Thursday, December 18th2.2°C
24562
24285

Johnson & Johnson's 4Q profit jumps 19 per cent on higher prescription drug sales, tax benefit

Surging sales of Johnson & Johnson's prescription medicines and the rebound of its recall-plagued consumer health business lifted fourth-quarter profit 19 per cent.

The health care giant also enjoyed a $707 million tax benefit from writing off money-losing subsidiary Scios.

However, shares fell on J&J's less-stellar 2014 profit forecast due to factors including continued pressures for lower prices.

The maker of baby shampoo and biological drugs said Tuesday that fourth-quarter net income was $3.52 billion, or $1.23 per share, up from $2.57 billion, or 91 cents per share, a year earlier.

Excluding one-time items, income was $1.24 per share. Analysts expected 4 cents less.

Revenue totalled $18.36 billion, up 4.5 per cent. Analysts expected $17.94 billion, according to FactSet.

"Each of Johnson & Johnson's three main business units reported better sales than investors were expecting ... despite a negative impact due to currency (rates) of over 3 per cent," noted Edward Jones analyst Judson Clark.

CEO Alex Gorsky noted J&J got three new medicines approved last year — Invokana for Type 2 diabetes, Olysio for hepatitis C and Imbruvica for lymphoma. It expects to apply for approval of 10 more by 2017.

Prescription drug sales rose 12 per cent to $7.3 billion, led by higher sales of immune disorder drugs, plus Zytiga for prostate cancer and HIV drug Prezista.

Consumer product sales rose 2.8 per cent to $3.75 billion. About 75 per cent of J&J's consumer medicines, including pain relievers Tylenol and Motrin, are now back in stores.

They'd been off store shelves for a few years amid dozens of product recalls since 2009. J&J is under increased scrutiny from regulators over quality deficiencies and had to rebuild a key factory that hasn't reopened yet.

Sales of medical devices and diagnostics dipped 1 per cent to $7.31 billion. J&J expects to close the sale of its Ortho-Clinical Diagnostics business to private equity firm Carlyle Group for $4.15 billion by June.

For 2013, J&J reported net income of $13.83 billion, up 27 per cent, and earnings per share of $4.81. Sales totalled $71.31 billion, up 6.1 per cent.

Analyst Steve Brozak of WBB Securities warned J&J can't sustain the growth of its high-profit prescription drug business — because insurers and patients can't afford ever-higher prices for newer drugs, which often cost over $20,000 a year.

The New Brunswick, N.J., company forecast 2014 earnings per share of $5.75 to $5.85. Analysts expected $5.86.

J&J shares closed down $1.03 at $94.03.

___

Follow Linda A. Johnson at http://twitter.com/LindaJ_onPharma

The Canadian Press


Read more Business News

23981


Recent Trending




Today's Market
S&P TSX14346.75+133.36
S&P CDNX665.50+6.47
DJIA17778.15421.28
Nasdaq4748.396+104.085
S&P 5002061.23+48.34
CDN Dollar0.8630-0.0004
Gold1197.90+3.2001
Oil54.85+0.74
Lumber336.20-0.70
Natural Gas3.648+0.006

 
Okanagan Companies
Pacific Safety0.13+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.28+0.01
Cantex0.03-0.005
Anavex Life Sciences0.17+0.0041
Metalex Ventures0.055+0.005
Russel Metals26.00-1.18
Copper Mountain Mining1.57+0.03
Colorado Resources0.12+0.015
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.225+0.005

 
23744


23981

FEATURED Property
216019211600 highway 33
10091744 bedrooms
$649,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...

_



24476




Member of BC Press Council