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Johnson & Johnson suspends vaccine sales estimates for COVID-19 due to weak demand and oversupply

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The company has previously anticipated sales of up to $ 3.5 billion in 2022 from the single-dose vaccine, once touted as an important tool for vaccinating hard-to-reach areas.

J&J also reduced its estimated full-year profit range by 25 cents, expecting to earn between $ 10.15 and $ 10.35 per share.

The company blamed foreign exchange fluctuations for this measure rather than fundamental business issues and increased its dividend by 6.6% and shares rose by about 4%.

“With the reduction of estimates, determined exclusively by the currency, I think that the actions react to the anticipated comments. J&J talked about accelerating the growth of medical technology through procurement and also about the belief that supply chain issues will improve in the second half of the year, “said Edward Jones analyst Ashtyn Evans.

Other analysts said that J&J remains a safe bet in the healthcare sector and that the dividend increase provided predictable income for investors, despite problems with vaccine sales.

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The J&J vaccine has been associated with rare but potentially fatal blood clots, manufacturing problems and efficacy concerns. It accounts for approximately 3% of all doses administered in the United States and approximately 2% of doses in Europe.

The company’s executives said that the lack of acceptance in lower-income countries also affects vaccine sales.

According to the World Health Organization, poorer countries have required insufficient doses to meet their goal of vaccinating at least 70 percent of their population by mid-year.

The vaccine, which is sold at a nonprofit price, brought the company $ 457 million in the first quarter.

J&J last year sold $ 2.39 billion in vaccine sales.

Pfizer estimated sales of $ 32 billion in 2022 of its Covid-19 vaccine developed with BioNTech, while Moderna estimated $ 21 billion for its vaccine this year.

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J&J says its medical devices division is set to recover this year after pandemic delays in non-emergency operations affected sales last year, and expects its large pharmaceutical business to grow in the market. 2022, despite not reaching Wall Street estimates in the first quarter.

The company reported sales of $ 12.87 billion worth of pharmaceuticals, far from an estimated $ 13.6 billion, due to low vaccine sales.

Excluding exceptional items, J&J earned $ 2.67 per share for the first quarter, exceeding analysts’ expectations by 11 cents, according to Refinitiv.

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