Johnson and Johnson raises full year targets after strong third quarter
Healthcare giant Johnson and Johnson posted higher than expected profits for the three months to 30 September thanks to increased demand for its new cancer drugs and the additional revenue afforded to the group from its June acquisition of Swiss biotech company Actelion.
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Strong sales from its cancer drugs, Darzalex and Inbruvica, boosted Johnson and Johnson's pharmaceutical sales 15.4% in the quarter, while the Actelion business added 7.9% to the group's worldwide operational sales growth
Johnson and Johnson raised its full-year earnings per share forecast from $7.12 -7.22 per share to $7.25-7.30 as a result of the strong quarter and said on Tuesday that 2017 revenues were likely to fall between $76.1bn and $76.5bn.
That compared to a previous guidance range for between $75.8bn to $76.1bn in sales.
Total revenue increased 10.3% year-on-year to $19.65bn as Johnson and Johnson also reported higher sales across its consumer and medical device divisions.
However, despite the positive growth, the company's net earnings dropped to $3.76bn in the quarter, down from the $4.27bn it brought in twelve months earlier.
Nonetheless, adjusted for extraordinary items EPS printed at $1.90, easily surpassing analyst forecasts for $1.80.
"Johnson & Johnson accelerated growth in the third quarter. This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth," said Alex Gorsky, chairman and chief executive officer.
After a 1.20% gain in pre-market trading, shares in the New Jersey-based firm were up 1.39% to $137.92 each as of 1430 BST.