JNJ Johnson and Johnson

By Peter Loftus and Matt Grossman 

Johnson & Johnson said it expects to report pivotal results of a large clinical trial of its Covid-19 vaccine by early next week, and to deliver 100 million doses for use in the U.S. by the end of June if the data are positive and the vaccine is authorized.

The company on Tuesday discussed its vaccine plans as it reported improved fourth-quarter sales and higher-than-expected earnings. Strong sales growth from pharmaceuticals boosted revenue, even as the coronavirus pandemic weighed on other parts of the company's business.

Johnson & Johnson said the pandemic was continuing to drag down sales of its medical devices as people postponed elective procedures. Modest growth in consumer-health products also contributed to the sales boost in the latest quarter.

Alex Gorsky, the company's chairman and chief executive, said he was optimistic about the imminent results from a 45,000-person clinical trial of J&J's Covid-19 vaccine.

On a conference call with analysts, he noted that results from a smaller, early stage study were positive. "We are hopeful that's a good precursor to the kind of efficacy and safety that we'll see in a larger population. Of course, until we see this final data, we won't know for certain," he said.

Emergency approval from the U.S. Food and Drug Administration could follow, which would bolster the U.S. supply of shots aimed at ending the pandemic amid a rocky vaccine rollout.

The federal government also has options to purchase additional doses beyond the initial 100 million, Chief Financial Officer Joseph Wolk said in an interview.

One potential advantage with J&J's vaccine: the company tested it as a single dose. The vaccine can also be stored at standard refrigerator temperatures, whereas the two vaccines authorized in the U.S. -- one from Pfizer Inc. and BioNTech SE, and the other from Moderna Inc. -- are given in two doses and must be kept at frozen temperatures, before being thawed for administration.

"We are planning to be part of the solution," Mr. Wolk said. "The fact that we do not require significant refrigeration beyond the norm, as well as being one shot, certainly does play into the label that some outside the company have called it a game-changer."

The rollout of vaccines across the country has been slowed by technical challenges and supply constraints as manufacturers and health officials race to make and distribute the shots.

Merck & Co. is discontinuing development of its Covid-19 vaccine after results from a clinical trial showed disappointing results, the company said Monday.

It is possible that J&J's imminent study results will yield clues about how the vaccine performs against new coronavirus variants. Some of the study subjects were in South Africa, where a more-contagious strain of the virus has been identified.

Moderna said Monday that lab tests showed its vaccine had a reduced neutralization effect against the strain identified in South Africa, though the company still believes it will be protective. Moderna has started developing a modified vaccine targeting this strain that could be given as a booster shot if needed.

Johnson & Johnson's fourth-quarter revenue was $22.48 billion, compared with $20.75 billion in the year-before quarter. Analysts surveyed by FactSet were expecting revenue of $21.66 billion.

Drugs such as Stelara, for inflammatory diseases, and Darzalex, for multiple myeloma, helped drive sales growth of 16% for the New Brunswick, N.J., company's pharmaceutical division, to $12.27 billion. Revenue from the consumer-health division, ticked up by 1.4% to $3.62 billion.

Sales from medical devices slipped 0.7% year over year to $6.59 billion as the pandemic cut demand for products used in surgery, orthopedics and vision care.

The company posted net earnings of $1.74 billion, or 65 cents a share, compared with $4.01 billion, or $1.50 a share, in the same three-month period a year earlier.

Johnson & Johnson said it expects sales growth in 2021 to boost its full-year revenue to between $90.5 billion and $91.7 billion. Analysts had been forecasting full-year sales of $88.59 billion.

The company's shares rose 2.7% in midday trading.

Write to Peter Loftus at peter.loftus@wsj.com and Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

January 26, 2021 13:46 ET (18:46 GMT)

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