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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