J&J’s cancer drug sales help cope with stronger dollar

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People pose with a syringe with a needle in front of the Johnson & Johnson logo displayed in this illustration taken December 11, 2021. REUTERS/Dado Ruvic/Illustration

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July 19 (Reuters) – (This July 19 story corrects paragraph three to say the company reported second-quarter, not first-quarter results)

Johnson & Johnson (JNJ.N) released quarterly results on Tuesday that beat analysts’ estimates on strong demand for the cancer drug Darzalex and its COVID-19 vaccine, even as the company cut its adjusted earnings forecast for the whole year due to a stronger dollar.

J&J joins other major U.S. multinationals with significant international operations, including Microsoft Corp (MSFT.O) and IBM, in warning that a stronger dollar would hurt overseas sales.

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But shares of J&J rose 1% in morning trade as its strong second-quarter profit helped ease some investor concerns about the impact of the strong dollar, which was driven by a hawkish Federal Reserve and investors. heightened geopolitical tensions.

The strength of Johnson & Johnson’s pharmaceuticals unit, its largest, has helped it soften the blow to its medical device sales from lockdowns in China, and the impact of inflation and drug shortages. supply in its consumer health unit.

The company said it was raising the prices of some products like painkillers and mouthwashes in response to inflation.

“We know that if people are generally looking to cut spending, it’s in entertainment, restaurants,” said chief financial officer Joseph Wolk.

But “when it comes to health care, better health, better looks, products like Aveeno, Neutrogena, Tylenol, Listerine, they seem to work very well, and consumers will prioritize those- this.”

Sales of the $1.99 billion cancer drug Darzalex beat estimates of $1.84 billion.

The company’s COVID-19 vaccine, which has seen slow demand due to safety concerns and production hurdles, brought in sales of $544 million, against estimates of $138 million. The company – which suspended its sales outlook on the vaccine in May – said it was altering vaccine manufacturing capacity amid a glut of vaccine supplies.

He did not disclose details, but said the changes would incur additional costs which would be reported as a one-time charge. J&J said it still expects to meet its contractual supply commitments.

Total sales of $24.02 billion, nearly half of which came from outside the United States, beating estimates of $23.80 billion.

On an adjusted basis, the company earned $2.59 per share, beating estimates of $2.54 per share.

J&J now expects adjusted earnings of $10.00 to $10.10 per share for the full year, compared to its previous guidance of $10.15 to $10.35.

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Reporting by Manas Mishra in Bengaluru and Michael Erman in New Jersey; Editing by Sriraj Kalluvila and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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