Cancer drugs help Johnson & Johnson raise sales outlook
By Manas Mishra and Manojna Maddipatla - Jul 17th, 08:41
Johnson & Johnson raised its full-year sales forecast as demand for its cancer drugs Darzalex and Imbruvica helped it exceed estimates for second-quarter profit on Tuesday.
J&J’s pharmaceuticals unit has cushioned impact of slow growth in its medical device and consumer health units, largely due to its cancer drugs, even as some of its older drugs face competition.
The company raised its 2019 forecast for operational sales, which excludes the impact of currency fluctuations, to $82.4bn-$83.2bn, from a prior $82bn-$82.8bn.
“We expect questions on the maintained earnings-per-share guidance but we point to the continued-to-be-improving strength across its franchises despite pharma headwinds,” said BMO Capital Markets analyst Joanne Wuensch.
J&J reported a 41.8% fall in litigation expense to $409m in the quarter. But the company recorded litigation expense of $832m in six months, compared with $703m.
J&J faces lawsuits that allege drugmakers, including the company, overstated the benefits of opioids while downplaying their addictive risks when marketing their pain treatments.
The company also disclosed in its annual report in February that it had received subpoenas from the US justice department and Securities and Exchange Commission related to baby-powder litigation but did not give more details.
J&J repeatedly has said its talcum products are safe and that decades of studies have shown them to be asbestos-free and that they do not cause cancer.
In the quarter, pharmaceutical sales rose 1.7% to $10.53bn, above analysts’ estimates of $10.27bn, according to three analysts polled by Refinitiv.
Sales of prostate-cancer treatment Zytiga and blood thinner Xarelto and J&J’s blockbuster arthritis drug Remicade all fell, hurt by competition.
Darzalex and Imbruvica recorded sales of $774m and $831m respectively and came in ahead of estimates.
The diversified health-care company, the first major US drugmaker to report second-quarter results, said net earnings rose to $5.61bn, or $2.08 a share, from $3.95bn, or $1.45 a share, a year earlier.
Excluding items, the company earned $2.58 a share, beating analysts’ expectations for $2.46 a share, according to Ibes data from Refinitiv.
Sales fell 1.3% to $20.56bn as growth in international markets helped counter falling sales in the US. Analysts were expecting sales of $20.29bn.
Shares of the company were marginally up at $135.6 in trading before the opening bell.
Data management in a digital world
15/10/2019 - 14:02
Data management plans (DMPs) are evolving as the technology that enables organisations to better analyse their data become more powerful and innovative. But what impact does this have on operations and the efficiency of managing the complexities of data in a changing regulatory environment?
How to attract and retain the best employees
14/10/2019 - 11:15
Finding the right employee can be a time-consuming process – especially when you’re looking to hire the best candidate for the job. But there are simple steps one can take to find employees who are best suited for your culture and the future success of your business.
Securing your brand is a C-suite challenge
11/10/2019 - 14:37
Brand value is a key component of a company’s success and it takes several years to establish by implementing a brand strategy that supports the business. However, in today’s digital environment, brand value can be compromised in a matter of minutes and negatively affect the brand and company. As such, brand security is an issue that needs constant attention to minimise possible reputational damage to the brand and the associated risk of losing customers.
Understanding workforce management in security
10/10/2019 - 15:08
In an increasingly connected business environment, decision-makers need to more effectively leverage the human resources they have at their disposal. According to dormakaba South Africa, this is where a good workforce management system that can manage personnel as a strategic asset becomes imperative.
Temporary employment services offer a dynamic staffing solution to help the retail sector cater for the seasonal peak
10/10/2019 - 14:56
As we head into the final stretch of the year it is time to start gearing up for the added demands of the summer season. From factories and warehouses to retail outlets, the entire retail chain is under added pressure during this seasonal time of high demand. Temporary employment services (TES) can help all areas of the retail sector to cater to this peak with additional and flexi staff exactly when and where they are needed, with the right skills for the job, and none of the administrative headache of hiring permanent or contract staff.