Johnson & Johnson (J&J) today said its third-quarter profit rose almost 14 per cent on higher sales of prescription drugs, but US sales of medical devices slipped on competition from a rival heart device.
The New Brunswick, New Jersey-based company raised its earnings forecast for 2004, predicting profit growth of almost 16 per cent from last year, based upon overall sales trends and a tax rate at the low end of earlier expectations.
Chief Financial Officer Mr Robert Darretta told industry analysts he expects J&J to earn between $3.05 and $3.07 per share in 2004, up from his earlier forecast of $3.03.
But Mr Darretta cautioned that earnings growth will slow in 2005 as the company faces a number of challenges, including generic competition for its Duragesic skin patch for pain.
Shares rose 0.5 per cent in morning trading.
J&J reported a third-quarter profit of $2.35 billion, or 78 cents per share, compared with $2.07 billion, or 69 cents per share, in the year-ago period.
Global sales of prescription medicines rose 13.4 per cent in the quarter to $5.5 billion, helped by growing demand for treatments for schizophrenia, pain, epilepsy and arthritis. But sales of anemia medicine Procrit continued to slide amid competition from Amgen Inc.'s longer-acting Aranesp.
Drug sales would have risen only 11 per cent if not for favorable foreign exchange factors.