Johnson & Johnson posts strong Q3 results
pharmafile | October 16, 2013 | News story | Sales and Marketing | J&J, JJ, Q3, Velcade, results
Johnson & Johnson has posted a strong set of financials for the third quarter as new products from its pharma unit lift the US giant.
Global pharma sales reached $7 billion for the third quarter, an increase of 9.9% versus the prior year. In terms of geography, US sales were up 7.9% while international sales increased 12 per cent.
Established drugs such as its core auto-inflammatory medicines did much of the work in growing revenue. Remicade (infliximab) was up 6.2% to $1.69 billion while Stelara (ustekinumab) grew to $370 million, up nearly 29 per cent. Simponi (golimumab) also performed well, bringing in $266 million, up nearly 44 per cent.
Oncology also did well with multiple myeloma treatment Velcade (bortezomib) growing 25% to $404 million. Janssen’s new prostate cancer pill Zytiga (abiraterone acetate) also continued its strong early form with sales up more than 75% to $464 million.
Its medical devices and diagnostics unit did less well, however, as the $6.9 billion worth of sales for the third quarter represented a decrease of 2% versus last year.
The US health reforms – the so-called ‘Obamacare law’ – came into effect at the beginning of the month, and analysts believe it will cost J&J about $1 billion this year to help fund it.
The law has been established to help millions of uninsured Americans but will weigh heavily on the company because of rebates in the government’s Medicaid programme for the poor; drug cost cuts in the Medicare programme for the elderly; and a 2.3% excise tax on medical device sales, according to analysts at Bloomberg.
But overall, the firm looks like it could be well set for healthy future growth. “Most of the key new drugs are performing better than we expected,” wrote Lawrence Biegelsen, an analyst with Wells Fargo in New York, in a note to clients. “We also expect to see continued momentum in J&J’s consumer business as the company re-launches its over-the-counter drugs after a series of recalls.”
Alex Gorsky, J&J’s chairman and chief executive said: “Our third-quarter results reflect the solid, demonstrable results in achieving our near-term priorities while also advancing our longer term strategic growth drivers.”
He added: “Our key products and successful new product launches delivered strong growth. We continue to progress our pipelines with a number of regulatory approvals, the submission of new drug applications, and execution of strategic collaborations.”
The company also raised its earnings forecast for 2013 to $5.44 to $5.49 a share, from its July outlook of $5.40 to $5.47 a share.
Ben Adams
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