Johnson & Johnson net earnings jumps by 22.4% in 2008

Source: Pharmabiz

Johnson & Johnson (J&J) has generated higher net profit of US$ 12,949 million during the year ended 2008 as against $10,576 million in the previous year, a strong growth of 22.4 per cent. The net earnings include special items related to in-process research and development charges of $181 million and an after-tax gain of $229 million representing the net impact of litigation settlements in the fourth quarter. With improvement in profitability, the earning per share improved to $4.57 from $3.63 in the preceding year.

The company's sales increased only by 4.3 per cent to $63,747 million from $61,095 million. Worldwide pharmaceutical sales declined by 1.2 per cent to $24,567 million from $24,866 million in the previous year. Sales results reflect the strong performance of Velcade, a treatment for multiple myeloma; Remicade, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; Risperdal Consta, an antipsychotic medication; and Topamax, an antiepileptic and treatment for the prevention of migraine headaches. Sales results of Risperdal were negatively impacted by generic competition and sales of Procrit were lower due to a decline in the market.

Worldwide, the medical devices and diagnostics segment achieved annual sales of $23.1 billion in 2008, representing a growth of 6.4 per cent.

J&J's sales in US declined slightly to $32,309 million during 2008 from $32,444 million in the previous year. However, its international sales improved by 9.7 per cent to $31,438 million from $28,651 million. Its sales in Europe increased by 7.3 per cent to $16,782 per cent and in Asia-Pacific and Africa improved by 13.9 per cent to $9,483 million.

William C Weldon, chairman and CEO, said, "I am extremely proud of J&J's accomplishments in 2008 and the way our people met our commitments. We delivered solid earnings growth and made significant progress in our research pipeline while continuing to invest in the future growth of our business. I am confident that we are well positioned for continued leadership and growth in health care." The company projected earning per share of $4.45 to 4.55 for the year 2009.