Johnson & Johnson posted profit that was higher than had been expected and increased its forecast for the full year as the company was help by strong sales of its new drugs for cancer.
J&J shares, which are part of the Dow Jones industrial average, moved 1.3% higher during Tuesday morning trading before the opening bell.
Higher demand for Darzalex and Imbruvica, its drugs for blood cancer, and an addition of treatments of high-margin for rare diseases from its acquisition of $30 billion of Actelion should boost earnings for J&J in the quarters ahead.
The pharmaceutical business of the company posted a rise of 15.4% in its sales during the just completed third quarter.
One analyst said he is convinced that the company’s pharma pipeline continues to be robust and even more significant contributions will start after 2017.
However, sales of Remicade the company’s rheumatoid arthritis treatment were down during the just completed quarter as J&J faces increased threats from copycat versions of its blockbuster drug.
J&J, which makes almost everything from Neutrogena beauty products to Band-Aids, said it results had included the impact from its acquisition for the first full quarter of Actelion, which added almost 8% to the growth worldwide of operational sales.
J&J increased its profit forecast for 2017 to between $7.25 and $7.30 a share from its previous range of between $7.12 and $7.22 a share.
The forecast for revenue is $76.1 billion to $76.5 billion, in comparison to an outlook released earlier of between $75.8 billion and $76.1 billion.
Total J&J revenue increased by 10.2% and finished at $19.65 billion.
Nevertheless, the net earnings for the company were dropped to end the quarter at $3.76 billion equal to $1.37 a share, from last year’s same quarter of $4.27 billion equal to $1.53 a share.
Excluding certain items, J&J posted earnings per share of $1.90.
Analyst on an average were expecting the company to posted adjusted profit of just over $1.80 a share with revenues coming in at $19.27 billion for its most recently ended quarter.
J&J stock has increased from January 1 of 2017 to the close of business on Monday October 16, by over 18% while the SPDR Healthcare Select Sector has increased by 19% during the same span and the Dow Jones has advanced by over 16.2%.