J&J revenue, profit edge
past estimates on robust drug sales
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[October 18, 2016]
(Reuters) -
Johnson
& Johnson <JNJ.N>, the world's largest maker of healthcare products,
reported third-quarter revenue and profit just ahead of Wall Street
estimates, fueled 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, 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 <PFE.N> 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.
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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' medical optics business
for $4.3 billion.
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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.
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.
(Reporting by Natalie Grover in Bengaluru; Editing by Sriraj Kalluvila)
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