Despite efficacy concerns, Johnson & Johnson expects to make $2.5 billion on the COVID vaccine.
Despite growing worries about the vaccine since its introduction, Johnson & Johnson (JNJ) expects to sell $2.5 billion in COVID vaccinations this year.
The news was announced as part of the company’s second-quarter earnings report, which was released early Wednesday morning.
Johnson & Johnson reported a 27.1 percent gain in sales to $23.2 billion for the quarter, with a 23% increase in operational growth and a 72.8 percent increase in earnings per share to $2.35. The company’s revenue was $22.21 billion.
For the quarter, COVID vaccination sales totaled $164 million globally.
Johnson & Johnson’s stock was up nearly 1% in premarket trading.
The earnings announcement came just one day after a new study, which was not peer-reviewed, suggested that the company’s vaccine isn’t as effective as previously assumed against the Delta and Lambda versions. The study’s authors advise Johnson & Johnson vaccination recipients to get a booster shot.
Johnson & Johnson, on the other hand, has produced data indicating that the vaccine is effective against the Delta form, specifically against severe sickness and hospitalizations, for up to eight months following vaccination.
The extremely contagious Delta variety is sweeping the United States, with cases reported in all 50 states. According to the Centers for Disease Control and Prevention, it now accounts for 83 percent of new COVID infections in the United States.
The Food and Drug Administration temporarily banned use of Johnson & Johnson’s COVID vaccine in April as it was investigated for a link to blood clots in a group of vaccine recipients. The vaccine now comes with a warning from the FDA.
After 100 cases of Guillain-Barre syndrome were identified in mid-July, another warning about the risk of the rare ailment was added to the Johnson & Johnson vaccination.
As of premarket trade on Wednesday, Johnson & Johnson stock was trading at $170.00, up $1.55, or 0.92 percent.