J&J Strong Q2 As Sales Hit By Pandemic, Profits Recover | Taiwan News
Johnson & Johnson’s second quarter profit climbed 73%, driven by strong sales growth across all of its businesses, particularly its medical devices and diagnostics segment, while hospitals and the rest of the healthcare industry. health workers continued to recover from the effects of the coronavirus pandemic.
The healthcare giant also benefited from favorable exchange rates and sharply increased its sales and profit forecast for the year.
The world’s largest healthcare maker on Wednesday reported net profit of $ 6.28 billion, or $ 2.35 per share, in the quarter, from $ 3.63 billion, or $ 1.36 per share, a year earlier.
Adjusted earnings were $ 6.63 billion, or $ 2.48 per share. That easily beat Wall Street’s forecast for $ 2.28 a share, according to a Zacks Investment Research poll.
Revenue totaled $ 23.31 billion, up 27.1% from $ 18.34 billion in the second quarter of 2020.
The only weak spot has been dismal sales of J & J’s COVID-19 vaccine, which brought in just $ 164 million in the quarter and a total of $ 264 million so far this year.
The vaccine has been plagued by concerns over some very rare side effects and the closure of the Maryland plant of J&J’s US contract manufacturer, Emergent BioSolutions, due to contamination issues that led to the destruction of dozens of million doses of vaccine. It’s unclear when – or if – the U.S. Food and Drug Administration will allow the plant to resume production.
J&J has the only licensed vaccine that requires only one injection, so it was expected to play a huge role in immunizing people in rural areas and developing countries. Instead, the company is falling short of its supply commitments to the United States, other governments, and a World Health Organization-backed program to provide affordable vaccines to poor and middle-income countries.
J&J, based in New Brunswick, New Jersey, said overseas sales jumped 29.5% to $ 11.39 billion, while sales in the United States were up 24. 9% to $ 11.92 billion.
J&J’s medical devices and diagnostics division had been lagging behind amid lengthy restructuring and the pandemic that led people to delay scheduled surgeries and other care. It had the best performance of the quarter, with revenue up 62.7% to $ 6.98 billion.
Cancer drugmaker Darzalex and Imbruvica said sales of prescription drugs, long the company’s main growth driver, rose 17.2% to $ 12.6 billion.
Sales of consumer health products like Tylenol and Band-Aids, which were bolstered during the pandemic by medicine cabinet storage and increased attention to wellness, climbed 13.3% to 3.74 billions of dollars.
J&J noted that sales benefited from 4.1% favorable exchange rates.
During the quarter, the FDA approved J & J’s Rybrevant, the first targeted therapy for non-small cell lung cancer with certain genetic mutations.
Johnson & Johnson said they expect adjusted annual earnings in the range of $ 9.60 to $ 9.70 per share, up from their April forecast of $ 9.42 to $ 9.57 . It forecasts revenues of between $ 93.8 billion and $ 94.6 billion, compared to $ 90.6 billion to $ 91.6 billion.
Shares of the company edged up 1% to $ 170.11 ahead of the opening bell on Wednesday.
Follow Linda A. Johnson on Twitter: @LindaJ_on Pharma
Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a report on Zacks’ stock on JNJ at https://www.zacks.com/ap/JNJ