Johnson & Johnson (J&J) has posted a net profit, after special items, of US$ 3,519 million during the fourth quarter ended December 2013 from $2,567 million in the corresponding period of last year, a growth of 37.1 per cent. However, its profit before special items and tax declined by 11.3 per cent to $2,750 million from $3,100 million. The company's worldwide sales improved by 4.5 per cent to $18,355 million from $17,558 million. Sales for the full year included the acquisition of Synthes, Inc. which was completed in June 2012. Excluding this impact, net of the divestiture of the DePuy trauma business, worldwide operational sales growth was 5.2 per cent.
During the quarter ended December 2013, its US sales sales increased by 7.4 per cent to $8,014 million from $7,400 million and international sales increased by 2.4 per cent to $10,341 million from $10,098 million. Its sales in Europe moved up 7.9 per cent to $4,968 million from $4,603 million and that in Asia-Pacific, Africa region declined by two per cent to $3,482 million from $3,554 million.
Fourth-quarter 2013 net earnings included after-tax special items of $42 million, primarily related to an increase in the litigation accrual, an in-process research and development charge, integration and transaction costs related to the acquisition of Synthes, Inc., and programme costs associated with the DePuy ASR Hip, offset by a tax benefit associated with Scios, Inc.
Alex Gorsky, chairman and CEO said, “Johnson & Johnson delivered strong results in 2013 led by the outstanding performance in our pharmaceutical business, the strength of key brands in our US OTC and other consumer businesses and continued progress in integrating Synthes into our medical devices and diagnostics business. We also advanced our longer term growth drivers, bringing innovative solutions to the global healthcare market and executing with excellence. I am proud of our exceptional Johnson & Johnson colleagues for their commitment to leading with purpose and advancing health and well-being for patients and consumers around the world.”
The Company announced earnings guidance for full-year 2014 of $5.75 to $5.85 per share, which excludes the impact of special items.
For the full year ended December 2013, J&J's sales increased by 6.1 per cent to $71.3 billion from $ 67.2 billion in the previous year and its net profit moved up by 27.4 per cent to $13.8 billion from $10.9 billion. Earnings per share worked out to $4.81 as against $3.86 in the previous year.
Its US sales increased by seven per cent to $31.9 billion from $29.8 billion and its international sales moved up 5.4 per cent to $39.4 billion from $37.4 billion. Its pharmaceutical sales increased by 10.9 per cent to $28,1 billion from $25.4 billion and sales of medical devices & diagnostics increased by 3.9 per cent to $28.5 billion from $27.4 billion. Its sales from consumer division increased marginally to $14.7 billion as against $14,4 billion. Pharmaceutical sales in US increased by 12.3 per cent to $13.9 billion from $12.4 billion and that in international market increased by 9.6 per cent to $14.2 billion from $12.9 billion.
Positive contributors to operational results were US sales of Tylenol and Motrin analgesics; upper respiratory over-the-counter products; international sales of baby care products; sales of Neutrogena and Aveeno skin care products; and international sales of Listerine oral care products.
Primary contributors to operational sales growth were Remicade (infliximab) and Simponi (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases; Stelara (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and active psoriatic arthritis; Invega Sustenna/ Xeplion (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults; Prezista (darunavir), a treatment for HIV; Doxil (doxorubicin HCl liposome injection)/ Caelyx (pegylated liposomal doxorubicin hydrochloride), a medication to treat recurrent ovarian and other cancers; Velcade (bortezomib), a treatment for multiple myeloma; and sales of new products.
The strong sales results of new products included Zytiga (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; Xarelto (rivaroxaban), an oral anticoagulant; the combined sales of Complera/Eviplera (emtricitabine /rilpivirine/tenofovir disoproxil fumarate) and Edurant (rilpivirine) for the treatment of HIV and Invokana (canagliflozin) for the treatment of adults with type 2 diabetes.
Sales results were negatively impacted by loss of exclusivity for Aciphex/ Pariet (rabeprazole), a proton pump inhibitor for gastrointestinal disorders and Concerta (methylphenidate HCI) for the treatment of attention deficit hyperactivity disorder.
Primary contributors to operational growth were sales from the acquisition of Synthes, Inc. and joint reconstruction products in the orthopaedics business; Biosense Webster’s electrophysiology products in the cardiovascular care business; the vision care business; as well as biosurgicals and international sales of energy products in the specialty surgery business.