(Reuters) -Johnson & Johnson forecast 2023 profit above Wall Street estimates on Thursday, banking on demand for its cancer drugs such as Darzalex and the strength in its medical devices business.
Shares of J&J, which recently spun off its consumer health unit to focus on drugs and medical devices, rose about 2% in premarket trading.
J&J has placed huge bets on its newer cancer drugs, while trying to bolster growth at its pandemic-hit medical devices business, as it looks to counter a potential slowdown in sales of its blockbuster arthritis drug, Stelara, which faces the threat of competition in 2025.
Quarterly sales from its medical devices segment topped estimates, helped by a recovery in demand for medical procedures, which were delayed during the pandemic.
The company also recently signed settlements to delay the launch of biosimilar versions of Stelara.
Sales of its multiple myeloma drug, Darzalex, came in at $2.43 billion for the second quarter, in line with Wall Street estimates, according to an average of two analysts polled by Refinitiv.
Stelara also met analysts’ expectations with sales of $2.8 billion in the quarter.
Second-quarter sales for its medical device unit were $7.79 billion, topping estimates of $7.55 billion, according to Refinitiv.
J&J said it now expects to earn between $10.70 and $10.80 per share on an adjusted basis for 2023, above estimates of$10.65 per share, according to Refinitiv.
The company had previously forecast a profit of $10.60 and $10.70 per share.
The drugmaker also posted better-than-expected second-quarter earnings of $2.80 per share, compared with analysts’ expectations of $2.62.
The company’s consumer health unit, Kenvue, also forecast full-year profit above Wall Street estimates, signaling strong demand for its skincare and self-care products such as Neutrogena and Benadryl.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Anil D’Silva)
