On Tuesday, Johnson & Johnson surpassed earnings expectations for the first quarter and raised its profit forecast for 2023, banking on its newer cancer treatments and multiple myeloma drug Darzalex to offset declining demand for older medicines.

Shares of Johnson & Johnson increased by over 2% during pre-market trading

Key to achieving its $60 billion drug sales goal by 2025 are Johnson & Johnson’s newer cancer treatments, including Darzalex, Carvykti, and Tecvayli, as older medicines like Crohn’s drug Stelara face impending competition.

The company, which is separating from its consumer health business, reported a loss of 3 cents per share for the first quarter due to a one-time charge related to its talc liabilities’ second bankruptcy.

J&J announced it would have $6.9 billion in costs related to the bankruptcy.

For the first quarter, the company reported $2.44 billion in sales for its blockbuster drug Stelara, which two analysts surveyed by Refinitiv expected to be $2.41 billion.

For years, J&J’s pharmaceutical business growth was fueled by its blockbuster drugs like Stelara and the older cancer treatment, Imbruvica.

Stelara’s exclusivity in the US will end in late 2023, while Imbruvica faces tough competition. Adjusted earnings for the first quarter came in at $2.68 per share, beating estimates of $2.50, thanks to strong sales across all segments, including medical devices and consumer health.

The healthcare conglomerate now expects adjusted earnings of $10.60 to $10.70 per share for the year, compared to the previous forecast of $10.45 to $10.65 per share. Refinitiv analysts had expected earnings of $10.51 per share.

Source: Investing.com