Johnson and Johnson surpassed the
expectations of the analysts and even raised its forecasts for the rest of the
year as the drug sales increased.
The American pharmaceutical company
reported a significant jump on its pharmaceutical division after the huge
market sales of arthritis treatment Remicade. Remicade, which is used mainly to
treat rheumatoid arthritis, psoriatic arthritis, ulcerative colitis and Crohn's
disease, covered almost 20 percent of the total drug revenue of the company
from its branch in New Jersey.
Following the upbeat drug sales report,
Johnson & Johnson forecasted $6.63 to $6.73 per share for the remaining quarters
in 2016, surpassing the estimated $6.61 per share by the market analysts. During
the previous earnings report the company only disclosed $1.74 per share while
the drug sales climbed around 8.9 percent.
Apart from Remicade, other drugs
showed sales growth as well. Stelara accumulated $804 million higher than the
projected $699 million, while Zytiga made $601 million far from the estimated
$551.3 million. Also Xarelto gained $594 a little higher than the predicted
$563.5 million by the market experts.
The new products of the company
also contributed to the high drug sales of the company, these include multiple
myeloma drug DARZALEX and cancer drug IMBRUVICA (ibrutinib). Further the
medical devices sales of the company successfully climbed 0.8 percent higher
compared to the figures a year ago.
After the operational growth of
3.1 percent, the company’s international sales stood at 0.4 percent and the
domestic sales advanced 7.4 percent. Moreover, the negative impact of currency
went 1.4 percent.
"We continue to see good
momentum through the first half of 2016, delivering solid results in the second
quarter, supported by strong underlying growth across our enterprise. We saw
notable strength in our Pharmaceuticals business due to the continued success
of new products, and also achieved significant clinical milestones, advancing
our robust pipeline,” expressed by Alex Gorsky, Chairman and Chief Executive
Officer.
However, its consumer business
sector declined by 1.8 percent as its products such as Johnson’s baby powder dealt
with series of controversies. Few days ago, Chicago Law Firm filed a lawsuit
against the company on behalf of a Chicago woman who was diagnosed with Ovarian
Cancer after her usage of Talcum Poweder-Based Products.
According to Attorney
Ken Moll, President of Moll Law Group, no label or advertising changes have
been issued to warn consumers of the fatal risks associated with the use of
these products. “We seek to, at the very least, impact a change to the label
warnings on these products to adequately warn consumers of the risks associated
and increase public awareness,” Attorney Mall added.
On the other hand, the total net
earnings of the pharmaceutical firm dropped by $3.997 billion to $1.43 per
share. Some analysts estimated a profit of $1.68 per share on revenue of $17.98
billion.
As Johnson & Johnson topped
the second quarter forecasts despite the decline of profit, shares remained flat,
trading at $123.14. Currently the stock has a market capitalization of $339.10
billion and a price earnings ratio of 22.45. It has a dividend yield of 2.60
percent and an average trading volume of 7,144,414.
No comments:
Post a Comment