Johnson & Johnson (NYSE:JNJ), the world's biggest healthcare company that's been squeezed by generic competition, reports third-quarter earnings Tuesday morning. Alex Gorsky, worldwide chairman of medical devices and diagnostics; Dominic Caruso, vice president of finance and CFO; and Louise Mehrotra, VP of investor relations, will speak about the report
via Webcast at 8:30 a.m. ET.
J&J, which posted steady sales and profit increases for years, has faced several quarters of declining revenue. Last quarter, it missed out on more than $1 billion in sales as generics challenged its top two drugs -- anti-psychotic drug Risperdal and epilepsy medication Topamax. Those patent losses are expected to hurt J&J's earnings again this quarter.
But New Brunswick, N.J.-based J&J has some hope in that area. The 123-year-old pharmaceutical, medical devices and consumer packaged goods manufacturer could have another blockbuster in the pipeline with new blood thinner Xarelto, which is awaiting approval in the U.S. Also, as The Wall Street journal
reports, sales of rheumatoid arthritis drug Remicade are expected to increase. The drug is co-marketed with Schering-Plough Corp. (NYSE:SGP), which is
merging with Merck & Co. (NYSE:MRK). Schering has most of the rights for foreign sales of Remicade and its successor drug Simponi, but the merger prompted J&J to seek those rights.
J&J is also using deals to look for the next big drug. Riding a
trend of oncology deals, J&J
acquired Cougar Biotechnology Inc., a development-stage biopharmaceutical company with a specific focus on oncology, for about $970 million in cash. That deal was completed in July. It also bought 18% of Dutch biotech Crucell NV for $444 million and 18% of Dublin-based Elan Corp. (NYSE:ELN) for about $1 billion. In July, J&J
teamed up with Gilead Sciences Inc. (NASDAQ:GILD) to develop a once-daily pill for treating HIV, the virus that causes AIDs.
J&J's a diversified company as well, with products that are household names, such as Band-Aid. In January, J&J completed its $1.07 billion
cash acquisition of Santa Barbara, Calif.-based Mentor Corp., which provides breast augmentation and other surgical procedures such as liposuction.
J&J's dealmaking prowess is what put it on our contender list for Most Admired Corporate Dealmakers in the pharma, biotech and life sciences sector. See the other competitors and take the survey at
www.TheDeal.com/CDsurvey. -
Baz HiralalSee the complete list of pharmaceuticals, biotech and life sciences companies
| Johnson & Johnson |
| Acquisitions |
Date |
Target |
Acquirer |
Deal value ($mill.) |
5/21/09 |
Cougar Biotechnology Inc. |
Johnson & Johnson |
$915 |
12/1/08 |
Mentor Corp. |
Ethicon Inc.
(Parent: Johnson & Johnson) |
1,113 |
7/30/08 |
Beijing Dabao Cosmetics Co. Ltd. |
Johnson & Johnson (China) Investment Co. Ltd. |
300 |
6/11/08 |
Immunicon Corp.
(substantially all assets) |
Veridex LLC
(Parent: Johnson & Johnson) |
33 |
11/16/06 |
Conor Medsystems LLC |
Johnson & Johnson |
1,295 |
6/26/06 |
Pfizer Consumer Healthcare Ltd. |
Johnson & Johnson |
16,600 |
1/31/06 |
FMS Future Medical System SA |
Cilag Holding AG
(Parent: Johnson & Johnson) |
76 |
| Total |
$20,332 |
| |
| Divestitures |
Date |
Target |
Seller |
Deal value ($mill.) |
8/10/07 |
DePuy France SAS
(Chaumont, France, manufacturing facility) |
DePuy France SAS
(Parent: Johnson & Johnson) |
$27 |
3/15/07 |
Johnson & Johnson Pacific Pty Ltd.
(pharmaceutical products in Australia and New Zealand) |
Johnson & Johnson Pacific Pty. Ltd.
(Parent: Johnson & Johnson) |
3 |
10/5/06 |
Johnson & Johnson, Five Brands |
Johnson & Johnson |
410 |
| Total |
$440 |
|
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