Johnson and Johnson’s Growing Pharmacy Business a Concern for the Group

Published Date : Apr 15, 2015

The first quarter of the Johnson and Johnson company earnings was unexpectedly good in spite of the rising dollar value. From a reliable company source, the first quarter is reported to be EPS US$ 1.56 which was US$ 1.54 in the same quarter last year. And for the same period the revenue has dropped from US$ 18.1 billion to US$ 17.4 billion.

Johnson and Johnson outlook and mergers and acquisitions activity were recently analyzed by Barbara Ryan from Clermont Partners. As per Barbara, the strong pharmaceutical business at Johnson and Johnson has been driving the company business.

There is concern among people regarding this as it goes forward, although competition exists for Hepatitis C. There are also concerns regarding the drug Remicade that accounts for about 15% of the company’s business which is also related to patent disputes and biosimilars. Pfizer and other companies in the U.S seem to be benefitting from the whole scenario that is seen in immune-oncology.

Speaking on the Merger and Acquisition activity of Johnson and Johnson, Ryan commented it is a successful year for the company. Though Johnson and Johnson lost its bid for Pharmacyclics Inc. to AbbVie Inc., it seems to be a great collaboration for the two companies in pursuit of getting into the market.

Ryan further added people have been speculating at the US$ 20 billion that Johnson and Johnson have in cash. The company sold Cordis to focus on the areas of slower growth, and low operating margins of the group.