Vestact-recommended pharma giant Johnson & Johnson (J&J) reported better-than-expected third-quarter numbers on Tuesday thanks to strong demand from its prescription drug unit. Revenues for the quarter were $23.79 billion, up 1.9% year-on-year and topping estimates. On the other hand, the management team remains concerned about the strong US Dollar and inflation.
The biggest grower was anti-cancer drug Darzalex which delivered sales of $2.05 billion for the quarter, up 30%. The medical devices unit reported a 2.1% increase in sales to $6.78 billion as demand for contact lenses and wound-closure products improved.
J&J is still going ahead with the separation of its consumer-health business from its prescription-drug and medical devices units. The name Kenvue has been chosen for the business to be spun off. It will house some of the most famous brands in consumer health, including BAND-AID, Listerine, Neutrogena and Tylenol.
"The company continues to show strength and resilience across all three units," said CEO, Joaquin Duato. The J&J share price has held up quite nicely in 2022 on a relative basis. It is during times like these that you enjoy the benefits of a defensive, steadfast and immovable company in a portfolio.