Johnson & Johnson JNJ Q2 2021 Results

Johnson & Johnson said on Wednesday that it plans to sell $ 2.5 billion of its Covid-19 vaccine this year, even as concerns grow over the effectiveness of the shot against the delta variant.

Releasing its second quarter financial results, the company also reported profits and revenues above Wall Street expectations.

Here’s how J&J fared compared to what Wall Street expected, according to average estimates compiled by Refinitiv:

• Adjusted EPS: $ 2.48 per share vs. $ 2.27 expected.
• Turnover: 23.31 billion dollars against 22.21 billion dollars expected.

The company’s stock price rose nearly 1% in pre-market trading as a result of the report.

The pharmaceutical business of J&J, which developed the single-injection Covid vaccine, generated revenue of $ 12.59 billion, an increase of 17.2% year-over-year.

The company’s consumer unit, which makes products such as Neutrogena face wash and Listerine, generated revenue of $ 3.7 billion, up 13.3% from the previous year. Its medical devices unit generated $ 6.9 billion, an increase of 62.7%. This unit was hit hard last year as the pandemic forced hospitals to postpone elective surgeries and Americans stayed at home.

“We have all realized over the past 18 months how important good health is and choice is not always about choice,” J&J CFO Joseph Wolk told CNBC after the company reported. his earnings report on Wednesday.

Global sales of the Covid vaccine in the quarter were $ 164 million.

The company has raised its profit and revenue forecast for the year. J&J now expects annual earnings of $ 9.50 to $ 9.60 per share, down from a previous forecast of $ 9.30 to $ 9.45 per share. It forecasts revenues of between $ 92.5 billion and $ 93.3 billion, against a previous forecast of $ 89.3 to 90.3 billion.

The financial results come a day after a new study suggested that the J&J vaccine is much less effective against the delta and lambda variants than against the original virus. The researchers are now suggesting that a booster dose may be needed for recipients of J&J.

The study, which has yet to be peer-reviewed, contradicts a report from the company, which found the vaccine to be effective against delta, especially against serious illness and hospitalization, even eight months after inoculation.

Delta, the dominant variant in the United States, now accounts for about 83% of infections in the country, according to the Centers for Disease Control and Prevention.

Wolk told CNBC on Wednesday that people should be “on guard” about the new study, adding that the results were based on laboratory blood samples and may not reflect shooting performance in a real environment.

“I think it’s probably best for everyone to refer to health officials who haven’t recommended a booster yet, even for some vaccines of shorter duration,” he said.