Johnson & Johnson achieved net earnings growth of 16.4 per cent during the first quarter ended March 2006 to $3,305 million from $2,839 million in the corresponding period of last year. Its sales increased only by 1.2 per cent to $12,992 million from $ 12,832 million. Domestic sales were up by 1.6 per cent, while international sales increased .8 per cent, reflecting operational growth of 6.1 per cent and a negative currency impact of 5.3 per cent. The company incurred R&D expenditure of $1,532 million as against $ 1,384 million, a growth of 10.7 per cent.
Worldwide Pharmaceutical sales of $5.6 billion for the first quarter represented a 2.2 per cent decrease as compared to the prior year with an operational decline of .4 per cent. Domestic sales decreased 2.2 per cent, while international sales increased 2.9 per cent from operations. Sales results for Duragesic, a transdermal patch for chronic pain; Ultracet, an analgesic; and Sporanox, an antifungal, were all negatively impacted by generic competition.
Offsetting the impact of generic competition was the strong performance of Risperdal, an antipsychotic medication; Remicade, a biologic approved for the treatment of a number of Immune Mediated Inflammatory Diseases; Topamax, an antiepileptic and a treatment for the prevention of migraine headaches; and Concerta, a treatment for attention deficit hyperactivity disorder.
The first quarter included an after-tax gain of $368 million associated with the termination of the Guidant acquisition agreement. The first quarter also included after-tax in-process research and development charges of $29 million associated with the acquisitions of Hand Innovations LLC and Future Medical Systems S.A.
"Our first quarter results were as anticipated and we look forward to improving performance throughout the balance of the year," William C. Weldon, Chairman and Chief Executive Officer said adding, "We are continuing to make significant investments in research and development in order to bring important new products to market, positioning us well for long-term growth."
Worldwide Medical Devices and Diagnostics sales of $5.0 billion for the first quarter represented a 4.5 per cent increase over the prior year with operational growth of 7.9 per cent.
Cordis' circulatory disease management products were a key contributor to the segment results with the primary driver being the Cypher Sirolimus-eluting coronary stent. The Cypher stent has been chosen by cardiologists worldwide to treat more than two million patients with coronary artery disease and is the world's leading drug-eluting stent.
Also contributing to the performance of the segment is the continued growth of DePuy's orthopaedic joint reconstruction, sports medicine and trauma businesses; Vistakon's disposable contact lenses; Ethicon Endo-Surgery's minimally invasive products; and Ortho-Clinical Diagnostics' professional diagnostic products.
During the quarter, the company announced the completion of the acquisition of Animas Corporation, a leading manufacturer of insulin infusion pumps and related products.
During the quarter, the European Commission granted marketing authorization in the 25 member states of the European Union for the use of Ionsys (fentanyl hydrochloride). Ionsys is the first needle-free, iontophoretic, patient-controlled transdermal system to receive marketing authorization. It is indicated for the management of acute moderate to severe post-operative pain, for use by adults, in a hospital setting.