Strong medical technology business leads to profit growth at Johnson & Johnson (J&J)

Strong medical technology business leads to profit growth at Johnson & Johnson (J&J)

The pharmaceutical and medical technology group Johnson & Johnson (J&J) recorded billions in profit in the first quarter, mainly due to a strong medical technology business. The Americans exceeded analysts' expectations, primarily due to improved business with cancer drugs. Despite the positive quarterly results, management limited its forecasts for the current year, which had a negative impact on J&J shares, which fell 2.15 percent to $144.42.

Compared to the previous year, Johnson & Johnson recorded a significant increase in profits of a good $5.35 billion after taxes. In the same period, sales rose by 2.3 percent to almost $21.4 billion. For the current year, the company is planning sales growth of at least 5.5 to 6.0 percent to up to $89.1 billion. Adjusted earnings per share are now estimated at at least $10.60 to $10.75, an increase from previous guidance.

Last year, Johnson & Johnson divested itself of its consumer products business and spun it off under the Kenvue name to focus on higher-margin products. The company is facing challenges as patent protection for the psoriasis drug Stelara is about to expire in Europe, which could increase competition from generics. Stelara is one of the group's most important revenue drivers.

Johnson & Johnson's future remains dependent on various market factors, particularly the development of new drugs and technologies. Despite the positive quarterly results and the adjusted outlook for the current year, the company remains in a dynamic and highly competitive market environment.