J&J Facing Supply Issues, Shaky To Meet EU Q2 Vaccine Deliveries: Reuters

Johnson & Johnson (NYSE: JNJ) has told the European Union (EU) it is facing vaccine ingredients and equipment supply issues, probably impacting its plan to deliver 55 million doses of its COVID-19 vaccine to the bloc by the end of June, reports Reuters.

What Happened: EU is already facing crunched supplies from other vaccine makers and a slow rollout of shots in many member states. Any delay would further disturb the already sluggish vaccination plans.

The EU official added the company had said it was impossible to meet the goal but showed caution.

J&J’s one-dose vaccine is expected to be approved on March 11 for use in the EU. Officials have said deliveries could start in April.

The company has committed to deliver 200 million doses of its vaccine to the bloc this year. The EU also has the option of ordering another 200 million doses.

Why It Matters: “Aligned with our agreement, we expect to begin supplying our commitment of 200 million doses to the European Union in the second quarter of 2021,” J&J said in a statement, declining to comment on possible delays or the second-quarter target.

Earlier, AstraZeneca Plc (NASDAQ: AZN) cut the planned first-quarter deliveries of its vaccine to the EU to 40 million doses from 90 million and told the bloc second-quarter supplies would be halved.

Pfizer Inc (NYSE: PFE) / BioNTech SE (NASDAQ: BNTX) and Moderna Inc (NASDAQ: MRNA) have also faced delays in their deliveries to the EU but kept their targets for the first quarter.

The European Commission is also considering the faster alternative of COVID-19 vaccine approvals as the commission is under pressure for slow vaccine approvals contributing to a slower rollout of COVID-19 shots.

Last week, the CEO of Serum Institute of India and WHO’s chief scientist warned a global shortage of the raw materials to manufacture the COVID-19 shots, likely to cause severe bottlenecks.

Price Action: JNJ shares are trading higher by 1.55% at $159.86 on the last check Tuesday.