No Tears Seen For Johnson & Johnson
|
|
Johnson & Johnson might be best known for Tylenol and baby shampoo. But its medical devices and booming prescription pharmaceutical business are the money earners and this quarter will be no exception. When J&J reports second-quarter earnings before the market opens Tuesday, analysts expect net income to rise 13% to 53 cents per share from a year ago, according to First Call/Thompson Financial. The New Brunswick, N.J.-based company’s drug business is seen continuing its strong growth–perhaps even faster than expected, says David Gruber, analyst at Lehman Brothers. More prescriptions were written for Johnson & Johnson (nyse: JNJ - news - people ) drugs in April and May than Gruber had expected, and that could push per-share sales up as much as a penny. Remicade, an arthritis treatment, should continue its “explosive” growth, Gruber says. He also thinks there may be a rebound on sales of anti-infectant Levaquin, after disappointing sales of $256 million last quarter. Risperdal, drug used to treat schizophrenia, seems to be holding its own against competition from Pfizer’s (nyse: PFE - news - people ) more expensive new drug, Geodon. Procrit, a blockbuster anemia treatment, continues to grow, helped by the delayed approval of a competing drug being developed by Amgen (nasdaq: AMGN - news - people ), which originally developed Procrit but licensed it to Johnson & Johnson. The Amgen pharmaceutical, called Aranesp, may not be approved for a year, says Mara Goldstein, analyst at CIBC World Markets. More : forbes.com |