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J&J revenue, profit edge past estimates on robust drug sales

Published 18/10/2016, 13:37
© Reuters. Logo of healthcare company Johnson & Johnson is seen in Zug
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(Reuters) - Johnson & Johnson (N:JNJ), the world's largest maker of healthcare products, reported third-quarter revenue and profit just ahead of Wall Street estimates, fuelled by strong sales in its prescription drugs business.

J&J, the first major U.S. drugmaker to report quarterly results, said pharmaceutical drug sales jumped 9.2 percent to $8.40 billion (£6.86 billion), buoyed by demand for its cancer medicines, Imbruvica and Darzalex, as well as its blood thinner Xarelto.

The company is increasingly confident of filing 10 new pharmaceutical products between 2015 and 2019, each with revenue potential over $1 billion, Chief Executive Alex Gorsky said in a statement on Tuesday.

Sales of the company's autoimmune drug Remicade - its biggest product - rose 10.5 percent to $1.78 billion in the quarter.

However, the company is set to face competition for Remicade in the United States.

Pfizer Inc (N:PFE) said on Monday it would begin shipping its biosimilar version of Remicade in late November at a 15 percent discount to current wholesale prices.

The Pfizer drug, Inflectra, is already available in Europe and other overseas markets, and was approved by U.S. health regulator earlier this year, but a protracted patent battle impacted its launch.

J&J said in July its forecast for Remicade had assumed no competition from a biosimilar in the United States this year.

The maker of a variety of products from Tylenol to Band-Aid bandages to Acuvue contact lenses raised the lower end of its adjusted profit range to $6.68 per share from $6.63 on Tuesday.

The company retained the upper end at $6.73 per share, and also backed its revenue forecast for the year.

Global device sales inched up 1.1 percent to $6.16 billion in the third quarter, while consumer product sales fell about 1.6 percent to $3.26 billion.

The New Jersey-based company is restructuring its medical device business to focus on areas such as artificial knees and devices for trauma surgery.

J&J agreed last month to buy Abbott Laboratories' (N:ABT) medical optics business for $4.3 billion.

Excluding special items, J&J earned $1.68 per share on revenue of $17.82 billion.

Analysts on average had expected a profit of $1.66 per share and revenue of $17.74 billion, according to Thomson Reuters I/B/E/S.

© Reuters. Logo of healthcare company Johnson & Johnson is seen in Zug

Up to Monday's close, J&J's shares had gained about 15 percent since the start of the year, compared with the 3.7 percent decline in the S&P 500 healthcare sector (SPXHC).

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