Big Pharma, Johnson & Johnson: quarter in the red by almost 70 million euros
Johnson & Johnson is a health and consumer giant. A Big Pharma known all over the world that this quarter went into the red by almost 70 million euros. The cause? Having been forced to set aside nearly $7 billion for the litigation it’s facing. Just recently it had already agreed a little less than 9 billion to settle thousands of lawsuits over the problems that appear to have arisen with its top product, Baby Powder talcum powder. The accusation is that there is the presence of carcinogenic components in the talc. Despite this, the Group, led by Joaquin Duato, points out that the 7 billion set aside are actually “only” 5,278 after taxes and against this theIts adjusted net income would be $7,068 million, down 1% from 2022.
Big Pharma, J&J despite the changes has seen its sales grow
Despite unfavorable exchange rates, sales grew by 5.6% (24,746 million dollars). In the United States, the favorable trend reached 9.7. With this result, Johnson & Johnson had more turnover “at home” than in the rest of the world: 12,517 million dollars in the USA against 12,229 million outside. Over half of sales (54%) came from pharmaceutical products.
The good results, excluding the issue of fines, exceeded all forecasts thanks to sales of the Covid vaccine, of key drugs such as Stelara, for Crohn’s disease, and by a recovery trend in the medical device sector. “The first quarter results show strong performance in all three segments of our business and reflect the dedication of Johnson & Johnson colleagues around the world,” said Joaquín Duato, president and CEO. “With this momentum, I am looking forward to the rest of the year, a year filled with exciting stimulus that will create both short- and long-term value for patients and all of our stakeholders.”
Big Pharma, J&J has raised its growth forecast for the current year
After the good data of the first three months, Johnson & Johnson has revised upwards its forecasts for the whole of 2023. From the estimated 5% it has gone to 6% with sales that should reach almost 100 billion dollars. At the same time, forecasts for the growth of equity earnings were raised. About 4% to about 5%, as noted by the United States Securities and Exchange Commission (SEC). The Group Board also approved a 5.3% increase in the quarterly dividend, from $1.13 per share to $1.19 per share. “In recognition of our ’22 results, our strong financial position and our confidence in Johnson & Johnson’s future, the Board has increased our quarterly dividend for the 61st consecutive year.” In short, beyond the fines, the wind seems to be blowing strongly for American Big Pharma.
Subscribe to the newsletter