The company said it expects some impact of inflation to ease next year but higher costs of inventory manufactured in 2022 could weigh on 2023 profit
Johnson & Johnson on Tuesday beat Wall Street estimates for quarterly revenue and profit on strong demand for its cancer drug Darzalex and Crohn’s disease drug Stelara while projecting an easing of the hit from surging inflation.
The company, which also sells medical devices and consumer health products such as Band Aids and painkiller Tylenol, tightened its full-year adjusted profit forecast range.
J&J is the first drugmaker and medical devices firm to report third-quarter earnings and its shares rose 2.1 per cent to $170.02 in premarket trading.
The company said it expects some impact of inflation to ease next year but higher costs of inventory manufactured in 2022 could weigh on 2023 profit. It expects the impact of a stronger dollar to hit 2023 adjusted earnings by between 40 cents and 45 cents.
Sales at pharmaceuticals, the company’s largest unit, rose 2.6 per cent to $13.21 billion in the third quarter. That beat estimates of $13.03 billion, according to six analysts polled by Refinitiv.
Sales of cancer drug Darzalex jumped 29.8 per cent to $2.05 billion.
The medical devices unit reported a 2.1 per cent rise in sales to $6.78 billion on demand for contact lenses and wound-closure products. The division has been under pressure from extended lockdowns in China and a slow recovery in demand for some non-urgent surgery delayed due to the COVID-19.
Total sales for the third-quarter rose 1.9 per cent to $23.79 billion, topping estimates of $23.34 billion, according to Refinitiv IBES data.
Excluding items, J&J earned $2.55 per share, beating estimates of $2.47.