Johnson & Johnson (JNJ) might’ve graduated from shampoos to vaccines in peak Covid-19 season, but it still can’t quite shake off its past. The company’s earnings report just came out yesterday and figures show that its Q3 2021 revenues saw a 10.7% year-on-year increase to $23.3b.
The company’s growth was primarily driven by the Covid-19 vaccine and two key drugs that it develops: Darzalex and Stelara — all accounting for 63% of its revenue growth. Its pharmaceutical segment, in particular, saw a 14% YoY revenue increase, with Covid-19 vaccine sales reaching $502m. While Johnson & Johnson expects this growth to continue, the firm has recently paid about $3.5b in damages so far to customers that claimed its baby powder had cancer-causing materials in it. The FDA’s decision over the next few days on whether or not to approve a J&J booster dose might change the current customer sentiment surrounding the company.
Why it matters
As J&J battles consumer criticism on one end and the production of vaccines on the other, its future remains up for grabs. That uncertainty was reflected by its stock price which was up by 2.6% over the past five days, but returned to its opening price by market close yesterday.
