Pharmaceutical giant Johnson & Johnson has suspended all sales forecasts for its COVID-19 vaccine as demand for the shots is plummeting.
The company cited a global supply surplus and uncertainty when it comes to future demand for the vaccine.
J&J had previously predicted as much as $3.5 billion in 2022 sales from the single-dose vaccine.
However, demand for the shot has dwindled behind that of the Moderna and Pfizer vaccines.
In its quarterly earnings results on Tuesday, the company said the move will not impact shareholder earnings.
Johnson & Johnson reported a better-than-expected first-quarter profit and also announced a 6.6 percent increase in the quarterly dividend from $1.06 per share to $1.13 per share.
The increase will bring the annual payout to $4.52 per share, up from $4.24.
The company’s one-shot vaccine brought in $457 million in global sales during the first quarter of 2022.
The pharmaceutical manufacturer also reported $382 million in sales from vaccines outside the United States.
In the United States, J&J gained $75 million from COVID-19 vaccine sales during the January–March 2022 period, roughly 25 percent less than what it saw after debuting in the first quarter of 2021.
Pharmaceutical sales overall totaled nearly $13 billion.
Overall, the company posted more than $5.1 billion in net earnings in the first quarter, down 17.7 percent from almost $6.2 billion during the same period in 2021.
Total revenue grew 5 percent to $23.4 billion.
“Our first quarter results demonstrate strong performance across the enterprise, despite macro-economic headwinds,” said CEO Joaquin Duato.
“I am incredibly proud of Johnson & Johnson’s 144,000 employees for their relentless passion and Credo-based commitment to delivering transformative healthcare solutions to patients and customers around the world.
“Looking ahead, I remain confident in the future of Johnson & Johnson as we continue advancing our portfolio and innovative pipeline.”
J&J has pledged not to profit from the vaccine.
However, in January 2022, the company said that it expects the shot to bring in between $3 billion and $3.5 billion in sales this year, as countries continue to fight variants of the virus.
The company’s suspended sales forecast for its vaccine comes after the Centers for Disease Control and Prevention (CDC) last year said that the Pfizer and Moderna COVID-19 vaccines, which are both based on messenger RNA—or mRNA—technology, should be recommended to prevent the virus in individuals aged 18 and over, rather than the Johnson & Johnson vaccine.
Officials cited a higher risk of blood clotting, particularly in middle-aged women, although both the CDC and the Food and Drug Administration claimed at the time that the benefits of administering the J&J shots still outweighed the risks.
J&J said that it now expects 2022 adjusted earnings of $10.15 to $10.35 per share, after previously forecasting earnings of between $10.40 and $10.60 per share.
