17 Jul 2013, BioSpectrum Bureau , BioSpectrum
Singapore: Johnson & Johnson (J&J) reported higher-than-expected second-quarter earnings, reporting gains of $213 million, fueled by strong demand for its prescription drugs and medical devices.
The firm also made a huge gain from the sale of a stake in Irish drugmaker, Elan, which it acquired in 2009 as part of a deal to develop a treatment for Alzheimer's disease.
J&J earned $1.48 per share, excluding special items such as expenses from litigation and an acquisition. Revenue rose 8.5 percent to $17.88 billion and global sales of the company's prescription drugs rose 11.7 percent to $7.02 billion. This was due to the strong performances of Remicade for arthritis, Stelara for psoriasis and Zytiga, a fast-growing medicine for prostate cancer.
Sales of medical devices rose 9.6 percent to $7.19 billion, helped by the company's recent acquisition of Synthes and its devices used for trauma procedures.
However, sales of consumer medicines increased only 1.1 percent, to $3.66 billion, with weakness in both in US and overseas markets. US sales continue to suffer from recalls of Tylenol, Motrin and other over-the-counter medicines over the past three years due to quality-control lapses. J&J raised its full-year earnings forecast to between $5.40 and $5.47 per share from an earlier range of $5.35-to-$5.45. It earned $5.10 per share last year.