Monday, October 15, 2012

Johnson & Johnson (NYSE:JNJ) to provide clarity on prescription drug business on Tuesday

Johnson & Johnson (NYSE:JNJ) is expected to provide some clarity on its prescription-drug business on Tuesday when it will be announcing its third quarter results.

The company has been seeing some manufacturing problems of late and last July it had unexpectedly lowered its profit forecasts for the year citing the effect of unfavourable currency movements.

The company is expected to focus on its pharma business, including sales trends for its hepatitis C treatment Incivo and other new medicines and give updates about its progress on drugs development.

Investors and analysts will be paying closer attention to what Chief Financial officer Dominic Caruso has to say about the company's financials for the rest of the year.

Last quarter the company's net income dropped by half due to litigation and other charges.

Caruso said he expected earnings per share of $5 to $5.07 excluding one-time items, down about a nickel from his April forecast, and revenue of about $67 billion for the year.

Johnson & Johnson has recalled more than 30 products since September 2009 due to quality issues with the drugs, most of which were non-prescription.

It has been facing problems related to quality and contamination especially with regard to its cancer drug Doxil, manufacture of which was shut down in November last year.

The company has trying to resume production of the drug since patients who have been on medication have been left in the lurch.

Johnson & Johnson is also in the process of seeking U.S. FDA approval for two new drugs, Zytiga for prostate cancer and anticlotting pill Xarelto.

Shares of the company ended higher by 0.93% to $68.60 in Monday’s session.

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