Sales projection for the Covid vaccination halted by Johnson & Johnson.
During Johnson & Johnson’s quarterly earnings call on Tuesday, the company dropped sales expectations for the Covid-19 vaccine, citing a lack of demand compared to shots from Moderna and Pfizer.
“Given the worldwide supply oversupply and uncertain demand, the Company is suspending COVID-19 Vaccine sales,” J&J stated in a statement, adding that the decision will have “no impact on adjusted operational earnings per share.”
According to the company’s CEO, Joaquin Duato, the first quarter results “show excellent performance throughout the enterprise, despite macro-economic headwinds,” with reported sales minus Covid-19 vaccine sales up 3.8 to 4.8 percent over the same period last year.
J&J’s shares was down 0.4 percent to $177 in electronic trading on Wall Street before of the New York Stock Exchange’s opening bell.
The New York Times reported in February that Johnson & Johnson had temporarily halted production at a key plant that manufactures the Covid-19 vaccine, but that the company was still on track to meet its delivery commitments.
J&J said at the time that sales of its Covid shot would be $3 billion to $3.5 billion in 2022, far less than Pfizer’s forecast of $32 billion for the same timeframe.
On Thursday, a US government-appointed panel of medical specialists overwhelmingly endorsed Pfizer and Moderna’s mRNA Covid vaccinations over J&J’s shot.
J&J’s vaccine was first hailed for its ability to be stored at room temperature.
