Johnson & Johnson (JNJ) has posted strong growth in bottom line of 35.2 during the first quarter ended March 2014 to $4,727 million from $3,497 million in the corresponding period of last year. Its net sales increased by 3.5 per cent to $18,155 million from $17,505 million. The EPS improved to $1.64 from $1.22 in the last period. The first-quarter results included a net gain of after-tax special items of approximately $0.3 billion, related to a tax benefit associated with Conor Medsystems partially offset by integration and transaction costs related to the acquisition of Synthes, and an in-process research and development charge.
“Johnson & Johnson delivered strong first-quarter results driven by successful new product launches and the continued growth of key products,” said Alex Gorsky, chairman and chief executive officer. “Our talented colleagues around the world continue to bring meaningful innovations to patients and customers, addressing significant unmet needs. We also advanced our near-term priorities and long-term growth drivers, positioning us well to deliver sustainable results.”
The company increased its earnings guidance for full-year 2014 to $5.80 - $5.90 per share. The company’s guidance excludes the impact of special items.
Worldwide Consumer sales of $3.6 billion for the first quarter represented a decrease of 3.2 per cent versus the prior year consisting of an operational decrease of 0.6 per cent and a negative impact from currency of 2.6 per cent.
The company's domestic sales decreased 2.9 per cent reflecting the divestiture of the sanitary protection business that was completed in October 2013. International sales decreased 3.4 per cent, which reflected an operational increase of 0.7 per cent and a negative currency impact of 4.1 per cent.
Positive contributors to operational results were sales of AVEENO and DABAO skin care products; international sales of Listerine oral care products; and US sales of ZYRTEC, an over-the-counter allergy treatment. Worldwide Pharmaceutical sales of $7.5 billion for the first quarter. Domestic sales increased 7.7 per cent and international sales increased 14.0 per cent.
Primary contributors to operational sales growth were STELARA (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and 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; VELCADE (bortezomib), a treatment for multiple myeloma; and sales of new products.
The strong sales results of new products include OLYSIO/SOVRIAD (simeprevir), for combination treatment of chronic hepatitis C in adult patients; 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; and Invokana(canagliflozin) for the treatment of adults with type 2 diabetes.
Sales results were negatively impacted by loss of exclusivity for Aciphex (rabeprazole), a proton pump inhibitor for gastrointestinal disorders and Concerta (methylphenidate HCI) for the treatment of attention deficit hyperactivity disorder.
Worldwide Medical Devices and Diagnostics sales of $7.1 billion were flat compared to the prior year Domestic sales decreased 1.6 per cent and international sales increased 1.3 per cent. Primary contributors to operational growth were sales of products in the Orthopaedics business; the Specialty Surgery business; and Biosense Webster’s electrophysiology products in the Cardiovascular Care business.