Monday, July 27th15.1°C
26925

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




Recent Trending




Today's Market
S&P TSX14001.37-184.87
S&P CDNX581.71-10.78
DJIA17440.59-127.94
Nasdaq5039.78-48.85
S&P 5002067.64-12.01
CDN Dollar0.7684+0.0016
Gold1093.90+8.30
Oil47.69-0.16
Lumber258.10+0.40
Natural Gas2.79+0.00

 
Okanagan Companies
Pacific Safety0.18-0.01
Knighthawk0.010.00
QHR Technologies Inc1.36-0.04
Cantex0.05+0.00
Anavex Life Sciences0.91+0.13
Metalex Ventures0.06-0.01
Russel Metals19.45-1.73
Copper Mountain Mining0.80-0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.01
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.70-0.05

 



26764

FEATURED Property
23348082835 Shannon Lake Road
6 bedrooms 4 baths
$1,495,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



27114




Member of BC Press Council


26706