Strong demand for cancer drugs boosts Johnson & Johnson

America’s Johnson & Johnson, the world’s largest healthcare company, narrowly beat analysts' forecasts after strong demand for its cancer drugs bolstered third-quarter sales.

Revenues were $20.3bn, a 3.6% increase on the same period last year, while adjusted earnings per share were $1.44 and net earnings $3.9bn. Analysts had been looking for sales nearer to $20bn.

Alex Gorsky, chairman and chief executive, said the numbers reflected “continued above-market growth in our pharmaceutical business, accelerating sales momentum in our consumer business and consistent progress in our medical devices business.”

The pharmaceutical business reported third-quarter sales of $10.3bn, against $9.7bn in 2017.

Driving sales were strong performances from Zytiga, a treatment for prostate cancer, and Imbruvica, which targets lymph node cancers, among other drugs. The success of the cancer drugs helped offset falling sales of Johnson & Johnson’s blockbuster drug Remicade. The treatment, for rheumatoid arthritis, is facing increased competition and worldwide sales fell 16.3% to $1.38bn.

In the consumer unit, sales were ahead 1.8% at $3.4bn, helped in part by a revamp of its iconic baby brand; US baby care sales were up 20% at $120m. Sales of medical devices were largely flat at $6.6bn.

Gorsky said the company’s “unique, broad-based business model and strategic investments in innovation” left it well-positioned for the future. Sales guidance for 2018 is now expected to be in the range of $81bn to $81.4bn.