Johnson & Johnson (J&J) has halted the sales forecast for its Covid-19 vaccine due to faltering demand, and has trimmed its adjusted profit expectations.
The vaccine, which was approved by the UK’s medicines regulator in the UK in May last year, has fared poorly compared to rivals.
The US pharmaceutical giant had estimated its jab to pull in $3.5bn (£2.6bn) in sales – but has been wrestling with the likes of Pfizer and Moderna which have snagged most of the market share.
Pfizer anticipates around $50bn in sales from its jab alone in 2022, after the pharmaceutical firm’s total revenue swelled from $41.7bn in 2020 to $81.3bn last year.
J&J now expects its full-year adjusted profit to fall around $10.15 (£7.79) and $10.35 (£7.94) per share, just below its previous estimate of $10.40 to $10.60.
“This disappointment comes because of global supply and demand uncertainty,” Mikaela Franceschina, senior analyst at Third Bridge, explained. “It will be interesting to see how the segment continues to grow and how the company tackles the ongoing supply struggles.”
While its Covid-19 business was met with “disappointment”, the group has been a “strong, stable performer in the market” – however, its vision care segment may be an area for divestment, Franceschina added.
“Our experts have noted that Johnson & Johnson have a hurdle to face with their Vision care segment, saying that it is likely to get lost in the mix and not get the proper attention needed for success,” she said.
“In order for Johnson & Johnson’s consumer health business to see success as a standalone, they will need to develop a more disruptive go-to-market strategy and remain focused on developing more direct-to-consumer, subscription-based opportunities, is what our experts have said.”