J&J, sans vaccine, tops earnings forecast

Johnson & Johnson issued a stronger-than-expected earnings forecast for this year, but its outlook didn’t say how its coronavirus vaccine, which could be cleared for use in the U.S. soon, would affect its performance.

The health care giant expects 2021 adjusted earnings per share of $9.49 to $9.60, compared with an average analyst estimate of $8.99.

Strong sales for blockbuster immunology and cancer drugs, as well as consumer-health products such as Tylenol and Listerine, have buoyed the company in reDarzalex. cent quarters even as the pandemic hurt sales of medical devices.

J&J will likely adjust its guidance in April, when it reports first-quarter earnings, to account for its coronavirus vaccine, Chief Financial Officer Joseph Wolk said in an interview. He said the company expects to report clinical-trial data on the still-experimental shot’s efficacy by early next week.

“Our outlook is solid, just based on our core business, irrespective of the vaccine,” Wolk said. “Our guidance doesn’t include any distribution of vaccines at this point, and again, we’re going to be offering it on a not-for-profit basis, so you’re not gonna get the same type of margins on any sales of it.”

J&J’s progress is being closely watched by top infectious-disease experts because its vaccine would be the first to protect people after one shot, which is expected to make mass-vaccination campaigns easier. The vaccine generated a lasting immune response in an early study. According to the company’s top scientist, U.S. regulators could authorize it for emergency use in March.

Wolk said J&J aims to have a total of seven manufacturing facilities, many of which are contract manufacturers, up and running by the end of the second quarter to ramp up supply. The company told Bloomberg earlier this month that it remains on track to hit the goal of producing 1 billion doses before year-end.

The New Brunswick, N.J.-based company’s fourth-quarter revenue was $22.5 billion, surpassing the $21.67 billion analysts expected, on average.

Pharmaceutical sales surged 16 percent in the fourth quarter from a year earlier, topping $12.3 billion. The gains were driven by three blockbusters: Stelara, used to treat Crohn’s disease and psoriasis, and cancer treatments Imbruvica and Drug sales rose 8 percent for the full year.

“We think this trend will continue,” Wolk said, “and we’re going to supplement the existing portfolio that exists today with new products. We’ve got a couple of new launches in the oncology space that we feel really good about.”

The consumer unit saw more modest 1.4 percent growth in the fourth quarter, bringing in $3.6 billion. Throughout the year, demand for J&J’s beauty and babycare products was hurt by COVID-19, though that was offset by pandemic stockpiling for products like Tylenol and Listerine.