Johnson & Johnson on Tuesday lifted its earnings and sales outlook for 2016. The company also posted its financial results for the second quarter above consensus forecast, mainly driven by strength in its prescription drugs segment. The company’s shares hit a new 52-week high of $125.75 following the news.
High demand for J&J’s Xarelto blood thinner and Imbruvica cancer drug drove pharmaceutical sales, which climbed 8.9 percent to $8.7 billion in the latest quarter. Sales of autoimmune drug Remicade, the company’s biggest product, jumped 6.7 percent to $1.78 billion.
The diversified healthcare products maker lifted its sales guidance to a range of $71.5 billion to $72.2 billion for 2016, as compared to its previous forecast in between $71.2 billion and $71.9 billion.
Chief Executive Officer, Alex Gorsky said the company anticipates sales to increase at a faster rate as compared to the global healthcare market, which it expects growing by 3 percent to 5 percent per annum over the next five years.
J&J also lifted its adjusted profit forecast to a range of $6.63 per share to $6.73 per share, from $6.53 per share to $6.68 per share.
Shareholders have been worried about potential competition to Remicade in the U.S. Earlier this year, U.S regulators approved Inflectra, a low-priced version developed by Celltrion and Pfizer. However, a patent fight between J&J and Celltrion has postponed its introduction.
The company said that worldwide device sales increased about 1 percent to $6.4 billion in the second quarter, helped by strong demand for its advanced surgery products.
Overall revenue for the quarter jumped 3.9 percent to $18.5 billion. Earnings for the quarter dropped to $3.997 billion, or $1.43 per share, versus $4.516 billion, or $1.61 per share. Adjusted profit was $1.74 per share.
Analysts were looking for a profit of $1.68 per share on $17.98 billion in revenue.