Prescription drugs, lower taxes, power J&J 3Q beat
A jump in prescription drug sales and a sharply reduced tax bill boosted Johnson & Johnson’s third-quarter sales and profit, which beat Wall Street expectations.
The world’s biggest maker of health care products on Tuesday also slightly raised its profit forecast for the year.
The New Brunswick, N.J., maker of baby products, biotech drugs and medical devices reported net income of $3.93 billion, or $1.44 per share, up 4.5 per cent from a year earlier.
Earnings, excluding $1.7 billion in one-time gains and costs, came to $2.05 per share, or 2 cents better than analysts expected.
Revenue was $20.35 billion, up 3.6 per cent, which also exceeded analyst forecasts for $19.91 billion.
J&J’s prescription drug business posted sales of $10.35 billion, up 6.7 per cent, mainly due to higher sales of its cancer drugs, including Darzalex, Imbruvica and Zytiga.
During the quarter, Imbruvica won U.S. regulatory approval for a new use, treating a rare cancer called Waldenstram’s macroglobulinemia, and the Food and Drug Administration also approved a three-drug combination pill for treating HIV, Symtuza. J&J also applied for U.S. and European Union approval of its closely watched experimental drug esketamine for treatment-resistant depression. The nasal-spray drug works much more quickly than other antidepressants and likely will be a big seller if approved.
Asked about a new government proposal that TV ads for brand-name drugs state the list price, pharmaceutical business head Jennifer Taubert told analysts on a conference call that J&J believes patients should have access to that information. But she said patients might not seek a treatment because of a high price, echoing the key industry trade group’s position.
The group, aiming to put its spin on the issue Monday, instead proposed putting prices and information on patients’ likely out-of-pocket expenses and available financial aid on a website for each advertised drug.