Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

J&J expects jump in COVID vaccine sales in 2022, eyes device deals

Stock MarketsJan 25, 2022 12:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People pose with syringe with needle in front of displayed Johnson & Johnson logo in this illustration taken, December 11, 2021. REUTERS/Dado Ruvic/Illustration

By Manas Mishra and Carl O'Donnell

(Reuters) -Johnson & Johnson on Tuesday forecast as much as $3.5 billion in sales of its COVID-19 vaccine in 2022, a 46% jump for the shot that has fared poorly compared to rivals, and said it would take a more aggressive stance on deals for its medical device unit.

J&J (NYSE:JNJ)'s 2022 revenue forecast for the vaccine was above Wall Street estimates, which had been lowered due to safety concerns as well as low uptake in the United States.

New Chief Executive Officer Joaquin Duato said his priority now was to be "more on the acquisitive side" for the medical devices unit, its second-largest business by revenue.

"While our past history always suggest smaller deals ... we don't have an artificial ceiling as far as deal size," he said on a call with analysts.

The company reported sales of $2.39 billion for the COVID shot in 2021, missing its own target of $2.5 billion in a year marked by manufacturing stumbles, safety concerns and uneven demand for a vaccine once touted as a promising tool for inoculating populations in hard-to-reach areas.

Pfizer Inc (NYSE:PFE) by comparison is forecasting $29 billion in 2022 sales of the COVID-19 vaccine it developed with German partner BioNTech SE (NASDAQ:BNTX), while Moderna (NASDAQ:MRNA) Inc is projecting $18.5 billion in vaccine sales this year.

"I think we've known for quite some time that J&J's vaccine didn't have as good data as, say Pfizer. There aren't really any expectations for vaccine contribution over the long term," said Edwards Jones analyst Ashtyn Evans.

J&J, the world's largest healthcare conglomerate, is planning to separate its consumer health unit to focus on its large pharmaceuticals and COVID-battered medical devices businesses.

Since the pharmaceuticals unit has been growing above-market levels for some time, "focusing on the device business and getting that in a better spot makes a lot of sense, especially as they spin off consumer health," said Evans.

J&J expects to appoint executives and announce a new name and headquarters for the business that sells mouthwash, bandages and non-prescription medicines sometime in the first half to middle of 2022, Chief Financial Officer Joseph Wolk said.

Overall, fourth-quarter sales of $24.80 billion missed analysts' expectations $25.29 billion, according to Refinitiv data, as big revenue drivers such as cancer drug Imbruvica and Crohn's disease treatment Stelara came up short.

Sales of $6.86 billion for the medical devices segment missed estimates of $6.98 billion, as the surge in COVID-19 cases caused by the Omicron variant drove hospitals to once again delay non-urgent surgical procedures such as hip and knee replacements.

Imbruvica, which J&J shares with AbbVie Inc (NYSE:ABBV), had sales of $1.06 billion, below estimates of $1.17 billion. Stelara sales of $2.33 billion missed estimates of $2.45 billion.

Overall, J&J expects 2022 sales of $98.9 billion to $100.4 billion, above Wall Street estimates of $97.79 billion.

J&J expects jump in COVID vaccine sales in 2022, eyes device deals
 

Related Articles

Apple looks to boost production outside China- WSJ
Apple looks to boost production outside China- WSJ By Reuters - May 21, 2022

(Reuters) - Apple Inc (NASDAQ:AAPL) has told some of its contract manufacturers that it wants to increase production outside China, the Wall Street Journal reported, citing people...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
cc cc
cc cc Jan 26, 2022 12:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Must be s student writing this report, earning morning on the side (or copying other news). Where did they get $2.39 billion covid shot sales? Read the report and transcript....clearly it is 1.619b....
Andi Kyle
Andi Kyle Jan 25, 2022 12:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Johnson & Johnson remember the cancer talcum powder. politicians are getting rich on these vaccine pharmaceutical companies but the bottom is going to fall out as more and more vaccine deaths occur
Richard Saunders
Richard Saunders Jan 25, 2022 11:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow! Isn't that great everyone?!! Let's all give a huge thank you to the media for all the propaganda we've been spoon fed for 2 years
Keng He
Keng He Jan 25, 2022 10:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
johnson like making a big joke. haha. Remember most Americans will get community immunity to covid, then who will care your vaccine.
Jeremy Johnson
Jeremy Johnson Jan 25, 2022 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
especially when governments continue to mandate it, take away peoples freedoms and shame those who are not comfortable with the vaccines due to the misinformation, injuries and deaths.
Robert Alex
Robert Alex Jan 25, 2022 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sort of like car insurance or driver's licenses
Jeremy Johnson
Jeremy Johnson Jan 25, 2022 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Robert Alex   auto insurance doesn't negatively affect a person's health and helps everyone; the vaccines do neither.
Nawaf Alnhdi
Nawaf Alnhdi Jan 25, 2022 6:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cash out cash out
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email