J&J ups profit outlook, boosted by blockbuster drug Stelara
Investors now focus on how the company will reach its targets before biosimilars are retailed
Bengaluru — Johnson & Johnson (J&J) on Tuesday raised its 2023 profit forecast, helped by resilient demand for its blockbuster anti-inflammatory drug Stelara and recorded a $21bn gain from the spin-off of its consumer health unit.
The company’s shares were up about 1% in premarket trading.
Investors are focused on how J&J, now a standalone pharmaceutical and medical devices company, will reach its goal of $57bn in drug sales by 2025. The company is facing a potential slowdown in sales of its arthritis drug Stelara after the launch of biosimilars.
J&J finalised the biggest shake-up in its 137-year history in August through an exchange of its shares with former consumer health unit Kenvue, leaving the pharmaceutical giant with a reduced 9.5% stake in its former unit.
J&J reported third-quarter total sales of $21.35bn, compared with analysts’ estimates of $21.04bn, according to LSEG data.
Stelara brought in sales of $2.86bn, above estimates of $2.61bn. The company’s innovative medicine unit reported quarterly sales of $13.89bn, of which Stelara accounted for more than 20%.
J&J has signed settlements to delay the launch of copycat rivals of Stelara until 2025, which may help the drug continue to significantly contribute to the company’s sales.
Sales at J&J’s medical device unit came in at $7.46bn for the quarter, missing estimates of $7.58bn.
Excluding its consumer health unit, J&J now expects 2023 adjusted profit of $10.07 to $10.13 per share, compared with its previous outlook of $10.00 to $10.10 per share.
The company posted a third-quarter profit of $1.69 per share, compared with $1.62 per share a year earlier.
Reuters