Please login to the form below

Not currently logged in
Email:
Password:

J&J falling drug sales offset by medical devices

US firm playing a game of brinkmanship as deadline for improved offer for Guidant approaches

Johnson & Johnson (J&J) has seen US sales of prescription drugs fall, despite recording a 79 per cent increase in profit for the fourth quarter.

The US healthcare firm, which is embroiled in a bidding war with Boston Scientific for medical device maker Guidant, had net income of $2.18bn, or 73 cents a share, compared with $1.22bn, or 41 cents a share, a year earlier.

ìThe year 2005 was a solid one for Johnson & Johnson, despite significant challenges,î said chairman and CEO William Weldon. ìWe delivered excellent full-year earnings results, while continuing to make the major investments that will fuel future growth.î

Sales of US prescription drugs in 2005 fell 10.2 per cent to $3.57bn, down from $3.98bn the previous year, weaker on increased generic competition to pain patch, Duragesic, and safety concerns over heart-failure drug, Natrecor and anaemia drug Procrit.

However, international sales of prescription drugs actually rose 2.6 per cent to $1.9bn from $1.86bn the previous year.

Growth in J&J's medical devices and diagnostics unit offset the weaker demand for prescription drugs, with worldwide sales rising 13.1 per cent to $19.1bn in 2005, helped by strong sales of the Cypher stent.

At the time of writing, Weldon had until midnight tonight (Tuesday) to respond to Boston Scientific's offer to pay $27bn, or $80 a share in cash and shares, for Guidant, which trumped J&J's $24.2bn offer. On Friday, proxy advisers at Institutional Shareholder Services recommended Guidant investors reject the J&J bid.

The Guidant board had earlier accepted the J&J bid over Boston Scientific's even though it was smaller, on the basis that had cleared an antitrust review and would therefore be completed much more quickly.

30th September 2008

Share

PMEA Awards 2020

COVID-19 Updates and Daily News

Featured jobs

PMHub

Add my company
Impetus Digital

Impetus Digital has offered virtual advisory boards, clinical trial investigator consortiums, co-author publication working groups, steering committees, and medical education...

Latest intelligence

What’s in it for me? How to engage, motivate and support staff with internal training at OPEN Health
...
Environmental impact of in-person vs. virtual meetings
Although it will be tempting to resume in-person activities in the same capacity as before, we need to weigh the pros and cons of virtual vs. in-person vs. hybrid events...
US biosimilars
The US celebrates five years of biosimilars on the market – a look to the past, present and future
Why the success of biosimilars in the US has been mixed...

Infographics