Johnson & Johnson beat first-quarter profit estimates on Tuesday and raised its 2023 profit forecast, as it banks on its newer cancer treatments and multiple myeloma drug Darzalex to soften the blow from declining demand for older drugs.
Shares rose over 2% in premarket trading.
Darzalex and newer cancer therapies including Carvykti and Tecvayli are key to the company achieving its goal of about $60 billion in drug sales by 2025 as older treatments such as Crohn's disease drug Stelara face impending competition.
Consumer Health Business
The company, which is spinning off its consumer health business, swung to a loss of 3 cents per share for the first quarter due to a one-time charge related to the second bankruptcy filing for its talc liabilities.
J&J has said it would take a charge of $6.9 billion related to the bankruptcy.
The company reported sales of $2.44 billion for its blockbuster drug Stelara for the first quarter. Analysts had expected sales of $2.41 billion for the drug, according to two analysts polled by Refinitiv.
J&J reported sales of $2.44 billion for Stelara, compared with estimates of $2.41 billion.
Growth in the company's pharmaceutical business has for years been driven by its blockbuster drugs such as Stelara and older cancer drug Imbruvica.
Stelara is set to lose exclusivity in the US by late 2023, while Imbruvica is facing fierce competition.
On an adjusted basis, the drugmaker posted first-quarter earnings of $2.68 per share, beating estimates of $2.50, helped by strong sales across its businesses, including medical devices and consumer health.
The healthcare conglomerate now expects to earn between $10.60 and $10.70 per share on an adjusted basis this year, compared with its prior forecast of between $10.45 and $10.65.
Analysts were expecting a profit of $10.51 per share, according to Refinitiv data.