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Johnson & Johnson ups full year guidance after third quarter beats market expectations

In the third quarter, revenue from its largest unit, the pharmaceutical arm, surged 15%, boosted by the US$30bn acquisition of Swiss biotech Actelion earlier this year and new additions including Darzalex

Johnson & Johnson
Sales in the company's consumer segment, which includes Tylenol and Neutrogena beauty products, managed only a slight rise, and fell 0.5% in the US.

Johnson & Johnson (NYSE:JNJ) has upped both its sales and profit guidance for the full year after the world’s largest healthcare company reported market beating third quarter numbers.

In premarket trade, its shares were up 1.27% at US$137.85.

J&J is now guiding for full year adjusted earnings per share to come in at US$7.25 to US$7.30, up from US$7.12 to US$7.22. It also increased its sales outlook to US$76.1bn US$76.5bn, from US$75.8bn to US$76.1bn.

READ: Johnson & Johnson enjoys positive noises from analysts

In the third quarter, revenue from its largest unit, the pharmaceutical arm, surged 15%, boosted by the US$30bn acquisition of a Swiss biotech firm earlier this year and new additions including Darzalex, which treats multiple myeloma, and a cancer therapy.

Sales in the company's consumer segment, which includes Tylenol and Neutrogena beauty products, managed only a slight rise, and fell 0.5% in the US.

Its medical device sales managed to post a 7.1% hike to US$6.6bn for the quarter, the company said in a statement.

READ: Johnson & Johnson shares advance as second quarter beats market expectations

In the quarter, its revenue rose 10% to US$19.7bn, topping market expectations. Earnings per share of US$1.90 on net income of US$5.2bn also soundly beat market hopes for US $1.80 per share on US$4.9bn.

Chief Executive Alex Gorsky attributed the growth to J&J’s pharmaceutical business and its recent purchase of Actelion, which gave the company immediate access to a portfolio of rare disease treatments.

READ: J&J, world's largest healthcare firm, agrees US$30bn deal to buy Actelion, Europe’s biggest biotech group

The company said in a statement that it will not seek global approvals of sirukumab for the treatment of rheumatoid arthritis and has discontinued research on talacotuzumab, an investigational compound that could treat acute myeloid leukemia.

Earlier this month, J&J abandoned its insulin pump business in the U.S. and Canada, and it is still evaluating options for its other diabetes businesses, including LifeScan Inc., which makes blood-glucose monitors, and OneTouch products.

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Price: 134.83 USD

NYSE:JNJ
Market: NYSE
Market Cap: $354.86 billion
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