Irvine, California – Johnson & Johnson’s medical technology division has seen a surge in demand for its devices used in surgeries, orthopedics, and vision care. This increased demand is attributed to older adults resuming nonurgent surgeries they had postponed during the Covid-19 pandemic. Health insurers like Humana, UnitedHealth Group, and Elevance Health have noted this uptick in demand.
In the first quarter of 2024, Johnson & Johnson reported adjusted earnings per share of $2.71, surpassing Wall Street’s expectations of $2.64. The company also reported revenue of $21.38 billion, slightly below the expected $21.4 billion. These financial results are closely watched as an indicator of the broader health sector’s performance.
Total sales for Johnson & Johnson in the first three months of 2024 amounted to $21.38 billion, up over 2% from the same period in 2023. The pharmaceutical giant reported a net income of $5.35 billion during the quarter, with adjusted earnings per share of $2.20. This marks a stark contrast from the net loss of $491 million, or 19 cents per share, reported in the year-earlier period due to costs related to talc baby powder liabilities and the spinoff of the consumer health unit Kenvue.
Johnson & Johnson has revised its full-year sales guidance, now anticipating revenue between $88 billion to $88.4 billion. Additionally, the company adjusted its earnings per share guidance to $10.57 to $10.72. The upward adjustments reflect the company’s confidence in its financial performance for the year ahead.
Expanding into the cardiovascular space, Johnson & Johnson recently completed a $13.1 billion acquisition of Shockwave Medical, contributing to its growth in four key cardiovascular technology categories. With previous acquisitions of Abiomed and Laminar, the company aims to strengthen its medical devices business following the separation from its consumer health unit last year.
In the pharmaceutical sector, Johnson & Johnson’s first-quarter sales reached $13.56 billion, with a notable increase of almost 7% excluding Covid vaccine sales. The company credited the growth to products like Darzalex and Erleada, which are used in the treatment of multiple myeloma and prostate cancer, respectively. Meanwhile, sales of flagship drug Stelara remained relatively flat, facing competition from biosimilar alternatives entering the market due to patent expirations.
Amid ongoing legal challenges related to asbestos contamination in its talc-based products, Johnson & Johnson continues to address lawsuits claiming links to ovarian cancer. The company agreed to a $700 million settlement to resolve an investigation by several states, yet legal proceedings are expected to continue. Despite these challenges, Johnson & Johnson remains focused on its core business operations and maintaining financial stability.