Johnson & Johnson Raises 2021 Profit Outlook and Announces Imminent Release of Phase III COVID-19 Vaccine Trial Results

Johnson & Johnson, the U.S. healthcare and pharmaceutical giant, stated on Tuesday (January 26) local time that it expects to report data on its COVID-19 vaccine in early next week and will be able to meet its target for delivering vaccine doses to countries with which it has signed supply agreements. Meanwhile, Johnson & Johnson also released its fourth-quarter and full-year earnings report on the same day and raised its profit outlook for 2021.

Johnson & Johnson CFO Joseph Wolk stated in an interview with the media on Tuesday that the company plans to report the Phase III clinical trial results of its COVID-19 vaccine early next week. Meanwhile, CEO Alex Gorsky also indicated on the same day that the Phase III trial results for its coronavirus vaccine would be released “soon,” though he did not disclose a specific timeline.

The pharmaceutical giant has been developing and testing its experimental COVID-19 candidate vaccine under Janssen Pharmaceuticals, which is currently in Phase III clinical trials. Last September, Johnson & Johnson became the fourth company to enter the final stage of testing for coronavirus candidates, following Moderna, Pfizer, and AstraZeneca. The trial enrolled a total of 45,000 volunteers from eight countries across three continents, while also potentially gathering data on protection against variant viruses at study sites in South Africa and Brazil.

Given the complications associated with the Pfizer and Moderna vaccines, as well as their slower-than-expected rollout (both requiring a second dose several weeks after the initial injection), public health officials are increasingly looking forward to Johnson & Johnson’s single-dose vaccine regimen currently under testing, aiming to simplify the vaccination process and increase coverage.

The company has reached an agreement with the U.S. government worth over $1 billion to provide 100 million doses of a potential vaccine. As long as the vaccine is proven safe and effective, the company aims to supply more than 1 billion doses globally in 2021.

Raising 2021 Profit Target

Earnings Report Released on Tuesday Shows Johnson & Johnson’s Q4 Sales Reached $22.475 Billion, Up 8.3% Year-on-Year, Beating Wall Street Expectations; Net Profit Fell 56.7% to $1.738 Billion; EPS Was 65 Cents, Adjusted EPS of $1.86 Also Exceeded Analyst ForecastsAccording to the earnings report released on Tuesday, Johnson & Johnson reported sales of $22.475 billion in the fourth quarter of last year, representing an 8.3% year-on-year increase and surpassing Wall Street expectations. Analysts surveyed by Zacks had projected sales of $21.62 billion. The company’s net profit amounted to $1.738 billion, a 56.7% decline compared to the same period last year. Earnings per share (EPS) stood at 65 cents, while adjusted EPS, excluding one-time gains and costs, reached $1.86, also beating analyst forecasts. The average EPS estimate among analysts surveyed by Zacks was $1.81.

In 2020, the company’s annual sales revenue amounted to $82.584 billion, representing a year-on-year increase of 0.6%; net profit was $14.714 billion, a year-on-year decrease of 2.7%; diluted earnings per share were $5.51, compared to $5.63 in the same period of the previous year.

Looking ahead, Johnson & Johnson projects 2021 sales to range between $90.5 billion and $91.7 billion, representing a year-over-year growth of 9.5%–11%; it forecasts full-year adjusted diluted earnings per share (EPS) to be between $9.40 and $9.60, reflecting a year-over-year increase of 17.1%–19.6%, compared with analysts’ expectation of $8.99 per share.

Joseph Wolk pointed out that this outlook does not include any contribution from the COVID-19 vaccine, and he added that the pricing of the COVID-19 vaccine will depend on the doses ordered by countries and international organizations.

He also stated, “The company is fulfilling its global commitment to supply COVID-19 vaccines as planned. This commitment includes delivering 100 million doses to the United States by the end of June and 200 million doses to the European Union by the end of 2021. Starting in April, it will also provide 200 million doses to developing countries through the second half of the year.”

Johnson & Johnson’s stock price rose 2.7% on Tuesday, bringing its year-to-date gain to nearly 9%.

(Editor:Wang Xing）

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