Johnson & Johnson (J&J) reported better-than-expected adjusted earnings and revenue for the third quarter, along with increased full-year guidance. The results come after J&J completed its separation from consumer health spinoff Kenvue in August, marking the company’s significant restructuring. J&J raised its 2023 sales outlook to $83.6 billion to $84 billion, up from the previous guidance of $83.2 billion to $84 billion, with adjusted earnings per share expected between $10.07 and $10.13.
The company also recorded a one-time, non-cash gain of $21 billion related to the Kenvue split. J&J’s Q3 earnings per share were $2.66 (adjusted), exceeding the expected $2.52, and revenue reached $21.35 billion, beating the anticipated $21.04 billion. The pharmaceutical sales segment contributed $13.89 billion, driven by the growth of drugs like Darzalex, Erleada, and Stelara.
The medical devices business reported nearly $7.46 billion in sales, a 10% increase from Q3 2022, fueled by the acquisition of Abiomed. However, this fell short of Wall Street expectations of $7.58 billion. J&J highlighted growth in electrophysiological products, wound closure products, orthopedic trauma devices, and contact lenses in the medical devices segment. The company noted that its Covid vaccine, which impacted pharmaceutical sales growth, is not a critical factor in its overall success.
Sales in this quarter did not include U.S. revenue from the Covid vaccine. J&J CFO Joseph Wolk emphasized that the company’s success was not dependent on the Covid vaccine. Additionally, J&J faces legal challenges related to talc-based products, including thousands of lawsuits alleging asbestos contamination and associated health risks.
These liabilities now fall under Kenvue, but J&J will assume talc-related liabilities arising in the U.S. and Canada. The results also coincide with J&J’s engagement in price talks with Medicare over its drug Xarelto, despite the company’s opposition to Medicare drug price negotiations, citing potential damage to innovation.
Read More: https://insightscare.com/
