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Johnson & Johnson suspends sales forecast for Covid-19 vaccine, cuts profit view
A vial and syringe are seen in front of a displayed Johnson&Johnson; logo in this illustration taken January 11, 2021. — Reuters pic
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LONDON, April 19 — Johnson & Johnson today suspended its sales forecast for Covid-19 vaccine due to global supply surplus and demand uncertainty and cut its adjusted profit expectation, sending the drugmaker’s shares down nearly 3 per cent.
The company had earlier predicted as much as US$3.5 billion (RM14 billion) in sales from the shot, which has fared poorly compared to rivals due to low demand in the United States and safety concerns.
J&J now expects its full-year adjusted profit forecast to be between US$10.15 and US$10.35 per share, lower than the prior forecast of US$10.40 to US$10.60.
Sales of the vaccine last year had underperformed rival mRNA shots due to manufacturing bottlenecks, safety concerns and an uneven vaccine demand.
Pfizer Inc has forecast US$32 billion in 2022 sales from its Covid vaccine it developed with BioNTech, while Moderna has forecast US$21 billion.
The New York Times had reported in February that J&J shut down the only plant making usable batches of its Covid-19 vaccine late last year.
Production at contract manufacturer Emergent BioSolutions’ plant in Maryland was halted by the US Food and Drug Administration last year after an accidental mix-up of ingredients ruined about 15 million doses of the vaccine.
Shares of Johnson & Johnson were trading down at US$172.74 before the opening bell. — Reuters