Why Shares Of Johnson & Johnson Are Under Pressure Today?

Johnson & Johnson Video 09.04.21.

Johnson & Johnson Stock Moves Lower After European Medicines Agency Starts To Review Reports Of Rare Blood Clots

Shares of Johnson & Johnson found themselves under pressure after the European Medicines Agency started to review possible cases of blood clots that may have been caused by the company’s coronavirus vaccine. The European Medicines Agency noted that it found four cases of such blood clots.

Johnson & Johnson stated that “no clear causal relationship has been established between these rare events and the Janssen COVID-19 vaccine”.

Earlier, AstraZeneca COVID-19 vaccine was found to cause blood clots in rare cases. The UK recommended not to use the vaccine for people under 30, while Australia decided that vaccine should not be given to people under 50.

While regulators have stated that benefits outweighed risks in the case of AstraZeneca vaccine, the scope of probes into vaccine safety has grown while various countries have introduced restrictions on its use.

What’s Next For Johnson & Johnson?

While there are just four reports of potential blood clots in people who received Johnson & Johnson coronavirus vaccine and no link between the vaccine and clots has been established, the news served as a bearish catalyst for the stock.

AstraZeneca’s problems got a lot of bad press, so the news about potential issues with the Johnson & Johnson vaccine could also generate many negative headlines.

At the same time, Johnson & Johnson is a huge company which does not depend on the success of its coronavirus vaccine. Analysts expect that the company will report earnings of $9.51 in 2021 and $10.31 in 2022, so the stock is trading at roughly 15 forward P/E which is rather cheap in today’s market environment.

In this light, the negative headlines may continue to put some pressure on shares of Johnson & Johnson in the upcoming trading sessions, but the stock may also attract value-oriented investors who are trying to find reasonably valued companies.

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