J&J Raises Annual Profit Forecast on Cancer Drug Strength

Reuters2023-04-18

(Reuters) - Johnson & Johnson on Tuesday raised its 2023 profit forecast, banking on its newer cancer treatments and multiple myeloma drug Darzalex to soften the blow from declining sales for some of its older medications.

The company, which is spinning off its consumer health business, is betting on Darzalex and newer cancer drugs including Carvykti and Tecvayli to drive it closer to its goal of about $60 billion in drug sales by 2025, as older treatments such as Crohn's disease drug Stelara face impending competition.

Johnson & Johnson stock gained 1.6% after posting results.

The company, however, swung to a loss of 3 cents per share due to a one-time charge related to the second bankruptcy filing for its talc liabilities. J&J had earlier said it would take a charge of $6.9 billion related to the bankruptcy.

On an adjusted basis, the drugmaker posted first-quarter earnings of $2.68 per share, beating estimates of $2.50, helped by strong sales across its businesses, including medical devices and consumer health.

The healthcare conglomerate now expects to earn between $10.60 and $10.70 per share on an adjusted basis this year, compared with its prior forecast of between $10.45 and $10.65. Analysts were expecting a profit of $10.51 per share, according to Refinitiv data.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment