The Strategist

Johnson & Johnson cuts production of COVID-19 vaccines

01/16/2023 - 08:36

The Wall Street Journal claimed, citing sources, that American manufacturer Johnson & Johnson is reducing production of its coronavirus vaccines in the face of declining demand.

Sebastian Rothwyn
Sebastian Rothwyn
The article also states that Johnson & Johnson filed an arbitration demand against Merck in relation with the two firms' vaccine collaborations in October 2022, citing papers to support its claim. Merck filed counterclaims.

"Due to a decline in demand, Johnson & Johnson has considerably scaled back its efforts to develop vaccines. The alliance with rival Merck & Co. established at the US government's insistence has not lived up to promises. The businesses are currently involved in arbitration. People with knowledge of the situation claim that Merck was only making vaccines at one of its facilities while ceasing production at the second facility, which implies a more complicated step in the manufacturing process for commercial dosages," the newspaper claims.

According to one source, technical issues at the plant and the late arrival of production materials and components caused Merck's production to be delayed. The insider also said that the Defense Production Act orders from Johnson & Johnson were no longer given priority, which contributed to the components' delay.