Johnson & Johnson (NYSE:JNJ) stock fell 0.083% (As on January 25, 11:45:32 AM UTC-4, Source: Google Finance) after the company forecast annual profit above Wall Street estimates, as strong demand for its drugs such as cancer treatment Darzalex is expected to ease pressure from inflation and a strong dollar. Pharmaceutical sales came in at $13.16 billion for the fourth quarter, above analysts’ average estimates of $13.14 billion. Quarterly sales of the cancer drug Darzalex were $2.08 billion, beating Wall Street estimates of $2.02 billion, according to average of two analysts polled by Refinitiv.
JNJ in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.35, beating the analysts’ estimates for the adjusted earnings per share of $2.23, according to IBES data from Refinitiv. The healthcare conglomerate beat estimates for fourth-quarter profit as increased sales of pharmaceutical products helped it weather a hit from a stronger dollar. The company had reported the adjusted revenue declined by 4.4 percent to $23.7 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $23.9 billion.
Meanwhile, products like Darzalex, Erleada, Stelara and Tremfya continued to make gains in the last three months of the year. But that positive momentum was tempered by losses of exclusivity on Remicade and Zytiga, plus Imbruvica’s sales slump. For J&J, Imbruvica posted a 12.3% revenue decline to $866 million for the fourth quarter, which may be due to competitive pressures and a suppressed [chronic lymphocytic leukemia] market due to COVID-19. Imbruvica still maintains its market leadership, thanks to its years of head start.
J&J said it was expecting to earn between $10.45 and $10.65 per share on an adjusted basis for 2023, above analysts’ estimates of $10.35 per share profit at the midpoint. The drugmaker expects 2023 sales to grow 3.5% to 4.5% on an adjusted basis, compared with a year earlier. For the first six months of the year, J&J figures pharma sales operational growth will be lower than in the back half of 2023, thanks, once again, to generic competition, plus pricing pressure and efforts to launch new products
J&J remains confident its drugs business can pull down $60 billion in sales by 2025. J&J expects Stelara to continue to grow volume in the U.S. up to the loss of exclusivity, Wolk said, caveating that that growth would be offset by “inflation pressure.