The New Brunswick company earned net income of $4.37 billion, or $1.60 per share, down from $4.42 billion, or $1.61 per share, in 2017’s first quarter
Much-higher spending and one-time charges offset a 12.6 percent jump in health care giant Johnson & Johnson’s first-quarter revenue, trimming its profit by 1.2 percent, but the results still beat Wall Street expectations.
The maker of baby products, medical devices and blockbuster immune disorder drug Remicade on Tuesday reported revenue of $20.01 billion, topping analyst projections for $19.48 billion. Sales across J&J’s three business segments all posted healthy gains.
The New Brunswick company earned net income of $4.37 billion, or $1.60 per share, down from $4.42 billion, or $1.61 per share, in 2017’s first quarter.
Excluding $1 billion in write-downs on the value of assets and $300 million in other one-time charges, adjusted income came to $5.64 billion, or $2.06, a nickel better than expected.
“Our pharmaceutical business continues to deliver robust growth and we are pleased with the improvement in our consumer business,” Johnson & Johnson Chairman and Chief Executive Alex Gorsky said in a statement.
“The U.S. tax legislation passed late last year is creating the opportunity for us to invest more than $30 billion in (research and development) and capital investments in the U.S. over the next four years,” an increase of 15 percent, Gorsky added.
In the first quarter, J&J increased spending on research and development by 16 percent, while spending on production jumped 22 percent and spending on marketing and administration rose nearly 11 percent.
Marketing and production costs were higher partly because of the launch of its new severe psoriasis drug, Tremfya, approved last summer. The company also had another medicine, Erleada for prostate cancer, approved on Feb. 14.
The world’s biggest maker of health care products said overseas sales jumped 20 percent, buoyed by favorable currency …read more
Source:: New Jersey Real -Time News