# J&J pulls COVID vaccine sales forecast due to low demand, supply glut Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Johnson & Johnson Withdraws Sales Forecast for COVID-19 Meta Description: Johnson & Johnson withdraws sales prediction for its vaccine due to hesitancy in low income countries, impacting supply and demand worldwide. URL: https://financedigest.com/jj-pulls-covid-vaccine-sales-forecast-due-to-low-demand-supply-gluthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-19t103842z3lynxnpei3i0clrtroptp4swiss-business-1736815863065-compressed.jpg) By Manas Mishra and Michael Erman (Reuters) -Johnson & Johnson on Tuesday rescinded its forecast for sales of its COVID-19 vaccine, as hesitancy in low income countries has led to a glut of supply of a shot once hoped to be the inoculation of choice for the developing world. The company had previously predicted as much as $3.5 billion in 2022 sales from the single-dose vaccine, but demand has withered. Still, the company reported strong results for its medical devices business and [raised its dividend](https://www.financedigest.com/deutsche-post-raises-annual-dividend-warns-of-challenging-2023.html "Deutsche Post raises annual dividend; warns of challenging 2023"), driving shares up around 3%. Use of the shot has been weak in high-income countries, hurt by reports of rare, potentially deadly blood clots, production issues, including an accidental mix-up of ingredients by a [contract manufacturer](https://www.financedigest.com/the-antibodies-contract-manufacturing-market-to-see-through-the-probable-sea-change-through-digitization.html "The Antibodies Contract Manufacturing Market to see through the probable sea change through digitization"), and concerns about efficacy. J&J’s [COVID vaccine](https://www.financedigest.com/fda-advisers-back-the-same-covid-vaccine-for-initial-shots-boosters.html "FDA advisers back the same COVID vaccine for initial shots, boosters") accounts for about 3% of all doses administered in the United States, and roughly 2% of doses in Europe. Because of the soft demand from Europe and the United States, much of the [company’s supply](https://www.financedigest.com/mitigating-supply-chain-risks-five-critical-tips-financial-services-companies.html "Mitigating supply chain risks – five critical tips for financial services companies") has been shipped to lower income countries. As a one-shot vaccine that can be refrigerated for months, many hoped uptake would be better, but executives said it has encountered the same vaccine hesitancy as other manufacturers. Governments want to act, and what they’re seeing is their populations are just a [little](https://www.financedigest.com/analysis-weary-investors-see-little-respite-to-fed-hike-gloom.html "Analysis-Weary investors see little respite to Fed hike gloom") bit more reticent than what we see in the U.S. or the G5 with respect to accepting a vaccine,” J&J [Chief Financial Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Joseph Wolk said in an interview. Wolk noted that infrastructure, including refrigeration, has also been a hurdle for getting shots in arms in [developing countries](https://www.financedigest.com/what-its-like-for-women-entrepreneurs-in-developing-countries.html "What it’s Like for Women Entrepreneurs in Developing Countries"). The [World Health Organization has said poorer countries](https://www.financedigest.com/richest-countries-in-the-world.html "Richest countries in the world") have asked for insufficient doses to meet its goal of vaccinating at least 70% of their populations by the middle of the year. The vaccine, which is sold at a not-for-profit price, brought in $457 [million in the first quarter](https://www.financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarter.html "Warner Bros Discovery adds 2 million subscribers in first quarter"). J&J recorded vaccine [sales of $2.39 billion last year](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study"). Pfizer Inc has [forecast $32 billion in 2022 sales](https://www.financedigest.com/truck-maker-volvo-posts-record-q1-as-sales-margins-beat-forecasts.html "Truck maker Volvo posts record Q1 as sales, margins beat forecasts") from its COVID vaccine developed with BioNTech SE, while Moderna Inc has forecast $21 billion for its shot this year. J&J also cut both ends of its full-year [profit forecast by 25 cents and now expects](https://www.financedigest.com/portuguese-airline-tap-swings-to-profit-earlier-than-expected.html "Portuguese airline TAP swings to profit earlier than expected") to earn $10.15 to $10.35 per share. But it blamed the [move on currency fluctuations rather than fundamental business](https://www.financedigest.com/gulf-bank-moves-paper-digital-records-help-alaris-kodak-alaris-business.html "Gulf Bank Moves from Paper to Digital Records with Help of Alaris, a Kodak Alaris business") issues and raised its dividend 6.6%. “With the guidance cut driven exclusively by currency, I think shares are reacting to the forward looking comments,” said Edward Jones analyst Ashtyn Evans. J&J discussed accelerating growth in medical technology through acquisitions and also the belief that [supply chain](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance") issues will improve in the second half of the year. Other analysts said J&J remains a safe bet within the healthcare sector and that raising the dividend provided predictable income for [investors despite](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") vaccine sales woes. J&J said its medical devices unit should recover this year after pandemic delays in non-urgent surgeries, and it [expects above-market growth in its large pharmaceuticals business](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease") in 2022, despite falling short of Wall Street estimates in the first quarter. The company [reported pharmaceutical sales](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment") of $12.87 billion, well shy of forecasts for $13.6 billion, due in part to low vaccine sales. [Excluding items](https://www.financedigest.com/myhermes-boosts-smes-by-revising-cover-model-and-excluded-items-list.html "MyHermes Boosts SMEs By Revising Cover Model And Excluded Items List"), J&J earned $2.67 per share for the quarter, beating analysts’ expectations by 11 cents, according to Refinitiv. (Reporting by Manas Mishra in Bengaluru, additional reporting by Michael Erman in New Jersey; Editing by Arun Koyyur and Bill Berkrot) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---