Prescription drugs, lower taxes power J&J 3Q profit

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 percent 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 percent, which also exceeded analyst forecasts for $19.91 billion.

J&J’s prescription drug business posted sales of $10.35 billion, up 6.7 percent, 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 Waldenström’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 nasalspray 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.