Johnson & Johnson announced sales of $20.8 billion for the second quarter of 2018, an increase of 10.6 percent as compared to the second quarter of 2017. Operational sales results increased 8.7 percent and the positive impact of currency was 1.9 percent.
Domestic sales increased 9.4 percent. International sales increased 11.8 percent, reflecting operational growth of 7.9 percent and a positive currency impact of 3.9 percent. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.3 percent, domestic sales increased 5.7 percent, and international sales increased 6.8 percent.
Net earnings and diluted earnings per share for the second quarter of 2018 were $4.0 billion and $1.45, respectively. Second-quarter 2018 net earnings included after-tax intangible amortization expense of approximately $1.0 billion and a charge for after-tax special items of approximately $0.8 billion.
Second-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.4 billion and a charge for after-tax special items of approximately $0.8 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.7 billion and adjusted diluted earnings per share were $2.10, representing increases of 14.0 percent and 14.8 percent, respectively, as compared to the same period in 2017. On an operational basis, adjusted diluted earnings per share also increased 11.5 percent.
“Our strong second-quarter results reflect double-digit growth in our Pharmaceutical business and the accelerating sales momentum in our Medical Devices business, driven by the continued growth of our market leading products and strategic new launches.,” Alex Gorsky, chairman and chief executive officer. “We remain focused on investing in innovation and meeting the needs of our customers by delivering innovative products and solutions that position the company to deliver long-term, sustainable growth.”
The company updated its sales guidance for the full-year 2018 to a range of $80.5 to $81.3 billion. This reflects an increase in expected operational growth to a range of 4.5 percent to 5.5 percent, partially offset by the estimated lower favorable impact of currency.
Additionally, the company updated its adjusted earnings guidance for full-year 2018 to a range of $8.07 to $8.17 per share. This reflects an increase in expected operational growth to a range of 8.5 percent to 9.9 percent, partially offset by the estimated lower favorable impact of currency.
Segment Sales Performance
Worldwide Consumer sales of $3.5 billion for the second quarter 2018 represented an increase of 0.7 percent versus the prior year, consisting of an operational decrease of 0.4 percent and a positive impact from currency of 1.1 percent.
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products including Tylenol analgesics and digestive health products, international beauty products primarily Neutrogena, OGX and Dr. Ci Labo, partially offset by lower sales of baby care products. During the quarter, the divestiture of the anti‐dandruff shampoo brand Nizoral and certain other ketoconazole‐based shampoo brands was completed.
Worldwide Pharmaceutical sales of $10.4 billion for the second quarter 2018 represented an increase of 19.9 percent versus the prior year with an operational increase of 17.6 percent and a positive impact from currency of 2.3 percent. Domestic sales increased 17.7 percent; international sales increased 22.9 percent, which reflected an operational increase of 17.5 percent and a positive currency impact of 5.4 percent. Sales included the impact of Actelion Ltd which contributed 6.6 percent, to worldwide operational sales growth.
Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by Stelara (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, Zytiga (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, Darzalex (daratumumab), for the treatment of patients with multiple myeloma, Imbruvica (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, Tremfya (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis.
In addition, results included Simponi/Simponi Aria (golimumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, Invega Sustenna/Xeplion/Trinza/Trevicta (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and Xarelto (rivaroxaban), an oral anticoagulant.
During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for Darzalex (daratumumab) in combination with Velcade (bortezomib), a proteasome inhibitor; melphalan, an alkylating agent; and prednisone for the treatment of patients with newly diagnosed multiple myeloma who are ineligible for autologous stem cell transplant. The European Commission granted marketing authorization for Juluca (dolutegravir/rilpivirine), a two-drug regimen, once-daily, single-pill for the treatment of HIV-1.
A supplemental New Drug Application was submitted to the FDA seeking to expand the indication of Opsumit (macitentan) to include the treatment of adults with inoperable chronic thromboembolic pulmonary hypertension (CTEPH, WHO Group 4) to improve exercise capacity and pulmonary vascular resistance.
Also in the quarter, the acquisition of BeneVir Biopharm, Inc., a privately held, biopharmaceutical company specializing in the development of oncolytic immunotherapies, was completed. In addition, a worldwide collaboration was entered into with Bristol-Myers Squibb Company to develop and commercialize Factor XIa inhibitors, including BMS-986177, for the prevention and treatment of major thrombotic conditions.
(Source: Johnson & Johnson)
Filed Under: Drug Discovery