Johnson & Johnson (J&J) has reported strong growth of 30 per cent in net earnings during the third quarter ended September 2008 despite the impact of generic products. The net earnings touched to US$ 3,310 million from $2,548 million in the corresponding period of last year. Its revenues increased to $ 15,921 million from $ 14,970 million in the corresponding period of last year, a growth of 3.1 per cent. The pharmaceutical sales moved up by 2.7 per cent to $6,113 million from $6,099 million, despite lower sales in US by 6 per cent. The sales of medical devices & diagnostics improved by 3.2 per cent to $5,709 million.
For the first nine months ended September 2008, J&J achieved sales of $48,565 million as compared to $45,138 million in the similar period of last year, representing a growth of 7.6 per cent. Its net earnings went up b y 24.8 per cent to $10,235 million from $ 8,202 million. The pharmaceutical sales in US during the first nine months declined by 2.2 per cent to $11,401 million. However, its pharmaceutical sales in international market moved up by 9.9 per cent to $7,481 million.
William C Weldon, chairman and CEO, said, "J&J continues to achieve solid earnings results despite the impact hat generic products have had on our pharmaceutical business. Of note was the strong sales performance of our Consumer segment and the solid sales results in our Medical Devices and Diagnostics segment."
Sales results reflect the strong performance of the US Launch of Zyrtec, an over-the-counter allergy treatment; Listerine antiseptic mouthrinse; international sales of Baby Care products; and the skin care lines of Neutrogena, Clelan & Clear and Aveeno. Also contributing to growth were sales of DABAO, he leading moisturizer in China, which was acquired as part of the recently completed acquisition of Beijing Daba Cosmetics Co Ltd, a personal care products company. The pharmaceutical sales growth reflects the strong performance of Velcade, a treatment for multiple myeloma; 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.
During the quarter ended September 2008, the company received European Commission marketing authorization for Intelence, a next generation non-nucleoside reverse transcriptase inhibitor; Doribax, an antibiotic used as a treatment for complicated urinary tract infections, completecated intra-abdominal infections, and nosocomial pneumonia including ventilator-associated pneumonia.
The company increased its earnings guidance or full-year 2008 to $4.5-4.53 per share, which does no include the impact of any in-process research and development charges or other special items.