Almost half of the $1 billion will come from the U.S. Biomedical Advanced Research and Development Authority (BARDA), which is looking to expand on J&J's previous collaboration with the agency.
Johnson and Johnson said that it had selected its own lead vaccine candidate and would start human testing of its experimental coronavirus vaccine by September, with an eye on having it ready for emergency use in early 2021, the drugmaker said on Monday.
"We need multiple vaccine programs to move forward because we don't know which vaccine will be the safest, most effective and most deployable", said Barouch, who has emphasized that he believes a vaccine might be needed to end the pandemic.
As part of the same contract, J&J's pharmaceutical branch, Janssen, the United States is also paying for the company to work on a "new antiviral" to treat the infection sweeping the globe. Janssen also was awarded a $150 million contract to develop an anti-viral medication.
The company is ramping up its production capacity of its 125 global facilities with the aim of making one billion doses of a coronavirus vaccine.
The company previously said that it had a plant in Leiden, Netherlands, that was prepared to manufacture 300 million doses a year in the first deployment of the vaccine.
The world's largest healthcare company is accelerating its timeline for a coronavirus vaccine, saying it could be available for emergency use by early next year.
So far, only Moderna is in the clinical trial phase for a vaccine while Regeneron and Sanofi, Roche and Gilead Sciences are in the clinical trial phases for a treatment.
BARDA, which is helping to bankroll the effort, is part of the US Department of Health and Human Services.
Several other vaccine trials across the world already are underway, including work by New-York based Regeneron, which has combined hydroxychloroquine, a popular anti-malaria drug, and antibiotic azithromycin.
For comparison, the typical vaccine development process involves a number of different research stages, spanning 5 to 7 years, before a candidate is even considered for approval. The company said it started working on the vaccine in January, as soon as the genetic sequence became available from China.
The first patients were dosed with the drug on Tuesday in NY, the hardest hit state in the US.