsuits, Johnson & Johnson stock is considered reliable and secure. The company offers a 2.6% dividend yield and remains a top player in the healthcare sector. In mid-December, its shares traded at $140s. Currently, Johnson & Johnson shares trade at $149.22.As for other companies in the industry, Vir Biotechnology has enjoyed an over 20% growth amid the coronavirus. Besides, the company believes it has the ‘potential to treat and prevent Wuhan coronavirus’. Another company to benefit is a biotech company Inovio Pharmaceuticals. Its shares have skyrocketed 24%, bringing its weekly gain to 60%.Procter & Gamble, Pfizer and Walmart are also gaining.Chinese Companies Are Suffering LossesLet’s see what is going on in other industries. China became the center of coronavirus, therefore many companies with exposure to this country have suffered losses. In particular, those involved in the travel industries came off the worst. For instance, Wynn Resorts shares are down nearly 7.5%. Gambling and hotel stocks Las Vegas Sands and MGM Resorts are down about 7% and 4% accordingly. Further, American Airlines lost 5.5%, while United is down 4.8% and Delta is down 4.2%. Royal Caribbean has seen a 6.9% drop.Notably, consumer companies with big business in China are also out on a limb. For example, Nike is down 1.9%, while Estee Lauder is down 5.2%. Even Apple has fallen 3%.Johnson & Johnson To Create A Coronavirus VaccineNotably, those pharmaceutical companies promising to work on coronavirus vaccine are on the rise. Johnson & Johnson is no exception. Recently, its chief scientific officer Dr. Paul Stoffels said he believes in the company’s ability to create a vaccine.He stated:“We have dozens of scientists working on this so we’re pretty confident we can get something made that will work and stay active for the longer term. We’ll see in the next few weeks how this goes.”Further, he added:“We are going to take an approach with at least five different constructs and different partners and collaborations all over the world in order to see which part of the virus we can use to make an effective vaccine and develop a model that we can invest in.”The coronavirus has killed at least 56 people and infected almost 2,000 since its discovery in the city of Wuhan. Most of the cases are concentrated in those provinces closest to Hubei. It has also spread to Europe, with three cases confirmed in France.Johnson & Johnson Stock Is Rising as Company Is Going to Create Coronavirus Vaccine