Johnson & Johnson (NYSE:JNJ) is the largest healthcare company in the world, but that hasn't stopped the pharma giant from encountering headwinds. It is currently involved in a slew of legal challenges, including lawsuits by consumers claiming that the company's talcum powder (which allegedly contained asbestos) caused their cancer. In October 2019, Johnson & Johnson lost a lawsuit and was ordered to pay $37.2 million in punitive damages to four plaintiffs.
Given its recent troubles, the company had a chance to ease investors' fears when it released its earnings report on Jan. 22. And although Johnson & Johnson failed to knock it out of the park, the company performed well enough to prevent a sell-off. In particular, it showed off its greatest strength: diversification.
Image source: Getty Images.
During the fourth quarter, net sales were $20.8 billion, an unimpressive 1.7% increase year over year and below the consensus analyst estimate. But the company's $4 billion net earnings grew by 31.8% versus the year-ago period, and its $1.88 adjusted earnings per share came in slightly ahead of the consensus analyst estimates.
Johnson & Johnson's medical devices segment posted revenue of $6.63 billion, a 0.5% year-over-year decrease. Meanwhile, the company's consumer segment, which sells over-the-counter medical products, posted revenue of $3.57 billion, 0.9% higher than the prior-year quarter.
The pharmaceuticals segment generated $10.5 billion in sales, 3.5% higher than the year-ago period.Johnson & Johnson has been dealing with declining sales of several of its key pharmaceutical products. The rheumatoid arthritis drug Remicade reported $1 billion in sales, down from $1.2 billion in the prior-year quarter. Also, the prostate cancer medicine Zytiga, which has been facing competition from biosimilars, generated $677 million in sales, a 13.8% year-over-year decline.
Fortunately, Johnson & Johnson's portfolio of pharmaceutical drugs is rich and diverse, and other products performed well enough to offset the declining sales of some of its top products. Sales of the cancer drug Imbruvica increased by 24.5% to $875 million, and revenue from Darzalex (for blood cancer multiple myeloma) increased by 42.1% to $830 million. Sales of immunology drugs Stelara and Tremfya grew by 17.7% and 53.9%, respectively.
There was more good news for some of Johnson & Johnson's top pharmaceutical products. During the fourth quarter, Darzalex was approved in Europe for the treatment of multiple myeloma for certain patients. And the Food and Drug Administration recently approved Stelara for the treatment of moderately to severely active ulcerative colitis, a chronic inflammatory disease that affects about 910,000 patients in the U.S. With these two approvals, sales of Darzalex and Stelara will likely keep growing.
In addition to its rich portfolio of products, Johnson & Johnson boasts a rich pipeline, and the company likely has more approvals on the way. During the fourth quarter, it submitted a marketing authorization application to the European Medicines Agency (EMA) for a vaccine regimen for the prevention of ebola virus disease. The company also submitted an application to the EMA for Tremfya as a treatment for active psoriatic arthritis.
Johnson & Johnson's other regulatory submissions during the fourth quarter included Spravato as a treatment for major depressive disorder in Europe, and Imbruvica as a treatment for active chronic lymphocytic leukemia (in combination with another drug called rituximab that treats certain cancers).
The company's late-stage pipeline also includes more than a dozen new products, or existing products seeking new indications.
Johnson & Johnson is an excellent option for investors looking for companies with the versatility to handle a market downturn. It has a hand in three different segments within the healthcare industry, and the pharmaceutical segment is diversified as well. On the other hand, Johnson & Johnson probably won't outperform the market.
Over the past five years, the company's shares climbed by 46.15%, whereas the S&P 500 is up by 61.43% over the same period. In other words, whether you should buy shares of Johnson & Johnson depends on your priorities and investing style. Conservative investors will likely love it, whereas growth-oriented investors might have to look elsewhere.
Visit link:
In a Mixed Quarter, Johnson & Johnson Shows Off Its Greatest Strength - The Motley Fool
- GW Pharma Reports Preliminary Topline Results Of Ulcerative Colitis Trial - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis: Facts on Symptoms, Treatment and Diet - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis - National Digestive Diseases ... - October 15th, 2014 [October 15th, 2014]
- CCFA: What is Ulcerative Colitis | Inflammatory Bowel Disease - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis: Get Facts on Symptoms and Diet - October 15th, 2014 [October 15th, 2014]
- Ulcerative colitis - Wikipedia, the free encyclopedia - October 15th, 2014 [October 15th, 2014]
- Ulcerative Colitis Testimonial - Video - October 15th, 2014 [October 15th, 2014]
- My Fight With Ulcerative Colitis - Video - October 15th, 2014 [October 15th, 2014]
- Diet in Ulcerative Colitis - Best and Worst Foods - Video - October 15th, 2014 [October 15th, 2014]
- Why Ulcerative Colitis is (Literally) a Pain in the Butt - Video - October 15th, 2014 [October 15th, 2014]
- My Journey= Ulcerative Colitis Proctitis PART 1 - Video - October 15th, 2014 [October 15th, 2014]
- Top 15 Ways to Cure Ulcerative Colitis Naturally - Diet & Home Remedies - Video - October 15th, 2014 [October 15th, 2014]
- Updates in Ulcerative Colitis & Crohn's disease - October 17th, 2014 [October 17th, 2014]
- Ulcerative colitis Symptoms - Diseases and Conditions ... - October 17th, 2014 [October 17th, 2014]
- Dr. Morse Explains Ulcerative Colitis and Intestinal Conditions - Video - October 20th, 2014 [October 20th, 2014]
- Depression Stress Anxiety IBS Colitis Arthritis Treatment Allergy Testing Reiki Healing Scotland W - Video - October 20th, 2014 [October 20th, 2014]
- Taylor Healing process - Video - October 20th, 2014 [October 20th, 2014]
- Treating Pediatric Inflammatory Bowel Disease - Video - October 20th, 2014 [October 20th, 2014]
- Take Steps Walk for Crohn's and Colitis - Video - October 21st, 2014 [October 21st, 2014]
- Ulcerative Colitis & Me - Video - October 21st, 2014 [October 21st, 2014]
- Ferring Pharmaceuticals: CORTIMENT MMX, a new treatment for ulcerative colitis, receives European approval - October 22nd, 2014 [October 22nd, 2014]
- Sleep duration affects risk for ulcerative colitis - October 22nd, 2014 [October 22nd, 2014]
- My Journey= Ulcerative Colitis Proctitis PART#3 - Video - October 23rd, 2014 [October 23rd, 2014]
- Added benefit of vedolizumab is not proven - October 24th, 2014 [October 24th, 2014]
- My Journey= Ulcerative Colitis Proctitis PART#2 - Video - October 24th, 2014 [October 24th, 2014]
- Why Food Network Star Sunny Anderson Can't Eat Vegetables - October 24th, 2014 [October 24th, 2014]
- New compounds reduce debilitating inflammation - October 26th, 2014 [October 26th, 2014]
- Sleep Duration Linked to Ulcerative Colitis Risk in Study - October 27th, 2014 [October 27th, 2014]
- Ulcerative colitis: MedlinePlus Medical Encyclopedia - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - American Society of Colon and Rectal ... - October 27th, 2014 [October 27th, 2014]
- NHS Ulcerative Colitis - NHS Choices - Your health, your ... - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - October 27th, 2014 [October 27th, 2014]
- How to heal intestines | Ulcerative Colitis | SCD Lifestyle - Video - October 27th, 2014 [October 27th, 2014]
- Ulcerative Colitis - Causes, Symptoms, Diet & Herbal Remedies in Punjabi - Video - October 27th, 2014 [October 27th, 2014]
- Receptos: good results for ulcerative colitis drug - October 29th, 2014 [October 29th, 2014]
- Should I Drink Alcohol if I Have Crohn's Disease or Ulcerative Colitis - Video - October 29th, 2014 [October 29th, 2014]
- New clinical trial data: Multiple sclerosis drug candidate also shows promise for ulcerative colitis - October 30th, 2014 [October 30th, 2014]
- TSRI's MS Drug Also Shows Promise In Ulcerative Colitis - November 1st, 2014 [November 1st, 2014]
- Justin Mirigliani repping 260lbs on the Bench! Never Surrender! Fighting Ulcerative Colitis! - Video - November 1st, 2014 [November 1st, 2014]
- Managing Ulcerative Colitis Naturally: Outlook & Perspective - Video - November 1st, 2014 [November 1st, 2014]
- My Ulcerative Colitis Diet - Video - November 1st, 2014 [November 1st, 2014]
- Healing my Ulcerative Colitis - Video - November 2nd, 2014 [November 2nd, 2014]
- Peoria Connections Interview - Successes with autoimmune disease, ADHD, ulcerative colitis - Video - November 2nd, 2014 [November 2nd, 2014]
- Crohns Disease & Ulcerative Colitis The Diagnosing Difficulties - Video - November 2nd, 2014 [November 2nd, 2014]
- My Ulcerative Colitis Story - Video - November 3rd, 2014 [November 3rd, 2014]
- Pudge Rodriguez will be special guest at Crohns and Colitis Foundation dinner - November 4th, 2014 [November 4th, 2014]
- Diagnosing Crohns Disease & Ulcerative Colitis - Video - November 4th, 2014 [November 4th, 2014]
- Natural Treatment for Ulcerative Colitis with Causes and Symptoms - Video - November 5th, 2014 [November 5th, 2014]
- Acute Severe Ulcerative Colitis - Video - November 5th, 2014 [November 5th, 2014]
- CME Outfitters and USF Health to Host Medical Symposium in Conjunction with the 2014 Advances in IBD Crohns & Colitis ... - November 7th, 2014 [November 7th, 2014]
- How sleep affects my Ulcerative Colitis Symptoms - Video - November 7th, 2014 [November 7th, 2014]
- Healing my Ulcerative Colitis Webcam video from November 4, 2014 05:49 PM - Video - November 7th, 2014 [November 7th, 2014]
- Managing Extra-Intestinal Manifestations of Crohn's Disease & Ulcerative Colitis - Video - November 7th, 2014 [November 7th, 2014]
- Causes and Treatment of Crohns Disease and Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- How to stop the Cause of IBS, Crohn's and Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- Introduction to Ulcerative Colitis - Video - November 8th, 2014 [November 8th, 2014]
- Ulcerative Colitis Dr Tehsina0 - Video - November 8th, 2014 [November 8th, 2014]
- Taking Steps Against Crohn's and Colitis - November 9th, 2014 [November 9th, 2014]
- How To Make Chicken 3 Ways + Gut Healing Bone Broth - by Thyroid Loving Care - Video - November 10th, 2014 [November 10th, 2014]
- Ileal Pouch - Anal Anastomosis in Chronic Ulcerative Colitis - Video - November 10th, 2014 [November 10th, 2014]
- Vlog #1 - November 10 2014 - Video - November 11th, 2014 [November 11th, 2014]
- Ulcerative Colitis Patient Success Story - Video - November 11th, 2014 [November 11th, 2014]
- How to Recover from Ulcerative Colitis - Video - November 12th, 2014 [November 12th, 2014]
- Vlog #2 - November 11, 2014 - Living with Ulcerative Colitis - Video - November 13th, 2014 [November 13th, 2014]
- How IBD (Crohn's Disease and Ulcerative Colitis) Affects Mental Health - Video - November 15th, 2014 [November 15th, 2014]
- Ulcerative Colitis Got Me Down - Video - November 15th, 2014 [November 15th, 2014]
- Surgeon Spotlight: Dr. Amit Merchea - Chronic Ulcerative Colitis - Video - November 16th, 2014 [November 16th, 2014]
- Ulcerative Colitis Proctitis: Doctor Update, Medications - Video - November 16th, 2014 [November 16th, 2014]
- Ulcerative Colitis Got You Down Too? - Video - November 16th, 2014 [November 16th, 2014]
- Management of ulcerative colitis - Wikipedia, the free ... - November 17th, 2014 [November 17th, 2014]
- IBD Support Group: Crohn's Disease and Ulcerative Colitis - November 17th, 2014 [November 17th, 2014]
- Crohn's Disease, Ulcerative Colitis and the Team Challenge endurance training program - Video - November 17th, 2014 [November 17th, 2014]
- Let's CRUSH Ulcerative Colitis LIke a Coke Can - Video - November 19th, 2014 [November 19th, 2014]
- 21 Weeks Pregnant Update! - Ultrasound & Ulcerative Colitis - Video - November 20th, 2014 [November 20th, 2014]
- Healing my Ulcerative Colitis Webcam video from November 17, 2014 02:48 PM - Video - November 20th, 2014 [November 20th, 2014]
- Is Crohns Disease or Ulcerative Colitis Hereditary? - Video - November 22nd, 2014 [November 22nd, 2014]
- Celebrity chef Sunny Anderson on living with irritable bowel disease - November 23rd, 2014 [November 23rd, 2014]
- 13 Years with Ulcerative Colitis - Video - November 26th, 2014 [November 26th, 2014]
- Mark: Healed of Ulcerative Colitis - Video - November 26th, 2014 [November 26th, 2014]
- Colonoscopy of Ulcerative Colitis - Video - November 30th, 2014 [November 30th, 2014]