“Invoking” sales via new drugs- Johnson & Johnson (NYSE:JNJ) tops analyst estimates

Northern, WI 04/17/2013 (avauncer) - The world’s largest healthcare products-maker Johnson & Johnson (NYSE:JNJ) (Closed: $83.44, Up by: 2.12%)’s first quarter earnings have topped analyst projections as its acquisition of Synthes Inc and launch of new drugs boosted sales. Earnings with the exclusion of one-time items were $1.44 per share and had topped analyst estimates by 5 cents. In a statement, the New Brunswick, New Jersey-based company said that its net income had dipped to $3.5 billion by 11 percent or $1.22 per share from the $3.91 billion or $1.41 that it stood at, a year earlier. The entire year’s forecast has been reiterated by the company.

Efforts bear fruit
J&J has been making a determined effort to increase its newly approved medicine sales which include Zytiga the prostate cancer drug as well as Xarelto, the stroke prevention treatment. It is seeking to overcome the revenue loss that it has suffered from generic competition in the market. Investors are keenly awaiting results of Invokana the latest diabetes treatment. In a telephone interview, Gabelli Healthcare and Wellness’ co-portfolio manager, Jeff Jonas said that in this quarter the pharma business had performed very well.

The new drugs have had a very good uptake and company sales had risen from $16.1 billion to $17.5 billion. The company had forecast earnings with the exclusion of one-time earnings of $5.35-$5.45 per share and had reaffirmed that as well.

Repositioning OTC drugs
The sales of Over The Counter products such as Mortin and Tylenol as well as consumer goods rose to $3.7 billion by 2.2 percent even as dozens of recalled products were returned to American store shelves, by the company. Sales of prescription drugs rose to $6.8 billion after a 10 percent rise. In the lead was the Stelara, psoriasis treatment sales of $346 million as well as the 72 percent Zytiga sales jump to $344 billion. Revenue at the company’s diagnostics and medical device division rose to $7.06 billion by 10 percent.

Last year, J&J had acquired the device-maker, Synthes, which had helped in boosting worldwide earnings of the device division by 14 percent. In January, the company said that it is considering the sale of its Ortho Clinical Diagnostics unit worth $2.2 billion.