J&J raises earnings forecasts; cancer drugs and Stelara boost their pharmaceutical unit

Johnson & Johnson on Tuesday beat first-quarter 2023 profit estimates and raised its 2023 profit forecast as cancer drugs like Erleada and the Crohn’s disease treatment Stelara boosted sales at its big pharmaceutical unit.

The component’s actions Dow Jones on Wall Street were up more than 2% in pre-session trading as sales across all of the company’s businesses, including medical devices and consumer health, beat estimates.

Our position has changed to responsibly optimistic. We feel very good about 2023,” Chief Financial Officer Joseph Wolk told CNBC.

Sales of its cancer treatments, such as the prostate cancer therapy Erleada and the multiple myeloma drug Darzalex, are closely watched by investors as the company targets some $60 billion in drug sales. by 2025, at a time when older drugs are facing fierce competition.

The company reported sales of $2.44 billion for Stelara in the first quarter. Two analysts polled by Refinitiv had expected sales of $2.41 billion. Darzalex sales of $2.26 billion met expectations, while Erleada sales of $542 million beat estimates of $500 million.

A recovery in medical procedures after being hit by hospital staff shortages helped the medical devices unit post sales of $7.48 billion, beating estimates of $7.31 billion.

Revenue at its consumer health unit, which the company is in the process of spinning off, rose 7.4% to $3.85 billion, beating estimates of $3.62 billion, boosted by price increases to offset the inflation impact.

Meanwhile, J&J posted a loss of 3 cents per share in the first quarter due to a one-time charge related to the second bankruptcy filing for its talc liabilities.

The company has said it would take a $6.9 billion charge in connection with the bankruptcy.

On an adjusted basis, the drugmaker posted first-quarter earnings of $2.68 per share, beating estimates of $2.50.

J&J expects to earn between $10.60 and $10.70 per share on an adjusted basis this year, compared with its previous forecast of between $10.45-10.65.