Company said the stent will be introduced soon, but only 2 of 3 manufacturing plants are approved at this point. Not good news, although a solvable problem. The earnings were a penny ahead of expectations at on in-line revenues. The weak dollar was a major source of growth for the company, boosting revenue growth by 4.2% to 12.3% reported. Real growth was somewhat lighter than expected (8.1%), particularly in overseas pharmaceuticals. The penny upside in the quarter came from Other Income and a slightly lower than expected tax rate.
Pharmaceutical revenues grew 10.3% domestically, which was in-line, and 14.3% internationally, which was substantially below the 23% forecast. Excluding currency, Pharmaceuticals grew 1.7% internationally and 7.8% worldwide. Procrit sales were weak, both in the U.S. and overseas. U.S. revenues grew just 5% on a relatively easy comparison. International revenues were down 9%, despite currency. Risperdal sales were also light domestically, down 1% for the quarter, reflecting the recent launch of Bristol Myer's Abilify.
Medical Devices & Diagnostics was largely in-line with expectations. Cordis was a soft spot, up 14% versus last year, reflecting share losses for the BX Velocity as it awaits US launch of the Cypher stent. The company said it expects Cypher approval shortly, and that it is specifically awaiting approval of the company's third and final manufacturing facility.
Consumer revenues were notably strong in the quarter, making the Consumer segment the company's fastest growing of the company's three divisions. The Wound Care line benefitted from First Aid kits and other supplies that it appears went to the war in Iraq.
Good post. The large decrease in international pharma sales was probably attributed to the EPREX decline. With the decline mainly in the CRF market not the onocology market, perhaps this decline will subside.
I think sales of Risperdal will pick up with the introduction of consta and also the new M-tab available on the market.
J&J has definite potential to move up with the introduction of Cypher. I anticipate larger than normal sales volume of the new product once approval is achieved. Many physicians are probably putting off procedures in anticipation of the cypher's availability.
Procrit vs. Aranesp. Seems the firm may be entering into a price war on this product. Not very good news since price wars usually kill product margins. Will wait and see on the effects of this issue.