GMAB - Johnson & Johnson posts Q2 beat as Pharma MedTech outperform

2023-07-20 07:07:34 ET

Johnson & Johnson ( NYSE: JNJ ) added ~2% in the pre-market Thursday after the pharma giant exceeded Wall Street forecasts with its Q2 2023 results, thanks mainly to better-than-expected results from its Pharmaceutical and MedTech segments.

The New Brunswick, New Jersey-based healthcare giant also raised the midpoints of its 2023 full-year guidance, excluding sales of its COVID-19 vaccine.

In June, the FDA revoked the emergency use authorization granted for Johnson & Johnson's ( JNJ ) COVID vaccine based on the manufacturer's request.

For 2023, Johnson & Johnson ( JNJ ) projects $97.9B-$98.9B in revenue and $10.70-$10.80 in adjusted earnings per share, compared to $98.91B and  $10.65 in the consensus, respectively.

"We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation," CEO Joaquin Duato remarked.

The company split its consumer business as Kenvue in May through an IPO, and as the next step of the spinoff, JNJ said it intends to "split off" Kenvue shares through an exchange offer.

JNJ’s MedTech segment was a notable outperformer during the quarter, as the division brought in ~$7.8B in sales exceeding the consensus, with a ~13% YoY growth compared to a ~1% YoY decline in the prior-year period.

Its operational sales grew ~15% YoY, as the company’s recent acquisition of Abiomed contributed 4.8% growth during the quarter.

Meanwhile, JNJ’s pharma division also exceeded forecasts, recording ~$13.7B sales with ~3% YoY growth driven by drugs such as multiple myeloma therapy Darzalex, marketed with Genmab ( GMAB ), and cancer cell therapy Carvykti, marketed with Legend Biotech ( LEGN ).

Best seller Stelara, indicated for immune-mediated inflammatory disorders, brought in $2.8B in sales, while the company’s COVID-19 vaccine added $285M in sales, ahead of the consensus.

Consumer Health reported $4.0B in sales with ~5% YoY growth, mainly due to over-the-counter (OTC) products including Tylenol and smoking cessation products.

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• Johnson & Johnson: Q2 Earnings Will Satisfy Market, But May Mask Wider Issues
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