J&J profits down in Q3
pharmafile | October 17, 2012 | News story | Sales and Marketing | J&J, JJ, Johnson & Johnson, Q3, Risperdal
Johnson & Johnson has reported a 6.5% year-on-year sales increase to $17.1 billion in the third quarter of 2012, a rise due in large part to buying surgical equipment manufacturer Synthes.
But the $21.3 billion acquisition – the subject of a $241 million charge in this quarter – helped in having the opposite effect on profit, which was down 7.3% on the same period in 2011 to $2.97 billion.
This was part of a $553 million overall charge which included costs connected to the abondonment of Phase III drug bapineuzumab IV.
Overlaying all the group’s results at present are the hundreds of millions of dollars J&J has set aside in anticipation of illegal marketing charges concerning its antipsychotic drug Risperdal.
“Our third-quarter results reflected continued sales momentum driven by strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies,” said chief executive Alex Gorsky.
J&J says Synthes contributed 5.8% to ‘worldwide operational sales growth’, with medical devices and diagnostics sales of $7.1 billion representing a 12.5% increase.
Pharma also performed strongly, seeing sales up 7% to $6.4 billion for the third quarter: inflammatory disease treatment Remicade, multiple myeloma drug Velcade and recently-launched prostate cancer pill Zytiga were among its strongest sellers.
US pharma sales were up 14.6% although international revenues were flat, offset competely by currency exchange issues.
“We advanced our pipelines with regulatory approvals for a number of new products, the submission of several new drug applications, and the completion of several strategic collaborations,” Gorsky added.
Regulatory successes included European approval for leukemia brand Dacogen and for Velcade, as well as an FDA nod for Nucynta extended-release tablets to manage neuropathic pain.
J&J updated its earnings guidance for 2012 to $5.05 – $5.10 per share, although this excludes the impact of special items.
Adam Hill
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