Johnson & Johnson net profit declined sharply by 23.2 per cent to US$ 3,476 million during the first quarter ended March 2011 from $4,526 million in the corresponding period of last year due to additional charge on account of litigation and products recall costs. Its sales, however, moved up by 3.5 per cent to $16,173 million from $15,631 million. Its US sales declined by 0.6 per cent to $7,608 million from $6,227 million.
The pharmaceutical sales increased by 7.5 per cent to $6,059 million as against $5,638 million in the similar period of last year. Its pharmaceutical sales in US increased by 5.8 per cent to $ 3,391 million from $3,206 million and that in International market increased by 9.7 per cent to $2,668 million from $2,432 million. Similarly, the sales of medical devices and diagnostics up by 3.3 per cent to $6,432 million from $6,227 million and that of consumer products declined by 2.2 per cent to $3,682 million from $3,766 million.
The company increased its earnings guidance for full-year 2011 to $4.90 - $5.00 per share, reflecting both currency exchange rate changes and recent developments in the business. The company's guidance excludes the impact of special items.
"Our pharmaceuticals business demonstrated strong growth this quarter led by the performance of recently launched products. We delivered solid earnings while making the investments necessary to advance the robust pipelines across our businesses," said William C. Weldon, chairman and CEO.
"The innovations we are bringing to the market, the changes we are implementing in manufacturing and quality, and the dedication of the people of Johnson & Johnson, give us great confidence in the future growth prospects of our business," said Weldon.
Sales results include the strong performance of recently launched products, including Stelara (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; Simponi (golimumab), a biologic approved to treat adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; and Invega Sustenna (paliperidone palmitate) a once-monthly, long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults.
Several other products also contributed to the operational sales growth including Remicade (infliximab), a biologic approved for the treatment of a number of immune mediated inflammatory diseases; Prezista (darunavir), a treatment for HIV; Caelvyx (pegylated liposomal doxorubicin hydrochloride), a treatment for certain types of cancer; Levaquin (levofloxacin), a treatment for bacterial infections; and international sales of Risperdal Consta (risperidone), a long-acting injectable for the management of Bipolar I Disorder and schizophrenia.
During the quarter, the European Commission approved Xeplion (paliperidone palmitate), a once monthly, long-acting injectable, antipsychotic, for the treatment of schizophrenia. In addition, the company completed its tender offer for Crucell N.V., a global biopharmaceutical company focused on the research & development, production and marketing of vaccines and antibodies against infectious disease worldwide. Crucell now operates as the center for vaccines within the Johnson & Johnson pharmaceuticals group.