Johnson & Johnson (NYSE: JNJ) reported a higher-than-expected quarterly profit and raised its full-year forecast as the company gained from strong sales of its new cancer drugs.
Higher demand for its blood cancer drugs, Darzalex and Imbruvica, and the addition of high-margin treatments for rare diseases from its $30-billion acquisition of Actelion are expected to boost the company's earnings in the coming quarters.
The company's pharmaceutical business posted a 15.4% rise in sales in the third quarter.
"We are convinced that the pharma pipeline remains robust and more meaningful contributions will kick in beyond 2017," Joshua Jennings from Cowen & Co. wrote in a client note.
However, sales of J&J's rheumatoid arthritis drug, Remicade, slipped in the latest quarter as the company faces rising threats from copycat versions of the blockbuster drug.
The company, which makes everything from Band-Aids to Neutrogena beauty products, said its results included the impact of the first full quarter of the acquisition of Actelion, which added 7.9% to worldwide operational sales growth.
J&J raised its 2017 profit forecast to a range of $7.25 to $7.30 per share from a range of $7.12 to $7.22 per share estimated previously. Revenue forecast is expected to range between $76.1 billion and $76.5 billion, compared with its earlier outlook of $75.8 billion of $76.1 billion.
Total revenue rose 10.3 percent to $19.65 billion.
However, the company's net earnings fell to $3.76 billion, or $1.37 per share, in the quarter from $4.27 billion, or $1.53 per share, a year earlier.
Stock prices tumbled 38 cents to $140.41
