Johnson & Johnson (JNJ) increased its full-year profit and sales forecast after second-quarter profit topped analysts’ estimates, driven by growth in the pharmaceutical division, which is home to blockbuster products such as arthritis treatment Remicade. Remicade accounted for about 20% of drug revenue for the New Brunswick, N.J. -based company last quarter.
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J&J, which is the first major USA drugmaker to announce quarterly earnings, raised its 2016 sales forecast to a range of $71.5 billion to $72.2 billion from $71.2 billion to $71.9 billion.
With about half of its sales overseas, J&J’s results have been pressured lately by a strengthening US dollar and weakness in some emerging markets.
Pharmaceutical sales rose 8.9 percent to $8.6 billion due to increased demand for its Imbruvica cancer drug and Xarelto blood thinner.
Other J&J businesses, however, didn’t perform as well.
Sales at the consumer business – which includes Johnson’s baby-care products, Neutrogena and Listerine – fell 1.8 percent from the previous year. The consumer business has been recovering from supply-chain problems that led to recalls.
The pharmaceutical giant posted revenue of $18.5 billion, up 3.9% year-on-year, and more than analysts’ median forecast for $18 billion, according to Bloomberg.
The medical device segment was at one time the largest at J&J, but has stumbled somewhat, amidst pressure on prices, more competition and changes in the marketplace.
Sales rose 3.9%, to $18.5 billion.
Excluding special items, the band-aid maker earned US$1.74 per share.
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Adjusted earnings per share came in at $1.74 ($1.68 expected).
