The pharmaceutical company supplies 3% of all doses in the United States, and accounts for roughly 2% of administered doses in Europe
Johnson & Johnson has pulled back its forecast on sales of the company’s COVID-19 vaccines after noticing the indecisiveness of low-income countries rendering a surplus supply of the shot, which was earlier believed to be the inoculation of choice for the developing world.
Previously, the pharmaceutical giant had estimated revenue of around $3.5 billion in 2022 from sales of the single-dose vaccine, however, tables have quickly turned, and demand has withered.
Last year, the pharma player reported vaccine sales worth $2.39 billion with earnings up to $457 million in the first quarter by the vaccination, which was administered at not-for-profit rates.
Nevertheless, so far, the company has showcased a strong performance in its medical device business and spurred its dividend, thereby taking its shares up around 3%.
Moreover, increasing speculations around potential consequences of vaccine - deadly blood clots or production issues - further worsened after a controversial mistake in vaccine formulation by a manufacturer leading to efficacy issues have reduced the demand for shots in high-income countries.
In terms of global supply, J&J’s COVID vaccine accounts for merely 3% and 2% of the total doses administered in the United States and Europe respectively.
With a considerably mellow response from Europe and the U.S., the majority of J&J’s vaccine supply has been provided to lower-income countries with the hope that since the vaccine is a one-time shot with a shelf-life extending to a couple of months, the regions will display a profitable uptake.
Unfortunately, no such strategies have come to fruition as lower-income countries also possess the same hesitancy as that of its high-income counterparts.
According to the World Health Organization, poorer countries have placed insufficient orders for vaccines to vaccinate a bare minimum of 70% of their populations by mid-2022.
J&J rivals have also projected COVID19 vaccine sales forecast, with Pfizer Inc. predicting $32 billion in 2022 for the shot developed with BioNTech SE, whereas Moderna Inc. estimates a revenue of $21 billion through vaccine sales this year.