Pharma - J&J Q2'20 Earning

Full Year Guidance

Full year operational sales guidance is $81 billion to $82.5 billion, or minus 1.3% to a positive 0.5%.

Adjusted earnings per share guidance ranging from $7.75 to $7.95, a range of minus 10.7% to minus 8.4%.

J&J anticipates strong EPS growth in 2021 on an operational basis given some of the dynamics at play in 2020.

Q2'20 Performance

Worldwide sales were $18.3 billion for the second quarter of 2020, a decrease of 10.8% versus the second quarter of 2019.

Net earnings were $3.6 billion and diluted earnings per share was $1.36 versus diluted earnings per share of $2.08 a year ago.

Revenue segment

1. Worldwide pharmaceutical sales of $10.8 billion grew 3.9%. Sales grew in the US by 5.8% and outside the US by 1.4%. 

2. Worldwide consumer health sales totaled $3.3 billion, declining 3.6%, with operational growth in the US of 1.3% and a decline outside the US of 7.4%. Growth was negatively impacted by COVID-19, driven by delayed diagnosis and slower new patient starts due to office closures and access to physician-administered drugs as well as the phasing impact of stocking in the first quarter.

3. Worldwide medical devices sales were $4.3 billion, declining by 32.7% due to the negative impact of COVID-19 restricting elective procedures across all regions. Sales declined in the US by 39.6% and declined 26.4% outside the US Given the negative impact of COVID-19 across all platforms,

Pharmaceutical Details

1. Oncology

Oncology portfolio delivered another strong quarter with worldwide growth of 5.7%.

DARZALEX continued its strong performance, growing 18.8% globally.

IMBRUVICA grew 17% globally, driven largely by market share gains and strong market growth.

IMBRUVICA growth year to date is strong at over 25% as IMBRUVICA remains the best-in-class BTK inhibitor and is the new and total patient share leader in CLL line one, CLL line two-plus, and MCL line two-plus. 

2. Immunology

Year to date, immunology growth is 7.9% worldwide and US growth is 5.1%. 

STELARA growth of about 10% was driven by continued share gains in Crohn's disease with about a seven-point share increase in the US and growth from the recently approved ulcerative colitis indication. 

On a year-to-date basis, STELARA growth remains strong at about 20% globally. 

TREMFYA, the first-in-class market-leading IL-23 inhibitor therapy, grew 46% globally and achieved roughly a 10% share of the psoriasis market in the US, which is up about three points from the second quarter of 2019. Sales growth was partially offset by continued erosion of REMICADE of about 14% from share loss due to alternative mechanisms of action and biosimilars.

3. Neuroscience 

Paliperidone long-acting portfolio performed well, growing almost 9%, led by double-digit US growth of 13.8% due to market growth in the US, along with share gains for INVEGA SUSTENNA and INVEGA TRINZA.