Johnson & Johnson has today forecast 2023 profit above Wall Street estimates, banking on demand for its cancer drugs such as Darzalex and the strength in its medical devices business.
J&J recently spun off its consumer health unit to focus on drugs and medical devices.
It has placed huge bets on its newer cancer drugs, while trying to bolster growth at its pandemic-hit medical devices business.
It is also looking to counter a potential slowdown in sales of its blockbuster arthritis drug, Stelara, which faces the threat of competition in 2025.
Recovery in demand for medical procedures, which were delayed during the Covid pandemic and were also hurt by hospital staffing shortages last year, helped sales at J&J's medical device unit during the quarter.
Quarterly sales of its multiple myeloma drug, Darzalex, were $2.43 billion, in line with Wall Street estimates, according to Refinitiv.
Stelara also met analysts' expectations with sales of $2.8 billion in the quarter.
Second-quarter sales for its medical device unit were $7.79 billion, topping estimates of $7.55 billion.
J&J said it now expects adjusted 2023 profit of $10.70 to $10.80 per share, above estimates of $10.65 per share and above its prior forecast of $10.60 to $10.70 per share.
The drugmaker also posted better-than-expected second-quarter earnings of $2.80 per share, compared with analysts' expectations of $2.62.
J&J's said it plans to "split off" the shares that it currently holds of its consumer health unit, Kenvue, through an exchange offer as part of its separation plan.
Kenvue also forecast full-year profit above Wall Street estimates today.
J&J also sued the US government earlier this week seeking to block a programme that gives the Medicare government health insurance plan the power to negotiate lower drug prices.
