Johnson & Johnson (NYSE:JNJ) is expecting its COVID-19 vaccine to reach $2.5 billion in sales this year, despite concerns about the injection’s efficacy against the dreaded Delta variant.
Second Quarter Results
On Wednesday, the company released its financial results for the second quarter, beating Wall Street expectations in terms of both earnings and revenue, with the company’s share price “up nearly 1% in premarket trading following the report,” CNBC reports.
According to estimates by Refinitiv, J&J’s adjusted EPS reached $2.48 per share against the Wall Street forecast. Also, out of a $22.21 billion expected revenue, the multinational topped $23.31 billion.
J&J’s single-shot Covid vaccine accounted for $12.59 billion in revenue, which represents a 17.2% year-over-year increase, while its global sales in the quarter hit $164 million.
“The company’s consumer unit, which makes products such as Neutrogena face wash and Listerine, generated $3.7 billion in revenue, up 13.3% from a year earlier.” The revenue accrued by the medical device unit grew by 62.7% topping $6.9 billion.
Joseph Wolk, J&J Chief Financial Officer, told CNBC: “We’ve all realized over the last 18 months just how important good health is and elective isn’t elective forever.”
What Is to Come
In the report, J&J has increased its earnings and revenue guidance for the year, anticipating profit of $9.50 to $9.60 per share after forecasting $9.30 to $9.45 per share.
Revenue is expected to reach between $92.5 billion and $93.3 billion, “compared with its prior forecast of $89.3 billion to $90.3 billion.”
The positive financial results arrive after a study disclosed on Tuesday suggests a lower efficacy of the J&J shot against the Delta and Lambda variants of COVID-19. This has triggered the talk of a booster in J&J recipients.
The study is yet to be reviewed, but disputes a report by the firm stating that the shot is successful against delta, “especially against severe disease and hospitalization, even eight months after inoculation.”
Wolk warned that the public should be “guarded” about such results as the study was performed in a lab and “may not reflect the shot’s performance in a real-world setting.”
At present, 83% of Covid infections in the U.S. belong to the much-feared Delta variant, as informed by the Centers for Disease Control and Prevention.
“I think it’s probably best for everyone to refer to health officials who have not yet recommended a booster, even for some less duration vaccines out there,” Wolk said.