Better-than-expected Q4 results for J&J

Hannah Blake

 

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Johnson & Johnson has announced better-than-expected sales results for the fourth quarter of 2012. The company reported an increase of 8% to US $17.6 billion, as compared to the same period in 2011. Domestic sales increased by 6.8%, while international sales also increased, but by slightly better at 8.9%.

For the full-year 2012, sales revenue came to US $67.2 billion – an increase of 3.4% compared to 2011. This revenue also included the impact of the recently completed acquisition of Synthes, Inc, which contributed 3% to worldwide operational sales growth.

“Johnson & Johnson delivered solid results in 2012 reflecting continued sales momentum in many parts of our business driven by our focus on delivering meaningful innovation in health care to patients and customers. Our results included strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies. In addition, we continued to make important investments building strategic partnerships and in advancing our pipeline, positioning us well for delivering sustainable growth as we enter 2013. I would also like to thank our talented colleagues at Johnson & Johnson for their extraordinary achievements in helping advance health and well-being for patients and customers around the world.”
 
Alex Gorsky, Chairman and Chief Executive Officer.

Primary contributors to operational sales growth were remicade (infliximab), a biologic approved for the treatment of a number of immune-mediated, inflammatory diseases, multiple myeloma treatment velcade (bortezomib), HIV treatment prezista, and a number of recently launched products, including prostate cancer drug Zytiga (abiraterone acetate).

However, due to overseas price controls and increased pressure on payments from insurers and the government, J&J is looking to strategies used by other pharma companies to stay on top. One of the options J&J is considering is selling its US $2 billion-a-year diagnostics business, Ortho Clinical Diagnostics, which makes everything from tests to determine blood type to laboratory equipment.

 

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Related news:

J&J pledges growth for consumer business (Financial Times)

J&J profit tops forecast, mulls sale of diagnostic unit (Reuters)

Reference links:

J&J official press release

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