An enormous leap in prescription drug gross sales boosted fourth-quarter income at Johnson & Johnson, regardless of the coronavirus pandemic reducing into gross sales of merchandise from contact lenses to surgical gear and different medical units utilized in procedures at hospitals swamped with COVID-19 sufferers.
Income dove 57% as a result of larger analysis spending, plus litigation and different one-time costs totaling $2.4 billion, however the outcomes nonetheless cruised previous Wall Avenue expectations. J&J shares added $5.18, or 3.1%, to hit $171.16 in early afternoon buying and selling Tuesday.
Johnson & Johnson did not give any updates on its coronavirus vaccine analysis, however executives on a convention name to debate the quarterly outcomes repeatedly informed analysts that J&J expects to share outcomes from its late-stage research of its experimental COVID-19 vaccine — the primary requiring just one dose — “by early subsequent week.”
The vaccine may grow to be the third to obtain emergency use authorization within the U.S., doubtless in February, following companions Pfizer and BioNTech, who gained the primary Meals and Drug Administration emergency clearance, and Moderna. Each these vaccines, which use totally different know-how than J&J’s, had been granted emergency use authorization in December.
In the meantime, Johnson & Johnson is also testing a two-dose vaccine as a backup and may have outcomes on that in 2021’s second half.
The world’s largest maker of well being care merchandise reported web earnings of $1.74 billion, or 65 cents per share, down from $4.01 billion, or $1.50 per share, a 12 months earlier.
Adjusted web earnings got here to $4.97 billion, or $1.86 per share, simply topping the $1.81 Wall Avenue analysts anticipated.
Quarterly income totaled $22.48 billion, up 8.3% from $20.75 billion. Analysts had anticipated $21.62 billion.
“We expect we’re positioned very effectively as we embark on 2021,” Chief Government Officer Alex Gorsky informed the analysts.
The New Brunswick, New Jersey, firm stated that the results of the COVID-19 pandemic diminished gross sales for prescription medicines and client well being merchandise, aside from elevated demand for oral care merchandise, primarily Listerine.
The pandemic, and the related deferral of many medical procedures, diminished gross sales of surgical procedure, imaginative and prescient care and orthopedics merchandise. J&J famous its medical units enterprise outcomes mirrored market restoration in 2020’s second half, doubtlessly a superb signal for different system makers.
Edward Jones analyst Ashton Evans referred to as the quarter “stable,” regardless of COVID-19 impacts.
“If profitable, JNJ’s vaccine provide this 12 months will enormously assist worldwide vaccination efforts, significantly given its comparatively less complicated storage necessities,” she wrote to traders.
J&J’s single-shot vaccine will be saved at normal refrigeration temperatures, whereas the Pfizer and Moderna two-dose vaccines have to be stored frozen at very chilly temperatures.
Prescription drug gross sales jumped 16.3%, to $12.27 billion, led by immune dysfunction drug Stelara and most cancers medication Darzelex, Imbruvica and Erleada. Final week, the FDA authorised the primary long-acting injectable HIV medication, Cabenuva, which incorporates the energetic ingredient in J&J’s drug Edurant, plus a brand new HIV drug developed by companion Viiv, cabotegravir. Cabenuva solely requires photographs as soon as a month.
Gross sales of client well being merchandise akin to Tylenol edged up 1.4% to $3.62 billion. In the meantime, gross sales for the medical units and diagnostics unit dipped practically 1%, to $6.59 billion.
J&J gave its first monetary forecast for 2021, saying it expects gross sales of $90.5 billion to $91.7 billion and adjusted earnings per share of $9.40 to $9.60. Each had been up 10 % or extra from 2020 and beat analysts’ 2021 forecasts for income of $88.59 billion and adjusted earnings per share of $8.96.
The corporate did not embrace any affect from the potential vaccine approval in its 2021 forecast, however stated it is on monitor to fulfill all its order contracts within the U.S. and elsewhere this 12 months.
J&J now has 16 merchandise or platforms that herald annual income of not less than $1 billion — what’s thought-about blockbuster standing — and one other dozen merchandise or platforms which have annual income topping $2 billion.
For all of 2020, Johnson & Johnson reported income of $82.58 billion, up simply 0.6% from 2019, and web earnings of $14.71 billion, which was 2.7% under 2019’s web earnings.
Comply with Linda A. Johnson at https://twitter.com/LindaJ_onPharma
A portion of this story was generated by Automated Insights (http://automatedinsights.com/ap) utilizing knowledge from Zacks Funding Analysis. Entry a Zacks inventory report on JNJ at https://www.zacks.com/ap/JNJ
This story has been corrected to indicate that the CEO is Alex Gorsky, not Gorski.
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