J&J beats Wall Street quarterly sales and profit estimates on cancer drug sales
April 15 (Reuters) - Johnson & Johnson (JNJ.N), opens new tab on Tuesday reported first-quarter revenue and profit above Wall Street estimates, driven again by strong sales of its cancer treatments including multiple myeloma medicine Darzalex.
J&J's quarterly sales stood at $21.89 billion, up 2.4% from a year ago and above analysts' expectations of $21.56 billion, according to LSEG data.
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On an adjusted basis, the company earned $2.77 per share in the quarter, 2.2% higher than the previous year and above analysts' estimates of $2.59 per share.
Quarterly sales for the company's innovative medicines unit rose 2.3% to $13.87 billion, beating analyst expectations of $13.43 billion, while quarterly medtech revenue stood at $8.02 billion, up 2.5% on the previous year but below Wall Street estimates of $8.17 billion.
J&J Chief Financial Officer Joe Wolk said in an interview that the company still expected, as indicated in its January guidance, that its medtech business would perform better in the second half of the year.
Innovative medicine revenue was buttressed by a 20% increase in Darzalex sales on the previous year. Darzalex, a blood cancer therapy launched in 2015, brought in first-quarter sales of $3.24 billion, compared to analysts' expectations of $3.05 billion.
The company's cancer cell therapy Carvykti, which it makes in partnership with Legend Biotech (LEGN.O), opens new tab, brought in sales of $369 million, above estimates of $324 million.
Quarterly sales of J&J's cancer drugs rose nearly 18% worldwide to $5.68 billion.
Sales of the drugmaker's blockbuster psoriasis treatment Stelara fell more than 33% to $1.63 billion in the first quarter, although beating estimates of $1.42 billion, according to LSEG data.
Close copies of Stelara launched in Europe, Canada and few other markets last year, while biosimilar rivals in the U.S. launched this year.
J&J also raised its annual sales forecast by $700 million at the midpoint while lowering its profit outlook, saying it reflects the impact of tariffs imposed by the Trump administration and dilution from its $14.6 billion deal to buy neurological drugmaker Intra-Cellular.
The company now expects sales of $91.6 billion to $92.4 billion, compared to its previous forecast of $90.9 billion and $91.7 billion, driven by its purchase of Intra-Cellular's top schizophrenia drug Caplyta.
J&J expects to earn $10.50 to $10.70 per share on an adjusted basis compared to its previous guidance of $10.75 to $10.95.
Wolk said the profit adjustment takes account of around $400 million that is expected to be incurred in J&J's medtech business due to tariffs currently in place, including those on China and Mexico.
"That is more of a second quarter (and) forward event ... and covers all the programs in place today even if paused," he said.
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